What Insurance do I need and why?

Insurance can be an intimidating task to tackle! There are an array of policy types, insurers and policy benefits so understanding where to start can be difficult.

Policy Type

The BIID consider three policies to be essential for a successful interior design business: Professional Indemnity insurance, Public Liability and Employers’ Liability.

1. What is Professional Indemnity insurance?

In the event that a client suffers loss or injury as a result of alleged neglect, error or omission, Professional Indemnity should meet the cost of defending claims and of damages payable. In these times of high consumer awareness, clients will not hesitate to pursue a claim if they feel that they have received substandard service. Claims can only be considered if the policy is still current at the time of the complaint, regardless of when the project took place. Therefore, a policy running from 1st January 2019, and not renewed on the 1st January 2020, would result in any claim first notified in 2019 not being met. However, if the insurance had been transferred to new insurers at the renewal date, they would handle the claim.

2.What is Public Liability (including Products Liability)?

This is required to provide cover for claims made against you or your employees for injury to third parties or damage to their property, arising out of you or your employee’s negligence whilst on your business. Products Liability provides cover for claims made against you for injury to third parties or damage to their property, arising out of the supply of any product in connection with the business.

3. What is Employers’ Liability?

This is required unless you are a business or organisation without employees; note that you may be an employee of your own company. Employers’ Liability provides cover for claims made by employees against a company for injury or illness contracted during the course of their employment. The government also offers guidance on who needs this insurance. 

Choosing an Insurer

Now you know which policies you need to have, the next step is to find an insurer.  Finding the right insurer can be almost as overwhelming!

Direct to Insurer 

One approach is to go straight to an insurer who can provide you with a quote.  The benefit of this is that you are likely to use someone you have heard of already and you are able speak to someone at the company that provides the policy.  If taking this route, we recommend you contact more than one provider to allow you to compare policies and prices. 

Find a Broker 

Another route is to go via a broker.  Choosing to go through a broker can provide you with expertise on the subject that is not restricted to one specific policy or insurer. BIBA can provide you with brokers that offer the policy you are looking for. 

Most importantly don't take any risks! Insurance is only a legal requirement in some cases but in all cases it will protect you. It will give you piece of mind and your clients reassurance.  BIID members can find out about the BIID Insurance partnerships in our members area.