How Much Does Interior Design Business Insurance Cost? 2026 Rates

Interior design firms in the United States typically spend between $400 and $900 per year on business insurance, which equals about $33 to $72 per month. Actual premiums vary depending on the overall risk profile of the business. Several factors influence how much coverage will cost, including services offered, business size, location, and claims history.

How Much Does Interior Design Business Insurance Cost?

On average, interior design firms spend between $400 and $900 annually on insurance. That equals about $33 to $72 per month. These figures are only estimates, and the actual premium depends on the details of your business.

No two design practices face the same risks. A solo designer working independently will usually pay far less than a large firm with multiple employees and complex projects.

Several factors influence how much you’ll pay for coverage:

• Services offered.
• Number of employees.
• Property size and value.
• Claims history.
• Business interruption and add-ons.
• Services and Risk Level.
• Location and Property Value.

Understanding these variables helps interior design businesses estimate insurance needs more accurately and budget for the real costs of protecting their work, staff, and clients. With the right coverage, you can safeguard your practice without overspending.

Average Interior Design Business Insurance Costs For Coverage Types

When it comes to protecting your interior design business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most interior design businesses need.

• General liability insurance: $33 per month
• Business owner’s policy: $68 per month
• Professional liability insurance: $56 per month
• Workers’ compensation insurance: $41 per month
• Commercial auto insurance: $149 per month
• Commercial property insurance: $60 per month
• Cyber liability insurance: $89 per month

General Liability Insurance

The average cost of general liability insurance for an interior design business is about $33 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a customer slips on a wet floor and gets injured, this policy would help pay for their medical expenses and your legal defense costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the business type (your services), location, office environment (if clients frequently visit your office), contract requirements, and previous claims history.

Average annual premiums by state:

Note: These estimates are based on average national General Liability Insurance premiums for interior design businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, services offered, claims history, coverage limits, and insurer underwriting practices.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $68 per month for interior design businesses.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your computers and files, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business, location risk (such as flood or crime rates), business revenue, number of employees, and any optional endorsements like cyber protection, employment practices liability insurance, or business interruption insurance.

Average annual premiums by state:

Note: These estimates are based on average national Business Owner’s Policy (BOP) premiums for interior design businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, property value, services offered, claims history, and insurer underwriting practices.

Professional Liability Insurance

The average cost of professional liability insurance for interior design businesses is about $56 per month.

Sometimes called errors and omissions, this type of insurance covers claims relating to errors, emissions, negligence, or other financial losses that a customer or client experiences because of the advice you gave. For example, if a project goes over budget and this leads to a lawsuit, this policy would help cover legal defenses relating to your work performance.

Typical policy limits are $1 million per claim, but higher limits are sometimes required by state laws or client contracts.

Cost depends on the size of your business, the services you offer, the number of years you’ve been in business, coverage limits, and claims history.

Average annual premiums by state:

Note: These estimates are based on average national Professional Liability Insurance premiums for interior design businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, services offered, claims history, coverage limits, and insurer underwriting practices.

Cyber Liability Insurance

The average cost of cyber liability insurance for interior design business companies is $89 per month.

Cyber liability insurance covers the costs an interior designer might incur after a cyber incident. This extends to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Interior design businesses can benefit from this coverage if they handle any sensitive data, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place.

Average annual premiums by state:

Note: These estimates are based on average national Cyber Liability Insurance premiums for interior design businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on firm size, sensitivity of client data, claims history, coverage limits, and insurer underwriting practices.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for an interior design business is around $41 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls over loose cords, and breaks their ankle, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your office or on-site for each client), your claims history, and any implemented safety programs.

Average annual premiums by state:

Note: These estimates are based on average national Workers’ Compensation Insurance premiums for interior design businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on payroll size, number of employees, claims history, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for interior design businesses is about $149 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if an employee causes an accident while driving to a client location for a consultation, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site consultations.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Auto Insurance premiums for interior design businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on the number of vehicles, driving records, coverage limits, claims history, and insurer underwriting practices.

Commercial Property Insurance

The average cost of commercial property insurance for an interior design business, when purchased separately, usually runs $60 per month.

Commercial property insurance covers damage to the office building and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like computers, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as professional liability or cyber protection.

Average annual premiums by state:

Note: These estimates are based on average national Commercial Property Insurance premiums for interior design businesses, adjusted slightly for state-level differences. Actual premiums will vary depending on property value, office location risks (fire, theft, natural disasters), claims history, and insurer underwriting practices.

Interior Design Business Insurance Costs By Provider

Interior design business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average small business insurance costs for interior designers, typically including professional liability (errors & omissions), general liability, and business owner’s policies. Actual premiums will vary depending on factors such as firm size, location, annual revenue, services offered, claims history, and coverage limits.

What Factors Impact Your Interior Design Business Insurance Costs?

Insurance premiums for interior design firms are calculated based on the overall risk profile of the business. Underwriters consider services offered, location, property value, and claims history when setting rates.

Claims History

Frequent claims signal higher risk to insurers, which can drive up premiums. A clean record often qualifies businesses for discounts and lower rates.

Property Value And Office Equipment

High-value office equipment, design materials, or custom furnishings increase commercial property insurance costs. Many firms also add cyber insurance endorsements to protect sensitive client data, which raises premiums further.

Type Of Services

Not all design services carry the same risk. Designers handling luxury projects or managing high-value locations face greater liability exposure compared to small-scale or consultation-only practices.

Location

Where your business operates matters. Firms in urban, high-crime, or flood-prone areas often pay more for property and liability coverage, while suburban or lower-risk regions may benefit from reduced rates.

Size Of The Operation

The number of employees, square footage, and annual revenue all affect premiums. Larger firms face greater exposure to liability claims and higher workers’ compensation costs, especially when staff travel between client sites.

Policy Limits And Deductibles

Higher policy limits provide stronger protection but increase premiums. Choosing a larger deductible can lower monthly costs, though it raises your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons such as business interruption, cyber liability, or hired/non-owned auto coverage tailor protection to your firm’s needs but also increase overall costs.

Insurance Provider

Rates vary among carriers. Some specialize in design or professional services and may offer better pricing or flexible options for interior design businesses. Comparing quotes across providers can help secure the best deal.

How To Lower Your Interior Design Business Insurance Costs

Running an interior design firm can be costly, but your insurance premiums don’t have to overwhelm your budget. While coverage is essential, there are smart ways to cut costs without sacrificing protection.

Raise Your Deductible

Opting for a higher deductible is one of the simplest ways to lower monthly premiums. Just ensure your business can comfortably cover the out-of-pocket amount if a claim arises.

Bundle Policies Together

Combining coverage often leads to savings. Many insurers offer a Business Owner’s Policy (BOP) that merges general liability and property insurance at a reduced rate. Adding workers’ compensation or professional liability through the same provider can unlock additional discounts while streamlining paperwork.

Ask About Discounts

Insurers frequently reward loyalty and upfront payments. You may qualify for reduced rates by signing a multi-year agreement or paying your premium in full instead of monthly installments.

Build Safer Offices

Accidents and hazards can quickly drive up insurance costs. Installing non-slip flooring, using wet floor signs, keeping walkways clear, and servicing company vehicles regularly all help reduce liability risks. Fewer incidents mean fewer claims, which lowers premiums over time.

Strengthen Your Safety Program

Workers’ compensation costs can be managed by focusing on employee safety. Training staff on fire safety, maintaining clear emergency exits, and practicing safe workplace habits reduces injuries. When fewer claims are filed, premiums stay lower.