You know what goes together to bring balance to any space. But mixing and matching insurance to protect your business? It’s not pretty.
Finding the right policy is as simple as coordinating your business risks with the coverage that matches. This guide will walk through the main types of interior design insurance coverage and the risks each covers (plus tips for getting maximalist coverage on a minimalist budget).
Quick Answer: What Does Interior Design Insurance Cover?
Interior designer liability insurance is business coverage that protects design professionals from property damage, client injuries, and mistakes on the job.
At a minimum, every interior designer should have these types of insurance coverage:
- General liability insurance: Covers physical injuries to others, client property damage, advertising mistakes, and more. (It can also help you sign a lease or win a contract!)
- Professional liability insurance: Covers professional mistakes like design errors, missed deadlines, safety or functionality oversights, and client complaints
Do you also consult online, rent a studio, or transport materials? Keep reading to see how add-on coverages can customize your policy for a perfect fit.
Main Types of Interior Design Insurance Coverage
Each of these major types of consultant insurance protects a different part of your business. What’s right for you comes down to the kinds of risks you face while doing your job.
| Coverage Type | What It Covers | Why It Matters |
|---|---|---|
|
Accidental injury or property damage |
Keeps you from paying out of pocket for client injuries, property damage, and marketing mistakes |
|
|
Errors, omissions, or negligence in your work |
Covers legal fees or settlements if a client claims something you did or didn’t do caused financial loss |
|
|
Materials in transit, waiting for installation, or your work tools |
Pays for damage or theft to furnishings, décor, and your design tools, whether they’re in your vehicle or at a site |
|
|
Data breaches and ransomware |
Protects you from data breach lawsuits if your client data, images, or digital invoices get hacked |
|
|
Employee injuries or illnesses |
Required in most states if you have employees (even one part-time worker) |
|
|
Injuries and property damage due to driving for work |
Protects you or employees behind the wheel driving to or from a job site or transporting materials |
|
|
Employee dishonesty or theft |
Guards your reputation by ensuring a fair return if your employee steals from a client |
|
|
People or companies you work with |
Meets requirements for renting a studio, holding a workshop, or joining an expo |
General Liability
What It Covers
General liability covers accidental injury or property damage
Why It Matters
Keeps you from paying out of pocket for client injuries, property damage, and marketing mistakes
Professional Liability (E&O)
What It Covers
Professional Liability (E&O) covers errors, omissions, or negligence in your work
Why It Matters
Covers legal fees or settlements if a client claims something you did or didn’t do caused financial loss
Tools & Equipment (Inland Marine)
What It Covers
Tools & Equipment (Inland Marine) covers materials in transit, items waiting for installation, or your work tools
Why It Matters
Pays for damage or theft to furnishings, décor, and your design tools, whether they’re in your vehicle or at a site
Cyber Liability
What It Covers
Cyber Liability covers data breaches and ransomware
Why It Matters
Protects you from data breach lawsuits if your client data, images, or digital invoices get hacked
Workers Compensation
What It Covers
Workers Compensation covers employee injuries or illnesses
Why It Matters
Required in most states if you have employees (even one part-time worker)
Commercial Auto
What It Covers
Commercial Auto cover injuries and property damage due to driving for work
Why It Matters
Protects you or employees behind the wheel driving to or from a job site or transporting materials
Fidelity Bonds
What It Covers
Fidelity Bonds cover employee dishonesty or theft
Why They Matter
Guards your reputation by ensuring a fair return if your employee steals from a client
Additional Insureds
What It Covers
Additional Insureds covers people or companies you work with
Why It Matters
Meets requirements for renting a studio, holding a workshop, or joining an expo
Insurance Canopy’s interior designer insurance bundles as many of these coverages as you need into one comprehensive policy that fits you.
Each policy comes with general and professional liability (must-haves for any designer), plus free, unlimited additional insureds. From there, you can add on any optional coverage that match your risks.
Key Coverages for Solo Designers vs Small Studios vs Firms
Not every interior designer needs every type of coverage (in fact, policies that lump in every possible coverage are why interior designer liability insurance can get so expensive).
Picking and bundling just the coverages you need is the best way to get an affordable price on custom coverage. Your business size and usual project type determine what you really need.
Best Coverages for Solo Designers or Freelancers
- Must-have: General Liability and Professional Liability
- Recommended: Cyber Liability (to cover your responsibility for personal data like payment info and addresses you collect from clients)
Did You Know?
Homeowners or renters insurance won’t cover any business-related property that’s stolen or damaged during a home break-in. Work-from-home designers should also consider tools and equipment insurance to protect their business gear from theft.
Best Coverages for Small Studios (2–5 people)
- Must-have: General Liability, Professional Liability, Workers Compensation (if you have employees)
- Recommended: Tools and Equipment Insurance, Cyber Liability
Did You Know?
If you rent a studio, general liability may already cover your minimum lease requirements for fire damage protection. If you own rather than rent, consider commercial property insurance to protect your building. Do you have design or work materials you’re not sure how to cover? Here’s a quick cheat sheet:
- Tools and Equipment Insurance: Covers property that’s regularly on the move. This could be your tools of the trade (work laptop, sketching tools, samples) or project materials before they’re installed (like tiles you ordered for a client).
- Commercial Property Coverage: Protects buildings you own for your business and their contents. This is stuff that usually doesn’t (or can’t) leave your office.
Best Coverages for Design Firms (With Employees or Commercial Projects)
- Must-have: All coverages, including Workers Compensation
- Recommended: Higher limits, fidelity bonds
Did You Know?
Commercial project contracts often require more special additions to your insurance. You may need to:
- Show proof of insurance: This requires providing a copy of your certificate of insurance (COI), which confirms general and/or professional liability coverage.
- Add an additional insured: Commercial clients may ask to be an additional insured on your policy. This protects them if they get named in a lawsuit due to your mistake. At Insurance Canopy, you can add unlimited additional insureds at no extra cost.
- Provide a fidelity bond: Businesses are famously risk-conscious, which means they’ll want every assurance that you’re trustworthy. A fidelity bond is a legally binding promise that you will pay back a client if your employee steals from them.
- Carry a specific limit: Clients may also want your policy to have a particular amount of coverage. Large companies or contracts may require a $2 million aggregate or more. With Insurance Canopy’s consultants insurance, your aggregate limit is $2 million by default, but you can customize your policy to include higher limits at any time.
Still not sure? You can always start with general and professional liability and add extras later as your business grows.
What’s Usually Not Covered
Insurance protects you from many risks, but it can’t cover everything. Common interior design exclusions (design services or claims your policy doesn’t pay for) include:
- Architecture or engineering services
- Intentional or dishonest acts
- Normal wear and tear on your property
- Work performed without proper state interior design licensing (if required)
Many exclusions are the same across different insurers. Understanding them helps you avoid surprises and stay aware of your risks.
The American Society of Interior Designers (ASID) encourages members to carry general and professional liability insurance as part of doing business responsibly.
As an interior design professional, it is essential to have a clear understanding of the specific risks associated with your profession and consider both professional liability insurance and general liability insurance to ensure comprehensive coverage. Without the right protection, you could be facing significant legal costs and judgments.
Jeremy Welsh, Certified Insurance Counselor & ASID Contributor
Want to prep for the risks interior designers face (even the ones you might not expect) and learn how to manage them? Keep learning about why interior designers need insurance.
Why Designers Choose Insurance Canopy
Insurance Canopy offers affordable Interior Designer Insurance starting at just $21/month or $252/year. For a detailed breakdown of what affects your price, see our guide to insurance costs for consultants.
Interior designers across all 50 states trust Insurance Canopy for affordable, custom business coverage for design consultants and creative professionals like you.
With Insurance Canopy, you get:
- Coverage tailored to interior designers and decorators
- General and professional liability insurance included in every policy
- Customizable protection with optional add-ons to match your needs
- Instant online quote and same-day proof of insurance
- Affordable pricing with flexible monthly or annual payments
You’ve built a business on trust and good taste. Your insurance should reflect both. Start mixing and matching up your perfect design coverage today with a free online quote.
FAQs About Interior Designer Liability Insurance
What types of insurance do interior designers need?
Most carry general and professional liability insurance for interior designers to cover their business and their professional advice. If you operate online or transport materials and equipment regularly, you might want to consider cyber liability or tools and equipment coverage too.
How much does interior designer liability insurance cost?
Most interior designers pay between $400 and $1,500 per year for coverage with other insurance providers. With Insurance Canopy, you can get Interior Designer Insurance starting at just $21/month or $252/year. Typically, your cost will depend on your usual project size, annual revenue, and claims history.
Does interior design insurance cover property damage?
Yes, general liability insurance covers accidental damage to someone else’s property related to your business. For example, if you or an employee spilled paint on a client’s custom flooring, your liability insurance could pay for a replacement.
Is insurance required for interior designers?
Insurance usually isn’t required by law for interior designers, but you may have a hard time signing larger contracts without it.
Many clients and contractors require proof of insurance or additional insured status before signing a contract with you. This protects them if you make a mistake and allows you to score bigger and better-paying jobs.
