Do interior designers need business insurance?
As an interior designer, you’ve got an eye for design. You know how to balance form and function. And if you’re working for yourself, you’re also handling new clients, bookkeeping, and everything else in between. With all of these responsibilities come risks– which mean liability. That’s why interior designers should have business insurance.
Even if your industry is considered to be low-risk, accidents can happen anywhere. Additionally, many clients will require you to have your own insurance– especially with bigger jobs.
What types of insurance are best for interior designers?
There are several coverages that benefit interior designers, including general liability, professional liability, and workers’ compensation insurance.
What is general liability insurance?
General liability is a blanket coverage for many of the random things that can happen when you run a business. It especially benefits those who interact with clients in person– like if clients come to your office, you hold meetings in public, or you visit job sites.
General liability protects you from the following:
- Property damage: In the event that you break a glass table while moving things around, your policy would cover the table.
- Bodily injury: Let’s say you have mock-ups all over the place and someone slips on some photos that were on the floor. They break their wrist– but their medical costs will be covered with general liability insurance.
- Personal/advertising injury: If your client ever accuses you of false advertising, copyright infringement, libel, or slander, you’re protected.
- Legal defenses, like court costs and lawyers’ fees, are also covered.
How about professional liability?
As an interior designer, people depend on you for your expert eye and advice. Because you provide professional services, this insurance policy is perfect for you. Professional liability, errors & omissions, and E&O insurance are all the same thing. And the primary benefit of this coverage is that it protects you against an unhappy client.
- Professional errors: You make a poor recommendation and your client loses money because of it.
- Negligent services: Your client doesn’t think your work is up to par with the rest of the industry.
- Failure to deliver promised services: You fail to meet an important deadline.
- Lawyers’ fees, judgements, settlements, and court costs are also covered.
Workers’ compensation for interior designers
As an interior designer, your workday doesn’t consist of you sitting in an office all afternoon. You might find yourself in a warehouse, or a construction zone, where accidents can happen. Workers’ compensation insurance is a great thing to have in the event of an employee injury or illness.
Policy benefits include:
- Hurt employees: If someone gets injured while working for you, medical costs and lost wages (as well as funeral expenses, should an employee die) will be covered.
- Employers’ liability: This protects you in the event an employee claims you were negligent, or failed to provide a safe work environment.
- Sick employees: Medical costs and lost wages will be taken care of if an employee falls ill due to job-related work.
- Employers liability coverage, should an employee file a lawsuit
Additional types of insurance recommended for interior designers
- Business auto: This covers vehicles owned by your business.
- Hired & non-owned: This policy covers your company should any vehicles that work on behalf of your business get in an accident. This includes vehicles you hire, borrow, or rent– in addition to employees’ personal vehicles being used for work-related errands.
- Business property: Your homeowners’ policy usually only covers up to $500 in commercial property damages. To ensure your work gear is safe, get this type of insurance.
- Inland marine: If your work items tend to leave business premises, this policy protects your property in transit.