Whenever you budget the expenses of your business, Session Musicians insurance must be near the top of the list because you can’t always know exactly what can happen in the future.
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With the protection provided by insurance against accidents and all the other types of insurance we will tell you about, you can protect your business and yourself in case something unexpected happens.
Like any business owner, for your Session Musicians enterprise, you must consider how much financial risk you are taking on.
If your Session Musicians business runs without proper insurance, you are taking a giant chance not just of losing some money but of a complete wipe-out.
This is because the laws in every state are very strict in enforcing liability on the owners of businesses for the results of their actions.
In this article, we are giving very general guidelines for startup businesses to outline what the main kinds of insurance that you need are, and where possible, a rough guide to how much you can expect to pay.
The question is, can you afford to NOT have insurance for your Session Musicians business?
What this means, for any Session Musicians business owner, is that if some person claims that your work caused them some physical or economic damage, a court can award damages far beyond the total size of your business.
Your Session Musicians business is not protected by laws in the same way as states are, where legislation can place a “cap” on the maximum level of liability.
In some states, like Texas, there are specific monetary levels that limit the amount an adjudicator can award in any case against the state.
In a court case, it’s purely the duty of the jury to award whatever amount they deem appropriate, even sometimes giving a claimant more than they have sued for.
When you are running your Session Musicians operations, you can’t escape responsibility for the consequences of your actions.
Even more importantly, unless you have spent beforehand the money necessary to have your business running as a limited liability company, all of that liability belongs to you as an individual.
What does Session Musicians insurance protect you from?
For your Session Musicians business, the most important types of insurance are intended to cover the risks to your business from accidents, from unexpected events, and from mistakes.
Also there are some legal kinds of insurance that various states require.
In the next few paragraphs, we will outline the most important points any Session Musicians business owner should know when negotiating the insurance needed.
The main headings of insurance for your Session Musicians businesses are liability insurance, commercial insurance, asset insurance and workers compensation insurance.
General liability insurance
Any Session Musicians business is dealing directly with customers, and that means you always have the danger that some accident can happen to them themselves or else something of theirs can be ruined.
In such a case, they can sue you for compensation.
General liability insurance policy for your Session Musicians business protects you against claims coming from injury to visitors or damage to their property.
It protects your Session Musicians business from the claims themselves and in addition to any resulting court costs and legal fees of the lawsuits.
In many cases, it should help you to qualify for extra business from city and state organizations, where contracts demand proper liability insurance.
The normal level of general liability insurance for your Session Musicians business would be with a upper limit of $1 million for a single event and a total of $2 million for the whole year.
See the table in the costing section below for average prices of general liability insurance for your Session Musicians insurance operations.
Professional liability insurance for your Session Musicians business
In the event where a client alleges some negligence, errors, or omissions in how you conducted your Session Musicians business for them, you can quickly have to fight a court case.
Even if the lawsuit against you is ruled in your favor, the cost of defense can be substantial, and the impact on your reputation can be damaging.
Every small Session Musicians business should have enough professional liability insurance to cover a single claim of $25,000, with annual cover of $50,000.
See the table in the cost of Session Musicians insurance section below for average prices of professional liability insurance for your Session Musicians operations.
Product liability insurance
Whatever goods you sell or advice you give about the goods, you are running a risk that clients may claim that the results didn’t meet your description of function, or that your advice was basically incorrect.
You need to understand the particular laws of product liability in your own state.
For example, in California, all businesses in the supply chain can be held responsible for results caused by products claimed to be defective.
To cover yourself against any likely lawsuit, you need Product liability insurance for Session Musicians
Only you can know exactly how much insurance you need.
Best advice is to contact experienced insurance agents, brokers or company representatives for support.
Commercial vehicle insurance for your Session Musicians business
Take care! – most policies for private vehicle insurance do not cover any event like theft or accidental damage when the van is being used for business purposes.
The proper way to make sure that your vehicle is insured for both its own value, and the valuable contents, is by taking out a proper commercial vehicle insurance package.
Commercial car policies guarantee the value of any vehicle in case of accident, malicious damage, fire, or theft.
In addition, in case of any accident, the car itself, the content and any legal bills, medical expenses, and property damage is insured if your car is involved in a collision.
Most states, other than Virginia and New Hampshire, insist on this type of insurance.
The required value of the insurance is worked-out for the depreciated value of the vehicle, and your declared level of cover of contents.
Tools and Equipment insurance
Since your Session Musicians business needs specific and dedicated equipment, you can appreciate how much it can cost to replace it in case of any damage, loss, or theft.
The gear may be subject to malicious damage, deliberate fire, theft, other such unexpected acts.
Also, acts of nature like lightning strikes, hurricanes, earthquakes, and other highly damaging natural events can wipe-out your whole business in one stroke.
Unless you can afford to immediately replace such specific gear quickly out of your own pocket, you must have full-level equipment insurance so that you can immediately buy whatever needed to keep your Session Musicians business running.
It is impossible to advise how much equipment insurance you need – it’s really dependent on how much you have invested in your Session Musicians business’ equipment.
Commercial Property insurance
Any Session Musicians business that owns or rents space in a building must have a commercial property insurance policy.
If you own the building, you may already have a substantial capital investment, as well as a big liability if there’s a mortgage.
Every physical building location should carry insurance coverage for the value of the premises and contents against accidental occurrences like fire and storms, and against criminal damages like theft and vandalism.
If your Session Musicians business deals in areas of high risk, like Texas or Georgia, additional coverage may be needed for earthquakes and hurricanes or tornadoes.
In other states like Washington, where extreme cold snaps can cause damage to outer coverings of Session Musicians business premises, there is a need for more extra cover than in warmer climes.
Although the level of cover depends completely on the value of the property, it’s not possible to say what cover your need, but we have been able in the table in the cost of Session Musicians insurance section below to give some indication of the average prices per million dollars of property insurance for your Session Musicians business.
Temporary insurance by month, week or day for your Session Musicians business
Is your Session Musicians business working part-time or casually, or is the level of business variable?
Using short-term insurance makes perfect sense. Business insurance by the month, day, or week – temporary insurance for Session Musicians – are special policies where you can cover a nominated period when you want to be covered.
By only paying for that period of cover, you will save by having lower premiums but still having adequate risk cover.
The essential feature of short-term insurance is that you purchase the cover for a defined period – a specific date, or a week or month starting on a specific date, for example for 30 days beginning on the specified date.
When you are expecting periods of better business activity, get the existing cover raised.
Talk to your insurance agent, broker or the company’s representatives to see what options you have.
Business Owners Policy BOP for your Session Musicians business
You have the chance to combine most of the important kinds of small business insurance in one policy that is known as the business owner’s policy – BOP.
A BOP merges commercial property and public liability insurance by incorporating these coverages into one insurance policy, which can save you money.
BOP insurance will protect you if any claims of injury or property damage are made.
It is often the right choice for small and medium-sized Session Musicians businesses, such as yours.
There are two limits that will determine whether BOP is suitable for your own business.
BOPs will not cover your professional liability or commercial vehicle cover.
Also, the size of your business will rule whether you are allowed to take out BOP cover.
The typical business that is eligible for a BOP policy must have fewer than one hundred employees, and not more than five million dollars in annual revenue.
As well, you must separately take out the mandated worker’s compensation, health and disability insurance as determined for your state.
Workers Compensation insurance for your Session Musicians business employees
In many states, it is mandatory to have workers compensation insurance when your Session Musicians business has one or more employees.
Workers compensation insurance covers the enterprise against any costs that arise if an employee experiences an injury or becomes sick as a result of work.
The benefits provide for medical expenses, death benefits, lost wages, and vocational rehabilitation.
Failure to meet a state’s laws in this regard can leave you as the employer required to pay penalties levied by the states.
In these states, you may not take out your workers compensation obligations from private insurance companies.
Workers compensation charges are computed based on the employee’s pay, and usually come out at around $1.00 per $100 per month.
However, you must consult the relevant authorities in your state.
Average costs of these types of insurance
Although every Session Musicians insurance requirement is unique, there are enough examples of average quotes from insurance companies for us to give appropriate guidelines, including what are the cheapest rates offered.
Of course, you should always check with a broker what’s relevant for your business.
The list below is of annual premiums we have gathered for the main types of insurance your Session Musicians businesses needs.
|Types of insurance||Price range|
|Commercial vehicle insurance||$1980 – $2700|
|General liability insurance||$740 – $985|
|Product liability insurance||$300 – $700|
|Commercial insurance||$980 – $2245|
|Public liability insurance||$270 – $535|
|Equipment insurance||$350 – $1465|
Cost of insurance for your Session Musicians operations depends on many different factors.
We have calculated these figures for small independent Session Musicians businesses.
The location and size and type of your Session Musicians business can have a big effect on the cost of different policies.
You should discuss with professional insurance agents and brokers, or insurance company representatives.
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In addition you can let the internet do the work for you by enquiring about insurance companies near where your business is located.
Another good source of information is the local Better Business Bureau in your suburb.
What is small business insurance for Session Musicians operations?
This is a general term used to describe basic insurance policies designed to protect Session Musicians business owners from risks like bodily injury, property damage, claims of negligence.
Does my Session Musicians business have to have insurance?
Some of the types of insurance are not mandatory for you to operate your business, but they can protect you from risks in your business operations.
Several other forms are required by state law, such as workers compensation and vehicle insurance.
What does a small Session Musicians business insurance policy cover?
Liability insurance provides coverage against lawsuits or claims filed by a third-party for bodily injury, property damage, or negligence.
The exact cover will vary based on your own operations.
See the table in the costing section above for average prices of the recommended policies for Session Musicians insurance.
How much will Session Musicians business insurance cost?
On top of the size of the business, some other factors, such as location and claims history, are used to determine your policy’s cost.
You should discuss with professional insurance agents and brokers, or insurance company representatives.