Do designers need business insurance?

Yes. If you are providing goods or services and getting paid for it, then you’re running a business, and you need insurance.

Owning a business takes hard work and dedication. You put a lot of time into making things happen, and want to protect your business and your assets… right? If you think insurance might be a good idea, but have no idea where to begin, take a deep breath. Whether you’re an experience designer, web designer, interior designer, or graphic designer, we’ve broken it all down for you.

We offer:

Designer Insurance Coverages

Not everyone has a gifted eye like you. You often know what to do, and how to do it. And for that, people listen to you. They rely on you. That means professional liability is something you should strongly consider.

If you’re regularly interacting with clients in person, general liability is also an important coverage to have.

Designer Liability Insurance

Professional liability insurance is also known as errors and omissions, or E&O insurance. Basically, this policy protects you against an unhappy client. It doesn’t matter if they are upset about something that was in your control, or completely out of your control. Unfortunately, you could still be held liable– and could potentially face a lawsuit because of it.

Professional liability protects you against:

  • Professional errors: In your consultation you give a poor recommendation, and because of it, your client loses money.
  • Failure to deliver promised services: You guarantee a new site launch before Black Friday. When you go live, the site is buggy– resulting in poor sales and an angry client.
  • Negligent services: Your client claims your work is below industry standards.
  • Court costs: Legal fees associated with a lawsuit will be covered by this policy.

General liability for designers

General liability insurance doesn’t exactly have a creative name. It pretty much spells it out. This coverage protects you from the general liabilities (risks) you might face while running a business. It’s especially applicable if you interact with clients in person.

Coverages include:

  • Personal/advertising injury: This is super important for designers. It covers claims regarding libel, slander, false advertising, and copyright infringement.
  • Property damage: You spill your latte on a client’s 3D printer. Said printer is ruined. Without general liability, your bank account will be, too.
  • Bodily injury: You’ve got five mood boards going from floor to ceiling. There’s tons of loose paper around. Someone trips over a stack of paper and sprains their wrist. General liability will pay for the medical costs.
  • Court costs, legal defenses, and other fees are also covered.
$50,000
The most expensive small business claim is reputational harm, averaging around $50,000. This includes things like libel, slander, and defamation.
16
That’s the same price as buying a tattoo sleeve for you and 16 of your closest friends.

Should designers have other types of insurance, too?

Yes, there are a few other policies that can really help out designers.

  • Business property: To do your best work, you need tech. Gadgets, devices, tools, and more. This policy protects your commercial property in the event it gets damaged… Which means your personal pockets are protected. Note: If you work from home, or keep your work gear at home, and something happens to it, your homeowners policy will typically only cover up to $500 in business property damage, so it’s best not to rely solely on that policy.
  • Inland marine: Business property coverage is great, unless you’re over 500 feet away from your business premises. In that case, you’ll want inland marine insurance. It protects your gear in transit.
  • Business auto: This policy covers vehicles owned by your business.

Interested in more for less?

Think about a business owner’s policy. This package combines general liability and business property insurance. Not only does it offer more coverage, you can purchase the policy at a lower rate than buying each of the policies separately.

Want to learn more? Talk to an agent or get a quote. It’s totally free– no hidden fees and no obligation. With over 30 years of experience, we’ll compare top insurers to save you time and money.