Normal use of instruments will inevitably lead to the need for tune-ups and repairs. Your customers are trusting you to handle their valuable and treasured instruments. With all the intricate components of instruments, repairs are a job that only should be handled by experienced professionals who have an insured repair shop.
Carrying appropriate coverage is essential for a musical instrument repair shop. Any number of mishaps could take place, and your business insurance policy can protect you from just about everything.
An independent insurance agent can assist you in evaluating your business for the exposures you face on a daily basis. A customized plan will ensure that an unexpected disaster doesn’t permanently shut down your shop.
What Kind of Business Insurance Do You Need?
As a musical instrument repair shop, you face a unique set of risks. There are several key types of insurance you should carry at a minimum.
Commercial property insurance
Every business at the very least needs property insurance to protect them from common exposures. Your physical property is vulnerable to damage due to any number of possible issues like:
- Electrical surges
- Water damage
- Natural disasters
Property insurance covers not only your building and property, but also the property of others in your custody.
At any given time, your musical instrument repair shop probably has dozens of instruments in your possession. As a repair shop, you are legally liable for these goods. Property insurance is crucial to protecting this equipment from any accidents that may occur. Failure to carry commercial property insurance could bankrupt you quickly if any catastrophic losses were to occur.
General liability insurance
Another essential form of insurance is general liability insurance. If you or an employee make a mistake that results in harm to a customer or someone else in your store, you are unfortunately prone to a lawsuit. Without liability insurance, that lawsuit could completely jeopardize your business.
General liability coverage protects you from financial ruin by paying for both your legal defense and the damages you are found liable for. Liability insurance covers three things:
- Bodily injury: Physical or emotional injuries resulting from negligence of the business.
- Property damage: Damage to property as a result of your business operations.
- Personal and advertising injury: Damage as a result of libel, slander, disparagement, copyright infringement, and other offenses.
Business owners policy
In general, the most affordable way to insure your musical instrument shop is to combine coverages into one policy. A Business Owners Policy (BOP) typically includes property and liability coverage, along with options for additional types of insurance depending on the needs of the business.
What Other Types of Insurance Should You Consider?
As determined by the risks associated with running your musical instrument repair shop, there are other policies you may want to consider.
Business interruption insurance
Imagine a scenario where your business is forced to shut down for some time. Would you be able to survive without income? Could you afford to pay the lease of your building for several months or longer? For most people, the answer is no.
Fortunately, business interruption insurance exists for the purpose of covering your expenses if your business has to shut down. Your repair shop could close for a number of reasons — a fire, a storm, or stolen equipment.
A business interruption policy would cover income for that period, as well as pay for certain fixed expenses like utilities and rent.
Each state determines its own laws for workers' compensation insurance. Workers’ comp is important to protect your business in case an employee is injured at work. Your policy would cover medical care, and in some cases lost income, for your injured employee.
Visit your state’s workers’ compensation website for details on required coverage.
Umbrella liability insurance
Sometimes a business can experience an unusually high loss above the limits of their general liability coverage. In this case, an umbrella policy would be beneficial to protect your business from a significant lawsuit.
How Much Does Insurance for Your Musical Instrument Repair Shop Cost?
An insurance company looks at many factors when evaluating the level of risk a business has.
The type of business operations, number of employees, value of equipment, and other considerations all influence the cost of premiums.
The Benefits of an Independent Insurance Agent
Independent insurance agents have access to multiple insurance companies, ultimately finding you the best coverage, accessibility and competitive pricing while working entirely for you. As your needs change, they'll be there to help you adjust your coverage, up or down, to make sure you're properly protected without overpaying.
TrustedChoice.com Article | Reviewed by Jeffrey Green
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