Last Updated: February 22, 2024, 11:30 am by TRUiC Team

Musical Instrument Store Insurance

Getting insurance for your musical instrument store is crucial. 

Musical instrument stores need to be protected against a variety of different risks, such as property damage and theft, contract violations, and vendor disputes.  

You will also likely be required to purchase workers’ compensation insurance in order to protect your business’s assets from employee-related disputes. 

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 Store

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

Some of the risks general liability insurance covers are:

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

Having said that, you should note that your business will likely benefit from purchasing additional coverage.

This is because a general liability policy will not be able to protect it from all foreseeable risks. 

As the owner of a musical instrument store, we recommend considering the following coverage options in addition to a general liability policy:

  • Commercial property coverage: Covers the cost of repairing and/or replacing your musical instruments and other inventory items in the event of damage or theft.
  • Workers’ compensation insurance: Covers your business against employment-law related disputes, such as those that relate to employee injuries. 
  • Business interruption coverage: Covers part of your lost income in the event that you are required to temporarily stop operating. 

You will then need to find the right type of business insurance provider for your musical instrument store.

Even though there are several great options, we recommend going with an online insurer (e.g., Tivly, etc.) as a small business owner, as they have significantly lower operating costs and can thus afford to offer personalized coverage at more affordable rates.

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Cost of General Liability Insurance

On average, musical instrument stores 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 store 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 Store

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Example 1: When a customer in your store reaches for a guitar to take a closer look, he pulls a shelf down on top of himself, sustains several injuries, and asks you to pay for his medical treatment. General liability insurance would cover his medical expenses.

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Example 2: When a customer slips and falls on a wet floor in your restroom, he decides to sue your business for damages because you didn’t display a warning sign. General liability insurance would cover your legal defense and any required settlement.

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

Other Types of Coverage Musical Instrument Stores 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:

Commercial Property Insurance

You made a major investment to stock your store with a range of musical instruments and supplies. 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 products and supplies you store there.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.

Product Liability Insurance

While you strive to sell quality musical instruments and ensure customer satisfaction with every purchase, there’s always a chance someone might decide one of your products caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.

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 store:

  • 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 Store 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. You will want to ensure that your store’s assets are protected before any liability arises, and this could theoretically occur as soon as you begin operating and interacting with clients. 

You will also want to purchase business insurance in order to protect your inventory (e.g., instruments, etc.) from potential damage or theft.

Not necessarily. Certain exceptions may be written directly into your musical instrument store 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.