Interior design insurance is any policy or combination of policies that protect your business from financial loss from a claim of negligence or other types of loss like a fire. The primary policy for an interior designer is professional liability, followed by general liability and first-property coverage, like inland marine and commercial property. Professional liability insurance for an interior designer can range from $694 to $1,875 annually.
Simply Business is a digital marketplace that works with top-rated providers. It lets you customize quotes in real time, compare coverages from different providers, and purchase a policy online without speaking to anyone—all within 10 minutes.
The total cost you will end up paying for a policy takes many things into consideration, the most basic of which we discuss later on. The quotes used to calculate the following estimates were for a two-person limited liability company (LLC) interior design company with a yearly revenue of approximately $250,000.
Insurance Type
Estimated Annual Premium
Coverage Amount
Deductible
Professional Liability
$694-$1,875
$1 million per occurrence and aggregate
$500 to $1,000
General Liability
$291-$2,500
$1 million per occurrence and $2 million aggregate
No deductible
Inland Marine
$72-$180
$2,500 to $5,000
$500 to $1,000
Business Owner’s Policy
$1,315-$2,790
$1 million per occurrence and $2 million aggregate for liability and $25,000 for business property
$1,000
Cyber Liability
$348-$1,000
$250,000 limit
$10,000
When insurers calculate premiums, there are many different factors that affect the amount you pay for coverage.
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 are just starting out or have been sued, then you can expect to pay more.
Number of employees: Workers’ compensation coverage becomes more costly if you have more workers. The cost is even higher if you have a history of workers’ compensation claims.
Value of the property: If you have a very expensive design studio with, for example, a lot of antique furnishings that you showcase to your prospective clients, you’ll need much more coverage for property damage. This will consequently mean paying higher premiums for additional protection.
Geographic region: Believe it or not, the ZIP code where your business is located also impacts the cost of insurance. The regional weather, inherent risks of the area, and local laws can all impact the premium.
Annual revenue: Your business’ anticipated revenue will have a bearing on your premium. Revenue is indicative of how many clients you have and, thus, the risk exposure for the carrier. It also helps insurers forecast the potential cost of loss of income claims.
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Types of Insurance Coverage for Interior Designers
Because there is no one specific policy for interior designers, you will need to consider several different types of coverage and then choose which ones best suit the needs of your business.
Type of Insurance
What It Covers
Professional Liability
Accusations that your service or advice led to financial harm or loss
General Liability
Third-party coverage for bodily injury, property damage, or personal and advertising injury
Commercial Property
First-party coverage for furniture and equipment you own at a specific location
Inland Marine
Tools and equipment that you use at job sites
Business Owner’s Policy
Combination of general liability and commercial property insurance, usually with business lost income coverage included
Cyber Liability
Data breach restoration, notification, and related expenses
Workers’ Compensation
Wage replacement and medical costs for employees who become injured or ill from their job
Interior designers provide professional services, so professional liability insurance—also called errors & omissions insurance—is a service-based liability coverage they’ll need. Professional liability extends into the area of advice or intangible elements of your business that lead to some form of harm to the customer.
If you give bad advice by recommending a floor that’s easily damaged or the wrong type of paint for a moist bathroom, a professional liability insurance policy will help investigate the claim and handle defense costs. Or, if you measure a space incorrectly and the customer then has custom-built furniture that does not fit in the space, this is a loss that falls under professional liability insurance.
Many professional liability policies come with a retroactive date. When getting a quote, a provider will even ask you for the date if you already have this coverage. This date sets a limit on how far back in time you can file a claim for a loss. This matters because if the loss happens before the retroactive date, the policy will not provide coverage.
General liability insurance, or CGL, is the most common type of liability insurance. While professional liability is important, most interior designers should consider purchasing CGL, too, as professional liability is narrower in its coverage scope, whereas CGL is quite broad.
Coverage comes in multiple categories: it protects your business from claims that, as a result of negligence, someone was injured, had property damaged, or suffered reputational harm. For instance, if it is raining outside and someone who enters your office slips, falls, and is injured, then you can file a general liability claim for their injuries.
Another reason to consider general liability is because it offers coverage for premises you rent. If your business rents an office space and it ends up damaged in some way because of your business, general liability has coverage for that, too.
Commercial property is a first-party coverage for your equipment and furniture located at a specific location. If you are renting an office space but own the furniture and equipment, such as computers, inside of the rented space, then you should consider this coverage.
There are different types of property coverages that are specific types of commercial property insurance. So, even if commercial property doesn’t fit your specific business, that doesn’t mean there isn’t another one, like inland marine, that is right for you.
Usually, providers insure the property you own only at a listed location. If you have equipment that you take to job sites or remove from your office location regularly, then look into inland marine insurance. It is specifically designed to provide coverage that travels with the listed items. However, review the value of your equipment versus the actual premium, plus deductible, to determine if this coverage is necessary.
A business owner’s policy, or BOP, is a combination of two to three coverages, namely general liability, commercial property, and usually lost income due to a business interruption. If you own an office with furniture, this is a coverage worth considering, as the commercial property portion of the BOP provides first-party coverage for buildings, structures, and contents.
Typically, a BOP is more cost-effective than purchasing all the policies separately. It also gives you the convenience of having one policy with one provider for multiple coverages.
In a world where businesses work more and more online, cyber liability insurance is increasingly a key coverage. If you handle even a part of your business online or store important information about your customers online, you’ll want to look into purchasing this.
Cyber liability has a first- and third-party component and primarily helps with the costs associated with a data breach, including the investigation, response, and notification of impacted parties. This can include attorney fees, fines and penalties, and settlements or judgments against your business.
If you have at least one employee, you will need to look into whether workers’ comp is required for your business; most states have some requirements for this type of coverage. If an employee is injured or becomes ill because of their employment, workers’ comp provides wage replacement assistance, medical bill assistance, and, in some cases, legal protection for the employer.
Curious what your state’s required threshold is for workers’ comp? We’ve done the work for you to find when workers’ comp is required in your state.
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State
Workers’ Compensation Requirements
State Website
Alabama
Coverage is required for businesses with five or more employees (part-time or full-time).
Required for any business with one or more employees. Casual employees who make less than $1,500 during 12 consecutive months prior to an injury are exempt.
Each state has a link to the corresponding government agency that oversees workers’ comp. Double-check the requirements at the link provided in case a state law has changed since publication.
Best Interior Design Insurance Providers
After researching options available for interior designers, we found the five best providers for interior design insurance.
Simply Business: Best overall interior design insurance provider
Works with 16 top-rated providers to bring you affordable coverage, letting you compare quotes in real time
Allows you to modify quotes by adjusting limits and deductibles and then get near-instant updates on the cost of purchasing insurance
Enables you to purchase insurance online without speaking to anyone, but if you do want some advice, there are dedicated agents available to speak with you about interior design insurance
Financial stability: Simply Business is owned by Travelers, which has a rating of A++ (Superior) from AM Best.
The Hartford: Best for Bundling Coverage
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Standout Features
Bundles coverages to save money and gives you the option to have all of your policies with one carrier (i.e., lost income is included with its BOP), making it great for interior designers
Has developed a custom professional liability policy for interior designers that can help with mistakes like exceeding a budget
Has strong marks in customer service from reviews by customers, along with an absence of registered complaints
Offers professional liability, general liability, property, workers’ comp, and auto insurance for interior designers.
Financial stability: The Hartford has proven its financial stability over the centuries of its existence. It has a rating of A+ (Superior) from AM Best.
Hiscox: Best for Cyber Liability
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Standout Features
Allows you to get a quote and purchase insurance online for same-day coverage, as it’s a dedicated small business insurer with an easy online buying experience
Offers professional liability, general liability, and workers’ comp; also has coverage for contracts for interior designers
Releases annual reports on cybersecurity issues and provides cybersecurity risk management tools, like CyberClear Academy™ or the software platform Paladin Shield—making Hiscox an excellent option for any designer who needs cyber insurance
Insures interior designers who only offer design services and even those who build out the vision for their clients; it’s a great provider for businesses working with subcontractors or in any sort of construction field
Tailors policies to the specific risks associated with construction and installation, and its certificate of insurance (COI) analyzer makes it incredibly easy and quick to amend a policy with an additional insured and provide proof of insurance
Has an app on Android or iOS that functions like a call center where you can manage your policy, file a claim, make a payment, and get and share a COI for any contractors you’re working with during installation
Financial stability: Founded only a few years ago, Next has already created a stable financial position. It is rated A- (Excellent) by AM Best.
biBERK: Best for Quick Savings
Standout Features
Offers savings of 20% by bypassing brokers and working as a direct-to-consumer company with multiple payment installment plans to fit your budget
Has several options for paying your policy: you can do 10% down payment and then 10 monthly payments, 25% down payment and then 3 payments, or pay in full
Offers a fast quote system and has same-day coverage that you can purchase online, making it great for an interior designer looking to save and get quick coverage
Financial stability: As a member of the Berkshire Hathaway Insurance Group, biBERK is in a strong financial position. It has a rating of A++ (Superior) from AM Best.
Frequently Asked Questions (FAQs)
What kind of insurance does an interior designer need?
Interior designers need general liability, professional liability, and some type of property coverage, like inland marine. From there, coverages will depend on the size of your business. For example, if you employ several employees, you will likely be required to offer workers’ comp for your employees.
How much does interior design insurance cost?
Costs will vary depending on the size of your business, but professional liability annual premiums can range from $694 to $1,875 and general liability costs can go from $291 to $2,500.
Do I need a COI as an interior designer?
This will depend on what type of work your company performs. If you oversee installations on a new build or a redesign, then you can expect the general contractor to request a COI.
Bottom Line
While working as an interior designer may not seem like a high-risk profession, the potential remains for substantial loss if something goes wrong, like a fire at your office or a failure to satisfy the contract on a project. Having the right coverage can bring interior peace to your mind, helping you concentrate on creating the ideal space for your customers.
As an online broker, Simply Business is a one-stop shop for your interior designer insurance needs. In 10 minutes or less, it can offer multiple quotes to compare and then the option to purchase the right policy for your business.
Nathan Weller is a licensed insurance adjuster, with more than a decade of experience in commercial insurance. He has helped build a claims department at an insurance start-up, and currently advises small business owners about insurance topics. In between his time working at different insurance carriers, he spent 8 years running a small, non-profit organization. Nathan understands small business pain points alongside the complexities of insurance.
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