How much does insurance cost for interior designers?

Professional liability insurance, also called errors and omissions insurance (E&O insurance) or professional indemnity insurance, costs an average of $59 per month, or $708 annually, for interior designers.

This policy covers the cost of client lawsuits over claims that your work was unsatisfactory, negligent, late, or never completed.

For instance, if you use the wrong color scheme or a project delay costs a client money, a professional liability insurance policy would cover your legal defense costs, settlement, and other financial losses if a client sued over professional negligence.

Below is the average professional liability policy for interior designers who buy from Insureon:

Insurance premium: $59 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

Several factors influence the cost of professional liability insurance, including the type of business you have, your claims history, and the policy limits you choose.

As with other types of insurance, you can save money on professional liability coverage by choosing lower limits or a higher deductible.

Reducing your risks also helps you avoid claims and keep your premium low. This includes clear communication with clients and thorough documentation of all communications and agreements.

Interior designers pay an average of $49 per month, or $589 annually, for general liability insurance. This policy is sometimes called public liability insurance.

General liability insurance covers common third-party risks at interior design businesses, such as a client who slips on a wet floor at your office and suffers a bodily injury, or accidental damage to a client's property.

For example, if you drop and break a client's smartphone while they're showing you decor they like, general liability insurance coverage would pay for the repair costs or legal fees if the client sues over property damage.

It also helps pay for attorney's fees and other legal expenses if someone sues your business over copyright infringement or other advertising injuries, including defamation.

Below is the average general liability policy for interior designers who buy from Insureon:

Insurance premium: $49 per month
Policy limits: $1 million per occurrence; $2 million aggregate

The per-occurrence limit is the maximum your insurer will pay for a single covered incident, while the aggregate limit is the most the insurer will pay for all claims during the policy period, typically one year.

General liability insurance costs depend on factors such as the coverage limits and deductible you choose, the types of interior design services you offer, your business income, and any additional insured endorsements you select.

Learn more about how your insurance premium is calculated and how to save money on your general liability coverage.

Interior design businesses pay an average of $79 per month, or $949 annually, for a business owner’s policy.

A business owner's policy, or BOP, bundles general liability coverage with commercial property insurance to cover both third-party risks and your business property. It typically costs less than purchasing each policy separately.

A BOP protects against customer injuries, property damage, and vandalism. It also covers damage to your interior design equipment, as well as your office building. Because of its increased coverage and affordability, it’s the policy most often recommended by Insureon’s agents for those who rent or own an office.

This is the average BOP for interior designers who buy from Insureon:

Insurance premium: $79 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Small, low-risk interior design companies are often eligible for a business owner's policy.

Interior design small business owners may see higher costs if they choose to add endorsements to their policy. Insurance endorsements, such as business interruption insurance or equipment breakdown coverage, are often recommended to help pay for lost income if a fire or power outage forces your business operations to cease for an extended period of time.

The cost of a business owner's policy is based on many factors, including the value of your business property, where you and your jobsites are located, the types of projects you take on, the number of employees you have, and your specialty.

The average cost of workers’ compensation insurance is $55 per month, or $660 annually, for interior design companies.

This policy covers medical expenses and lost wages related to employee injuries. It usually includes employer's liability insurance to protect against lawsuits from injured workers.

Businesses with employees typically must purchase workers' comp to comply with state requirements and avoid penalties. For example, all interior design businesses in California, Pennsylvania, and New York must carry workers' comp if they have one or more employees. Florida businesses need coverage when they have four or more employees, and coverage is optional in Texas.

Since health insurance plans can deny claims for injuries related to your job, workers' comp coverage is also recommended for independent contractors as a financial safety net and for peace of mind.

The cost of workers' comp depends on several factors, primarily the number of employees you have and their occupational risks. You can save money on workers' comp coverage by classifying your employees correctly and implementing a risk management plan to avoid work-related injuries and subsequent claims.

Interior designers pay an average of $203 per month, or $2,433 annually, for commercial auto insurance.

This type of insurance pays for legal costs and medical bills if your company vehicle injures someone or damages their property in an accident. It can also cover vehicle theft, vandalism, and weather damage.

Most states require commercial auto insurance for vehicles owned by an interior design business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.

The cost of commercial auto insurance depends on several factors, including your policy limits, the coverage options you choose (e.g., additional insured endorsements), the number and value of your vehicles, and the driving records of anyone permitted to drive.

Building design businesses, including interior designers, spend an average of $81 per month, or $975 annually, on cyber insurance. This policy is also called cyber liability insurance or cybersecurity insurance.

Cyber insurance helps interior designers and other building design professionals recover financially after a cyberattack or data breach. It can cover data breach investigations, cyber extortion payments, and costs related to complying with your state's data breach laws.

A cyber liability insurance policy is especially crucial for interior design companies that store sensitive client information, such as credit card numbers, phone numbers, and email addresses.

The cost of cyber insurance and the coverage you need depend on the amount of sensitive information you handle at your interior design firm.