Pennsylvania Recording Studio Insurance Policy Information
Pennsylvania Recording Studio Insurance. Hip hop, pop, funk, rock, metal, country, punk; no matter the genre, music is the soundtrack of our lives and the glue that holds the world together. Whether you're an artist yourself or you just love music, you may be thinking about starting up your own recording studio.
Recording studios produce audio, instrumental, or vocal performances. Services offered include soundproof studios, control rooms and the distinct types of audio recording equipment.
The studio may provide rehearsal areas, mixing services, isolation booths, workout facilities, and other areas for relaxation between recording sessions. Engineers, technicians, studio musicians and musical instruments are also available as needed.
Some clients prefer to bring their own instruments to sessions. Recording studios produce a master recording that can be used to produce copies. Some manufacture products for distribution to consumers.
While being the owner and operator of a recording studio can be lucrative and is surely an exciting endeavor, it isn't without risks. Just like any other business owner, you are responsible for anything that goes wrong on your property or issues that the people who interact with your business claim were your fault.
In order to protect yourself, your clients, and your employees, you need to have the right Pennsylvania recording studio insurance coverage.
What type of commercial insurance will you need to carry as a PA recording studio owner? How much will coverage cost? To find the answers to these questions and more, keep on reading.
Pennsylvania recording studio insurance protects your music, audio and production business from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Why Do Recording Studios Need Insurance?
As a recording studio owner, you're liable for any issues that may arise and are associated with your business. If a fire breaks out and damages your property and equipment, you'll have to cover the cost of repairing or replacing whatever is damaged. If a musician is injured during a session - a speaker falls on their head, for example - you'll need to pay for their medical care, and if they file a lawsuit against you, the legal fees, too.
These are just a couple of the issues that you may face, and the costs that are associated with them can be exorbitant.
By having the right type of Pennsylvania recording studio insurance coverage in place, if something goes wrong, instead of paying the expenses yourself, your carrier will cover them for you.
In addition to the financial protection that insurance provides, recording studios are required to carry certain types of insurance coverage by PA law. Therefore, if you aren't insured, you could face stiff penalties and possibly even lose your business.
What Type Of Insurance Do Recording Studios Need?
Examples of the specific types of Pennsylvania recording studio insurance coverage that you might need to carry in order to protect your business include the following:
- General Liability: If a third party is injured or their personal property is damaged while they're on the premises of your recording studio, general liability insurance will cover the cost of your legal fees, as well as any compensation that you may be found responsible for.
- Professional Liability: Can cover you for lawsuits that may be filed against you if a client claims you were negligent, caused them financial harm or that you didn't fulfill the job you said you were going to do. For instance, if a musician claims you botched a recording, this policy will cover the related legal fees and any money a court may find you are liable for.
- Commercial Property: Should your recording studio be damaged in an act of nature, such as a fire or a pipe burst, or if it is vandalized or broken into, this coverage will help to pay for the related losses. Your carrier will cover the necessary repairs, as well as to replace any equipment or anything else that may have been lost or stolen.
- Workers Compensation: If a member of your staff is involved in a work-related accident and suffers an injury, this coverage will pay for any medical care that they require. It also covers any wages that they may lose if they are unable to work while they're recovering from said injury.
- Commercial Auto: If you use any vehicles for work-related purposes - to transport equipment to an off-site location or to meet with clients, for example - business auto insurance will cover the cost of any damages that may occur if the vehicle is involved in an accident.
The above-mentioned Pennsylvania recording studio insurance policies are just a few examples of the type of coverage you should carry for your sound recording operations.
PA Recording Studio's Risks & Exposures
Premises liability exposures are significant due to public access to the premises and the potential for slips and falls from instruments and sound recording equipment. Electrical cords should be secured.
The floor covering must be in good condition, with steps and uneven floor surface prominently marked, and free from obstacles. Exits must be sufficient in number, be well marked, and have backup lighting in case of power failure.
Parking areas and sidewalks should be in good repair and free of ice and snow. Contracts should clearly specify the responsibilities of the client, the fees charged, and the services provided by the studio. Premises security is important, particularly if the facility operates 24-hours-per-day.
Professional liability exposures include allegations of copyright infringement, defamation of character, invasion of privacy, libel or slander, unauthorized use of names, ideas, or music, actual or implied breach of contract, and personal injury. The level of exposure will vary based on the services provided and contractual arrangements with the clients.
Workers compensation exposures on or off-premises include slips and falls, electric shock from ungrounded equipment, falling items, injuries from lifting, hearing impairment from noise, and contact with clients. Repetitive motion injuries due to computer work can be prevented with ergonomically-designed workstations.
Property exposures are moderate. Ignition sources include electronic equipment used throughout the studio, heating, and air conditioning systems. All wiring should be up to date, well maintained, and meet codes for the occupancy. As newer equipment is added, wiring should be upgraded as needed. Acoustical tiles and other sound-deadening materials and equipment should be made of fire-retardant materials.
Electronic equipment and musical instruments 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 and musical instruments are valuable and may be targeted by thieves. Security should be appropriate for the value of the equipment and the area where located.
Business interruption exposures can be high if equipment breaks down or there is a loss. Disaster planning should be done to identify alternative facilities.
Equipment breakdown exposures are moderate due to the reliance of the studio on sound recording systems. A lengthy breakdown could result in a severe loss, both direct and under time element.
Crime exposures are from employee dishonesty and theft. Background checks, including criminal history, should be performed on all employees handling money. All billing, ordering, and disbursements should be handled as separate duties. Regular reconciliation and audits are vital.
Recording equipment is extremely valuable. Some may be small and easily concealed. This equipment should be inventoried at regular intervals to verify that it is still on the premises.
Inland marine exposures include accounts receivable if the studio bills customers, audio equipment, computers, musical instruments, 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.
Equipment inventories should be performed before and after a client uses the studio as a precaution against theft. Duplicates should be made of all records and sound recordings and kept in an off-site backup facility for easy reproduction following a loss. There may be a bailees exposure if the studio borrows or rents equipment from others. If the studio provides off site services, goods in transit coverage will be needed.
Business auto exposures are generally limited to hired and non-owned for employees running errands. If the studio supplies vehicles for offsite production activities or to officers or employees, there should be a written policy on personal and permissive use of these vehicles. All drivers must have appropriate driver's licenses and acceptable MVRs.
All vehicles must have routine scheduled preventive maintenance with records maintained at a central location.
Recording Studio Insurance - The Bottom Line
In order to find out exactly what type of Pennsylvania recording studio insurance coverage you'll need and how much it will cost you, consult with an experienced broker who specializes in commercial insurance.
Pennsylvania Economic Business Outlook & Commercial Insurance Requirements
While you might have a fantastic idea for a business, if you aren't setting up shop in the right PA location, there's a good chance that you won't see the success that you hope to achieve. With that said, it's important that you have an understanding of the economic status of the state that you are thinking about doing business in. It's also important for you to know what type of rules and regulations regarding insurance are in place in that state.
If you are thinking about doing business in the Commonwealth of Pennsylvania, keep on reading to find out some valuable information that you can use to make the best choices for your operation.
Pennsylvania's Economy Now And Into The Future
In terms of the economy, Pennsylvania's future looks pretty bright. It boasts the sixth largest economy in the United States. It is also home to some of the largest private and public organizations in the nation, as per sales.
The job market is expected to see steady growth in Pennsylvania during the 2021 calendar year. That rate is expected to be 1 percent, which is a marked increase from previous years. This is largely due to the high pool of educated laborers that reside in the state. Currently the unemployment rate is 4.9 percent, which is on-par with the rest of the nation. It is believed that the unemployment rate will continue to drop as more jobs are added.
For business owners, there are several industries that will afford success. The food products industry, particularly related to agriculture, contributes largely to the state's economy. This is expected to continue moving forward throughout the 2021 calendar year. Other industries that are forecasted to see growth include:
- Printing & Publishing
If you are thinking about doing business in PA, working in one of these industries will likely afford you success.
Insurance Requirements For Businesses In Pennsylvania
The Pennsylvania Insurance Department regulates insurance in PA. Business owners are legally required to carry workers compensation insurance. This type of coverage is a must for any business that employs any W2 part-time or full-time employees, and for employees that are either hourly or salaried. You must also carry PA commercial auto insurance if you plan on using a vehicle to conduct anything related to your business.
While commercial liability insurance is not required in Pennsylvania, it is still a wise idea to invest in. This type of coverage will protect you from the cost of any lawsuits that could potentially arise.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
Commercial insurance policies for arts, entertainment and recreation are specialized policies that protect against the unique risks that arts and recreation businesses face.
Performing artists and companies, entertainers including musical groups, theatre groups, comedians and more, writers, performers, photographers, videographers, DJ's and so many other types.
Professional liability coverage (errors and omissions) is needed in these cases to protect their financial interests due to mistakes, errors or omissions by these professionals in doing their jobs. Fr example - a bride and groom did not like the way their wedding photos turned out.
Or a wedding planner might plan a lavish wedding, but the bride's parents who are paying for it did not like the way it went. There is a lot of gray areas with arts, and you need to be protected if your clients don't agree with you that your work was what the agreed to.
If your business is involved with children, you need to review your coverages very carefully so certain important protections are not excluded. Abuse and molestation insurance might be needed to fully protect yourself in this instance.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
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