Appropriate and adequate insurance is an important part of responsible station management. Property Insurance is also a requirement of the CBF Funding Agreement (clause 9.5):
All Assets purchased with the Grant must be:
a. securely safeguarded against theft, loss, damage or unauthorised use;
b. maintained in good working order; and
c. covered by appropriate insurance to their full replacement cost, with evidence of such insurance to be supplied to the CBF upon request.
Three main reasons to insure equipment and/or property are fire, peril (potential danger and damage to equipment) and theft.
What should I insure?
Usual assets for organisations to consider insuring include:
- Studio equipment
- Office equipment
- Outside broadcast equipment
- Transmitter equipment
- Building (if you own your own premises)
What do I need to consider?
Factors to consider when determining appropriate insurance levels.
- Is it likely to breakdown?
- Where is it stored and is it secure?
- Is it likely to be damaged or stolen?
- What risk mitigation is in place?
Reducing these risks may assist with reducing your insurance premiums. For example, demonstrating that equipment is well maintained can reduce breakdowns or demonstrating equipment is locked away securely can reduce the risk of theft.
How can I reduce the cost of insurance?
There are a number of things to consider to potentially reduce the cost of your insurance.
- Ensure you have an up-to-date small and major Asset Register or Technical Replacement plan to demonstrate the total cost of equipment to be insured with replacement costs.
- Group similar types of equipment and insure as one ‘item’ i.e. all studio equipment, all OB equipment. It is then cheaper to add new equipment to an existing insurance policy than having a new policy for each new piece of equipment.
- Consider using an insurance broker, who has the resources and knowledge to secure the most appropriate insurance based on your organisation’s needs.
- The CBAA offers consolidated insurance policies for its members to receive better coverage for lower premiums.
There may be an inclination to under-insure equipment and property if the cost of the insurance premium is expensive. However, if the insurer determines the value of the equipment is deliberately under-insured, they may only pay a fraction of the insured amount.
Please note that this explainer provides a general overview only, you must seek professional advice from your insurer on the most appropriate policies for your organisation.