Technology is constantly miniaturizing high value audio visual equipment; as equipment has become smaller and smaller, it has moved out of the studio and into the field, creating a serious and often undetected risk. Compounding the risk, much of the equipment is critical in generating income and can be hard to replace quickly.
Most insurance policies are not designed to provide adequate coverage for the unique exposures associated with high value AV equipment. While standard policies do provide coverage for equipment while it resides on the named premises, once the equipment leaves the premises coverage is no longer provided.
A common solution to this coverage challenge is scheduling the equipment on an inland marine floater. Scheduling equipment requires a description of the equipment and a value for each piece of covered equipment. Meeting the criterion requires regular updating of the schedule. Normally equipment not listed will not be covered.
Another challenge referenced in the first paragraph is the income generating potential of the equipment. This is an especially critical issue for AV equipment rental dealer. Equipment that is damaged or stolen cannot be rented and if it’s not rented it is not generating revenue. An unmodified insurance policy can leave the insured with a large uncovered loss of income, often a business ending event.
Many companies that work with high value equipment find it necessary to work overseas. Most coverage, if provided by unmodified insurance policies, ends as soon as the equipment leaves the United States.
If you own high valued equipment that you use in sound/video production or if you own high value that is rented to others, you need to look for several extensions of coverage in order to fill the gaps listed above:
o Coverage for equipment way from the insured’s premise
o Loss of income due to damage or theft of covered equipment
o Coverage overseas
To make sure you get the right coverage you will need to do some research. Specialized insurance products can include specialized extensions of coverage. One way to research your options is to go to www.programbusiness.com. Enter the word entertainment and you will see several options. One program, TAKE 1 is written with Firemans’ Fund Insurance Company. TAKE 1 is an all lines business insurance program in business 15 years and designed to specifically meet the needs of high value equipment owners.
Commercial insurance policies vary – armed with product knowledge, you’ll be better able to choose coverage that truly meets your needs.
