Interior Designer Insurance: Cost, Coverage & Providers
Nancy Fernandez is a Credit Card and Insurance Expert at Fit Small Business, specializing in business credit cards and business insurance.
Interior designer insurance is a business owner’s policy (BOP) that offers affordable coverage for property damage and personal injury, with costs averaging $1,500 annually. Interior designers should also consider professional liability coverage, with minimum costs at $1,200 per year, as well as commercial auto insurance ranging from $1,000 to $4,500 per year.
The Hartford is an extremely reputable company that offers insurance specially structured to meet the individual needs of interior designers and decorators. If you want a policy to cover your small business, The Hartford can help you package coverages in a BOP so that you get the right coverage at the right price. Visit The Hartford today to get a quote in only a few minutes.
How Interior Designer Insurance Works
Interior designers can’t just buy one interior design insurance policy that provides all the coverage they need. However, they can bundle multiple types of essential policies into a BOP. Many insurers that offer BOPs will also allow supplementary add-ons, such as professional liability coverage and commercial auto insurance so that interior designers can get comprehensive protection in one policy.
Buying bundled coverage is not only convenient but also provides cost savings in most cases. Interior designers will need to find the right provider that offers all the protection they need for different risks. This includes the possibility they’ll be sued or the potential that their office space, vehicle, or other property will sustain damage.
Cost of Interior Designer Insurance
The cost of insurance for interior decorators and designers will depend on the specific coverage you need. Typically, the average annual costs for a BOP are $500 to $2,500 for $1 million in coverage while a professional liability policy costs around $1,200 for $1 million in protection. Commercial auto insurance costs between $1,000 and $4,500 per year.
Insurance Type | Annual Premium Cost | Deductible |
|---|---|---|
BOP | $500 to $2,500 | $0 to $500 |
Professional Liability Insurance | $1,200 to $2,500 | $500 to $1,000 |
Commercial Auto Insurance | $1,000 to $4,500 | $500 |
Workers’ Compensation | $550 to $3,000 | $0 |
Cyber Liability Insurance | $600 to $4,000 | $0 |
Many different factors affect the amount you pay for coverage, including:
- Your credibility and years of experience in the industry: Professional liability coverage is much less costly if you’re an experienced interior designer with no history of claims. If you’re either just starting out or you’ve been sued before, you can expect to pay more.
- The number of employees or vehicles you’re insuring: Workers’ compensation coverage becomes more costly if you have more workers while commercial auto insurance is more expensive if you have multiple work vehicles or expensive work vehicles.
- The value of your property: If you have a very expensive design studio with, for example, several antique furnishings that you showcase to your prospective clients, you’ll need much more coverage for property damage. This will mean paying higher premiums to get additional protection.
Tip: Since you need different types of insurance coverage, you will pay more if you get your policies from different providers, so it’s best to find an insurance provider or broker that can meet all of your needs. Insurers that offer bundled coverage can provide insurance at a more competitive price. Not only will this save you money, but it can also simplify things if you need to file a claim.
Types of Insurance for Interior Designers and Decorators
A BOP provides two important protections for designers: protection in case of property damage and protection from lawsuits. Because many designers hire employees, workers’ compensation coverage may be needed. Commercial auto insurance protects a designer while traveling to clients or stores, and professional liability coverage is there in case a designer is sued for providing advice.
Most Common Types of Insurance for Interior Designers and Decorators
Type of Insurance | What It Covers |
|---|---|
BOP | Property damage and general liability |
Professional Liability Insurance | Liability based on professional failures |
Commercial Auto Insurance | Damage to work vehicles or lawsuits arising from accidents in work vehicles |
Workers’ Compensation Insurance | Injury to employees of a design firm |
BOP
Every designer likely needs a BOP because this policy is the most affordable way to get two kinds of coverage: general liability coverage and property damage coverage.
A BOP provides coverage in the following situations:
- The commercial general liability coverage included in a BOP will protect a designer whose client trips in the design studio and sprains an ankle. It provides coverage for any lawsuits arising from injury or property damage the designer causes.
- If there’s a fire in the design studio that destroys furnishings stored for clients, property damage coverage pays for both repairs of the space and replacement of the furniture.
All designers face at least some risk of someone being injured on their premises or sustaining damage to property, except in rare cases where designers never meet with clients in person and have no valuable items or real estate. This means that a BOP is an important buy for almost all designers.
Professional Liability Insurance
Interior designers provide professional services. The Bureau of Labor Statistics indicates some states officially licensed interior designers before they can advertise themselves as such.
If you give bad advice by recommending a floor that’s easily damaged, and you are subsequently sued by the homeowner, a professional liability insurance policy would cover the legal costs.
Designers could be sued for:
- Projects that go over budget.
- Advice that doesn’t work out
- Mistakes in measuring that add additional costs
- Failing to complete a project on time or on budget
Professional liability insurance, also called errors and omissions insurance, pays for legal defense costs and any judgments or settlements arising out of lawsuits from professional misconduct. This type of insurance covers claims where professionals make mistakes or are negligent while providing expert advice to clients. Getting this coverage is essential to making sure that interior designers are protected from lawsuits and defense costs.
Tip: Insurers consider the risk of a claim when you get professional liability insurance. So, having a long and established history of success as an interior designer will increase your chances of getting the best coverage. A minimum of three years of working experience can help you get affordable rates for professional liability insurance.
Commercial Auto Insurance
When driving personal or work vehicles to clients’ homes, chances are your personal auto insurance won’t cover you because of policy exclusions for commercial driving. You’ll need commercial auto insurance to protect yourself from liability and to protect your property.
Designers and decorators often drive to visit clients, look at furniture or samples, and see spaces in need of decor. They may even transport materials or furniture to a client’s home. Accidents can happen any time a designer is driving, and commercial auto insurance pays for damage to vehicles and lawsuits arising from a collision.
If you never drive for work and no one at your company uses a work vehicle, commercial auto insurance won’t be necessary. However, you don’t want to go uncovered or count on your own auto insurance if you do any driving for your job.
Workers’ Compensation Insurance
Designers may employ support staff like a receptionist to set appointments or movers to help transport furniture and materials. If you have people who work for you, you need workers’ compensation insurance.
Not only does workers’ compensation insurance protect you and your employees by providing medical and disability benefits in the event of a workplace injury, but you may also be required to have coverage. States have differing rules, and most states mandate that you buy a policy—although some locations won’t require workers’ compensation unless you employ several workers.
If you don’t have employees, you won’t need workers’ compensation. However, if you’ve incorporated your business and hired yourself as an employee, it’s possible you may need coverage for yourself if your state law mandates it.
Other Types of Insurance for Interior Designers
If you keep your clients’ records on your computer or use expensive software as part of your design process, you may consider obtaining cyber liability insurance. This policy protects you from lawsuits when a data breach happens. Cyber liability insurance for interior designers costs between $1,000 and $7,500 a year.
Meanwhile, if you oversee projects on top of providing advice on interior design, then consider getting contractor’s insurance. Some states like Connecticut require contractor’s insurance for major contractors working on large residential, commercial, and industrial projects. You should note that purchasing contractor’s insurance will add costs, as builder’s risk insurance alone could run you from 1% to 4% of the project’s construction costs.
Top Interior Design Insurance Providers
Provider | Best For |
|---|---|
Convenience and cost efficiency when buying bundled coverage | |
Interior designers who want fast, specialized liability insurance | |
Getting affordable coverage from the only policy tailored specifically to interior designers | |
Fast approval for design firms of all sizes thanks to in-house underwriting | |
Small interior design firms looking for quotes within 15 minutes |
The Hartford
The Hartford is one of the leading insurance providers that offers policies nationwide. With its reputation for continuous innovation, The Hartford has built various policies that are not only affordable but also provide more coverage options than its competitors.
The Hartford is unique in that it makes buying bundled coverage as easy as possible thanks to its Spectrum Business Owners’ Policy. With The Hartford’s Spectrum Business Owners’ Policy, interior designers can get a broad range of optional coverage, increased policy limits, blanket limits ranging from $50,000 to $500,000 for all coverage, and higher limits when you increase your tier level within the Spectrum options—also referred to as your Stretch level.
Hiscox
As a small business insurance specialist, Hiscox understands the unique risks faced by clients like interior designers. This knowledge allows Hiscox to provide customized policies built around specific coverage needs. Moreover, interior designers can pay their annual premiums in monthly installments at no additional charge. Quotes are available online after you complete a brief no-obligation application.
ASID Insurance
No one knows the needs of interior designers better than the American Society of Interior Designers (ASID). ASID has teamed up with The Insurance Exchange to create insurance products tailored to protect its members. If you want coverage from the foremost industry experts and products at an unmatchable price, opt for ASID Insurance.
Veracity
If you have a large or small design firm that needs coverage and you want the quickest possible approval process, Veracity is a great choice. Veracity has binding authority with top-rated insurance carriers, and its unique in-house underwriting process means that you can get covered faster while still getting the benefit of shopping around.
Insureon
Insureon is focused on small businesses and is the ideal choice for small interior design firms seeking the maximum number of quotes. With Insureon, you’ll fill out one application in around 10 minutes to find options from multiple providers. An agent with extensive small business experience helps you decide which policy is right for you.
Bottom Line
Working as an interior designer may not seem like a high-risk profession, but there’s potential for substantial financial loss if something goes wrong and you don’t have the right coverage. When you buy bundled coverage from an insurer that protects against all losses you face due to work you perform, you’ll have the peace of mind of knowing your design business is safe even if disaster strikes.
If you’re an interior decorator or designer and want to make sure you have the right insurance, be sure to visit The Hartford. With The Hartford, you can get a BOP that will provide the right coverage to meet your individual needs. Visit The Hartford to get a quote for your small business insurance in minutes.
