A Fatal Insurance Blow

August 2018
A Fatal Insurance Blow: 
How Theft Undercut One DJ’s Profits

DJ Frank Boxer was fighting mad after talking to his insurance claims adjuster. There was no coverage for last night’s theft of his laptop.

If he had insurance, how could that be possible? Here’s the play-by-play in slow motion:

The strategy: In October 2010, Frank decided to buy an insurance policy. He hadn’t experienced a theft yet, but he wanted the comfort of knowing he had the right protection. Frank went online and found some affordable coverage options for business insurance. He learned that he could buy property/equipment, liability, and crime insurance. Because theft was a crime and Frank wanted to protect himself from losses caused by theft, he chose the “crime” coverage. He purchased and printed the policy in five minutes flat, and crossed “insurance” off his TO DO list.

The undercut: On Jan. 8, 2011, his computer went missing while working at the Nirvana Club. He was packing up equipment and turned his back for just a moment, giving the ambitious thief just enough time to make his move. Frank filed a claim with his insurance agency the next day.

The fatal blow: Unfortunately, things didn’t go as planned for Frank. His claims adjuster said that property theft was not covered under his crime policy. It turns out that he should have purchased property/equipment coverage. Who knew?

Lessons from the ringside: It’s important to buy the right kind of insurance. Here’s a general rundown on the differences between Property/Equipment Insurance and Employee Crime insurance. However, please be aware that every company’s policy is different.

 

Property/EquipmentEmployee Crime
Protection ProvidedProperty/Equipment Insurance covers office equipment, DJ/KJ/VJ equipment, and media libraries such as tapes, CDs, KDs, and LPs up to the selected limit, for losses caused by fire, windstorm, theft, earthquake, flood, vandalism, and other non-excluded perils.Employee Crime Insurance covers three things excluded by Property/Equipment Insurance:

Employee dishonesty
Forgery or alteration
Theft, disappearance, and destruction of money and securities

Who Should Have CoverageEvery DJ should have Property/Equipment Insurance.DJs with employees should have Employee Crime Insurance because of the employee dishonesty component, which includes employee theft of equipment.

For other DJs, Employee Crime Insurance is a good thing to have if ever faced with a money/securities loss or a forgery situation.

Coverage TipWhen completing the insurance application, make sure the limit selected is equal to the total replacement value of the items you’re insuring. Then, the policy will give you new equipment for old equipment.If you have an employee who has ever been convicted of dishonest acts in the past, he/she will not have coverage under your crime policy. Background checks are prudent.

 

Need coverage for your business? 
The DJ/KJ/VJ insurance program, exclusively available through R.V. Nuccio and Associates, Inc., provides everything you need in one convenient place: General Liability, Property/Equipment, and Employee Crime Insurance. Underwritten by Fireman’s Fund, part of the largest property and casualty insurance group in the world, this tailored package provides specialized “A” rated protection. Endorsed by the American Disc Jockey Association and the National Alliance of Special Event Planners, R.V. Nuccio and Associates is the only online nationwide insurance source for DJs, KJs, and VJs, offering the most customized protection at the most competitive rates. Coverage is also available for photographers and videographers.

Note: These examples are based on real claims scenarios. However, the details have been fictionalized to protect the privacy of those involved.

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