How much is interior designer insurance?

On average, interior design businesses pay $52 per month, or $621 per year, for professional liability insurance.

Also called errors and omissions insurance (E&O) and professional indemnity insurance, professional liability coverage pays for legal costs related to a mistake, missed deadline, or other accusation of professional negligence. This includes attorney's fees and other legal expenses if a client decides to sue over unsatisfactory work.

This is the average insurance policy for design professionals who purchase from TechInsurance:

Premium: $52 per month
Policy limits: $1 million per occurrence; $1 million aggregate
Deductible: $1,000

The cost of a professional liability insurance policy is determined by several factors, including the coverage limits and deductible you choose, the size of your business, the type of design work you do, and your claims history.

Interior designers spend an average of $42 per month, or $500 per year, for general liability insurance. Though usually not required by law, a general liability policy may be needed in order to sign a lease, get licensed in their state, or work with some clients.

General liability coverage protects your small business from common third-party risks, such as customer property damage or bodily injury. It also pays for lawsuits related to copyright infringement and defamation, including slander and libel.

For example, if a competitor claims that an employee at your design company made disparaging comments about them online and decides to sue, a general liability policy would pay for any legal costs, helping you to avoid financial loss.

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

Premium: $42 per month
Policy limits: $1 million per occurrence; $2 million aggregate

If your business is small and low-risk, TechInsurance's licensed agents usually recommend a business owner’s policy.

The cost of general liability insurance is based on several factors, including the types of services offered, policy limits, size and location of your business, or any additional insured endorsements you may have.

On average, interior design businesses pay $64 per month, or $762 per year, for a business owner's policy (BOP).

A BOP combines your general liability and commercial property insurance coverage together at a discount. It protects your small business against both property and liability risks, such as stolen business property or client bodily injury.

This is the average business owner's policy for interior designers who buy from TechInsurance:

Premium: $64 per month
Policy limits: $1 million per occurrence; $2 million aggregate
Deductible: $500

Interior design companies that qualify for a BOP usually are small in size (less than 100 employees) and low-risk. Learn more about business owner's policy eligibility requirements.

The cost of a business owner's policy is based on several factors, including the value of your property, your location, and the number of employees you have.

You can also expand your policy with additional coverage by adding endorsements based on your needs, such as business interruption insurance or equipment breakdown coverage.

Interior designers spend an average of $39 per month, or $469 annually, for workers' compensation insurance.

Workers' comp coverage pays for medical costs and disability benefits when you or an employee suffers a work-related injury or illness. For example, if an employee slips and breaks their wrist while providing design services in a client's home, a workers' comp policy would pay for their medical bills and lost income while they recover.

Workers' compensation coverage also usually includes employer's liability insurance, which pays for defense costs and other legal fees in the event of a lawsuit related to workplace injuries.

State insurance requirements and how many employees you have will determine if your business is mandated to carry this coverage. Many design businesses with one or more employees are required to purchase workers' comp.

For example, in California and New York, you'll need workers' comp after your first hire. However, in Florida, you'll typically need workers' comp after the fourth hire. In Texas, coverage is optional.

Even though workers' comp may not be required for sole proprietors or independent contractors, it is highly recommended since most health insurance plans will deny claims for injuries that occur while on the job.

The cost of workers' comp is based on numerous factors, including the number of employees you have and their occupational risks. It's often less expensive for businesses in states that have lower healthcare costs.

Designers spend an average of $158 per month, or $1,901 per year, for commercial auto insurance. Almost every state requires this type of insurance if your interior design business owns any company vehicles.

If your business vehicles are involved in an accident, a commercial auto policy would help cover property damage costs and any medical expenses. This coverage also helps pay for costs related to vandalism, weather damage, and theft.

To protect personal, rented, and leased vehicles used for business purposes, you'd need hired and non-owned auto insurance (HNOA) instead.

The cost of commercial car insurance depends on many factors, including your employees' driving records, policy limits, the number of vehicles you own and their value, and your coverage options.

Small businesses in the design industry pay an average of $84 per month, or $1,002 per year, on cyber insurance, also known as cyber liability insurance or cybersecurity insurance.

Cyber insurance helps your design business recover from the financial impact of a cyberattack or data breach. It can help pay for data recovery, breach investigations, notification costs, legal defense costs, and even cyberextortion payments.

Design businesses often digitally process and store private customer details, such as credit card information, email addresses, names, and addresses. Having a cyber insurance policy can help protect your business in the event of a data breach or cybersecurity incident.

The cost of your cyber insurance policy depends on factors such as how much sensitive data you manage, your cybersecurity controls, and your claims history. Designers that store large volumes of customer information typically need higher limits to ensure full protection.