Last Updated: February 22, 2024, 11:28 am by TRUiC Team

Musical Instrument Repair Business Insurance

Getting insurance for your musical instrument repair business is crucial. This is because you will need to protect your business’s assets against a variety of different risks.

Such risks include negligence claims, property damage disputes, and contract law violations.

For example, an employee may damage a customer’s guitar while attempting to repair it, which could lead to a compensation lawsuit being filed against your business. 

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Musical Instrument Repair Business

General liability insurance is — generally speaking — one of the most important insurance policies for musical instrument repair businesses.  

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Even so, your musical instrument repair business will likely need to purchase additional insurance policies.

This is because you will want to protect yourself against a variety of risks that are not covered with a simple general liability policy, such as:

  • Negligent acts or omissions — Covered via an errors and omissions insurance policy. 
  • Damage or theft of your business’s equipment — Covered via a commercial property insurance policy. 
  • Employment law disputes — Covered via a workers’ compensation insurance policy. 

You will then need to pick the right type of insurance provider for your small business.

We recommend going with an online insurer (i.e., an insurer that uses AI instead of a live insurance agent in order to offer coverage) instead of a traditional brick-and-mortar alternative. This is because online insurers are — generally speaking — significantly more affordable due to the lower overhead involved.

Popular examples of online insurers for small business owners include Tivly and Next Insurance.

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Cost of General Liability Insurance

On average, musical instrument repair businesses in America spend between $300 - $600 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a musical instrument repair business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for a Musical Instrument Repair Business

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Example 1: As a customer explores your shop, he trips over a cable on the floor, breaks an arm in the resulting fall, and asks you to pay for his medical treatment. General liability insurance policy would cover his medical expenses.

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Example 2: While visiting your place of business to discuss a piano repair, a customer slips on a wet tile in the restroom, breaks a wrist, and decides to sue your business for damages. General liability insurance would pay for your legal fees and any required settlement.

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Example 3: A competitor sues your business for damages, claiming you libeled them in your last advertisement. While you disagree with the claim, you know you need an attorney to protect your business. General liability insurance would pay for your legal defense and any required settlement.

Other Types of Coverage Musical Instrument Repair Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Professional Liability Insurance

While you strive to deliver high-quality repair work, there’s always a chance a customer might decide your work caused them harm. If a client sues your business for negligence, professional liability insurance would cover your legal fees and any required settlement.

Commercial Property Insurance

You made a major investment to establish your musical instrument repair business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the equipment and supplies you store there.

Commercial Auto Insurance

Any vehicle you use primarily for your repair business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business property you carry in your vehicle.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your musical instrument repair business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Musical Instrument Repair Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Yes, to ensure that your business’s assets are protected before any liability arises (e.g., a lawsuit, contractual dispute, etc.), which could happen as soon as you begin operating.

For a musical instrument repair business, we recommend getting general liability insurance, workers’ compensation insurance, and errors and omissions insurance coverage.

Not necessarily. Certain exceptions may be written directly into your musical instrument repair business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.