How Insurance and Interior Design Connect
As an Interior designer, you make a living out of helping others reimagine and renovate different spaces. That can include living spaces as well as offices, government buildings, art galleries or museums. All interior designers offer both consultations on design ideas, as well as assisting with making the right purchases with regards to the furniture, design materials and contractors needed to turn these ideas into reality.
Risks and How Interior Designers Can Mitigate Them
As consultation specialists, interior designers need different types of insurance to cover their basic risks. Perhaps the most important of these is Professional Liability Insurance. A Professional Liability Insurance policy helps cover the costs associated with giving advice to clients. When an interior designer makes suggestions on how to reorganize or transform a space, he or she is taking on the responsibility for the money that will be spent. Interior designers create a budget for their clients as well, just as any general contractor might when making estimates for a job. If a customer feels that money was spent frivolously or that the suggested changes were not properly thought out, the interior designer may face a liability claim as a result.
Interior designers may also face claims if a client believes the changes made to the space were inadequate, or if those changes resulted in an unexpected and undesired consequence. For example, if a customer wants a living room redone before the birth of a new baby, the parents may give the interior designer the task of revamping the space to make it more child-friendly. However, if the parents later determine that the living room space they paid to have redone still contains safety oversights, the fault may lie with the interior designer. Professional Liability Insurance is designed to mitigate the costs of any such oversights. This insurance will typically cover the court costs associated with defending against the claim, as well as any settlement costs should you lose a claim in court.
Additional Insurance for Interior Designers
Beyond possible mistakes in the design process, interior designers who own property face additional risks associated with the business. While many interior designers do work out of the home, many successful interior design businesses utilize large business spaces and sometimes even large warehouses. This equates to significant monetary investments in property, all of which could be at risk of a loss or could be a potential hazard for clients passing through your offices, warehouses or showrooms.
If clients are ever injured accidentally while on your premises, you could be liable for bodily injuries. This is where a General Liability Insurance policy comes in, helping you to mitigate the risk. Alternatively, if something happens to your business property, such as a fire or theft, a Property Insurance policy will reimburse you for the cost of the lost of stolen items.
Interior designers may also want to consider:
- Commercial Auto Insurance
- Business Owner’s Policy
- Business Interruption Insurance
Even the best interior designers face some risks to their business. Consider the potential benefits of having different insurance policies on hand in case the unexpected does occur.