Questions Posed About Insurance Coverage

Dear Editor:

Is there is anyone who can answer a question concerning the type of insurance that is recommended for independent sole proprietors doing business in the kitchen and bath design and remodeling industry?

Specifically, I am referring to independent designers essentially going to someone’s home and giving advice and design ideas for a complete kitchen or bath redesign or remodel, as well as connecting the homeowner with good people in the industry such as custom cabinetmakers and granite fabricators.

Could you please advise if there are certain types of insurance that are specifically recommended for this type of professional?

I would also appreciate if you could let me know if there are inexpensive insurance plans that are currently available for independent designers such as myself.

Constance Bonanno
independent designer
North Andover, MA

Editor’s Note: This question was forwarded to Ken Peterson, president of the SEN Design Group, who addresses such key business topics in his seminar, “Critical Managing, Marketing & Selling Strategies in Today’s Economy,” co-produced by KBDN. Below is his response:

Dear Constance:

I would strongly suggest that you consider getting Errors & Omissions Insurance. That is actually what architects and engineers have to protect themselves from lawsuits stemming from planning oversights, bad consulting advice and inaccurate specifications, for example.

Unfortunately, it is extremely expensive coverage. However, you may also be putting yourself in a very risky position professionally by just giving advice without controlling any of the details of design, project management, ongoing customer service and installation during the process.

If you provided these four services and also were able to control all of these details, you would greatly reduce your risk of exposing clients to all of the things that could potentially go wrong with projects and, therefore, eliminate the need for this type of insurance altogether.

In my experience, most kitchen and bath firm owners don’t need Errors & Omissions Insurance coverage because they furnish these services already to their clients.

Ken Peterson, CKD, LPBC, president
SEN Design Group
Chapel Hill, NC

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