Interior designer insurance is a Business Owner’s Policy that offers affordable coverage for property damage and personal injury, with costs averaging $1,200 per year. Interior designers should also consider professional liability coverage, which costs about $1,735 per year, as well as commercial auto insurance at a cost of $750 – $1,200 per vehicle.
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 Business Owner’s Policy to get the right coverage at the right price. Visit The Hartford today to get a quote in just a few minutes.
How Insurance for Interior Designers 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 in a Business Owner’s Policy. Many insurers that offer Business Owner’s Policies will also allow supplementary add-ons, such as professional liability coverage and commercial auto insurance, so interior designers can get comprehensive protection in one place.
Buying bundled coverage is not only convenient, but it also provides cost savings in most cases. Designers will need to find the right provider that offers all the protections they need for different risks. This includes the possibility they’ll be sued or the potential that their office space, car, or other property will sustain damage.
Top Interior Design Insurance Providers
|The Hartford||Buying bundled coverage for convenience and cost efficiency|
|ASID Insurance||Getting affordable coverage from the only policy tailored specifically to interior designers|
|Hiscox||Interior designers who want fast, specialized liability insurance|
|Veracity||Fast approval for design firms of all sizes thanks to in-house underwriting|
|Insureon||Small interior design firms looking for quotes within 15 minutes|
If you’re looking for the most convenient way to get covered, choose The Hartford. The Hartford is unique in that it makes buying bundled coverage as easy as possible thanks to its “Stretch” endorsements. “Stretch” endorsements add the coverage needed for your industry, such as professional liability coverage, so you can purchase a bundled policy without having to spend a lot of time researching coverage needs.
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 design professionals. If you want coverage from the foremost industry experts and a little extra help in purchasing from professionals focused solely on protecting designers, opt for ASID.
As a small business insurance specialist, Hiscox takes great strides to understand the unique risks faced by specific clients, such as interior designers. This knowledge allows Hiscox to provide customized policies built around the industry’s 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.
If you have a large or small design firm that needs coverage and you want the quickest possible approval process, turn to Veracity because of its in-house underwriting process. Veracity has binding authority with top-rated insurance carriers, and its unique, in-house underwriting process means you can get covered faster while still getting the benefit of shopping around.
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 15 minutes to find options from multiple providers. An agent with extensive small business experience helps you decide which policy is right for you.
Types of Insurance for Interior Designers and Decorators
A Business Owner’s Policy provides two important protections for designers: protection in case of property damage and from lawsuits. Because many designers hire employees, workers’ compensation coverage may be needed. Commercial auto insurance protects a designer traveling to clients or stores and professional liability coverage is there in case a designer is sued for provided advice.
Most Common Types of Insurance for Interior Designers and Decorators
|Type of Insurance||What It Covers|
|Business Owner’s Policy||Property damage and general liability|
|Professional Liability Insurance||Liability based on professional failures|
|Commercial Auto Insurance||Damage to work vehicles or lawsuits arising from an accident in a work vehicle|
|Workers’ Compensation Insurance||Injury to employees of a design firm|
Business Owner’s Policy
Every designer likely needs a Business Owner’s Policy because a BOP is the most affordable way to get two kinds of coverage: namely general liability coverage and property damage coverage.
The coverage that comes with a BOP includes and protects you from:
- The commercial general liability coverage included in a BOP will protect a designer whose clients trip in the design studio and sprain 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.
Designers all 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 in-person with clients 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. In fact, Bureau of Labor Statistics indicates some states officially license interior designers before they can advertise themselves as holding this designation.
If you’re sued not because of injury but because of a failure in your professional capacity, general liability policies won’t cover you. If you give bad advice and recommend a floor that’s easily damaged, your general liability policy wouldn’t cover resulting legal costs if you’re sued by the homeowner, but a professional liability policy would give you the protection you need.
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 pays for legal defense costs and any judgements or settlements arising out of lawsuits from professional misconduct. Because there’s the potential for any designer to make mistakes, essentially all decorators and interior designers need this type of coverage.
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, such as 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 (but not all) states mandate 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.
Cost of Interior Design Insurance
The cost of insurance for interior decorators and designers will depend the specific coverage you need. Average annual costs for a business owner’s policy are typically $500 to $3,500 for $1 million in coverage, while a professional liability policy may cost around $1,735 for $2 million in protection and a commercial auto policy would cost $1750 to $1,200 per vehicle for $1 million in coverage.
|Insurance Type||Average Premium Cost||Deductible|
|Business Owner’s Policy||$500 - $3,500||$500|
|Professional Liability Insurance||$1,735||$1,000|
|Commercial Auto Insurance||$750 - $1,200 per vehicle||$500|
|Workers’ Compensation||$2,000 to $3,000||$0|
Many different factors affect the amount you pay for coverage, including:
- Your credentials and years of experience in the industry: Professional liability coverage is much less costly if you’re an experienced interior designer or decorator with no history of claims. If you’re just starting out or if 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 full of fine antique furnishings that you showcase as an example, you’ll need much more coverage for property damage. This will mean paying higher premiums to get additional protection.
Tips on Getting Insurance for Interior Designers & Decorators
Finding affordable and comprehensive interior design insurance can be a challenge for designers and decorators, but there are a few key things you can do to make sure you get the right policies at the best possible price.
Emphasize Your Experience
Insurers consider the risk of a claim when you get a professional liability policy. Since inexperience increases risk, demonstrate that you have a long and established history of success in your field.
“Insurance companies love it when you have experience,” advised Marci Lall, a business insurance specialist with FSB Group LTD. “Usually three years is a good amount to get affordable rates.”
This doesn’t mean all interior designers or decorators starting a brand new business must pay a fortune for coverage. “Experience will also count if you’ve worked as an employee for someone,” Lall said.
Bundle Your Coverage
While you need different kinds of insurance, you can expect to pay more for coverage if you get policies from different providers. Instead, Lall recommends working with one company that can meet all your needs. Not only does this save money, but it also provides another logistical benefit.
“Most interior designers require professional liability insurance and commercial general liability insurance,” Lall said. “It’s best if you can find a company that will cover both aspects of your business to simplify the claims process, should a claim arise.”
Lall explained there are many insurers that cater to people in the design industry and make package coverage available for them. Insurers offering bundled coverage can often provide insurance at a competitive price.
Get Several Quotes—But Don’t Shop on Price Alone
Finally, Lall recommended getting multiple quotes from different companies to find affordable coverage. One easy way to do that is to work with an insurance broker who gets quotes from multiple carriers.
However, while you don’t want to pay more than necessary, you shouldn’t always just select the cheapest coverage. “Price shouldn’t be the be-all and end-all,” Lall said. It’s important to know the exposures and make sure your insurance policy covers them. There’s no point paying for a policy if you’re not actually covered for anything.”
Interior Design Insurance Frequently Asked Questions (FAQ)
If you’re buying insurance as an interior designer or a decorator, it’s important to understand the ins and outs of shopping for a policy.
Some of the most frequently asked questions about insurance for interior designers are:
Why do interior designers need a professional liability policy?
General commercial liability policies exclude coverage for certain lawsuits, including claims arising from failing to fulfill professional obligations. If you’re sued for the advice you gave as a designer or failures during a project (e.g., going over budget), you won’t be covered for the costs of defense, judgements, or settlements without a professional liability policy.
Are there any other types of coverage designers might need?
If you keep client records on your computer or use expensive software as part of your design process, you may need cyber liability insurance. You can obtain a policy that protects you from lawsuits in case of a data breach. Annual cyber liability insurance costs usually run between $1,000 and $7,500.
What insurance do I need if I also do contracting work?
In some cases, interior decorators or designers do more than just provide advice on design; they also oversee projects. If you do contracting work, you may need additional coverage, including builder’s risk insurance and a surety bond. Purchasing contractor’s insurance adds costs, as builder’s risk insurance alone could run you one percent to four percent of the project’s construction costs.
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. Using The Hartford, you can get a Business Owner’s Policy that will provide the right coverage to meet your individual needs. Visit The Hartford to get a quote for your small business insurance in just a few minutes.