Frequently Asked Questions About
Commercial General Liability Insurance
How much does commercial insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number.
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it.
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
Music Store Insurance
Music Store Insurance. Musical instrument dealers may sell one type of instrument, such as organs or pianos, or sell a variety of instruments. Related items such as accessories, cases, CDs, music books, sheet music or tapes may also be sold. Many stores offer other services including classes, exhibitions, recitals, piano tuning, repair or design and manufacture of custom instruments. Instruments may be rented to individuals or to schools. Used instruments may be reconditioned and sold.
Stores selling larger instruments may offer delivery and installation services. Delivery may be on owned vehicles or may be contracted out.
When you're a small business owner, there are a lot of things to think about on any given day. Something that's often overlooked in the hustle and bustle is commercial insurance. However, this insurance is one of the biggest favors that you can do for yourself and your business. It gives you peace of mind and allows you to weather unexpected events and property damage.
Let's take a look at what you should consider when you're looking for music store insurance that hits all the right notes.
Music store insurance protects your shop from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
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.
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.
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.
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.
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.
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.
Musical Instrument Store's Risks & Exposures
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 Store Insurance
music store insurance can cover a lot of different things and it's important to find the policy that's right for you. Spending a little time with a knowledgeable agent can save you more time and heartache on down the road. Contacting an insurance provider is the first step towards protecting your shop and giving you one less thing to worry about. Make sure your music store insurance measures up.
Small Business Economic Data & Insurance Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. Maybe you want to contribute to the economic growth of your community. Whatever the reason is, if you're thinking about starting a small business, it's important to understand pertinent information relating to small businesses in the United States; namely economic information and insurance regulations. After all, if you want your small business to succeed, you have to understand the economic trends organizations of a similar size in your area.
Likewise, you want to ensure that your small business is well protected with the right business insurance and that you are in compliance with the rules and regulations that pertain to commercial insurance in your region.
Read up on economic statistics and insurance information that relates to small business owners in the United States.
Small Business Economic Data In The United States
Here's a look at some information that was compiled by the Small Business Association (SBA) regarding the economic data that pertains to small businesses in the United States:
- In 2015, small businesses in the United States employed an estimated 58.9 million American workers, or 47.5 percent of the nation's private workforce.
- Largest shares = fewer than 100 employees. The small businesses that employed 100 people or less had the largest share of employment amount small businesses.
- Employment increased by nearly 2 percent. In 2018, employment amongst small businesses increased by 1.8 percent, which is an increase of 1 percent from the prior year.
- Increase in proprietors. In 2016, the number of small business proprietors increased by 2.3 percent.
- In 2015, small businesses were responsible for creating 1.9 million net jobs. Organizations that employed 20 people or less had the largest gains, as they added an estimated 1.1 million net jobs.
- There were 5.7 million loans that were value less than $100,000 issued by lenders in the United States in 2016. These loans were issued under the Community Reinvestment Act.
- Small business owners that were self-employed at the incorporated businesses that they owned reported a median income of $50,347 in 2016.
- Small business owners that were self-employed at the unincorporated businesses that they owned reported a median income of $23,060 in 2016.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage. The SBA recommends the following insurance plans for small business owners:
- Commercial Property Insurance: In the case of an unplanned disaster - fire, flood, vandalism, theft, etc. - this type of coverage will help you avoid paying for the damage out of your own pocket. Even if you rent the property, you should still carry commercial property insurance.
- Commercial Liability Insurance: In the event that a legal situation arises - a negligence lawsuit, for example - commercial liability coverage will provide financial protection. It will cover the cost of legal defense fees, court fees, and even moneys that may be awarded.
- Commercial Auto Insurance: If you operate a vehicle for any activities that are related to your business - transporting and/or delivering goods, or meeting with clients - commercial auto insurance is legally required for businesses of all sizes, including small businesses.
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Appliance & Electronics Store
- Art Gallery
- Auto Service Repair
- Auto Supply Parts Store
- Bicycle Shop
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Car Wash
- Carpet Store
- Clothing Store
- Collectibles Memorabilia Store
- Convenience Store
- Cosmetics Store
- Dry Cleaning
- Equipment Rental
- Funeral Home
- Furniture Store
- Gift Store
- Hardware Store
- Home Improvement Store
- Hotel Motel
- Ice Cream Shop
- Jewelry Store
- Luggage Store
- Music Store
- Nursery And Greenhouse
- Office Supply Store
- Paint & Wallpaper Store
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tobacco Store
- Toy Store
- Travel Agency
- Wig Store
The businessowners policy was designed with retail exposures and operations in mind. For this reason alone, it should always be the first type of package coverage to consider. However, for those risks not eligible for the business owners policy program, the commercial package policy (CPP) is a practical and convenient way to combine a number of coverages into one policy.
Retail businesses generate income through interaction with customers. This interaction is also how a customer can sustain an injury and then sue the retailer for damages. Hazards, exposures and operations both on premises and off are important and must be covered, but liability the retailer may incur because of the merchandise sold must also be considered and insurance protection arranged.
Inventory or stock is the major property exposure for most retail operations. Because stock values tend to fluctuate or have significant peaks at certain times of the year, value reporting or peak season valuation options should be considered. Business income coverage, including business income from dependent properties coverage, may mean the difference between a retail operation staying in business or being forced into bankruptcy following a loss.
When the insured occupies a non-owned building, insurance coverage must be arranged for the insured’s interest in extensive improvements and betterments made to the premises.
Most retail businesses offer endless opportunities for a variety of criminal activities. For this reason, the coverages needed must be carefully evaluated. Holdup and robbery losses may be the most obvious concerns but employee theft, fraud and counterfeit money losses are also serious issues that cannot be dismissed.
Retail businesses are gaining greater exposure to international issues because of the growth in sales via the internet. As these sales increase, the added exposures faced by these retailers must be evaluated. While their operating horizons are expanding so are their potential loss exposures.
Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.