Radio Station Business Insurance
Getting business insurance for your radio station is essential.
Radio stations need to be protected against things like negligence, regulatory violations, and employment disputes.
For example, in the event of an on-air mistake or other error that causes harm or damage to listeners or advertisers, a negligence claim may be filed against the station.
We’ll help you find the most personalized and affordable coverage to protect your company and its assets.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Radio Station
General liability insurance is — generally speaking — one of the most important insurance policies for a radio station.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Some other policies that might be of interest to your radio station include:
- Equipment breakdown insurance: This coverage protects against losses resulting from the sudden and accidental malfunction or breakdown of essential equipment such as transmitters, audio consoles, and computers.
- Commercial property insurance: This coverage covers physical damage or loss of your building and its contents due to fire, theft or natural disasters. This policy provides financial protection for your assets and can also cover the cost of repairing or replacing damaged equipment such as transmitters, mixing boards, and computers.
- Workers’ compensation insurance: This insurance provides benefits such as medical expenses and lost wages to employees who suffer work-related injuries or illnesses. By obtaining workers’ compensation coverage, you can protect yourself from costly lawsuits while providing financial support to injured staff members.
- Employment practice liability insurance: This insurance provides coverage for claims arising from wrongful termination, discrimination, sexual harassment, retaliation, and other workplace-related issues. In the event that an employee files a lawsuit against your station on these grounds, EPLI can help cover legal fees and settlement costs.
When it comes to selecting an insurance provider, businesses are typically faced with a choice between two types of insurers: the traditional brick-and-mortar insurer and the more modern online insurance provider.
- Brick and Mortar Insurers: Traditional brick-and-mortar insurers have been around for decades, offering policies through agents at physical locations. These insurers often have large marketing budgets and a long history in the industry. They tend to be more expensive due to higher overhead costs such as rent for office space and salaries for agents.
- Online Insurers: Online insurance providers offer policies through digital platforms that can be accessed from anywhere with an internet connection. This makes them more convenient for busy business owners who don’t have time to visit physical locations or meet with agents in person. Online insurers often offer lower premiums, as well.
We recommend small businesses consider online insurers like Next and Tivly, because they offer a personalized experience, great coverage, plus more affordability.
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Cost of General Liability Insurance
On average, radio stations in America spend between $500 - $1,100 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a radio station 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.
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Common Situations That General Liability Insurance May Cover for a Radio Station
Example 1: When a big-name guest arrives early for an interview, he trips on a stack of records while exploring your studio, breaks a wrist in the fall, and asks your radio station to pay for his medical treatment. General liability insurance would cover his medical expenses.
Example 2: A rival talk radio station files a lawsuit against your best DJ, claiming she committed libel in a recent on-air promotion. While you disagree with the claim, you know you need to seek legal advice right away. General liability insurance would pay for your legal defense and any awarded damages.
Example 3: As an employee moves prizes for an upcoming event from your storage facility to a company vehicle for transport, he loses control of the cart and it hits an investor’s luxury car. General liability insurance would cover the investor’s vehicle repair costs.
Other Types of Coverage Radio Stations 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 Auto Insurance
Any vehicle you use primarily for tasks related to your radio station 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 materials you carry in your vehicle.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time workers. 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.
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 radio station:
- 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.
Radio Station 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, insurance coverage is a must-have for any business, especially one that involves broadcasting to the public. Radio stations face various risks, including equipment failure, natural disasters, and lawsuits from third parties. These risks can be costly and could potentially bankrupt a station if not adequately insured.
Not necessarily. Certain exceptions may be written directly into your radio station 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.