OK, a hard and specific subject. How to insure your recording equipment.
My discussion here is from a perspective of MN, USA.
Disclaimer:
My background is that of a licensed and experienced claims adjuster.
As a condition of that license my state requires that I can not sell,
recommend, or give specific advise to anyone or help with problems any
of you may have. This is not intended to be a complete discussion as
policy wording is complex and varies. This post is to provide
information on the process I went through within MN to secure coverage
and that only. This means you are still on your own.
There is more than one way to accomplish the insurance of field audio
recording equipment. Under the standard coverage afforded under a
standard HO-3 (homeowners form) there are problems with some
conditions as it pertains to our recording equipment. Specifically
you need to watch, Business Use Exclusion, Mysterious disappearance
coverage, Breakage, Perils covered, Territory covered, deductible, and
of course price.
I look first at the HO-3 unscheduled personal property coverage. This
is for my stuff only not others and often based on 50% of the value of
the insured house within the USA and 10% of that coverage anywhere in
the world. Problems to look at include a $500 limit on property used
in business. Named peril coverage (read the form breakage is not one
of them). Theft coverage often under a higher deductible. Valuation
unless additional $ paid is based on actual cash value which includes
depreciation. $5,000 limit on electronic data processing equipment (no
case law known by me on if digital audio recording equipment falls
under this). And the big exclusion is partially stated here, "any
device, accessory ... for recording or playing back ... sound ...
which may be operated from the electrical system of a land motor
vehicle... .
Second, I looked at the "Scheduled Personal Property Endorsement" This
is where you normally would schedule specific property such as your
camera equipment. Recording equipment needs to go under the section
for "Miscellaneous Personal Property" What you get for around $17.00
per $1,000 property per year no deductible and removal of the
exclusion for "Mysterious Disappearance" as this coverage is not named
peril but "all risk", with additional exclusions such as electrical
surge. Business use is still excluded. That strange wording as above
regarding "which may be operated from the electrical system of a land
motor vehicle" is still there. Therefore this is not a good option
for recording equipment.
Third is the choice I made. "Portable Tools and Equipment Endorsement"
Business use is ok if items are specificall scheduled. $250. per tool
if not scheduled and you bought an amount of Blanket Coverage. $50.00
deductible. All risk (coverage afforded if you drop it) but Mysterious
disappearance is not covered, (that means you can not establish an
actual theft). Coverage is only within the USA and Canada. Cost is
around $35.00 per $1,000 property per year. That strange exclusion as
stated above is gone.
Last thing I should mention is a common "Supplementary Coverage" found
in HO-3's. This is usually automatic with no additional cost. "Damage
to Property of Others". Up to $500 per occurrence even if you are not
negligent or legally liable. This means that when you borrow a chunk
of recording equipment from a friend and when you return it you hear
there is something now wrong with it. This is covered without a
deductible. Still there is a Business use exclusion.
I am not going any deeper than this on the topic of what happens when
any of you who damage other people or their stuff.
My advise overall is to be honest with a good insurance agent of your
choice.
Rich
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