Why do interior designers need insurance?
Being an interior designer is a challenging profession. Clients who seek your services desire improvement but rely on you to create and bring their dream space to life. The lack of clear instructions and high expectations often lead to disagreements between interior designers and their clients.
Causing property damage
As an interior designer, you may need to shift, move, or rearrange your client's valuable furniture or artwork. Your client may allege that a scratch or breakage was caused by you or your subcontractors asking you to pay repair or replacement costs. While you may feel that is not fair, your client may pursue a legal claim against you.
Contractual disputes
Client contracts often face scrutiny on payment terms and scope of work, particularly on more significant projects, which can result in legal claims.
Design mistakes leading to a costly mistake
Even a tiny discrepancy, such as being an inch off when taking measurements, can lead to expensive rework and project delays. However, sometimes these inaccuracies might come from unclear instructions. And yet you may be held liable for the extra costs.
Accusations of not meeting the brief
Despite multiple consultations, a client may feel dissatisfied with your work, leading them to request a refund or additional work for free. If you refuse, you may receive a legal demand for compensation.
What is interior design liability insurance?
Interior design liability insurance encompasses multiple legal liability products, including public liability, professional indemnity, employers' liability, and commercial legal expenses insurance. These products safeguard interior designers from potential legal actions and associated costs.
Depending on your specific needs, purchasing one or more of these insurance products may be necessary to ensure comprehensive coverage for your business activities.
Professional indemnity insurance for interior designers
Professional indemnity insurance protects interior designers from accusations of professional mistakes, negligence or failing duty of care.
Interior designers are experts in creating visually appealing spaces that fit within a predetermined budget, all while meeting the expectations of their clients.
It's essential to consider the potential consequences if your advice leads to a dispute with a client. In such a situation, the costs could be significant. That's why it's worth considering professional indemnity insurance, which can be affordable and provide valuable protection if you need to defend yourself.
What does interior designer professional indemnity insurance cover?
Professional indemnity insurance protects interior designers from claims or accusations of wrongdoing from their professional advice or work product.
Cover includes:
- Failing your duty of care
- Making a mistake
- Acting negligently
- Giving the wrong advice or recommendation
For example:
- You’ve agreed with a client all measurements but when it came to fitting, the supplied materials or furnishing wasn’t right. The cost of new materials and labour may become the subject of a legal dispute if you refuse to pay it.
- You may be asked to refund all fees because what you’ve delivered has not met your client’s expectations. Sometimes it’s the best course of action. Other times, especially if the fees are substantial, you may want to say no. However, your client may decide to take you to court.
What professional indemnity limit do interior designers need?
When choosing a professional indemnity limit, it's important to consider a few key factors. These include whether your contract specifies a liability limit, such as £1,000,000, and the total value of your client contracts in recent years. You should also consider potential costs if your work results in damages, who the end consumer of your work will be, and the potential costs to your client if you cannot deliver on time.
Switching your professional indemnity insurance
In the UK, cancelling a professional indemnity policy means you cannot make claims against it.
Hence, when changing your interior design insurance provider, ensure that your new policy includes coverage for your previous work, known as "retroactive cover".
Should I keep professional indemnity insurance if I close my interior design business?
It’s wise to keep your professional indemnity if you close your interior design agency. Claims against professional misconduct can surface months or years after you delivered the work.
If a past client sues you for damages and you have cancelled your professional indemnity, you will not be covered.
How long you keep your cover in place is up to you; consider the type of work you did and the likelihood that a client might bring a claim against you.
Public liability insurance for interior designers
Public liability insurance shields interior designers from claims of injuries or property damage.
Interior design work requires significant in-person interaction and on-site design implementation. Unfortunately, this increases the risk of potential third-party injuries or property damage.
Public liability is an inexpensive protection against compensation claims following unfortunate incidents such as slips, falls or causing damage to a third party’s property.
What does interior designer public liability insurance cover?
Public liability insurance is valuable when faced with injury claims and compensation demands.
Cover includes:
- accidental injury or death
- accidental property damage
For example:
- An accident resulting in damage to expensive furniture or carpets could cost thousands of pounds. Even though you believe it shouldn’t be your responsibility, your client may demand that you pay.
- During interior design a lot of work goes on with materials and equipment lying about all over the place. Next thing you know, a letter from a solicitor arrives inviting you to pay someone’s medical bills they incurred as a result of a fall over your equipment.
Other insurance interior designers buy
As an interior designer, you may need to consider additional insurance policies depending on your circumstances. Could you handle a legal dispute if it arises? How would negative publicity impact your business? Do you have the financial means to replace a lost, stolen, or damaged computer? And if you become ill, how would you cover your business expenses?
Commercial legal expenses
Most commercial legal expenses insurance will protect interior designers against various tax and legal issues you may encounter due to your profession, which are not covered by professional indemnity or public liability.
At Suited, we combined £100,000 of commercial legal expenses insurance with helplines and other tools to better assist interior designers in dealing with these issues. We call this Business Legal Protect, and it’s part of your subscription.
Business Legal Protect offers qualified advice and assistance with:
- Legal and tax matters concerning your business
- Criminal prosecution
- Unpaid invoices (over £200)
For example:
- HMRC investigates your tax affairs
- You are facing an investigation from a professional body
- You need legal help chasing a significant unpaid invoice
- You’re being taken to court for breach of contract
Electronic business equipment insurance
Nowadays, interior designers heavily rely on electronic equipment to provide their services. If your business depends on electronic equipment, it's recommended that you consider getting electronic business equipment insurance to protect your assets.
Income protection insurance
Additionally, income protection insurance is a type of coverage that ensures your earnings are protected in the event that you become too ill to work. It's worth considering to ensure financial security during unforeseen circumstances.
Interior designers we insure
Suited offers comprehensive insurance policies that cater to the needs of a wide range of interior designers, including:
- Bathroom designers (non-structural)
- Garden designers (non-structural)
- Kitchen designers (non-structural)
- Lighting designers
- and more..
Shopping for interior designer insurance
When considering interior designer insurance options for your business, it's important to consider the following factors.
Cheap interior designer insurance
It's not just about cost - you want to choose a trustworthy provider. Suited offers multiple communication channels to ensure you feel secure about your coverage.
The reputation of the insurer is important
Insurance is crucial in times of need, so it's important to consider the payout reputation of your insurer. Suited partners with financially sound insurers with an A+ rating.
Many providers charge fees to amend or cancel
Be aware that some insurers may offer low initial prices but tack on extra charges for monthly payments, policy amendments, or cancellations. At Suited, we don't charge any additional fees, and you can cancel at any time without further costs.
Some policy wordings are restrictive or have a high excess
Remember that some providers may offer lower prices but less comprehensive coverage when comparing coverage options. Suited's professional indemnity and public liability policies have a £0 excess.
