Professional indemnity insurance for designers

In case you get something wrong in your work or fail to deliver the expected results.

What’s typically covered by professional indemnity insurance?

Legal and/or medical expenses relating to claims against your business for:

• giving a client incorrect advice or making poor recommendations
• making a mistake in your work
• any other professional negligence that results in your client suffering financial loss

For example:

• you’ve designed some promotional leaflets for a client who’s looking to boost their sales, but you send the wrong file to the printer – it gives an old phone number, so the leaflets can’t be used, and the promotion has to be cancelled – this results in non-refundable costs for your client
• a client has briefed you to create some designs for their website in preparation for a seasonal sale but you miss the deadline, delaying the launch and causing them to lose money

Read more about professional indemnity insurance

Public liability insurance for designers

In case your business damages someone else’s property or causes an injury.

What’s typically covered by public liability insurance?

Claims against your business for:

• damage you cause to someone else’s property while you’re carrying out your design work, or as a consequence of your work
• injury you cause to another person in the context of your work
• accidental damage or injury caused by your employees (remember, if you employ people, the law says you must have employers’ liability insurance in place)

For example:

• a client is taking a look at some new designs at your studio – they trip over a cable and bang their head on a table, which leads to a concussion
• you’re meeting a potential client at their office – you leave your bag on the floor, and one of their employees falls over it

Read more about public liability insurance

Employers’ liability insurance

In case something happens to an employee while they’re working for you.

What’s typically covered by employers’ liability insurance?

Claims against your business for:

• your employee falling ill as a result of the work they do for you
• your employee suffering an injury as a result of the work they do for you

**Employers’ liability insurance is required by law if you have people working for you. Without it, you could be fined up to £2,500 a day for each employee.**

For example:

• your assistant electrocutes themselves as they’re trying to fix their broken computer monitor, and you realise that your monitors hadn’t been PAT tested, meaning the working environment was unsafe
• your trainee is working hard to get some designs ready for a deadline, but the long hours spent sitting at a desk over a notebook are taking a toll on their back – it turns out that the desk chair you’ve provided is not fit for purpose

Business and office equipment insurance

In case your business and office equipment is lost, stolen, or damaged.

What’s typically covered by business and office equipment insurance?

• the operational equipment you use in the running of your design business, while stored at your premises or out and about
• theft of your equipment
• flood, fire, or accidental damage to your equipment

For example:

• you’re working on your notebook in a cafe when you realise someone has stolen your bag containing your laptop, tablet, stylus, phone and camera
• a flood at your design studio causes water damage to your HD monitors and hard drive, so they need replacing

Read more about business and office equipment insurance

Legal expenses insurance

In case you’re faced with legal costs as the owner of your design business.

What’s typically covered by legal expenses insurance?

• the cost of fixing tax and compliance problems
• the cost of dealing with disputes with your employees
• legal claims and associated expenses that arise from property damage, nuisance, or trespass
• phone support – offering quick and reliable access to tax advice, 24/7 confidential legal advice, and crisis PR guidance

For example:

• your design company’s tax affairs are being looked into by HMRC, and you need an accountant to help you navigate their questions and requests
• you’ve delivered a piece of work as agreed by contract and the client is two months late in paying you, so you want to engage a lawyer to recover the money you’re owed

Read more about legal expenses insurance

Personal accident insurance

In case you or anyone you’ve covered has an accident.

What’s typically covered by personal accident insurance?

• claims due to injury or death (outside of work as well as at work) for any person you’ve chosen to name in your policy
• lost income, medical costs, and hospitalisation benefit

For example:

• you’re attending a design conference and you fall down the stairs and break your wrist
• your employee sprains their ankle at an event over the weekend, leaving them unable to drive to your design studio for a month

Read more about personal accident insurance

Which type of workers do I need insurance for?

Employers’ liability insurance is a legal requirement if you employ people.

If you have people working for you, including bona fide subcontractors (BFSC), labour-only subcontractors (LOSC), part-timers, or full-time staff, employers’ liability insurance is required by law.

Read on for our simplified guide to the difference between labour-only subcontractors and bona fide subcontractors.

Does designers’ insurance cover my work correctly?

Make sure you’re picking the right cover to protect you properly. It’s important to know that if you have another trade or job, you’ll need additional cover. For example, do you need to consider Photography insurance or Web marketing?

Do I need cover for other types of work?

If you provide other services, make sure you’re covered:

• Web designer insurance
• Interior design insurance
• Garden design insurance
• Illustrator
• Fashion insurance
• Videographer insurance

Other types of insurance

• Limited company insurance
• Self-employed insurance
• Freelance insurance
• Consultant insurance
• Contractors insurance

Which public liability cover limit should I choose?

Think about the maximum possible loss your business could face in the event of a claim, and make sure you take legal fees and damages into consideration. You can choose from three levels of coverage – £1 million, £2 million, or up to £5 million.