Interior Design Insurance Policy Information
Interior Design Insurance. Interior decorators and designers work with residential or commercial clients to plan the design of an interior space, room, group of rooms, or an entire building. The design may focus on aesthetics, functionality or both. It may be purely decorative or include practical elements such as ergonomics.
The interior decorator may determine the color, style, and location of furnishings, floor coverings, lighting, walls, wallpaper, window treatments and woodwork. Some assist clients with selecting paintings or other decorative artwork. Interior decorators may arrange the purchase of furnishings, materials, and accessories needed to complete the project.
Some may have significant values in storage in commercial or industrial buildings, while others function as sales representatives for suppliers. Interior decorators often need to know about construction techniques and be able to work with engineers and architects to meet local, state, and federal codes and regulations, such as those needed to properly locate stairways and exits.
You work hard as an interior designer to revamp the look of your clients' spaces, but with each interaction you have with your clientele, you put yourself at risk of financial disaster. Today's society is nothing if not litigious, and having the right interior design insurance in place is paramount to running a successful interior design business. Whether you work out of a retail space, design studio, office or your own home, you need to have the right coverage in the right amount in place at all times. A trusted agent can help you determine how much and what types of coverage you need, but the tips below can also help.
Interior design insurance protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
How Much Does Interior Design Insurance Cost?
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.
Risks Faced by Interior Designers
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
- Weather events
- Breach in cyber security
- Work-related motor vehicle accidents
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.
Professional Liability CoverageGeneral liability coverage is not enough for the interior designer. You should also take out professional liability coverage. 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 errors.
Interior Decorater's And Designer's Risks & Exposures
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7389 Business Services, NEC
- NAICS CODE: 541410 Interior Design Services
- Suggested ISO General Liability Code(s): 49840, 96611
- Suggested Workers Compensation Code(s): 8742, 9521
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.
As you can see, interior design insurance is a complex insurance product. Work with your agent to determine the amounts and types of coverage that will work best with your particular business structure.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Disc Jockey DJ
- Event Planning
- Film Production
- Interior Decorator
- Interior Design
- Photo Booth
Commercial insurance policies for arts, entertainment and recreation are specialized policies that protect against the unique risks that arts and recreation businesses face.
Performing artists and companies, entertainers including musical groups, theatre groups, comedians and more, writers, performers, photographers, videographers, DJ's and so many other types.
Professional liability coverage (errors and omissions) is needed in these cases to protect their financial interests due to mistakes, errors or omissions by these professionals in doing their jobs. Fr example - a bride and groom did not like the way their wedding photos turned out.
Or a wedding planner might plan a lavish wedding, but the bride's parents who are paying for it did not like the way it went. There is a lot of gray areas with arts, and you need to be protected if your clients don't agree with you that your work was what the agreed to.
If your business is involved with children, you need to review your coverages very carefully so certain important protections are not excluded. Abuse and molestation insurance might be needed to fully protect yourself in this instance.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.