Industry news & advice blog

We know that insurance can seem complicated, with confusing phrases and terms that you might not be able to get your head around. But don’t worry, we’re here to help!

We’ve asked the good folks at Allianz Music Insurance to pull together some insurance jargon to help you understand your musical instrument insurance policy.

Certificate of Insurance - this is an important document and is made up of your details and policy schedule.

Depreciation - the decrease in value of any type of instrument/equipment over a period of time resulting from use, wear and tear or age. Allianz’ specialist musical instrument insurance also covers depreciation in the value of your instrument following a repair, so it’ll always be protected to its true value.

Endorsement – this is extra wording in your policy that extends or restricts the cover provided to you, or that requires compliance with stated conditions. You will find this on your Policy Schedule.

Excess – this is the agreed amount of money you’ll pay towards a claim if indicated on your policy. With Allianz Musical insurance there is no excess on instrument claims (though a low £100 excess applies to computer equipment, tablets and mobile phones) so you can make a claim and get back to playing as soon as possible.

Exclusions - these are things that are not covered by your insurance policy.

Financial Ombudsman Service (FOS) – the FOS is a bureau that was established by major insurance companies to oversee your interests as the policy holder. They settle disputes and complaints that remain unsolved.

Indemnify - to get you back to the same financial position you were in after you make a valid claim.

Insurance broker/intermediary - they are full-time specialists with professional skills in handling insurance business who advise clients and arrange their insurance for them.

Insurance Premium Tax - the Finance Act 1994 introduced this tax on insurers, similar to VAT, which applies to most general insurance premiums in the UK.

New for Old Cover – Allianz insure your instrument for its replacement value, even if this is more than what the instrument cost to buy originally. So if you need to make a claim, they’ll pay out the amount for which your instrument was insured, so you can source another instrument of the same quality in the current market, particularly if your instrument was a vintage or rare make.

Peril - the cause of loss. Fire and flooding are examples of peril.

Personal Accident Cover - personal accident insurance covers you if you’re injured while using your instrument or any piece of music equipment. You’re likely to be covered for loss of limb, sight or hearing, as well as disability or death. Sounds serious, but definitely worth considering.

Policy Schedule – the document that shows details of the items you’ve insured and the cover you’ve selected, as well as any special terms which might be relevant under your policy.

Premium – this is the amount you will pay either monthly or annually for your insurance policy.

Public Liability Insurance - public liability cover protects you against the cost of a claim if someone is injured or damages property while you’re using your equipment or instruments. This cover can be useful when you’re performing, rehearsing and auditioning, either at your home/premises or a venue/public place and will also cover you when loading, unloading, setting up and clearing away for a gig.

Settlement - when an insurer pays a claim.

Sum insured – this is the maximum amount that will be paid for each individual insured item if you need to make a claim.

Third party – this is a person/group, besides you and the insurer, who may be involved in making a claim against your insurance.

Third party liability – this is protection for you against the claims of a third party if they are injured or damage property while you’re using your equipment or instruments. This can also be known as Public Liability insurance.

Underwriter - insurance underwriters look at and calculate the risks involved in insuring people and assets. They decide whether to insure a person or company, and set out the details and terms of insurance policies.