Insurance isn’t the glamorous side of interior design, but it’s essential if you want your business to last. The right coverage protects your reputation, your finances, and your peace of mind when the unexpected happen.
Ready to find the right plan for your business?
This guide covers why insurance matters for interior designers, the types of coverage to consider, and how to choose a policy that fits your business today and as it grows.
Table of Contents
Why interior designers need business insurance
Every design project has a hundred moving parts. There are contractors to coordinate, budgets to balance, and clients to keep happy. You’re in and out of homes, managing budgets and details big and small, and doing your best to make it all look effortless. Only one small misstep can snowball into a costly challenge.
Which is why interior design business insurance is an essential asset. It protects you from the financial and legal fallout of misunderstandings, accidents, and other unforeseen events. For example:
- A client slips on-site during an install and claims negligence.
- A vendor shipment is delayed, and a frustrated client sues for breach of contract.
- You accidentally implement a product that fails safety standards and causes property damage.
Types of insurance to consider as an interior designer
Check out the most common plans for all interior design business models, below, to find the best fit for your business.
1. General liability insurance
Often the first policy you’ll need as an interior designer, general liability insurance covers bodily injury, property damage, and personal injury (like libel or slander) that may occur in the course of your work.
Example: If a client trips over a sample board during a presentation or a subcontractor damages flooring, this coverage can help with legal or medical costs.
2. Professional liability insurance (errors & omissions)
This policy covers the professional side of your work. If a client claims your recommendations caused financial loss or dissatisfaction, professional liability insurance (also known as Errors and Omissions, or E&O) can help.
Example: If a fabric fades quickly or you miscalculate a custom order, leading to project delays, this policy can cover defense costs and potential settlements.
3. Property and equipment coverage
Whether you lease an office, maintain a studio, or work from home, your equipment and materials have value. Property insurance protects your computers, furniture, samples, and inventory against theft, fire, and other covered losses.
Some policies even extend coverage to items in transit, which is important if you regularly travel to job sites or clients’ homes.
4. Business owner’s policy (BOP)
A Business Owner’s Policy combines general liability and property coverage. It may be more cost-effective than buying separate policies.
5. Workers’ compensation
If you have employees or assistants, workers’ compensation insurance is likely required by law. It covers medical expenses and lost wages if an employee is injured while working.
6. Commercial auto insurance
Designers often travel between showrooms, suppliers, and client homes. If you use a personal or company vehicle for business errands, commercial auto insurance is a must.
7. Cyber liability insurance
As digital design tools and online platforms become more and more integral to client work, cyber liability insurance helps protect your business from data breaches, hacking, and other forms of cyber fraud.
What does interior design liability insurance cover?
At its core, liability insurance protects you from the financial consequences of claims that your actions or advice caused harm.
Coverage typically includes:
- Legal defense costs — Attorney fees, court costs, and settlements if you’re sued.
- Bodily injury — If a client, subcontractor, or visitor is physically injured during a project or meeting.
- Property damage — If you or one of your team members accidentally damages a client’s property.
- Negligence or design errors — If your design decisions cause financial loss or fail to meet client expectations.
- Advertising injury — If a competitor claims your marketing materials infringe on their copyright or trademark.
No designer can control every variable. Comprehensive liability insurance lets you focus on your work without constant fear of what might go wrong.
For a deeper look at how to reduce risk during full-service projects, watch How to Protect Your Business from the Biggest Pitfalls of Full-Service Interior Design Projects with Kim Kapellusch.
How to compare insurance providers
Comparing policies isn’t just about finding the lowest premium, it’s about understanding the scope, exclusions, and quality of support behind each plan.
Here’s how to choose the right insurer for your business:
1. Start with your business model
Clarify whether you’re operating as a sole proprietor, LLC, or corporation. Your structure affects what’s covered and how your claims are processed. (If you’re still building your business, start with our guide to interior design small business basics.)
2. Compare coverage limits and exclusions
Every policy includes limits (the maximum the insurer will pay) and exclusions (what’s not covered). Don’t assume two policies with similar names offer the same protection. Be sure to closely examine:
- Subcontractor coverage
- Project size limits
- International or multi-state work exclusions
- Legal fee caps
3. Review the claims process
Ask how claims are handled. Is there a dedicated representative for small businesses? How long do payouts typically take?
4. Evaluate financial strength and customer service
Look for insurers with strong financial ratings from agencies like A.M. Best or Standard & Poor’s. Stability matters, especially if you ever need to file a significant claim.
5. Work with an industry-aware agent or broker
An insurance agent familiar with design businesses can help tailor coverage to your workflow. They’ll understand nuances like client-site risk, trade partner coordination, and subcontractor liability.
When comparing insurance providers, gather quotes from at least three companies and create a simple spreadsheet or list that shows:
- Coverage types
- Limits
- Deductibles
- Exclusions
- Premiums
This quick step will help you compare every detail, making it easier to choose the best fit for your business.
Where to research insurance for interior designers
Instead of relying solely on company websites, dig deeper into your research. Look for reviews that focus on both customer service and claims handling, since these two aspects reveal how well a company supports clients when it matters most.
Here are a few helpful places to start:
- AM Best (ambest.com): Financial ratings and company performance data.
- Better Business Bureau (bbb.org): Verified customer feedback and complaint resolution history.
- Google reviews: Real-world experiences from other business owners.
- Industry forums and associations: Groups like the American Society of Interior Designers (ASID) have plenty of past discussions on insurance options, complete with member insights.
Final thoughts: Protect your design business smartly
The right interior decorator business insurance lets you take on projects with confidence, knowing your operations and reputation are protected. Revisit your coverage each year, especially as your services or team evolve. With the right plan in place, you can focus on great design and run your business with clarity and peace of mind.
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