Do Interior Designers Really Need Business Insurance? Absolutely.
There are two kinds of business owners: those who have insurance and those who will wish they had it the moment something goes wrong.
Whether you’re a solo designer sourcing trade-only furnishings or running a full-scale firm with a team, business insurance isn’t optional—it’s essential. One designer in our community put it bluntly:
“If you can’t afford insurance, don’t open a business.” – drapery_king
That might sound harsh, but it’s the truth. Without insurance, a simple mistake—like mismeasuring a custom sofa or miscommunicating a renovation detail—can turn into a financial nightmare.
The question isn’t if you need insurance, but what kind and when to get it (spoiler: now).
What Kind of Business Insurance Do Interior Designers Need?
There are three main types of business insurance every interior designer should consider:
1. Professional Liability Insurance (Errors & Omissions – E&O)
This protects you from client claims related to mistakes or negligence.
✔ Example: A client claims you ordered the wrong $15,000 custom sectional. They refuse to pay, and you’re stuck in a legal dispute. Professional liability insurance helps cover legal costs and settlements.
✔ Best for: All interior designers, especially those who handle custom orders, construction drawings, or contractor coordination.
“My design firm has professional liability + Errors & Omissions. I’m covered, my employees are covered, and ultimately my clients benefit from this protection should something terrible happen.” — idgreenlist
2. General Liability Insurance
This covers injuries, property damage, and third-party claims.
✔ Example: A client trips over a sample book in your studio, sprains their wrist, and decides to sue you for medical bills. General liability insurance protects you from these claims.
✔ Best for: Any designer working in a studio, visiting client homes, or hiring outside contractors.
“Yes! General business insurance plus professional liability through Hiscox. They were one of the few who had policies specifically for interior designers.” — lizgilbertdesign
3. Business Property & Equipment Insurance
This protects your tools, laptops, design samples, and office equipment in case of theft, fire, or accidents.
✔ Example: A water leak destroys your material library and computer. Without coverage, you’re replacing everything out of pocket.
✔ Best for: Any designer with an office, studio, or expensive work tools.
“From the beginning because insurance is a foundation for maintaining financial wealth. Check Liberty Mutual, Hiscox—great rates. Be sure to add professional liability and personal property in case you lose your tools, laptops, etc.” — vannieparadisdesignstudio
Business Insurance Comparison Chart for Interior Designers
| Insurance Type | What It Covers | Who Needs It? | Estimated Cost |
|---|---|---|---|
| Professional Liability (E&O) | Client disputes, negligence claims, errors & omissions | All designers, especially those handling contracts & custom work | $500–$2,500/year |
| General Liability | Third-party injuries, property damage claims | Designers with offices, client visits, or subcontractors | $400–$1,200/year |
| Business Property | Covers tools, laptops, material libraries from theft/damage | Designers with physical offices or expensive equipment | $300–$800/year |
| Workers’ Compensation | Employee injuries, medical costs, lost wages | Designers with part-time or full-time employees | $500–$3,000/year |
| Cyber Liability Insurance | Data breaches, online fraud, client privacy issues | Designers handling client data, online transactions | $500–$1,500/year |
Is Business Insurance Mandatory for Interior Designers?
In many cases, yes. While state and federal laws don’t always require insurance for interior designers, many trade organizations, vendor accounts, and commercial clients do.
🔹 Professional Associations: If you’re part of the Designer Society of America (DSA) or ASID, they may require you to carry liability insurance.
🔹 Commercial & Hospitality Projects: Many corporate and hospitality clients won’t work with uninsured designers.
🔹 Vendor & Trade Accounts: Some luxury showrooms require proof of insurance to open a trade account.
Bottom line: Even if you’re working solo from home, insurance makes you look more professional and gives clients peace of mind.
When Should You Get Business Insurance?
If you’re asking this question, the answer is now.
✔ Starting a business? Get insurance before signing your first client contract.
✔ Working on client projects? You need coverage now to protect yourself from claims.
✔ Expanding your team? Employees mean more risk—get workers’ comp.
✔ Handling vendor accounts & large budgets? Insurance builds trust with high-end clients and vendors.
Where to Get Business Insurance for Interior Designers
If you’re shopping for insurance, start with these industry-approved providers:
🔹 Hiscox – One of the few companies offering policies specifically for interior designers.
🔹 Liberty Mutual – Great for bundling professional and general liability coverage.
🔹 Prolink (Canada) – Offers terrific rates for Canadian designers.
🔹 Hanover Insurance – Another strong option for general & professional liability.
The Takeaway: Protect Yourself Now, Not Later
Waiting until something goes wrong to get insurance is like waiting until your house catches fire to buy a fire extinguisher.
✔ At minimum, get general liability and professional liability insurance.
✔ Check your state’s regulations and industry requirements.
✔ If you work with high-end clients, insurance makes you look more credible.
✔ It’s not just protection—it’s peace of mind.
The cost of one lawsuit, one client dispute, or one studio accident could wipe out years of profit. Insurance is what keeps you covered, calm, and in business.
Have you set up business insurance for your firm? Drop your recommendations in the comments—we’d love to hear what’s worked best for you!
