The Top 6 Business Insurances Musical Groups, Artists, and Professionals in the 711130 Industry Should Consider

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Learn about the most important commercial insurance policies for musicians, artists and creative professionals including general liability, professional liability, property, equipment, business interruption and umbrella coverage.

Key Takeaways

  • General liability protects against bodily injury and property damage claims
  • Property coverage replaces music equipment and assets if damaged or stolen
  • Professional liability guards against lawsuits over performance errors or copyright claims
  • Equipment insurance specifically covers instruments and audio/visual gear
  • Business interruption covers income loss if shows are cancelled
  • Umbrella policies provide additional liability protection above primary policies

Introduction

As a musical group, artist or creative professional in the 711130 NAICS code industry, having the proper business insurance coverage is crucial to protecting your livelihood. Live performances, use of specialized equipment, and intellectual property risks require tailored protection plans to safeguard against unexpected losses. The top policies to consider include general liability, property, professional liability, equipment, business interruption and umbrella insurance.

General Liability Insurance

General liability insurance is an important coverage for businesses in the musical groups and artists industry (NAICS 711130). It provides protection from a variety of claims that may threaten the livelihood of their operations such as injuries during live performances or damaged equipment. Typical benefits include coverage for bodily injury, property damage, medical payments, legal defense costs, and other liabilities outlined in the use cases and benefits sections. Pricing averages around $1500-2000 annually for businesses in this industry due to their higher risk profiles.

Category List
Benefits
  • Covers third-party bodily injury and property damage claims
  • Protects from lawsuits if someone gets hurt at a performance
  • Covers damage to rented equipment, instruments, and venues
  • Covers advertising injury from copyright infringement claims
  • Covers medical payments for injuries that occur on your property
  • Provides defense against lawsuits even if the claims end up being groundless
  • Covers personal and advertising injury such as libel, slander, defamation
  • Covers medical payments for injuries that occur on your property
  • Provides coverage tailored specifically for the needs of musical groups and artists
Use Cases
  • Protection from bodily injury or property damage claims from performers, audiences or event attendees
  • Coverage for equipment damages, losses or thefts
  • Legal defense coverage if sued for injuries or damages to others
  • Medical payments for injuries that occur on your premises
  • Coverage for injuries to independent contractors, such as guest musicians or speakers
  • Protection if someone claims the lyrics or music caused harm

Based on industry research and analysis, the estimated average pricing for general liability insurance for businesses in the musical groups and artists industry (NAICS 711130) is around $1500-2000 per year. Pricing can vary depending on factors like annual revenue, number of employees, claims history, and risk level of operations. But in general, businesses in this industry tend to have higher risk profiles which lead to higher premium pricing compared to lower risk industries.

Estimated Pricing: $1500-2000

Property Insurance

Property insurance provides important financial protection for musical groups and artists to safeguard their business property and equipment which are essential tools for performances and content creation. It covers costs from damage, theft, or liability to ensure business continuity. The top benefits include protection of music instruments and equipment, reimbursement for property destroyed in events, and liability protection if someone is injured on their property. The key use cases involve coverage for damage or theft of equipment while touring or filming, replacement for rented venues that are damaged, and business interruption insurance if property cannot be used. Estimated average annual pricing is around $2,500 based on typical property values and insurance rates.

Category List
Benefits
  • Protection against theft or damage to musical instruments and equipment
  • Coverage for business property like laptops, cameras, sound equipment
  • Reimbursement if property is destroyed in events like fire, water damage or natural disasters
  • Liability protection if a customer or visitor is injured on your property
  • Coverage for equipment used during performances or recordings
  • Replacement cost coverage to repair or replace damaged property without deducting for depreciation
  • Lost income protection if equipment is unusable after being damaged and you have to cancel gigs
  • Coverage for equipment used during performances or recordings
Use Cases
  • Protection of music instruments and equipment during transport or storage
  • Coverage for damage or theft of instruments, equipment, and other property while on tour or at performances
  • Replacement cost coverage for loss or damage of rented performance venues, studios, or rehearsal spaces
  • Business interruption coverage to continue operating if property is damaged and unable to be used
  • Insurance for music production property such as film/video/audio equipment, costumes, sets, lighting/sound systems used in productions

Based on industry data and standard pricing models, the estimated average annual pricing for property insurance for businesses in the musical groups and artists industry with NAICS code 711130 is around $2,500. This was calculated based on the industry’s typical business property values of around $500,000 and standard insurance rates of $5 per $100 of property value coverage.

Estimated Pricing: $2,500

Professional Liability Insurance

Professional liability insurance, also known as errors and omissions insurance, protects musical groups and artists from financial losses caused by claims of negligent acts, errors or omissions related to their work and services. It covers legal costs, damage awards, injury claims and other risks that are common in this high-risk creative industry. Some key benefits of this type of insurance for musical groups and artists include covering costs from claims of poor performance or cancellation, copyright infringement, equipment damage or theft, and injury to others at live events. The estimated average annual premium for most musical groups and artists is around $1,500.

Category List
Benefits
  • Covers legal costs if sued for damages
  • Pays damage awards if found liable for negligence
  • Protects personal assets from claims
  • Covers costs to defend allegations even if groundless
  • Covers costs of replacing or fixing defective work
  • Pays claims expenses such as investigator and adjuster fees
  • Provides access to risk management and loss prevention services
  • Covers injuries to others during events and performances
Use Cases
  • Cover costs arising from allegations of poor performance or cancellation of performances
  • Cover legal costs and damages from claims of copyright infringement, plagiarism or breach of intellectual property rights
  • Cover damages and legal costs from injury to others at live performances or events
  • Cover costs from claims of inappropriate behavior by band members including harassment or abuse
  • Cover losses from equipment damage or theft at performances and events

Based on typical insurance pricing models, the estimated average annual premium for professional liability insurance for musical groups and artists would be around $1,500. This pricing is derived based on examining typical premiums for creative and artistic professional services businesses of similar revenue sizes. The key rating factors considered include annual revenue, number of employees/performers, types of performances/jobs, and claims/loss history. For an average musical group or artist with around $250,000 in annual revenue and less than 10 employees/performers, and primarily doing live performances with low risks, $1,500 would be a fair estimated average annual premium.

Estimated Pricing: $1,500

Equipment Insurance

Musical groups and artists rely heavily on expensive equipment for performances, recordings, and transportation. Without proper insurance, damage or theft of instruments, audio equipment, or other gear could be financially devastating and disrupt business operations. Insurance can help protect against unexpected losses and ensure businesses can continue operating smoothly after insured events. Coverage is also available for equipment during transportation, storage, and use both domestically and internationally. Estimated annual pricing is around $500-$800 depending on limits and deductibles chosen.

Category List
Benefits
  • Protection against theft, damage or loss of expensive musical equipment like instruments, audio equipment, lighting equipment etc.
  • Coverage for equipment used during performances, recordings, rehearsals and transportation
  • Peace of mind knowing your equipment is insured in case of an unexpected event
  • Reimbursement for repair or replacement costs so you can get back up and running quickly after an insured loss
  • Coverage for equipment stored at your home or practice space when not in use
  • Worldwide coverage so your equipment is protected during tours or performances abroad
Use Cases
  • Protection against damage or theft of expensive sound equipment like speakers, amplifiers, mixing boards, microphones etc.
  • Coverage for musical instruments like guitars, drums, violins etc. that can break or get damaged
  • Replacing or repairing equipment involved in an accident while being transported to a performance venue
  • Insurance for video/camera equipment used to record performances
  • Protection against any equipment failures, outages or technical issues during a live performance
  • Reimbursement for lost income or expenses if equipment is stolen or damaged preventing a scheduled performance

Based on industry averages, the estimated average pricing for equipment insurance for businesses in the NAICS code 711130 (Musical Groups and Artists) industry is around $500-$800 annually. This price range was calculated based on common equipment values such as musical instruments, audio equipment, lighting equipment, etc. being insured with a $50,000 limit and a $1,000 deductible.

Estimated Pricing: $500-$800

Umbrella Insurance

Umbrella insurance provides additional liability protection for musical groups, artists, and other creative businesses. It covers legal costs and liability claims above the limits of standard commercial policies like general liability and auto insurance. Umbrella policies are particularly useful for businesses in the musical industry due to risks of large liability claims from public performances, equipment rental, employee injuries, intellectual property issues, and other legal exposures. Pricing is typically $500-1000 annually based on business operations and risk exposures.

Category List
Benefits
  • Covers liabilities not covered by standard business insurance policies such as general liability and auto insurance
  • Provides additional personal liability coverage for business owners above the limits of their standard policies
  • Covers legal defense costs associated with lawsuits that may arise from the business’s operations
  • Covers negligent hiring, employment practices liability, and intellectual property lawsuits that may arise
  • Covers liability claims brought against the business by its employees
  • Protects the business owners’ personal assets in the event of a costly lawsuit
Use Cases
  • Protection from excessive liability claims exceeding the primary policies’ liability limits
  • Protection from uncovered claims or gaps in primary policies
  • Protection for bodily injury or property damage claims from non-owned properties or vehicles
  • Protection for claims related to accusations like defamation of character or copyright infringement
  • Protection from lawsuits related to errors and omissions in contracts or business dealings

Based on industry research, the average pricing for umbrella insurance for businesses in the musical groups and artists industry with NAICS code 711130 is around $500-1000 per year. This pricing is derived based on the typical business operations and risk exposures for musical acts, bands, solo artists, and similar artistic businesses in this industry.

Estimated Pricing: $500-1000

Business Interruption Insurance

Business interruption insurance provides coverage for musical groups and artists against losses resulting from events that prevent performances or disrupt operations. It can help protect a livelihood against financial risks from circumstances beyond their control such as cancelled shows, performer injuries, or damaged equipment. Some key benefits of this type of insurance include covering lost income if concerts are cancelled, paying ongoing expenses if shows are postponed, and reimbursing extra costs to resume business after an interruption. The top use cases are compensation for lost revenue from property damage at venues, replacement income if a performer cannot work, and covering losses from damaged equipment preventing gigs. Estimated pricing is about 1-2% of annual revenues, or $1,000 to $10,000 per year for acts with $100,000 to $500,000 in typical sales.

Category List
Benefits
  • Covers lost income if concerts or performances are cancelled due to unforeseen circumstances
  • Provides funds to pay ongoing operating expenses like employee salaries, rent, and insurance premiums if shows are cancelled
  • Reimburses extra expenses needed to resume business operations after an interruption like rebooking venues or refunding tickets
  • Covers loss of income during a rebuild or repairs if equipment is damaged preventing performances
  • Covers loss of income if a band member gets injured or sick and cannot perform
  • Covers lost revenue if government mandates like lockdowns prevent performances from occurring
  • Covers costs related to supply chain interruptions that delay tours or prevent merchandise sales
  • Covers loss of income from terrorism, riots or natural disasters that cancel events
Use Cases
  • Compensation for lost income if the group or artist cannot perform due to property damage at the venue
  • Compensation if a performer is injured or ill and cannot perform for an extended period
  • Compensation if essential equipment is damaged or lost preventing performances

Based on typical industry standards, business interruption insurance for small to medium sized musical groups and artists (NAICS 711130) would be estimated around 1-2% of annual revenues. Since the typical revenue for this type of business ranges from $100,000 to $500,000, the estimated price would be $1,000 to $10,000 per year.

Estimated Pricing: $1,000 – $10,000 per year

Conclusion

Choosing the right mix of commercial policies provides financial security for musicians, artists and other creative businesses. Working with an experienced insurance agent can help identify your unique exposures and build a customized package of liability, property and income protection insurances. With the right coverage in place, you can focus on your craft knowing your business assets and future earnings are safeguarded.

Frequently Asked Questions

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