Buy Music Store Insurance

Music store insurance is a type of insurance coverage that protects music stores and their owners from financial losses due to various risks such as theft, damage to the store's property, liability claims, and more. It provides protection for the store's inventory, equipment, and other assets, as well as covers any losses sustained due to business interruptions.

This insurance is designed to help music store owners keep their businesses running smoothly and protect their financial stability in the event of unexpected events.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small music stores ranges from $57 to $69 per month based on location, size, payroll, sales and experience.

Music stores need insurance for several reasons:

Property damage and theft protection: Insurance can protect a music store's inventory, equipment, and physical structure from damage or loss due to theft, fire, or other covered incidents.

Liability protection: If a customer is injured on the music store's premises or if the store is found responsible for damaging someone else's property, liability insurance can help cover the costs of any claims or lawsuits.

Business interruption coverage: If a music store is forced to temporarily close due to a covered incident, such as a fire or natural disaster, business interruption coverage can help replace lost income and pay expenses until the store can reopen.

Employee theft protection: Employee theft is a common problem for music stores, and insurance can help cover losses in the event of theft by an employee.

By having insurance, a music store can protect itself from a variety of risks and ensure its continued operation, even in the face of unexpected events.

Learn about the music store insurance coverages available for your business:

Legal Liability

Sometimes, accidents happen. Other times, customers or employees file frivolous lawsuits looking for a payday. Either way, when you're thinking about insurance for your music store, legal liability is one important thing that you want covered.

A person could slip and fall and injure themselves on your property or a customer could claim they suffered harm because of a product you sold. There are options that allow you to protect yourself if you find yourself on the receiving end of a claim like this.

Protect Your Inventory

Your second-largest asset beyond your building is probably your inventory. The nature of a music store is that you sell instruments and accessories to the public. Your customer base likely includes professionals looking for top of the line instruments and also school children and their parents looking for their first instrument for the school band or orchestra.

The value of your inventory is likely significant and you want to make sure that it's well protected. Any music store insurance that you purchase for your shop certainly should cover your inventory.

Also, when you're considering this type of insurance coverage, make sure you understand how things in your business are classified. For example, you might have pianos, benches and music stands that you use for music lessons that are taught at your store.

It's important to read your quote carefully to see if these things are covered as inventory. Your insurance provider should explain your policy in plain words so that you can have confidence in your coverage.

Protect Your Building

At the most basic level, insurance for a music shop should protect your physical location. The physical location of your business is likely your biggest asset. This includes the real estate and the building itself. The physical building and property it sits on are places that a lot of things can go wrong, including storm damage, fires, floods and criminal activity.

Make sure you speak with your broker because your needs likely differ if you own your property or if you lease it. You have options when it comes what your music store insurance policy covers, so be sure to speak with your insurance professional about the various types of property coverage and what best suits your needs.

Coverage for Fixtures

Another important thing to make sure your insurance covers is fixtures. When you run a music store, you have a lot of them. Your business likely has stands to display instruments, display cases for accessories and other displays for pieces of music.

Add the value of all of these pieces up and it's likely a big number. It's important that your music store insurance covers fixtures so that you're not left with this unexpected expense if the worst happens.

Replace Your Income

What a lot of music store owners don't know is that you can purchase insurance that covers your income in the event that you have a business interruption. If you have a catastrophic event that affects your building, you might not be able to operate until you can rebuild. If you lose your inventory, you need time to replace it before you can continue to do business.

One of the types of insurance that you can buy for your music store is insurance that pays you income when you suffer an event that causes an interruption in business operation. This can give you peace of mind, especially if your store is your livelihood.

Criminal Activity

While we like to think we can always trust our employees, crime is something that music stores have to contend with. Sadly, employees can embezzle money or steal from the business in other ways. Your music store insurance policy can provide coverage that compensates you if this happens to your business.

That way, you don't have to hope that the person who stole from you is able and willing to pay back what they took. With this coverage, you know that you're made whole in the event of employee theft.

Your insurance provider should be happy to sit down and explain the ins and outs of your policy. You have options, and a trained professional can fashion a policy to meet your needs. The right insurance can give you peace of mind.

Premises liability exposure comes from slips and falls due to public access to the premises. Aisles must be adequate and free of debris with flooring in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked with backup lighting systems in case of power failure.

All goods should be kept on easily reached shelves so that customers do not pull down items on themselves. Any classes must be well controlled with adequate space and enough teachers for supervision. If lessons for young children are provided, reference and criminal background checks should be conducted on all teachers.

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. If the business is open after dark, there should be adequate lighting and appropriate security for the area.

If delivery and installation services are offered, customers' premises may be damaged.

Personal injury exposure can arise from apprehending and detaining suspected shoplifters. The use of closed-circuit camera systems prevents such incidents from evolving into a "he said she said" situation. Employees must be trained to deal with handle such delicate situations properly.

Products liability exposure is normally very low except for electrical equipment that must have adequate warnings to prevent shocks. Any manufacturing work, direct import of products, repair or reconditioning of used instruments for resale will add to the exposure. If the store sends customers' instruments to outside firms for servicing, certificates of insurance should be obtained as evidence that the outside firm carries appropriate coverage.

Workers compensation exposures are from lifting that can cause back injury, hernia, sprains, and strains, and from slips and falls. Repair and manufacturing can result in cuts, punctures, or injury from machines. Polishes, buffers, or other chemicals can cause burns, as well as eye, skin, or lung irritations. Employees handling heavy pianos or organs should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available.

Shelves should be easily accessible for storage. Stepladders should be available. Housekeeping in storage areas, especially during peak times, is vital to prevent trips and falls. In any retail business, hold-ups are possible. Employees should be trained to respond in a prescribed manner. Drivers of delivery trucks can be injured in accidents, be crushed by falling instruments, or fall on stairs or from tailgates.

Property exposures include electrical wiring, heating and cooling systems. The electrical load may be heavy if instruments such as electrical guitars or amplifiers are plugged into numerous outlets for customers to try out prior to purchase. Wiring must be up to date and meet current codes. Instruments are highly susceptible to damage from water, heat and fire so even a small fire could cause a total loss.

If repair or manufacturing is done on premises, flammable stains, varnishes, cleaners and polishes increase the fire load. Woodworking and metalworking each have their own sets of hazards to be evaluated. If the store rents instruments to schools, inventories will be increased during certain times of the year. Smaller instruments are easy to shoplift. Theft is a major exposure due to the attractive nature and expense of the items.

Appropriate security measures 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.

Business interruption is a concern since sales may peak at particular times during the year.

Crime exposures are from employee dishonesty and loss of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be separation of duties between persons handling deposits and disbursements and handling bank statements. Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made throughout the day to prevent a buildup of cash on the premises. Two employees should be required to confirm the accuracy of deliveries from vendors.

Inland marine exposures are from accounts receivable if the store offers credit, bailees customers from customers' instruments in for repair, computers for transacting sales and monitoring inventory, goods off premises if the store rents instruments, and valuable papers due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises. Rental contracts should specify whether the store or the customer is responsible for loss or damage.

Commercial auto exposure can be high if delivery services are provided. Larger instruments may be delivered on congested streets to residential areas with children present. All drivers must have valid and appropriate licenses and acceptable MVRs. Vehicles must be maintained with records kept. Piano and organ delivery requires special training.

Music stores can be sued for a variety of reasons, such as:

• Copyright infringement: If a music store sells or distributes copyrighted material without permission from the owner, they can be sued for copyright infringement. A music store can purchase intellectual property infringement insurance to protect themselves from the financial impact of a copyright infringement lawsuit. This type of insurance can help cover legal fees, settlement costs, and other expenses related to the lawsuit.
• Defective products: If a musical instrument or equipment sold by a music store is defective and causes injury or property damage, the store can be held liable for the damages. A music store can purchase product liability insurance to protect themselves from the financial impact of a defective product lawsuit. This type of insurance can help cover legal fees, settlement costs, and other expenses related to the lawsuit.
• Personal injury: If a customer is injured while on the music store's property due to negligence on the part of the store, such as a slip and fall accident, the store can be held liable for the injuries. A music store can purchase general liability insurance to protect themselves from the financial impact of a personal injury lawsuit. This type of insurance can help cover legal fees, settlement costs, and other expenses related to the lawsuit.
• False advertising: If a music store makes false or misleading claims about their products or services, they can be sued for false advertising. A music store can purchase advertising liability insurance to protect themselves from the financial impact of a false advertising lawsuit. This type of insurance can help cover legal fees, settlement costs, and other expenses related to the lawsuit.

Insurance can help protect music stores from the financial impact of these lawsuits. Here are some examples of how insurance can help pay for the lawsuit:

In general, insurance can provide music stores with a safety net in case they are sued for any reason. However, it's important for music stores to carefully review their insurance policies to make sure they have adequate coverage for their specific needs.