Home offices are becoming a must-have feature in many homes due to the rising trend of remote work. That’s great news for interior design professionals specializing in home workspaces. With this newfound source of work, it would make sense for all creatives operating in this space to make sure they have insurance coverage that fits.
In this article, we’ll explore potential risks and outline the insurance you may need to protect your business. With this information, you’ll have the peace of mind to create and design with confidence.
Understanding the Risks in Home Office Design
As a small business owner, you’ll want to ensure you’ve done everything possible to protect your business and clients. That means understanding the inherent risks and safeguarding your business.
Property Damage
- Damage to a client’s home.
When working on a renovation or redesign in a client’s home, property damage is always possible. Whether it’s damaging a wall while hanging artwork or scratching the hardwood floors while moving furniture, accidents can happen.
- Damage to equipment or furniture.
Another potential risk is damage to expensive equipment or furniture. Ruining a carpet or shattering a new computer monitor can be a costly mistake. However, the right small business liability insurance can protect you from paying out of pocket.
- Damage resulting from natural disasters.
There’s always the chance that fire, water damage, or natural disasters could wreak havoc on your renovations. Threats like these are often unpredictable, but you can be proactive regarding carrying business liability insurance to protect your business.
Liability Risks
- Client injuries
Even when you follow all the safety standards, there’s a chance your client could get injured in their new home office. Your business could be held responsible for their medical bills if it’s due to a design flaw or faulty installation.
- Client health issues
Ergonomics matter when designing a home office. A poorly designed workspace can cause clients to experience chronic back pain or other health problems for which you may be liable.
- Client disputes
You never know when a communication breakdown may happen. Misunderstandings about project scope or design fees can lead to a strained relationship with your client — and maybe even a legal dispute. That’s why having professional liability insurance is crucial.
Essential Insurance Coverage for Home Office Designers
As an interior designer, you carefully select furniture, fabrics, colors, and other design elements. It’s also wise to put some extra thought into your insurance coverage.
Protecting your small business with the right insurance can help cover the costs of property damage and liability claims, setting you up for long-term success.
Here are five types of insurance that interior designers should consider:
General Liability Insurance
General liability insurance coverage, also known as (GL) insurance, is essential for your interior design business, especially when working in someone’s home. This policy protects you against third-party accidents, property damage, and bodily injuries to a third party (e.g., a client or vendor).
Professional Liability Insurance
Even the most experienced professionals can fall short of their client’s expectations. When this happens, professional liability insurance (PL) can help. This insurance covers you and your business if a client claims you didn’t fulfill your end of the project. Also, if you have employees, PL insurance protects them as well.
Business Personal Property Insurance
Business personal property insurance (BPP) covers the damage or loss of your tools, equipment, and/or materials. If your items are stolen, damaged, or destroyed, BPP insurance can help cover the replacement cost.
Workers’ Compensation Insurance
If you employ a team of designers, even part-time or temporary, you may be required to carry workers’ compensation insurance (WC). Most states require business owners who have employees to carry some form of WC. Check out your state’s laws to see what’s required. WC can cover costs related to an employee injury or illness sustained while working for you, so it’s critical to have this insurance on your side.
Cyber Liability Insurance
As a small business owner with electronic access to client information, you’ll need to consider the benefits of cyber liability insurance (CL). It can protect your interior design business against data breaches and cyberattacks, ensuring that you can manage the cost of claims associated with cyber-related incidents.
Knowing that your business is well-protected with the right insurance coverage gives you peace of mind and the freedom to focus on your specialty: Designing beautiful spaces.
At Simply Business, we’re specialists too. We’ve helped insure over 1 million small business owners worldwide by finding business liability insurance to fit their needs.
Our fast and easy online process can put quotes in front of you in 10 minutes. We work with insurers who specialize in small business coverage. We also have agents available to help and answer questions M-F, 8 a.m.-8 p.m. (ET), at 844-654-7272.
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More Resources for Interior Designers
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