July 2018
DJs Gone Mad, Madder Than A Wet Hen
When a DJ’s property is stolen, it’s covered by Property/Equipment Insurance – most of the time that is. The owner of Rooster Sound learned an important exception to the rule, however. In fact, he was madder than a wet hen the day he discovered that an employee’s dishonesty nearly wiped out his assets.
Our story begins three years ago, when Roger Davis (AKA: Rooster) decided to purchase insurance for his DJ business, Rooster Sound. Rooster purchased property/equipment and liability coverage. He noticed that crime insurance was also available, but didn’t think he really needed it. In the two years that followed, Rooster renewed his policy annually without much thought to his changing exposures, such as the two full time employees who now worked exclusively for his company.
All was going fine until Rooster ran into a streak of bad luck. In January, some equipment was stolen from a gig. Astoundingly, he was hit again in March and in April. The first two times, Rooster reported the theft and was reimbursed by his policy. But by the third time, the insurance company’s special investigative unit noticed a pattern. For instance, Anna Seville was the DJ working during each of the reported losses. Plus, the losses seemed a bit atypical. For example, the night Anna worked a teen dance, a lighting truss disappeared – not an item usually coveted by the high school crowd. The investigators knew it was time to take a closer look.
Without Rooster’s knowledge, they started poking around. They found the clubs frequented by Anna and learned something that Rooster didn’t know – she freelanced. One evening while working a freelance gig, Anna went outside for a smoke with her friends, and while she was outside, the investigators checked the serial numbers on her equipment. They weren’t surprised to discover that Anna’s equipment was really Rooster’s stolen equipment. Rooster was surprised though! He had trained Anna and taught her everything she knew. He never dreamed that his understudy would steal from him.
Then, he was hit with a one-two punch. His April insurance claim was denied because employee dishonesty was not a covered cause of loss for property claims. Because the claim was denied, Rooster had to spend $8,624 out of his own pocket to replace the stolen equipment. But, what really made him nervous was that the insurer had already paid him $37,467 for losses year to date, all caused by Anna’s dishonesty. He didn’t have an extra $37,467 to pay the insurer back.
The Rooster flies again
In the end, Anna was charged with theft and let go from her job at Rooster Sound. Because Rooster had no previous knowledge of Anna’s dishonesty, he was not required to pay back the insurer for the first two theft claims. With Anna out of the picture, Rooster’s streak of bad luck ended, and his business started booming bigger than ever before. One thing is different though. Rooster now has Employee Crime insurance, which includes employee dishonesty, in addition to his property and liability policies. He also carefully reviews his risks and exposures every year to avoid costly gaps in coverage.
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.
If you’d like to learn more about the DJ/KJ/VJ insurance program, visit RVNuccio.com today!
Note: These examples are based on real claims scenarios. However, the details have been fictionalized to protect the privacy of those involved.