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What insurance company do you use?


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I was informed by my insurance agent that my studio is looking more and more like a business (and less like an expensive hobby!) I don't have a ton of stuff, but enough to be real concerned about a major loss. His quote is well over $100 a month. Any suggestions for an experienced small studio insurance provider? I sure would like to have something to compare...
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I have a full time music and audio business in my home. I pay about 700 per year for real, legit biz insurance, not an ultra expensive rider on my homeowners policy.

 

It includes full replacement of the gear (75K), full repair of the studio improvements ( drywall, carpet, etc), 25k toward lost records (archives in my case), 50K in lost revenue, a million dollars of general liability (slip and fall stuff for visiting clients or musicians), and some special coverage for flooding (my studio is in a basement) that homeowners insurance would never cover. So 1,200 a year for your gear does sound a little spendy.

 

My carrier is Acuity Business Insurance, but it doesn't matter who the underwriter is. Just find a broker who is willing to learn about your situation.

 

Also, do you claim the studio as a business on your taxes? If so you've probably got some special insurance requirements.

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Bottom line: shop around.

 

One thing... who is characterizing your situation as a business? You or the agent?

 

And is your situation actually a business or an expensive hobby? :lol:

 

As to running a studio out of your house -- one which you actually make your living at -- keep in mind that it's not even remotely unusual these days for a business to be run out of a home; so make sure your agent isn't one of those who would exaggerate your home-based studio situation such that he characterizes it as "unusual" (and we know where that leads). But quotes also change based on where you live, crime rate, blah blah blah. So that's something to keep in mind too. Risks sometimes dictate premiums. That said, I have full replacement coverage for my home and studio gear, including a full size grand piano and I'm paying just a little more than what your guy is quoting you per month.

 

Shop around.

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I don't have any insurance. The insurance on my studio is well over $1,500 per year and I refuse to pay for what's essentially a lottery ticket.

 

Instead I have a reinforced door with two so-called unpickable locks (they have to be drilled out), tampering free hinges, a class A electric security roller shutter that's bolted into the floor, walls and ceiling, and a 140 dB alarm with motion sensors.

 

Alarms alone have no deterrent effect whatsoever, this is a myth. Alarms can stress a burglar and call a security guard, who usually appears 30 minutes to 1 hour after the actual break-in.

 

A smoke cannon is by far the most effective way of stopping a break-in in progress, but for me it's overkill.

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Well, since I run a registered business from my home, my homeowners policy would be subject to cancellation if I don't carry business insurance, and my mortgage holder would not approve.

 

Thinking of insurance as a lottery is extremely short-sighted. I have an acquaintance who's entire career wasvturned over when, after 15 years of running one of the most successful commercial studios in my town, a fire gutted his building. He thought the same way you did, until everything was destroyed and he didn't have a nickel.

 

A break-in is the least likely loss scenario. A fire will make its own "smoke cannon."

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I had a feeling this wasn't a cut and dry answer.

My studio is essentially an expensive hobby. Little to no income, not that I don't want to make a profit, but I'm ok with that. It keeps me busy and sane.

I have done a couple projects (to benefit local non-profits) that have had considerable exposure. I also have a nice website. My agent called me and said "Well, If it looks like a business, smells like a business. it's probably a business. Here's a quote". I shopped and found he wasn't giving me the best deal on anything. -I hate insurance- I just don't want to lose my investment if something stupid or crazy happens.

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Thinking of insurance as a lottery is extremely short-sighted.

You either bet you're going to win or lose, and I bet I'm not going to need it.

 

I also haven't insured our summer cottage, I simply don't believe in these type of insurances. It's like religion in many ways, especially because they'll grab your money and not deliver on their promises when the s#!+ hits the fan.

 

Insurance is often mandatory if you have loans, but I buy everything cash, so the only reason I have insurance on my Mercedes is because my wife drives it :D

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I had a feeling this wasn't a cut and dry answer.

My studio is essentially an expensive hobby. Little to no income, not that I don't want to make a profit, but I'm ok with that. It keeps me busy and sane.

I have done a couple projects (to benefit local non-profits) that have had considerable exposure. I also have a nice website. My agent called me and said "Well, If it looks like a business, smells like a business. it's probably a business. Here's a quote". I shopped and found he wasn't giving me the best deal on anything. -I hate insurance- I just don't want to lose my investment if something stupid or crazy happens.

Check out if the policy covers all the things you need. Many policies don't cover things like damage caused by power spikes (you need to file a private lawsuit against the electricity company), damage from lightning, etc. So you could be paying top dollar for years - and when suddenly all your gear is toasted or burned down because of a power related issue you get nothing.

 

To cover everything you need with a studio, you need a so-called All-Risk policy, and they're real expensive. Less is a false sense of security in my opinion.

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For years I insured, through the Musicians' Union's chosen broker, everything , every last cable and little instrument bought at a flea market as well as all the big ticket items. And then I scaled it way back. I thought about what would be the biggest pain to loose and that was my computer. Of course, I have back-ups that are separate from the machine but that's not the point. If someone broke in here, they're not going to look at the bamboo flute from the flea market, they're going to grab the computer and some of the other high end gear.

 

Another thing to realize is that thieves are opportunistic. They'll look for the easiest place to break into and grab stuff that's the easiest to find and to run with. So do what you can to make it harder for them to get in and to make the place look like someone's in there, if your studio is at home. A light timer is cheap insurance and so is re-enforcing some doors so they can't be kicked in, putting in double key locks and so on.

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