Buy Interior Design Insurance

Interior designer insurance is a type of insurance coverage specifically designed for interior designers to protect their business and personal assets from financial loss. This coverage typically includes liability insurance, professional liability insurance, property insurance, and business interruption insurance.

Liability insurance protects the designer from lawsuits resulting from damage to a client's property, while professional liability insurance protects against errors and omissions in the design work.

Property insurance covers damage to the designer's own equipment, materials, and office space, while business interruption insurance protects against lost income in the event of a covered interruption.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small interior design firms ranges from $27 to $39 per month based on location, type of services offered, sales and experience.

No matter where you conduct your business, you face a variety of different perils that can lead to harm for your business' future. Interior design insurance help protect against the following:

• Injuries at your workplace such as slips, falls, and trips
• Employee or vendor injuries
• Damage to property belonging to another
• Professional mistakes
• Negligence
• Weather events
• Vandalism
• Fire
• Breach in cyber security
• Work-related motor vehicle accidents

General liability coverage is not enough for the interior designer. You should also take out professional liability coverage.

Also known as errors and omissions insurance, this type of coverage protects you in the event that you do not provide the type of professional service expected of you, such as when you make a mistake in your duties, fail to finish a project to specifications, measure inaccurately when fitting a home with expensive carpeting or drapes, or other potential negligent errors.

Business Owners' Policies (BOPs) For Interior Designers

The BOP is a bundle of insurance products (often at a discount) that provides essential coverage without buying multiple policies. This convenient type of policy is designed especially for the small interior design businesses, but not all are eligible. When deciding whether to write a BOP policy for you, insurers look at an array of factors, such as:

• Liability limits needed
• Business type
• Business property size
• Off-site activity of the business and its owners

If your business qualifies for a BOP policy, the premium you will pay for coverage is based on your business' location, the financial prowess and stability of your business, the security features your business has in place, the type of construction that houses your business, and any apparent hazards, such as fire or falling hazards.

Property coverage provides valuable protection for your business, including the structure where you do business and any contents inside the business, such as office furniture, computers, design samples and material, fixtures, furnishings, office equipment and drafting tables.

This includes both leased and owned items, and the interior design insurance policy reimburses the business for any lost or damaged property when the loss results from a covered peril, such as storms, lightning and other weather-related events, vandalism, theft, and more.

BOP policies may also include business interruption coverage. This important coverage repays the business for any income loss that arises from a covered event under your policy. This includes income for operating expenses or for relocating the business after an event such as a tornado or fire.

Liability coverage is a type of interior design insurance that pays out money for claims of property damage or bodily injury during covered accidents or other events. For instance, if a client falls on your premises and becomes injured or an employee damages property belonging to your client, then the policy has you covered.

If you face a lawsuit, the liability coverage will also usually pay the cost of hiring an attorney to represent you in court as well as any judgement or settlement rendered against you or your business. Depending on the policy, it may also pay claims resulting from purported slander or libel or advertising liability claims against your business.

Premises liability exposures are generally limited at the interior decorator's office due to lack of public access. If there is a showroom or retail sales, customers may slip and fall over displays. If the decorator acts as a general contractor and hires subcontractors on behalf of the client, the liability exposure increases. Poorly written contracts can result in liability hazards not anticipated for this classification.

Workers compensation exposure is generally limited to an office. Workstations should be ergonomically designed to prevent repetitive motion injuries such as carpal tunnel syndrome. If there is delivery of goods or installation of furnishings or wallcoverings, workers can incur hernias, sprains and strains from lifting, be injured in automobile accidents, by falling objects, cuts, falls, and awkward positions. If the interior decorator hires subcontractors, the workers compensation exposure increases unless all subcontractors carry their own insurance.

Property exposures may be limited to an office, but some will have storage or sales of furniture, home furnishings, and wallpaper. Electrical wiring should meet current codes for the occupancy. Fire can occur from overheating or malfunctioning of equipment.

Property in storage facilities can be damaged by fire, smoke and water. Flammables kept on site should be properly labeled, separated and stored. Storage facilities can be targeted by thieves. Appropriate security controls should be taken including an alarm system that reports directly to a central station or the police department.

Crime exposures are from employee dishonesty. Background checks, including criminal history, should be performed on all employees handling money. All ordering, billing and disbursement should be handled as separate duties with reconciliations occurring regularly. Physical inventories and annual audits should be conducted.

Inland marine exposures may include accounts receivables if the interior decorator offers credit to clients, audio and visual equipment used for presentations, computers for office use, contractors' equipment and tools, fine arts, goods offsite, in transit or at exhibitions, salespersons' samples, and valuable papers and records for clients' and suppliers' information.

There may be a bailees' exposure if the interior decorator purchases items on behalf of a client and stores or transports goods until delivered and installed. Clear documentation of ownership is important. There may occasionally be an installation exposure. Decorative items and furnishings may be expensive and targets for theft. They may be highly susceptible to breakage, marring or scratching, smoke, temperature change, or water damage.

Appropriate security controls should be taken including an alarm system that reports directly to a central station or the police department. Professional packers may be used to reduce the potential for breakage and theft losses while the items are in transit.

Business auto exposure is generally limited to driving to and from clients' premises. If the interior decorator delivers goods, the exposure increases. MVRs for drivers must be run on a regular basis. Random drug and alcohol testing should be conducted. Vehicles must be well maintained with records kept in a central location.

Other Coverage Types to Consider

In addition, your interior design coverage should include cyber liability insurance, especially if much of your business is conducted online. This coverage protects the business if any of your customer's sensitive information becomes targeted by cyber attackers who retrieve things like credit cards numbers from your files.

Buying a commercial auto policy is important too when you use your vehicle in the course of doing business or if you own a business vehicle. Be sure to cover both owned and non-owned vehicles with an adequate amount of auto insurance.

Additional Interior Designer Insurance Coverage Types

• Commercial umbrella policies. These policies protect your business from claims in excess of your business insurance's declared limits.
• Flood insurance. This is an important policy if your business lies in a declared flood zone.
• Worker's compensation. Most states require that you maintain this coverage on any employees.
• Employment practices policies. Guard yourself against claims of discrimination or wrongful termination with this type of policy.

There are several reasons why interior designers may face legal action or be sued, including:

Design errors or omissions: If an interior designer makes a mistake in their design or leaves out important details, such as structural or safety issues, they can be held liable if their client suffers injury or damage as a result.

Breach of contract: Interior designers may be sued for breach of contract if they fail to fulfill their obligations as specified in their contract with a client, such as delivering work that is of poor quality, not completing work on time, or going over budget.

Copyright infringement: If an interior designer uses copyrighted material without permission, such as images or designs, they may be sued for copyright infringement.

Misrepresentation: If an interior designer makes false claims or misrepresents their abilities or services, they may be sued for fraud or misrepresentation.

To protect against these risks, interior designers can purchase professional liability insurance, also known as errors and omissions (E&O) insurance. This insurance can help cover the costs of legal defense and damages in the event of a lawsuit.

For example, if an interior designer is sued for design errors or omissions, their E&O insurance can help pay for legal fees and any damages awarded to the plaintiff. If an interior designer is sued for breach of contract, their E&O insurance can help cover the costs of legal defense and any damages awarded to the plaintiff, up to the policy limit. If an interior designer is sued for copyright infringement, their E&O insurance can help cover legal defense costs and damages up to the policy limit. And if an interior designer is sued for misrepresentation, their E&O insurance can help pay for legal fees and damages awarded to the plaintiff.

In addition to E&O insurance, interior designers may also choose to purchase general liability insurance, which can help cover the costs of property damage or bodily injury that occurs on their premises or as a result of their work. This can provide further protection against lawsuits and legal expenses.