Insurance for interior designers
Utilizing a professional interior designer was seen as a luxury in the past. However, it’s become increasingly popular with many homeowners thanks to the influence of showcasing beautiful homes on Pinterest and Instagram. It isn’t only the residential market that uses interior designers. Business owners with commercial spaces are prioritizing their aesthetics more than ever.
Interior designers can create a visual and functional masterpiece for even the most basic rooms with a keen eye for complementary colours and styles. Homeowners and business owners trust interior designers to transform their spaces beautifully. However, there’s always a risk of something going wrong in any occupation, such as a liable slip-and-fall accident or a professional error at a client’s expense.
It’s important to be protected against the risks of the job. We’re providing this guide to help you get started with the basics of interior designer insurance.
What is interior designer insurance?
Interior designer insurance describes a combination of liability insurance policies that cover the risks specific to those encountered by interior designers and those with similar careers. Whether you provide your services to individuals or businesses, interior designer insurance may provide significant financial protection should you be liable for a third-party loss or be accused of negligence.
What does it cover?
An interior designer liability insurance policy is customizable based on your needs, but it will normally include the following coverages:
- Commercial general liability (CGL) insurance: Most occupations – including interior design – come with common risks for which you can be held liable. These risks can occur within your property (your office space) or your client’s property. CGL insurance protects you from claims where you’re responsible for the bodily injury or property damage of a third party. For example, say you’re painting a client’s home. You accidentally trip over the can, and paint spills all over their carpet. In this case, your CGL insurance could cover the cost to replace the ruined carpet.
- Professional liability insurance: It’s essential to have professional liability insurance when you offer professional advice that’s relied upon as part of your job. It covers you for anything you may say or do that is perceived as negligent or erroneous that causes a loss to a third party (a loss could be a financial loss or damage to property, for example). For example, suppose you’re refurbishing a client’s living room and decide to showcase their expensive china ornaments on new shelving. Unfortunately, the shelving fails to withstand the weight of the china, and they end up losing their entire collection. Professional liability insurance could provide you with the finances to cover that loss in this scenario.
- Cyber liability insurance: In this day and age, many businesses use technology to keep track of their customer data. If you store personal information (such as financial details or addresses) online or on an electronic device, cyber liability insurance could protect you should that information become compromised. For example, your laptop is hacked, and confidential client floor plans and financial data are used as ransom. Cyber liability insurance could cover expenses such as incident response costs and the costs of notifying clients.
- Commercial auto insurance: Your occupation requires travelling to and from clients’ locations. Due to this, it’s important to protect your liability and your business property while in-transit. Commercial auto insurance covers you for any incidents you may be held responsible for while behind the wheel. Additionally, if your business equipment is stolen or damaged while in the vehicle, this coverage may provide financial protection to repair or replace the equipment.
Do interior designers need insurance?
If you provide residential or commercial interior design services, it is highly recommended to carry some form of liability insurance. Although there are no interior designer insurance requirements in Canada, it’s an essential form of protection for your business from costly lawsuits or risks.
We’ve insured over 1,000 design professionals. Some of our clients fall under the following interior design roles:
- Commercial/Industrial designer
- Hospitality designers
- Interior home decorators
- Retail space planners
- Visual merchandisers
How much does it cost?
Interior designers can typically expect to spend a minimum of $1,150 annually for a policy that includes professional liability with a $250,000 limit and commercial general liability with a $1 million limit. The costs vary depending on criteria specific to your interior design business, and the details you provide during your quote help us provide an accurate cost for adequate coverage.
Here are some of the following details insurers take into consideration when calculating your quote:
- Years of experience (and design certifications)
- Number of employees
- Claims history
- Project ownership (responsible for design and build)
- Annual and projected gross revenue
Common claims scenarios
Frequently asked questions