Why Is Music Studio Insurance Crucial For Your Business?

By Author: victor12johnson
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Music recording studio and the importance of having it covered under a suitable insurance plan is one of most talked about topics these days. So, before you delve deep into the matter, let us go through a quick picture of the standing of music recording studios in the United States of America. Here you go!

Quick factors about music recording studios in the US

● Currently, there are over 4700 recording facilities in the USA.
● Out of all the states of America, California has the highest number of music studios, standing at 931.
● One out of four recording spaces has come into the business in the past five years.
● Nearly 38% of all the music recording facilities report sales of over $500,000 annually.

Where do you stand?

Have you opened a new music recording studio? Or are you already one of the 4700 recording facilities operating in the USA? Both ways, your business has the potential to make a significant revenue in years to come. Moreover, owing to the development of advanced technology and avant-garde musical instruments and equipment, you are also likely to make a substantial ...
... amount of investment. That being said, you may also intend to safeguard this investment from all possible damage or loss.

Crucial factors to consider when buying a plan

There are a number of factors that you need to take into account when customizing a Music Studio Insurance plan for your business. These factors include the following:

● Your music recording facility
● The size of your business
● The number of workers and patrons you have
● For how long you have been working in this industry

Coverage options you may need

For the all-encompassing protection of your music studio, you may need to include the following coverage options:

● Public liability coverage
● Building property coverage
● Personal property coverage
● Loss of income coverage, to name a few

Moreover, there are many financial facilities where it is compulsory to have a specific sum insured in your plan when you make an application for loans to expand your business.

What about home studios?

So, what is the definition of a home studio or a home business? Any business that you operate from your home, the insured property, with the following features is a home business:

● Run by you (the policyholder) or an immediate family member who lives in the insured property
● Having no more than ten staff members, excluding distributors and independent contractors

What does an in-house business protection policy include?

An in-home business protection plan includes the following:

● Around $1,000,000 liability cover for the musical instruments and equipment related to your business (includes both off and on the premises scenarios)
● Around $100,000 BPP or business personal property coverage to shield your gears at home as well as when you are on location (temporarily)
● A deductible of $250
● Additional protection for securities and money

Why is recording studio insurance crucial for your business?

Music Studio Insurance is critical in the music industry. It will protect you from third-party lawsuits as well as damage or/and loss that might occur at any point in time.

Even if you rely on your home insurance plan to protect your studio and instruments, a standalone policy for your studio provides you with comprehensive protection, unlike any other insurance plan. After all, no matter how expensive your home insurance may be, there would be some limitations pertaining to music studios and instruments.

If you have any confusion or question in your mind that is holding you back from getting a dedicated insurance plan, you can seek professional assistance from a reliable insurance provider.

The representatives of a reputable insurance service provider will understand your needs, evaluate them, and provide you with an appropriate solution to protect your business from unfortunate situations.

What factors decide the amount of premium you need to pay?

Some of the determining factors include the following:

● What are your gross sales (annual)?
● Where do you operate your business?
● What is the size of your property?
● What is your experience in the industry?
● What is the amount of sum insured you choose to cover your business?
● Which insurance provider have you selected?

Now that you know about some of the crucial aspects of music recording studio insurance, make sure to get a comprehensive cover for your studio.