Record Company Insurance

Record Companies provide a specific service for musical artists and bands, promoting them to a wider audience and acting as a distributor of their music. But as a record company owner, you know there’s much more to it than simply marketing an artist or group. Perhaps your business was built on finding new artists or acts, nurturing that talent and bringing it to market. Maybe you work with established artists exclusively and help them reach more listeners. No matter what your specialty, you have invested a lot of time and energy both into building  your, reputation, company, equipment and into the music industry in general. 

Your business also must guard against risks to your acts in protecting their copyright and published works. Much in the same way, a personalized insurance package from ALIGNED is designed to cover you from any risks that might come your way in the operation of your business. 

Record Company Insurance
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Why does your Record Company need insurance? 

Operating a Record Company is not without its risks. In addition to the common risks associated with owning and operating a business, you face additional risks as a Record Company owner that are sometimes more difficult to pinpoint. Assets like your reputation and that of your artists are extremely important to your work, as important as the physical and digital songs, records and albums you sell. In order to address all the potential risks for your business, you need an insurance package that is tailored to your unique business. 

What does risk mitigation look like for a Record Company?

First of all, General Liability Insurance is a must for your company. As a Record Company, you have to protect yourself against the common risks of property damage and bodily injury occurring to the public as a result of your business. But general liability coverage can also guard against the costs of a lawsuit if one is brought against you, paying both court costs and damages. 

Your main business is promoting and selling music, however that comes will the selling or merchandise like shirts, apparel, buttons etc. Product liability coverage which is typically part of a commercial general liability policy for record companies covers the bodily injury or property damage to third parties as a result of selling physical goods.

To protect against unexpected and substantial claims against your company, Commercial Umbrella Insurance is available and well worth considering. This is for extreme, unpredictable and even catastrophic events that exceed your other liability coverage limits. 

If your Record Company is involved with the distribution of products or driving artists to and from engagements, you should also consider Commercial Auto Insurance. This coverage allows you to protect your company vehicles and staff when they are driving them. 

If your Record Company has a board of directors, you will require Directors and Officers Insurance to safeguard the company and your board in the event of any kind of claim made for negligence for example. Cyber Liability Insurance protects the online assets of your Record Company from malicious hacking or data losses.  

Lastly, running a successful record company involves so much more than just recording and selling music and talent relies on their record company to provide advice, recommendations and strategies to help maximize their exposure, popularity and sales of their music and related goods.  If talent perceives that an error was made or alleges negligence on the part of their record company for the services they provide a lawsuits could be filed triggering significant expenses and possibly bankruptcy.

Here are three examples of instances when your Record Company will need the insurance coverages mentioned here: 

  • talent injures themselves while recording at your studio
  • a pop up display which your employees installed at a partner retailer falls an injures a customer who sues the retailer and your record company
  • talent sues you for financial losses they incur as a result of following your advice around tour schedules, merchandising etc. 

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