Insuring your music studio and equipment will ensure you operate a safe environment for your staff and customers.
Insurance is a way of managing risks. When you buy insurance, you transfer the cost of a potential loss to the insurance company in exchange for a fee, known as the premium. Insurance companies invest the funds securely, so it can grow, and pay out when there is a claim.
Many individual musicians take out an extra clause on their home contents policy to insure their instruments and equipment. Kate Evans at Urban Jungle insurance providers says in the years 2020-22 they have seen a 228% increase in the number of such policies that include musical instruments (see here). Although she cannot definitely pinpoint the cause of this increase, she suggests it is however closely correlated with the Covid-19 pandemic and people possibly taking up a new hobby/instruments during the lockdowns.
Accidents and disasters can and do happen. If you are not flush with cash to handle them, you could face huge financial struggles and setbacks. Insuring your music studio is one way to protect your ability to earn an income, and to keep a roof over your head when things go wrong. Bandspace spoke to several rehearsal space owners who offered their experiences of insuring their space. But first several preliminaries...
Risk Assessment
It may be useful to consider some preparation. Some spaces maintain a risk assessment which identifies potential hazards in the workplace. Carrying out a risk assessment will help you to identify which insurance policies you should think about, and which you should prioritise. Your work can pose risks to the health and safety of others. Undertaking and regularly updating a risk assessment is good practice.
Musicians' Union insurance
The MU provides a range of insurances as a benefit of individual membership. The Musicians’ Union £2,000 Musical Instrument and Equipment Insurance Scheme provides cover anywhere in the world for instruments and equipment owned by the member, not the music space. Its Personal Accident Scheme also comes part of annual membership offering financial benefits in the event of disability following an accident.
Insurance broker
It is worth thinking about using a specialist insurance broker. If you find yourself having to make a significant claim, your broker usually deals with a loss adjuster and negotiates the claim on your behalf. Not only can it be a little cheaper, but the broker has a much greater understanding of the needs that exist in the industry. The broker will usually be able to advise on the package best suited to your circumstances.
It is rare for me to be insured with the same company for more than a couple of years in a row. My broker, who is an entertainment specialist, will suggest the company offering the best deal. That does mean comparing the new policy with the previous year's policy which can be time-consuming. Each insurer seems to have slightly different endorsements. Phil Mayne, House of Mook
Making a claim
It is also a good idea to be very thorough when completing any insurance documentation. If you keep records of all your purchases and servicing you are likely to be in stronger position when it comes to costing your insurance claim.
Different types of music studio insurance
Public & Products Liability
This covers you and your business against legal claims of injury to customers or damage to property, whether you are involved in the repair or just the supply of a product.
Public liability should cover you working away from the studio, for example sound engineering a gig and possibly also equipment in transit - in case of a crash or a vehicle being broken into before load-in. Scott Nairn, Playing Aloud
You should consider the physical areas your public liability covers. For example does it cover your shared areas and your car park? Does your insurer cover injuries that may occur to customers lugging gear to and from a practice room? If a customer injures their back carrying their own gear could you be liable? Many public liability policies exclude assault and battery if you get in a fight with someone on your premises.
Employers Liability
Employers liability is a legal requirement if you have anyone who is employed by you or is working under your control even if they are voluntary. It covers you if anything happens to your employees as a result of the work they do for you, often taken out in conjunction with public liability insurance. It gives you reassurance as a small business owner and lets staff know you are serious about their welfare.
Usually this type of policy is not available unless you have public liability cover.
Technical & Portable Equipment (owned or hired)
If you hire out portable equipment such as PA systems, guitar amps, etc in your practice rooms you need to know you are protected against theft, loss and damage. From a broken amp or stolen sound mixer, when disaster strikes, it’s crucial to keep your business up and running with minimum disruption. You can take it out as part of your business contents insurance, so you are protected even when you or your staff are using equipment off-site.
It is obviously better to ensure damage does not happen in the first place. If mixing desks are wall mounted we secure them properly. We quickly repair wobbly wheels on amps. We also have notices up asking people not to turn the mixing desk/amp on or off. If they are having trouble with the mixing desk, or any piece of equipment, they know to let us know. We'll be happy to give them a helping hand and go through the basics. Scott Nairn, Playing Aloud
This type of policy can also cover musical instruments and goods in transit for example taking equipment to a repairer. Normally you would not be covered for theft unless there are signs of a break in.
The turnaround for replacing items can be a long time. An insurance company may say "we try to settle claims within 60 days". If all the equipment in a music space was stolen 60 days would represent a large sum of money in lost bookings. More attention should be paid to how fast the claim is settled than is currently the case. Jimmy Mulvihill, Bally Studios
If you are renting electrical equipment such as amps your policy should include information about the safety measures you have in place such as regular PAT Testing. Some policies will not cover a studio’s own equipment when they are in the custody and control of third parties.
There is generally an excess of £150-£250 on claims under a loss or damage policy section. Most mechanical or electrical breakdown repairs may therefore not be covered, although the cost of hiring in additional equipment could well be. Phil Mayne, House of Mook
If your space offers an equipment storage facility for users you should consider if these items are covered under this policy too. Musicians using their own equipment in your space would not normally be covered under this policy. They would be expected to have cover for their own equipment.
A business is not legally obliged to carry out PAT testing, and though they should, any competent person can do it satisfactorily with the right tools and training. Tim Nissen, First Avenue Studios
Business Contents
Office contents insurance protects your computers, office furniture and documents against risks such as theft, fire and water damage, even if the possessions are temporarily away from the workplace. Artwork and visitors’ personal belongings can also be covered, as well as any petty cash you may have on the premises.
Make sure your content insurance covers expensive soundproofing and acoustic treatments in your rooms. This is not usually covered by building insurance as its added extra but can be very expensive to replace in case of flood, malicious damage or fire. Deanna Bogdanovic, BonaFide Studio
Equipment Breakdown
This protects your business against unexpected costs caused by sudden mechanical or electrical failure. This insurance protects you against downtime, so you don’t miss deadlines or let your customers down. It ensures you get immediate assistance or replacement equipment to keep your business moving. Many music rehearsal spaces will however have spare equipment available in such an event.
The insurance company may value kit by how much it sells for on eBay, possibly comparing an expensive piece that rarely sells to one in poor condition. The cost of servicing kit to maintain it in good working condition may also not be reflected in the replacement cost. Insurance companies should value equipment based on what it would cost a music space to replace it rather than what they sell for. Jimmy Mulvihill, Bally Studios
Buildings
This cover offers protection against damage that may occur to property, such as flood or fire damage, but not the contents of the rehearsal space or your equipment. It can cover a range of risks including accidental damage and the results of criminal damage.
Insurance for a commercial property is not a legal requirement for business owners in the UK. However, purchasing a building policy should still be a high priority for any business operating from a property they own outright. It protects against disruption to your business, for example if a flash flood caused by bad weather results in your space having to cancel bookings.
If you rent or lease your building for day-to-day operations, the responsibility of insuring the property does not rest with you. The landlord should source cover. However, you may want to think about taking out cover for any physical improvements you may have made to the rented premises, for example the cost of partitioning and building the practice rooms, including related work such as rewiring and decorating.
You may also want to consider office contents insurance, as this will cover the cost of replacing your equipment, furnishings, fixtures, stock, etc. if they get damaged or stolen. For example, flooding causing damage to the carpet, the communal fridge breaking down or gear being stolen in a break in. If you have taken out a mortgage on the property your lender may require you to take out commercial property insurance as part of the agreement.
When you buy insurance for your commercial building, whether to protect the exterior, its contents, or both, there are a number of additional covers to consider.
Ensure you have got change of use on your building with the local council which might mean seeking planning permission. This may require you to undertake a sound survey. Denise Ashworth, Silver Lining Studios
Business Interruption
The disruption to your business from a fire, theft or other property damage goes beyond the immediate damage, and your business can suffer if you are unable to trade until things are fixed. Business interruption insurance protects your income to ensure you can pay bills and maintain relationships with your clients and suppliers.
Make sure you have an accountant who can project your loses. It can be very hard to prove the cost of things so your past accounts need to be in order for you to make a successful claim. Deanna Bogdanovic, BonaFide Studio
Cyber
Cyber insurance protects your business against digital risks by supporting you financially if you experience a damaging network event such as a cyber-attack. It is designed to react quickly to malware attacks, hacking events and electronic data breaches by funding investigation and reimbursing losses. Whether your IT network is compromised as a result of losing sensitive data or criminals hold commercial information to ransom recovery can take time and money.
Business HR
Running a small business is time consuming, especially when you have to combine your day-today work alongside business administration and paperwork. If you employ staff, the paperwork increases and you must also keep up to date with the legal requirements that come with being an employer. Membership of The Federation of Small Businesses offers such HR advice.
Other insurers includes
Allianz
Entertainment Vision Sound
Insure4Music
Musicguard
The Incorporated Society of Musicians
A special thanks to Jon Wilford at Hencilla Canworth Insurance Brokers. And thanks go to House of Mook, Playing Aloud, Bally Studios, First Avenue Studios, BonaFide Studio, Mill Hill Music Complex and Silver Lining Studios in helping to compile this piece.
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