Music Shop Insurance

What is music shop insurance?

Music shop insurance is a policy made up of several covers that give your business financial protection if the unexpected happens. The covers you include depend on your own requirements, so no two music shop policies need look the same.

Running a music shop carries risks that are sensible to insure against. Typical ones include high-value instruments on display and in stock rooms, furnishings, high public footfall and employees. As the owner, it is worth thinking about how your business would cope after an event such as a fire or theft, and deciding which covers would protect you.

Who needs music shop insurance?

Any business that sells instruments or music equipment from premises should consider it, because a shop holds a significant amount of capital in stock and welcomes members of the public every day. Some cover is also a legal requirement: if you have employees, you will most likely be required by law to have employers' liability insurance in place.

Whether you rent or own your premises affects what you need. Tenants usually arrange their own contents cover, while landlords normally arrange the buildings insurance. If you are unsure, check the details with your landlord.

What does music shop insurance cover?

A music shop policy typically combines some or all of the following covers.

• Employers' liability insurance: helps protect you should an employee suffer illness or injury because of their work for you. It is most likely a legal requirement if you have staff.
• Buildings insurance: covers the building itself in many events, including fire and flood damage. If you rent, the landlord usually arranges this.
• Contents insurance: usually arranged by the tenant, and typically covers damage, loss or theft of furniture, tools and equipment.
• Stock insurance: covers your stock should it be damaged, lost or stolen. Music shops often have a lot of money tied up in instruments, so this is worth checking carefully.

Other covers may suit your shop, such as public liability insurance given the footfall a music shop attracts. Discuss these with a business insurance specialist when you receive your quotes.

What is not covered by music shop insurance?

The main point to understand is that stock insurance pays out at the cost price of your stock, not the retail price you would have sold it for. If you are relying on a stock claim to replace instruments, make sure the sum insured reflects what it would cost you to buy them again.

Each cover also only applies if it is included in your policy. For example, if you rent and your landlord holds the buildings insurance, your own policy will not cover the building, so you need contents and stock cover arranged separately. Read the policy documents for each quote so you know exactly what is and is not included.

Do I legally need insurance for a music shop?

Insurance is a legal requirement in specific areas. If you have employees at your music shop, you will most likely be required by law to have employers' liability insurance in place. This applies to staff who work for you, and it protects you if they suffer illness or injury due to their work.

Other covers, such as contents, stock and buildings insurance, are not required by law, but they protect the parts of your business that are hardest to replace after a fire, flood or theft.

How much does music shop insurance cost?

There is no single price, because the cost depends on the covers you choose and the size of the risk. The main factors are the value of the instruments and other stock you hold, the contents of the shop, whether you need buildings cover, how many employees you have and how much public footfall the premises sees.

The way to find out what your shop would pay is to compare quotes. One short form returns live quotes from a panel of UK business insurers, so you can see how the price changes for the covers you select.

How do I compare music shop insurance quotes?

Complete one short form on Quote Goat and you can compare live music shop insurance quotes online from a panel of UK business insurers, with quotes from up to 5 providers. Once you have chosen, you purchase the cover directly with the insurer.

Compare the covers included as well as the price, and check the stock sum insured reflects cost price. Our wider guide to shop insurance covers the options for other retail businesses.

Should I shop around when my music shop insurance is due for renewal?

Yes. When your policy comes up for renewal, repeat the quote process rather than accepting the renewal offer automatically, because staying with the same provider is often not the cheapest option. Your stock levels and staff numbers may also have changed over the year, so it is a good time to make sure the covers still match your business.