Hello, I'm in the auto industry, but I can certainly relate when discussing business insurance. In the auto industry—particularly at dealerships or at auction—liability coverage and garage keeper's coverage are a lifesaver. I once had a claim filed where the customer had tripped over a loose floor mat in one of the service areas. Without liability insurance, that would have been a huge blow. The same goes for business car insurance. When you're in test vehicles or transporting vehicles, the slightest crash will cost money in a hurry. Insurance will keep you sleeping at night—end of story. So even if I'm not in the business of interior design, I'd say any businesses where you're on the premises with the clients or operating expensive equipment are in need of coverage. A bad day will cost you when you're uninsured.
### Response As an interior design firm specializing in home design and remodeling, we work with a variety of vendors and trades. This naturally brings some risk—ranging from product damage during delivery to installation mishaps. To manage these exposures, we carry general liability insurance, which covers property damage at client sites, injuries to subcontractors we hire, and damage caused during installations. For more than 18 years in business, we never had to file a major claim—until recently. After purchasing and installing a rug for a client, we discovered damage during installation. The rug had been stored in a warehouse for months, but it was unclear whether the damage was a manufacturing defect or occurred during storage or delivery. Unfortunately, our policy did not cover this incident, as insurance typically excludes product defects, and the damage was below our deductible. This was a learning experience and highlighted the limitations of what insurance policies actually cover. If I could offer advice to other interior designers, it would be this: absolutely get insurance coverage, but make sure you fully understand the fine print—especially when it comes to product defects, deductibles, and exactly what's covered. Sit down with your insurance agent and walk through real-world scenarios: "What happens if a custom sofa arrives with a broken frame?" or "What if a painter I hired spills paint on a client's antique?" The truth is, some losses will need to be absorbed or negotiated directly with vendors. Still, proper insurance is essential — it brings peace of mind, protects your business from major liabilities if something bigger goes wrong, and serves as a critical backup when your processes fail. ### About Kanika Design + Kanika Founded in 2008, Kanika Design is an award-winning interior design firm specializing in design and remodeling solutions to create stunning high-end homes from concept to completion. Through the years, Kanika Design has earned a reputation for its daring and distinctive designs and unwavering commitment to exceptional service. Kanika Bakshi Khurana is the Founder and Principal Designer of Kanika Design, transforming interiors through a blend of global influences and bold creativity. Born in India and raised in the San Francisco Bay Area, Kanika draws inspiration from her vibrant heritage and world travels to create distinctive, multi-stylistic designs that marry fearless color choices and thoughtful functionality.
Have you ever had a claim filed—or narrowly avoided one—thanks to insurance? Yes — in two ways that would have left without coverage. A poorly placed screw from a cabinet installer can continue to cause leaks long after a flip is complete, like this copper line behind a backsplash in a South Side Des Moines flip. Water ran for hours. My general liability policy (which he made sure I had) paid for emergency mitigation as well as my drywall repair, and the installation floater I hold (he saw to it that I was covered) paid for destroyed custom panels that were still "in transit" at the time of the incident. What types of coverage do you carry, and how has each helped you manage risk? General Liability (GL): The "someone tripped over your drop cloth" coverage. Covers bodily injury and property damage. What common risks or issues in your work does insurance actually cover? Failure to Specify Properly: Selecting a fabric that doesn't meet a code for fire, for example, or a tile not rated for floor use — E &O may come in. Jobsite Damage: A painter oversprays a client's baby grand— GL covers the restoration bill. Weather Events: Hail in Iowa takes out staging material in a driveway; inland marine, not your homeowner's, saves you. Advice for other interior designers on getting insured? Begin by your approach to work, not just something the broker is selling. Map Your Process: From consult to install, map who touches what and when $$ changes hands. Every hand off suggests a coverage vacuum. Ask for ''Occurrence" vs. ''Claims Made" Explanations: Many E &O policies are claims made; need tail coverage if you close shop or take a break. Bundle, but Customize: One broker, multiple riders. It's cheaper, but make sure you request to see sub limits (the installation floater limits are typically comically low out of the box). Document Changes: Change orders solve more claims than attorneys. Document the "client insisted" decisions. Common misconceptions about getting insured? "I'm good, my LLC has me covered." The LLC is a shelter for personal assets, not a piggy bank for payments. You can still be sued by the plaintiffs, and just the cost of defending can do you in. General liability covers everything." GL does not address pure financial loss due to bad advice—that's E &O. "I'm too little, nobody will sue me." Small is also easier to pressure into settlements. Plaintiffs know that you, dear reader, don't have the money to litigate.
"We're working on an article about why business insurance is essential for interior designers, and we're looking for quotes from industry professionals. Have you ever had a claim filed—or narrowly avoided one—thanks to insurance?" I have one wild-insurance story that involved a claim. December 30th, 2020 we had a home addition underway, and the entire back side of a home was open and in framing, under construction. The weather had been in the 40's and we were scheduled to have insulation done on that day. The insulators, and our onsite Project Manager all got COVID and no one showed up on the site. That night, the temperature dropped 70 degrees to a -10F and that freezing weather caused a water line in the basement to freeze. Insurance stepped into cover the expenses of completely rebuilding a lower level with a bar, theater and bedroom. The liability fell on us because of the combination of COVID and the weather. Insurance saved me from writing a massive check. "What types of coverage do you carry (e.g., general liability, professional liability, tools/equipment, commercial auto), and how has it helped you manage risk or protect your business?" We have general liability, automobile fleet coverage, inland marine, health, dental, workman's comp, and a 5M umbrella policy. The protection actually comes from the education of a great insurance provider. Through that education and learning how to subrogate the insurance risk, all of our subcontracted labor is solely responsible for their own workman's comp, and general liability on each of our jobsites. We're especially interested in: - Real-life examples of how insurance helped during a claim (See above with the basement problem story) - Common risks or issues in your work that insurance covers. One of the biggest risks we have is when employees drive our company trucks. We have a substantial and very clear understanding of how to protect our people through insurance when they are driving a company-owned vehicle. - Advice for other interior designers on getting insured. Make sure all subcontractors provide to you a Workman's Comp Certificate. If they don't, don't work with them. It's too risky. - Common misconceptions about getting insured The misconception is that "one call does all". Getting and understanding insurance is a multiple-person endeavor. We have an agent, a carrier and they speak with underwriting. If something goes horribly wrong, you will be speaking with all 3.