Background Music Services Insurance Massachusetts

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Background Music Services Insurance Massachusetts Policy Information

MA Background Music Services Insurance

Background Music Services Insurance Massachusetts. Music services are unique private label radio stations or streaming services that meet the music or soundtrack needs of various commercial ventures by providing customized offerings.

Background music services companies work with clients to develop a unique soundtrack or private label radio station that plays for customers while shopping, while waiting in an office, or when their telephone call is placed on hold.

They may assist clients in choosing appropriate music for advertising a specific product or service as a branding technique. Some solicit clients directly while others work through advertising agencies. The music service company is responsible for obtaining all copyright approvals and paying the appropriate royalties.

Music services for retail stores are probably the most well-known example, but music services may also serve other kinds of companies, such as by playing music in office spaces, elevators, waiting rooms, and on the telephone while customers are placed on hold.

As the mood of a soundtrack or type of music played in a setting can play a crucial role in encouraging customers to make a purchase, music services offer a lot more than simple background music. This booming industry is only growing as it increasingly moves into streaming, and customer-oriented music services can be incredibly successful.

These business also, however, have to consider the financial pitfalls they may face - including those that arrive as a result of unforeseen circumstances like accidents, disasters, and lawsuits. What types of background music services insurance Massachusetts might be needed? Learn more in this brief guide.

Background music services insurance Massachusetts protects businesses from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.

Why Do Massachusetts Background Music Services Need Insurance?

Music services need insurance for many of the same reasons that lead any other company to pursue the best coverage they can afford - to meet legal requirements and avoid fines, to meet lender conditions, to raise their reputation, and because the right insurance coverage offers your best chance of recovering from the financial losses associated with major perils more easily.

The risks background music services face include those universal to all branches of commerce as well as some unique to this still-growing industry. Your facility could be devastated by an act of nature, such as a wildfire or earthquake, simultaneously causing great damage to your smaller assets, such as important equipment. Theft and vandalism are two more examples of threats that deal a huge blow to your financial health, and accidents are another.

A third party - like a client or vendor - could file a lawsuit against your company for almost any reason, including allegations of bodily injury or property damage, copyright infringement, or professional negligence. An employee could be injured in the workplace under circumstances for which music services could, as an employer, likewise be held liable.

Background music services may be able to handle the costs of minor mishaps on their own, but major perils can be accompanied by such overwhelming expenses that they could threaten the very future of your business. If you invest in the appropriate background music services insurance Massachusetts policies, your business will, on the other hand, find that it is much less painful to deal with the aftermath of a serious incident.

What Type Of Insurance Do MA Background Music Services Need?

Each business will have unique insurance needs, even within the same industry. What types of coverage background music services should carry ultimately depends on factors like the location where your company is based, the types of clients you provide services to, and the technical aspects of your business, such as the equipment you rely on.

Because of this, it is crucial to talk to a commercial insurance broker who understands your field of commerce. Having said that, some of the most important types of background music services insurance Massachusetts policies will include:

  • Commercial Property: This type of insurance is designed to protect your music service from financial losses if your commercial building and its contents are affected by perils that include acts of nature, (physical) theft, and vandalism.
  • General Liability: A broad form of liability coverage, this kind of insurance will cover your legal costs in case of bodily injury or property damage claims that occur on your premises or as a result of your activities. Your attorney fees and other legal costs can both be covered.
  • Professional Liability: Also called errors and omissions insurance, these background music services insurance Massachusetts policies cover allegations against your company that pertain to your professional performance - like lawsuits filed for violation of intellectual property or failure to deliver services that were already paid for. As with general liability insurance, professional liability insurance covers your legal costs up to a predefined limit.
  • Workers' Compensation: This type of insurance shields you in case an employee suffers a work-related injury or accident, by paying for their medical bills as well as any income they lose as a result of not being able to return to work for a while.
  • Cyber Security: Music services are also likely to need cyber coverage, which will help cover expenses related to electronic attacks or data breaches.

Bear in mind that, while these important kinds of background music services insurance Massachusetts coverage will go a long way toward protecting your business, you may also need other policies. To find out more, consult a skilled commercial insurance broker.

MA Background Music Services' Risks & Exposures

Premises liability exposures at the location are limited. Production of soundtrack tapes should be within a restricted area with access to visitors controlled and limited. Visitors must be confined to waiting rooms and designated conference areas.

To prevent slips, trips, and falls, all areas accessible to clients must be well maintained with floor covering in good condition. Exits must be sufficient in number, be well marked, and have backup lighting in case of power failure. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls.

Off-premises exposures are from salespersons working with clients to develop the appropriate sound.

Media professional liability exposures are very high, as there may be allegations of copyright infringement, libel or slander, unauthorized use of names, ideas, or music, actual or implied breach of contract, and personal injury.

The music service is required to secure copyright approval and pay royalties for music produced by others. The level of exposure varies based on the services provided and the contractual arrangements with each client.

Workers compensation exposures are light. Potential injuries from working with computers include eyestrain, neck strain, carpal tunnel syndrome, and similar cumulative trauma injuries that can be addressed through ergonomically designed workstations.

Hearing impairment can result from working with music at high decibel levels. Work with electrical equipment may result in shocks and burns.

Off-site exposures include slips, falls, and back injuries due to lifting equipment, electrical injuries, automobile accidents, and contact with clients.

Property exposures are moderate. Ignition sources include electrical wiring, heating, and air conditioning systems. Wiring must be well maintained with sufficient capacity to handle load requirements as both the amount of equipment and demand may increase due to technology.

While many music files can be downloaded, the music service may still have a CD or vinyl records library. Electronic equipment and musical recordings are susceptible to damage by fire, smoke, and water. Fire extinguishers and automatic fire extinguishing or suppressant systems should be of a dry chemical nature and not water based.

Audio equipment is valuable and may be a target for thieves. Appropriate security controls should be taken, including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.

Equipment breakdown exposures are moderate due to the reliance of the service on electronic equipment and other apparatus.

Inland marine exposures include accounts receivable if the service offers credit, audio equipment, computers, and valuable papers and records for clients' and vendors' information. The audio equipment and computers should be combined for coverage because they are integrated systems.

Since viruses can adversely affect computer equipment, EDP coverage with virus protection is recommended. Duplicates should be made and kept in an off-site backup facility for easy reproduction following a loss.

Crime exposures are from employee dishonesty. Hazards increase without proper background checks, monitoring procedures, and securing of all records to prevent unauthorized access. All billing, ordering, and disbursements should be handled as separate duties. Regular reconciliation and audits are vital.

Audio equipment is extremely valuable. Some types are relatively small and easily concealed. This equipment should be inventoried regularly to verify that it is still on the premises.

Business auto exposures may be limited to hired and non-ownership liability for employees running errands. Owned vehicles may be equipped for off-site production activities. If vehicles are provided to employees, there should be written procedures regarding personal use by employees and their family members. All drivers must have appropriate licenses and acceptable MVRs. Vehicles must be maintained, and records kept in a central location.

Background Music Services Insurance Massachusetts - The Bottom Line

To protect your business, employees and clients, having the right background music services insurance Massachusetts coverage is essential. To learn what types of policy options are available to you, how much coverage you should have and the costs - speak to a reputable commercial insurance broker.

Massachusetts Economic Data, Regulations And Limits On Commercial Insurance

Made In Massachusetts

If you are thinking about starting a business in the Massachusetts, it's important that you have an understanding of the economic trends and commercial insurance requirements in the state before you set up shop.

Economic trends are important, as they indicate whether or not the area offers a strong economy that will be able to support your business. You also need to know what type of commercial insurance you'll need to carry so that you can plan accordingly and ensure that you are complaint with the law.

To help you determine if the Bay State is the right location for the business you are thinking about opening, below, you'll find an overview of MA's current economic trends, as well as the types of insurance policies you'll need to carry.

Economic Trends For Business Owners In Massachusetts

Unemployment rate is a good indicator of a state's economy. The lower the rate, the more job opportunities there are, which is direct reflection of the health of businesses.

As per the Bureau of Labor Statistics, the unemployment rate in Massachusetts was 2.8% in December, 2019. That's 0.7% lower than the national average, which was 3.5% in December, 2019. This indicates that the state offers a strong workforce and that there are enough jobs to support the residents of the state.

While regions throughout the area are seeing business growth, there are certain areas in particular that are seeing more growth than others. This includes large metropolitan areas and the regions that surround them, including:

  • Boston
  • Brockton
  • Cambridge
  • Lowell
  • New Bedford
  • Newton
  • Quincy
  • Springfield
  • Worcester

Several industries are doing very well in the state of Massachusetts; however, there are particular sectors that are seeing more growth than others and are truly thriving in this part of the country. These industries include:

  • Advanced manufacturing
  • Commercial fishing
  • Education
  • Financial services
  • Hospitality tourism
  • Information technology
  • Medicine and life sciences

If you are thinking about starting a business in any of these industries, chances are good that you will find the success you are looking for in the state of Massachusetts.

Commercial Insurance Requirements In Massachusetts

The Massachusetts Division of Insurance regulates insurance in MA. Massachusetts mandates very few forms of insurance coverage by law. They enforce worker's compensation.

Massachusetts requires you to have worker's compensation insurance if you hire even one employee on a regular basis. This includes part-time employees, family members, minors, and immigrant employees. It is not required for independent contractors, but employees in domestic service must be covered if they work at least 16 hours a week.

Massachusetts also requires all business-owned vehicles to be covered by commercial auto insurance. Other types of business insurance that business owners should carry depend on the specific industry.

Additional Resources For Professional Services Insurance

Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.


Professional Services Insurance

Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.

Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.

In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.

Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.

Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.

Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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Also find Massachusetts insurance agents & brokers and learn about Massachusetts small business insurance requirements for general liability, business property, commercial auto & workers compensation including MA business insurance costs. Call us (617) 902-0099.

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