Example scenarios when interior designers benefit from insurance
Below are some common situations where interior designers may need the different types of insurance outlined above:
Scenario 1 - General Liability Insurance
On a visit to a client’s home carrying a box of tile samples, you drop the box and the sharp edges of the tiles damage the client’s wooden floor. General Liability insurance helps your business cover the cost of the damage, and any lawsuit or settlement.
Scenario 2 - BOP
There’s a fire in your design studio and it destroys some valuable artwork stored for a project. Fortunately, the Commercial Property Damage cover that is part of your BOP will cover you for the repairs to the studio, as well as the replacement of the artwork.
Scenario 3 - Professional Liability Insurance
You order some bespoke cabinetry for an alcove only to discover that you made a mistake when measuring the space and the cabinetry has to be adapted, adding additional costs to the budget. Professional Liability insurance will cover the extra costs you are liable for, as well as any lawsuits taken out by the disgruntled client.
Scenario 4 - Workers’ Compensation Insurance
While delivering a piece of furniture to a client, your employee has a car accident and suffers whiplash, resulting in them having to take time off work. Your Workers’ Compensation insurance pays for any medical care your employee needs to get back to work, as well as any loss of earnings while they are injured.