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Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a home designer.

Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a home designer.

This article will discuss the primary insurance coverage for house decorators, general liability insurance, as well as additional products that are appropriate for this industry.

Home Decorators’ General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: You are experimenting with several design concepts at a client’s house. Candles are one of your suggestions. A candle sets fire to a curtain, destroying a whole room. Damage to customer property is covered by your general liability insurance, so you may make a claim and obtain assistance paying for the damages.

Example 2: A customer comes to your office to look at some of the materials you’re thinking about using in her house. She falls in the restroom and fractures her hip. She subsequently chooses to sue your company. Your general liability insurance will cover the expense of your legal defence, as well as the cost of a settlement if one is necessary.

Example 3: While touring your workplace, a customer stumbles over a stack of boxes and suffers a concussion. He requests that you pay for his medical care. This is most likely covered by your general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Home designers in America pay an average of $400 – $1500 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Home Decorators

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all house decorators should have are as follows:

Insurance for Commercial Property

All of the equipment and materials you’ve spent money on to run your company would be expensive to replace if they were damaged in an unforeseen disaster like a fire. However, if the damage was caused by a covered incident, you may obtain aid with replacement expenses with business property insurance.

Insurance for Professional Liability

While you try your best for each customer, there is always the chance that one of them may determine that your services caused him or her harm. Professional liability insurance safeguards against allegations of carelessness resulting from errors or failure to perform. As a result, if you are sued over such concerns, your insurance will cover your legal bills as well as any possible settlement costs.

Coverage Options for Some Home Decorators

In addition to the insurance listed above, your home decorator may need a few more forms of coverage based on specific parts of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Insurance for Businesses

When the limitations of your general liability insurance coverage are exceeded—which may happen in certain cases, such as if you lose a significant lawsuit—you are stuck paying the remaining damages out of pocket. However, if you have a business umbrella coverage, it will kick in and pay any additional expenditures.

Insurance for Commercial Vehicles

If you use a car mainly for business purposes, you must obtain commercial auto insurance to protect your company and satisfy your legal requirements. In the case of an accident, commercial car insurance will cover the cost of damages to your vehicle as well as the cost of damages to the other vehicle if you cause the collision. The coverage would also cover medical expenses for the wounded.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.