Do UX/UI designers need business insurance?

Whether you specialize in UX training, UX strategy, UX research, or UI design, you work with clients to help them make their product’s user experience flawless. But if a client is not satisfied with your professional advice or services, you could find yourself in trouble if you don’t have the right protection, which is why business insurance is important for UX and UI designers.

Recommended insurance coverages for UX and UI designers

Your clients rely on you to provide expert advice and make important decisions. With responsibility, comes liability– which means one thing: risk. Professional liability insurance and general liability insurance are two highly recommended coverages for your profession.

Liability insurance protects you when someone claims you did something wrong.

What is professional liability?

Also known as errors and omissions, or E&O insurance, this policy protects you against a dissatisfied client. It doesn’t matter if your client is unhappy based on something that was out of your control, you may still be held liable. That’s why professional liability insurance can be so crucial.

Professional liability protects you from the following:

  • Negligent services: Your client claims your work isn’t up to snuff compared with the rest of your industry.
  • Professional errors: Your recommendation ends up being the wrong recommendation, resulting in a loss of income for your client.
  • Failure to deliver promised services: Your A/B testing takes longer than expected, causing your client to miss their launch date.
  • Legal fees and court costs associated with claims are also benefits of this policy.

General liability insurance for UX and UI designers

Even though your industry is considered fairly “low-risk”, there’s no guarantee things will go 100% according to plan 100% of the time. So, consider general liability. Because some things are just out of your control.

Coverage benefits include:

  • Personal/advertising injury: This is especially important. It protects you against claims regarding slander, libel, copyright infringement, and false advertising.
  • Bodily injury: Someone trips over cords running to your laptop, monitors, and who knows what else. They fracture their wrist– but their medical costs will be covered.
  • Property damage: You’re doing a live installation and spill coffee on something electronic, causing the whole place to short circuit. Repairs and replacement costs will be covered.
  • If you face a lawsuit, court costs and legal defenses will be covered by your policy.
The most expensive small business claim is reputational harm, averaging around $50,000. This includes things like libel, slander, and defamation.
That’s the same price as buying a tattoo sleeve for you and 16 of your closest friends.

Additional recommended insurance policies for your industry

    • Business property: UX and UI designers rely on several devices and tools to get their work done. Very expensive ones, at that. Should your work gear get damaged, this policy will help. Note: If your work from home, or keep your commercial property at home, keep in mind that your homeowners policy typically only covers up to $500 in business property damage– so it’s best not to rely solely on that policy.
    • Inland marine: If you tend to take your commercial property with you to client meetings or gigs, this coverage keeps your work gear protected on the go. Business property insurance is great, but it ends after you’re 500 feet away from your business premises.
    • Business auto: If your business owns vehicles, this policy covers your company in the event of an incident.

Want more coverage for less?

Business owner’s policies combine general liability and business property policies into one package. You get more protection, and at a lower cost than purchasing the two policies on their own.

Interested in learning more? Talk to an agent or get a quote.