Why do you need Professional Liability?
Most claims brought against interior designers are brought by the project owner. Selecting clients carefully and managing their expectations is important to reduce your exposure, but as a professional interior designer you can still be held liable. Errors in design, order errors as well as state requirements, the Americans with Disabilities Act, licensing laws, and environmental issues are examples of the risks you face.
Here are just a few examples of claims paid out by an ASID professional liability policy:
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An ASID firm special-ordered $100,000 worth of chairs and inadvertently used the wrong product number code. As a result, the wrong chairs were manufactured. They had to be modified to fit the needs of the client.
Cost of Claim,Over $30,000 -
An ASID firm designed kitchen cabinets worth $31,000. Upon the completion of the installation, the client claimed that the cabinets were improperly designed and demanded that they be reordered and reinstalled.
Cost of Claim,Nearly $30,000 -
An ASID member neglected to inform the plan designer that furniture ordered was to be wall mounted rather than floor mounted. As a result, everything had to be redesigned.
Cost of Claim,Over $7,500 -
An ASID designer spent a great deal of time with a client ordering furniture. The client made numerous changes. When the furniture was ordered, the designer made an error and ordered the wrong furniture. Therefore, all furniture needed to be replaced.
Cost of Claim,Over $5,000 -
An ASID designer was hired to assist in the renovation of an estate. Problems arose with an antique floor that had been removed from a French chateau. The client demanded $1.8 million to remove and replace the entire floor. The insurance company’s investigation indicated that the designer had little to no liability and that the contractor who shipped and installed the floor was liable. Despite all of this, the client refused to reduce his demand, and it was estimated that the cost for taking the case through trial could exceed $400,000. The designer agreed to a settlement of $235,000 and a waiver of their $70,000 in fees. In addition to the $235,000 settlement, the insurance company also paid more than $250,000 in legal and expert fees.
Cost of Claim,Over $500,000 -
A client’s relocation project resulted in claims against the insured designer for failing to design the space to allow use of the furniture that the client already owned. The claim settled for $95,000 plus $5,200 in expenses.
Cost of Claim,Over $100,000 -
On a relocation project within the same office building, allegations against the designer claimed that the electrical plans were incomplete. The designer argued their plans met the requirements. In the end, no claim was made against the designer, however they incurred over $6,000.00 in defense costs.
Cost of Claim,Over $6,000
