Coverages


Q. How much is enough?
A. When dealing with liability coverage, you can never have too much. The minimum amounts of coverage set out by IDC are the very least that you may have to operate as an interior designer, but they are not necessarily adequate in protecting you against a loss. No matter how big or small your business and projects are, your exposure for risk is the same. When considering how much coverage to apply for keep in mind that your coverage includes the cost of legal defense. In today’s increasingly litigious environment, it is always wiser to err on the side of caution than to expose yourself and business to a potentially devastating blow to your finances. For more details on this subject, refer to our "Why Designers Need Liability Insurance" article.


Q. Who is covered under my policy?
A. You are covered when you provide interior design services (as outlined by IDC) under either your name, your trading name or through your employer. Your policy also covers your administrative staff for Commercial General Liability.

If you have purchased a Corporate policy, your design related staff are covered as well, but only for work completed for your firm.


Q. Can I add additional insured parties to my policy, for example a project owner?
A. Yes. Additional parties who wish to have their interest shown in respect to a project you are working on for them may be added to the CGL coverage of your policy. Contact your servicing broker and request that they make the change for you. Please keep in mind that revised certificates of insurance need to be issued by Sovereign General and take roughly a week to process.




Q. Speaking of project owners, they have a list of things they want to be covered for…is my policy adequate for these demands?
A. The key point of consideration for this question is how much coverage you’ve applied for. If you’ve selected only the minimum amount of coverage that is required by the IDC, then chances are good that you do not have enough to bid on the contract. We have found that many project owners insist on $1,000,000 coverage per occurrence or more, so members with lower limits will need to buy up their coverage if they wish to bid on projects of this nature. We have also found some project owners will also request unreasonable things such as having policy exclusions removed for the purposes of your work for them. Policy exclusions are static and cannot be waived under any circumstance as they exclude losses that are considered uninsurable (such as criminal acts carried out by the insured parties). From our experience, you will not be able to find an insurer willing to waive the exclusions of their policy for a project owner. Other demands, such as extended cancellation notice periods are also generally declined, although Sovereign General will review these on a case by case basis.



Q. Does the policy provide coverage for my office contents?
A. No, only professional liability and commercial general liability insurance is provided by this policy. Contact your servicing broker for information regarding office contents/building coverage.



Q. What is Professional Liability? What specifically am I covered for?
A. Professional liability insurance is also known as Errors and Omissions insurance. Errors and Omissions provides coverage for loss incurred due to a flaw in your design, mistakes in design documents and drawings, or design related advice.



Q. What is Commercial General Liability Insurance?
A. Commercial General Liability provides coverage due to lawsuits brought against yourself or business as a result of property damage or physical injury. For more information, visit our article "Commercial General Liability in a Nutshell"


Q. I have projects in the U.S. Am I covered?
A. Assuming you have disclosed the extent of your U.S. operations and Sovereign General has issued coverage, you are insured. Note, however, Sovereign’s wording stipulates that the suit must be brought against you in Canada. If your client sues you in the U.S., Sovereign’s policy will not respond.


Q. Why do I need this coverage anyway … I don’t have any risk of being sued…
A. Any profession that provides advice for a fee is at risk of being sued. When your clients pay you, they expect a certain result. If unforeseen factors interfere with this result, your client may very well sue for damages incurred as a result. For examples on the types of lawsuits for design flaws, visit our "Why Designers Need Liability Insurance" article.

Keep in mind that your Commercial General Liability is covered by this policy too. If, while conducting business, you cause bodily injury or property damage to others, this coverage protects you against lawsuits. For more information on Commercial General Liability Insurance, visit our website.



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