The interior designer insurance policy is a business owner’s plan (BOP). It provides affordable coverage for personal injury and property damage, with annual costs of $1,500. Professional liability coverage is also recommended for interior designers. It has a minimum cost of $1,200 per annum and can be combined with commercial auto insurance, which ranges from $1,000 to $4,000.
The Hartford, a highly regarded company, offers insurance specifically designed to meet the needs of interior decorators and designers. The Hartford can help you bundle coverages into a BOP to get the best coverage for your small business. Get a quote from The Hartford in just a few clicks.
- 1 How Interior Designer Insurance Works
- 2 Interior Designer Insurance: What is the Cost?
- 3 Types of insurance for interior designers and decorators
- 4 Top Interior Design Insurance Providers
- 5 Bottom line
How Interior Designer Insurance Works
Interior designers cannot buy just one policy to provide all their needs. They can combine multiple essential policies into one BOP. BOPs are often offered by insurance companies that allow you to add on additional coverages like professional liability and commercial auto insurance. This allows interior designers to have comprehensive protection under one policy.
Bundled coverage can be convenient and save you money in many cases. Interior designers need to choose the right provider to provide the protection they require for various risks. They could be sued, and their office, vehicle, or property may suffer damage.
Interior Designer Insurance: What is the Cost?
Interior decorators and designers insurance costs will vary depending on what coverage you require. The average annual cost of a BOP is $500 to $2,500 for $1,000,000 in coverage, while professional liability policies run around $1,200 for $1,000,000 in protection. The cost of commercial auto insurance is between $1,000 and $4500 annually.
|Insurance Type||Annual Premium Cost||Deductible|
|BOP||From $500 to $2,500||From $0 to $500|
|Professional Liability Insurance||From $1,200 to $2,500||From $500 to $1,000|
|Commercial Auto Insurance||From $1,000 to $4,500||$500|
|Workers’ Complement||$550 – $3,000||$0|
|Cyber Liability Insurance||$600 – $4,000||$0|
There are many factors that affect how much you pay for insurance coverage.
- Your credibility, years of industry experience: Professional Liability coverage is less expensive if you are an experienced interior designer without any history of claims. You can expect to pay higher if you are just starting out, or if you have been sued in the past.
- The number or vehicles of employees you are insuring. Workers’ Compensation coverage is more expensive for those with more workers, while commercial auto insurance can be more expensive for those with multiple or more expensive vehicles.
- The property’s value: If your design studio is very expensive and contains antique furnishings, you will need more protection for property damage. To get more protection, you will need to pay higher premiums.
Tip – Because you may need multiple types of insurance coverage you will be charged more if you have them from different companies. It is best to get insurance that meets all your needs. Bundled coverage is a way to get insurance at a lower price. This will not only save you money but also make it easier to file a claim.
Types of insurance for interior designers and decorators
Designers have two protections: protection against property damage and protection against lawsuits. Workers’ compensation coverage is often required because many designers employ employees. Designers can be protected while they travel to clients or stores with commercial auto insurance. Professional liability coverage covers a designer in the event of a lawsuit.
The Most Popular Types of Insurance For Interior Designers and Decorators
|Types of Insurance||What Does It Cover|
|BOP||General liability and property damage|
|Professional Liability Insurance||Professional failures can lead to professional liability|
|Commercial Auto Insurance||Work vehicle accidents can cause damage or even lawsuits.|
|Workers’ Comp Insurance||Workers in a design company can be injured|
A BOP policy is a must-have for every designer. This policy provides two types of coverage: general liability coverage as well as property damage coverage.
The following scenarios are covered by a BOP:
- A BOP includes commercial general coverage to protect a designer who has a client slip and fall in the studio. It covers any lawsuits that may arise from injuries or property damage caused by the designer.
- Property damage coverage covers the cost of both the repair and replacement of furniture damaged by fires in the design studio.
Designers are at least somewhat vulnerable to someone getting hurt on their premises. A BOP is an essential purchase for most designers.
Professional Liability Insurance
Interior designers provide professional services. The Bureau of Labor Statistics lists states that have licensed interior designers to advertise their services.
If you offer bad advice and recommend a floor that is easily damaged and are sued by the homeowner, a professional negligence insurance policy would pay the legal fees.
Designers could be sued
- Overbudget projects
- Advice that doesn’t work
- Additional costs can be incurred due to mistakes in measurement
- Failure to finish a project within budget or time
Professional liability insurance is also known as errors and omissions coverage. It pays for legal defense costs, and any settlements or judgments that result from professional misconduct lawsuits. This insurance protects professionals who make mistakes or are negligent in providing expert advice to clients. This coverage will protect interior designers from potential lawsuits and help them to pay their defense costs.
Tip – Insurance companies consider the possibility of a claim. A long-standing track record of success as an interior designer can increase your chances of getting the best coverage. Professional liability insurance can be affordable if you have at least three years’ experience.
Commercial Auto Insurance
Your personal auto insurance may not cover you if you drive personal or business vehicles to clients’ houses. This is because commercial driving policy exclusions can apply. To protect yourself and your property, you will need commercial insurance.
Designers and decorators frequently drive to clients’ homes to look at samples or furniture and view spaces that need decorating. Sometimes, they may transport furniture or materials to clients’ homes. Designers are at risk of an accident while driving. Commercial auto insurance covers damage to cars and legal costs resulting from collisions.
Commercial auto insurance is not necessary if you don’t drive for work or if no one in your company has a work car. If you drive for work, however, you shouldn’t be left uninsured or rely on your auto insurance.
Workers’ Compensation Insurance
Designers might employ support staff such as a receptionist or movers to transport furniture and materials. Workers’ compensation insurance is required for those who work for you.
Workers’ compensation insurance provides protection for you and your employees, providing disability and medical benefits in the case of an injury at work. You may also need to have coverage. States have different rules and require you to purchase a policy. However, some states won’t require you to buy workers’ compensation insurance if you don’t employ multiple workers.
Workers’ compensation is not required if you do not have employees. If you have employees and you have incorporated your company, you might need workers’ compensation coverage if the state law requires it.
There are other types of insurance for interior designers
You might consider cyber-liability insurance if you store client records on your computer, or use expensive software in your design process. You are protected from any lawsuits if there is a data breach. The cost of cyber liability insurance for interior designers is between $1,000 and $7500 per year.
If you are responsible for overseeing projects and also provide advice on interior design, consider contractor’s insurance. Connecticut, for example, requires contractor’s insurance for large contractors who work on commercial, residential, or industrial projects. It is important to note that contractor insurance can be expensive. Builder’s risk insurance could cost you anywhere from 1% – 4% of project costs.
Top Interior Design Insurance Providers
|The Hartford||Bundled coverage offers convenience and cost efficiency|
|Hiscox||Interior designers needing specialized liability insurance that is fast and affordable|
|ASID Insurance||Get affordable coverage with the only policy that is specifically tailored for interior designers|
|Veracity||In-house underwriting allows for quick approval of design firms of any size|
|Insurance||Interior design companies that are small need to get quotes in under 15 minutes|
The Hartford, one of the most reputable insurance companies in the country, offers policies across all 50 states. The Hartford is known for its ability to innovate and create policies that are affordable, but also offer more coverage options than other insurance providers.
It is unique that The Hartford makes purchasing bundle coverage easy with its Spectrum Business Owners’ policy. Interior designers can enjoy a wide range of optional coverage through The Hartford’s Spectrum Owners’ Policy. You will also have the option to increase your tier within the Spectrum options, which is sometimes referred to as your Stretch level.
Hiscox is a specialist in small business insurance and understands the risks that clients, such as interior designers, face. Hiscox can create customized policies that meet specific coverage requirements. Interior designers can also pay their annual premiums monthly at no extra charge. After completing a short, no-obligation application, you can get a quote online.
The American Society of Interior Designers (ASID) is the best at understanding the needs of interior designers. ASID and The Insurance Exchange have teamed up to develop insurance products that protect their members. ASID Insurance will provide you with the best industry professionals and unbeatable products.
Veracity can be a great option if you have a small or large design company that requires coverage. You also want to get it approved as quickly as possible. Veracity is a binding authority with top-rated insurers. Its unique in-house underwriting means you can get coverage faster and still have the option to shop around.
Insureon focuses on small businesses. It is ideal for interior design firms that need to get as many quotes as possible. Insureon is quick and easy to use. You can fill out one application and get multiple quotes from different providers in just 10 minutes. A small-business agent can help you choose the right policy for you.
Although interior design may seem like a low-risk occupation, it can lead to significant financial loss if you don’t have enough coverage. Bundled coverage is a way to ensure your business is protected in the event of a disaster.