Two SEI New York executives, Greg Schaefer and Paul Byrne, were invited to discuss the unique exposures to loss inherent in the interior design industry via a webcast with members of Fuigo, a first-of-its kind technology platform and shared studio workspace that serves independent interior designers. The webcast with the Schaefer team took place at Fuigo’s custom-designed 18,000-square-foot studio space on New York’s Park Avenue.
During the wide-ranging discussion the SEI New York team touched upon myriad risk scenarios and the role various insurance programs play in protecting interior design professionals in the event of claims and lawsuits.
“Many designers work as private contractors for some of the wealthiest clients in the nation and a costly lawsuit can be too much to bear without adequate insurance protection to mitigate the costs of the loss,” said Greg Schaefer, CIC, CPIA, ACI, the founder of SEI New York. “Our company has over 15 years’ experience working with interior design studios. We understand the unique nature of their profession and the gaps in insurance that can cause problems for them, especially when it comes to the complicated laws of New York, New Jersey and Connecticut.”
Helping Interior Designers Navigate Right-Sized Insurance Protection
Schaefer and Byrne took questions from the Fuigo group on insurance matters related to professional liability, errors and omissions, general liability, home staging, transfer of risk and other key topics. In a profession that is rife with risk due to the client money at stake and the many vendors who are involved, the Schaefer team stressed the importance of treating each project independently and checking with their agent to make sure they are properly protected before work begins.
“Interior designers in the tristate area work with some of the world’s most successful and demanding clients,” said Paul Byrne, AINS, ACI. “At Schaefer we specialize in working with interior designers by ensuring that they have the proper insurance and protection in place so they can succeed even when things go wrong.”
Real World Examples of Problematic Interior Design Projects
Bring a group of highly successful and talented interior designers together and you will surely hear war stories about when projects went wrong. Whether it’s a mirror dropping on a client’s foot or a $35,000 rug incorrectly ordered by an interior design assistant, a designer needs proper protection to weather any suits that may be brought by an unhappy client.
In addition to the insurance products discussed during the webcast, the SEI New York team described situations where each product would apply and took steps to alleviate confusion between coverages. For example, General Liability, which protects against accidents and injuries on company and client properties, as well as product liabilities, is not the same as Professional Liability and Errors and Omissions coverage, which protects firms in the event of costly mistakes or claims of negligence for failure to comply according to the specifications of a contract with a client.
Home Staging insurance protects the interior designer in the event a home they are staging or the materials used in the staging become damaged, stolen or lost. In projects where there will be moveable property or specialized items imported from overseas or over land, such as artwork, marble, and other high value merchandise and objects, Inland Marine insurance protects the interior designer should the items being shipped become damaged in transit.
Transferring Risk to Protect the Interior Designer’s Business
In their businesses, interior designers are responsible for coordinating a throng of sub-contractors including art consultants, lighting consultants, plumbing suppliers, movers, electricians, painters, furniture suppliers, floor specialists, plumbers, carpenters, drywall installers, the list goes on. According to Greg Schaefer, that’s why it’s extremely important to transfer liability whenever possible.
“At SEI New York, we have years of experience helping interior designers review insurance and contracts, and checking that all of the insurance exposures are covered to make sure that nothing goes missing,” said Schaefer.
Insurance for Interior Designers
Interior designers who would like to learn more can contact Schaefer Enterprises at (877) 237-2481.
