Self-Employed Musicians Guide to Insurance

Nothing concentrates the mind like watching a much-loved cello case being thrown down a plane’s cargo chute (result: one broken-necked cello and one smashed case). Such events emphasise the need for decent insurance and, although loved by no-one but needed by most, the annual trawl for best-price versus best-cover comes around with miserable familiarity.

But insurers are genuinely keen to help (as well as eager to take your money). Allianz (www.allianz.com), which has been providing insurance for musicians since 1960, describes itself as ‘the UK’s No. 1 musical instrument insurer, insuring more than 70,000 musicians, from beginners to internationally renowned artists.’

Guy Meagher, Allianz’s Personal Lines Musical, Niche & Legacy manager, explains the firm has allowed musicians to defer insurance payments while they were losing earnings during the pandemic. They’ve also donated £600,000 to Help Musicians UK’s Coronavirus Hardship Fund, the Music Venues Trust and Volunteer It Yourself.

The Sussex-based Newmoon Insurance Services, meanwhile, found a novel way to support musicians with its collaboration with The Gentleman’s Distillery. £10 from each bottle of gin they sell will be split between The Brass Band Heritage Trust, Brass Band Radio, and The Bandsman Fund. However, the core purpose of insurance services, is, of course, to insure. The Musicians’ Union, for example, has its own range of insurance for its members
(www.musiciansunion.org.uk/insurances) which includes:

• Public Liability Insurance, which protects against legal liability while performing or teaching
• Professional Indemnity for people working in music education
• Instrument and equipment cover, plus personal accident and tax investigation insurance

Hiscox (www.hiscox.co.uk) says that its tailored small business insurance ‘can help your enterprise stay in tune’. Well, who knows, but its music tuition cover can certainly ‘help with instrument repairs or replacements for lost, stolen or damaged items and assist if an injury leaves you unable to teach.’

It can also be tailored with professional indemnity cover for protection against claims of negligent advice, as well as business insurance that can help to safeguard a music teacher against the various risks of the role – worth considering if you’re self-employed and working within schools or as the owner of a music school.

The pandemic brought about changes in the way musicians, along with everyone else, worked. ‘During lockdowns, sales of instruments increased as people explored new hobbies or returned to something they may have previously given up’ says Guy Meagher at Allianz.

Several insurance firms refused to pay out on general policies, saying pandemic-related events weren’t covered. But the courts – and Allianz – thankfully took a different attitude.

‘We, unsurprisingly, were receiving fewer claims, with venues closed and concerts cancelled’ says Meagher. ‘But we did receive a number of claims for instruments given to a retailer that had sadly entered liquidation. This resulted in customers being unable to retrieve their instruments or proceeds from their sale. This eventuality wasn’t covered in our policy but in the light of the challenges faced by our customers, and the specific circumstances, we took the decision to pay these claims.

‘We’ve since made changes to our policy so that we now cover this eventuality.’

Paul Crump, director at the independent, family-owned Newmoon Insurance Services (www.newmooninsurance.com), believes the pandemic has had no impact on general insurance rating for instruments but that premiums have been reduced for professional players as they have reduced cover from worldwide to UK or premises only.

‘The impact is really about the type of musician you are’ he says. ‘A professional player has seen significant impact to earnings and work opportunities. Circumstances are currently very fluid so it is really important that a musician asks the questions regarding mid-term changes and any admin charges they may incur, as we are likely to be entering a period where changes are made much more frequently than before.’

The amount an instrument is worth today, if you’re lucky, may far exceed what you paid for it and, for higher-value instruments in particular, an accurate valuation will be vital in the event of a claim. There are some horrific, and possibly apocryphal, tales of thieves attempting to sell on stolen instruments for a fraction of their value, such as the court case a decade ago which heard how thieves attempted, and failed, to sell a £1.2m Strad violin belonging to Min-Jin Kym for just £100.

Musicians aren’t going to get it so wrong but as instrument prices rise, there can be a tendency to under-insure.

‘For a musician their instrument is their tool that provides them with their enjoyment, livelihood and income’ says Florian Leonhard (www.florianleonhard.com), an expert maker and restorer who has authenticated and valued many fine instruments at his London workshop. ‘Although one hopes to never have to claim either for loss or damage, one insures for this rare eventuality and at such a moment would very much regret if one couldn’t replace such a beloved item.’

Having seen countless valuable violins, violas, cellos and basses pass through his workshop for repair, he believes ‘an annual insurance is so important. Insurance valuations take 12 months into account, so getting it renewed annually will provide peace of mind to the owner for the coming year.’

Fay Watts, manager at Lark Group (www.larkmusic.com), believes her clients don’t want a ‘faceless insurer’: ‘They value the relationships we build with them, and this in turn helps them feel confident in our knowledge and service. We work with many musical organisations and are actively involved in the music world. For us, it’s about more than just insurance.

‘At the core of Lark Music is a passion for music, something we of course share with our clients. We have musicians in the team and even those who don’t play share our passion.’

Watts hasn’t noticed many changes in demand in terms of cover, but she has seen other factors becoming a priority: ‘flexibility, a personal service, ease of making changes and having confidence in our experience and knowledge has become far more important’ she says.

‘We launched a new ‘practice at home’ policy which enabled clients to reduce their premiums whilst still making sure their instruments were protected. We saw a lot of clients reducing cover as their income reduced or cancelling altogether as they sold their instruments.’

Newmoon Insurance Services director, Paul Crump, says he’s seen more pet-related claims over lockdown. Not in the league of the Los Angeles-based cellist Armen Ksajikian, whose 78-pound pit bull chomped its way through a violin, after eating its way through a door and a case, but, says Crump, ‘for example, if a dog feels they are not getting enough attention as you practice or play – a wooden recorder can be seen by a dog as something to get their teeth into!’

What to look for in insurance

• Check you have the right level of cover … did you remove some parts of the policy when you didn’t need to travel?
• Do you need to go back to worldwide cover rather than just UK?
• Are you continuing with online teaching and does this area of your business need cyber-insurance?
• Is the excess sensible?
• Does the policy have a flexible payment structure?
• Does your household insurance offer cover for less expensive instruments?
• What is the insurer’s reputation? (Online reviews can be useful)
• Can you speak to someone or is it all online?
• Is your valuation up to date?
• Is there a discount for paying up front?
• What are the admin charges for changes?
• Make sure to keep photographs and accurate descriptions

CONTACTS:
Allianz: www.allianz.com
Florian Leonhard Fine Violins: www.florianleonhard.com
Help Musicians: www.helpmusicians.org.uk
Hiscox: www.hiscox.co.uk
Lark: www.larkmusic.com
Musicians’ Union: www.musiciansunion.org.uk
Newmoon Insurance Services: www.newmooninsurance.com