Make sure you\u2019re not missing a trick! As the League Insurance Program continues to grow, we\u2019ve come across some important gaps in orchestras\u2019 insurance arrangements. These 5 tips are drawn from orchestras we\u2019ve been working with recently\u2026<\/p>\n
1.\u00a0\u00a0\u00a0 Valuation<\/strong> 2.\u00a0\u00a0\u00a0 Sum insured<\/strong> 3.\u00a0\u00a0\u00a0 Co-insurance<\/strong>
Think carefully about how you value your sheet music library: it\u2019s not just about the purchase or replacement price.\u00a0 If you lost part of your library in a fire or in transit, how much time would it take\/cost to recompile the parts with markings and bowings?\u00a0 Perhaps you\u2019ve inherited scores from well-known conductors or artists, which are now historic\/collectible items?\u00a0 What would be their market value at auction?\u00a0 If you haven\u2019t valued your library in the past 2 years, it\u2019s time for a review.\u00a0 You could gain an easy indication with a \u201cby the yard\u201d approach (take a sample yard of shelf space), or by working from your inventory. <\/p>\n
Be smart about what sum you opt to insure \u2013 you may have a huge library, but would you actually want to replace it all?\u00a0 Perhaps your artistic policy has changed and moved away from certain repertoire?\u00a0 Perhaps you inherited repertoire from other sources, that wouldn\u2019t actually need replacing?\u00a0\u00a0 Secondly, think carefully about your sum insured and any listing for sheet music on your balance sheet: there may be a reason for a discrepancy (depreciation etc), but if your sum insured is much lower than the figure in your balance sheet, a loss could have a double impact by hitting your balance sheet too.\u00a0 If you\u2019re unsure, talk it through with us. <\/p>\n
Look out for co-insurance clauses in your policy \u2013 these could really restrict your claim settlement (the League Insurance Program doesn\u2019t have such clauses).\u00a0 Co-insurance is often set at 80% – the insurer allows you 20% latitude for miscalculation, but thereafter, your settlement is reduced.\u00a0 So if you\u2019ve insured your sheet music for $50,000 and it turns out to cost $100,000 to replace, you\u2019d only get $25,000 of your $50,000 claim because you only insured 50% of the true value.\u00a0 That\u2019s quite a hit if you\u2019ve actually lost $100,000 of sheet music in a fire.\u00a0\u00a0 <\/p>\n