Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a live band.
This article will discuss the primary insurance coverage for live bands, general liability insurance, as well as additional policies that are appropriate for this industry.
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Live Bands Need General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS THAT A LIVE BAND’S GENERAL LIABILITY INSURANCE MAY COVER
Example 1: Your sound guy breaks part of the venue’s equipment while setting up for a concert. The expense of repairing or replacing damaged property should be covered by general liability insurance.
Example 2: A buddy slips over a cable during band rehearsal and fractures his wrist. His medical expenditures should be covered by your general liability coverage.
Example 3: Your band wants to perform at a small outdoor festival. Each band must provide proof of liability insurance to the festival’s organisers. General liability insurance should assist in meeting the festival’s requirements.
Example 4: For a concert, your drummer utilises the house drum kit. A fan leaps onto the stage, crashing through the set. The venue has filed a lawsuit against you, saying that you are partially responsible. General liability insurance should cover your legal bills as well as any awarded damages, according to the policy limits.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
In the United States, live bands pay between $300 and $600 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Live Bands
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all live bands should have are as follows:
Insurance for Inland Waterways
Bands often spend on equipment that they bring to each gig. Commercial property insurance will not cover your losses if the equipment is destroyed while on the road. An inland marine coverage protects business-owned property when it is off-premises, either on the property of a client or in transit.
Insurance for Commercial Vehicles
If you drive a company car on public roads, you must have a commercial auto coverage in place. This coverage covers the costs of repairing or replacing third-party property, the company’s damaged vehicle, and lost/damaged equipment. Because state-mandated minimums leave many businesses under-insured, you should consult with an insurance specialist about policy coverage.
Commercial car insurance is often obtained separately.
Coverage Options for Some Live Bands
In addition to the rules listed above, your live band may need other forms of coverage based on particular elements of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Workers’ Compensation
Employees are required by state law to be covered by a workers’ compensation insurance. This coverage covers for medical expenditures incurred as a result of an on-the-job accident or sickness, as well as a portion of the employee’s lost income while they are unable to work. It also assures the company owner’s defence in court and pays awarded damages for injuries that result in litigation.
Workers’ compensation is often bought as a separate insurance.
Insurance Against Crime
Employee dishonesty, fraud, and forgery damages are not covered by standard company owner insurance. Crime insurance offers compensation for such losses, lowering the possibility of a coverage gap.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.