Music Store

Own a Music Store? 6 Things You Should Know About Your Insurance

As the owner of a music store, you face several unique risks that threaten the well-being of your investment. You can mitigate many of these risks by purchasing commercial insurance. As with all business insurance policies, you will need to purchase several different types of coverage to build a comprehensive package that covers all the exposures inherent to your industry. Working with a knowledgeable independent agent can help you understand your many options when purchasing music store insurance.

2014 Music Store Industry Facts as Reported by IBISWorld

  • There are currently more than 10,000 music stores in the United States.
  • These stores employ almost 155,000 people.
  • This industry is responsible for approximately $6 billion in revenue each year.

What Could Go Wrong at a Music Store?

There are a few specific considerations that music store owners must keep in mind when building a music shop insurance policy. For one thing, these stores typically stock several musical instruments, many of which can be very expensive. In addition to stocking an inventory of instruments to be sold or rented to customers, a store may also be in possession of several instruments owned by others that are there for cleaning, maintenance or repair. This can make property coverage a bit complex.

Additionally, music stores frequently cater to children, and this can create a few unique liability concerns. General liability insurance covers many of these risks; but sometimes, particularly if your store offers musical lessons and instruction, you may need additional coverage.

Music Store Owners Need Sufficient Property Coverage

Musical instruments can be extremely expensive, and they can suffer damage in a number of ways. For example, string instruments are highly susceptible to damage caused by water, fire, smoke and temperature extremes. Most music stores have several musical instruments on hand at any given time. It is very important that this valuable inventory be properly covered by a sufficient amount of property insurance. Because your store’s inventory can vary throughout the year and from year-to-year, it is a good idea to purchase coverage that is sufficient to cover your inventory at its highest regular levels.

If you have a peak season, however, you may be underinsured at that time. There are solutions for that. It is possible that you have significantly higher inventory during the summer months when school is out or at other times of year. In this case, you may benefit from purchasing an endorsement to your policy that will enable you to have a higher amount of coverage during these specific times. This will prevent you from spending more than you need to for coverage during the months of the year when your inventory is at more normal levels.

Another very important consideration is that your store may have, at any given time, a number of musical instruments owned by others but brought in for repair or service. While your commercial property insurance may provide a measure of coverage for these instruments, it will be very limited. In order to make sure that this property is fully covered, you will need to purchase bailee insurance, which is a subsection of inland marine insurance. Bailee insurance provides coverage for property owned by others while it is in your care, custody or control.

Finally, it is important to keep in mind that flood waters can cause significant damage to musical instruments as well as to sheet music and other inventory that you have in your store. However, this coverage is not included in most business insurance policies, so you will need to look into obtaining a commercial flood insurance policy through the NFIP.  

Your independent insurance agent can help you determine appropriate property coverage amounts, secure necessary endorsements, obtain bailee insurance coverage and purchase a flood insurance policy.

What Are Some Liability Risks Music Store Owners Face?

With any retail space, store owners face the risk of customers being injured while visiting their establishment. General liability insurance, which is a standard part of any business insurance policy, provides liability coverage if such an injury should occur.

However, if your music store offers instrument lessons to children, you have the potential for other liability lawsuits such as if a student accuses an instructor of abuse, mental anguish, humiliation or unlawful detention. General liability insurance does not cover every kind of wrong, nor does it cover every outcome. It may be necessary to purchase other types of liability insurance to get the coverage you need. If this is a concern for you, it is a good idea to discuss your situation with an independent agent who can help you find the right coverage solutions.

What Other Insurance Will Your Music Store Need?

There are other insurance types you may need, or want, to purchase.

  • Business Income Insurance: An unexpected disaster may force your music store to close temporarily while repairs are made. If this happens, business income insurance can provide a continuation of income until operations can return to normal.
  • Employment Practices Liability Insurance: This protects your business if an employee files claims of discrimination, harassment or other illegal business practices. Even if the claims are untrue, legal fees in your defense can really add up without this insurance coverage.
  • Employee Dishonesty Insurance: This provides coverage if an employee steals from your business or engages in other dishonest acts that cost your business money.
  • Worker’s Compensation Insurance: This is coverage is required in many states. It provides compensation for medical costs incurred by employees for injuries sustained on the job.
  • Health Insurance: Most music shops are small, privately owned businesses. But if your music store employs at least 50 people full time, by law you must provide them with affordable health care coverage.

Get Insurance Coverage Designed Specifically for Your Music Shop

Purchasing business insurance for your music shop can be a difficult process. You must take many different factors into consideration. This is why it is to your advantage to work with an independent agent in the Trusted Choice® network. These agents can help you realize your exposures and can work with a number of different insurance companies to build you an affordable policy that is right for your business. Find an agent near you, and schedule an appointment to learn more about music shop insurance.


Now, who's ready to get their insurance problems solved?