Apropos of nothing in particular, it's time to discuss insurance. I put it that way because, like death and taxes, insurance is neither seasonal nor optional. Like the mythical Miller Time, insurance is timeless.
That's trying to put a handle on a topic that is, to most people, about as tedious as watching paint dry. Unfortunately, it's also a lot more complex (except down at the molecular level, but only for chemists). FOH mixers present a challenge to the insurance industry. First, what you do is seemingly obvious but has a lot of nuance: many mixers will toggle between subcontractor and independent status, with stints of out-and-out employment along the way, collecting both W-2 and 1099 forms in a single year. In insurance, as in life, when in doubt, always base decisions on the broadest indicators. For FOH mixers, that means carrying your own equipment and liability policies. Equipment insurance is fairly cut and dried. The gross value of the policy should cover the invoiced/paid cost of the gear, with a provision for replacement value. Most digital equipment is going to go down in both replacement cost and value, but for the analog pieces and the occasional digital rarity, the provision is worth the relatively small additional premium cost.
During periods of employment and clear-cut subcontractor scenarios, the touring sound company or whoever else is paying your check should cover your gear. But if you shift positions often in a given year, it's more sensible to carry your own policy. Figure that $100,000 worth of equipment will have a premium of about $1,000 annually. That can be mitigated somewhat by carrying a higher deductible, which is essentially a form of self insurance. Joe Monterello, who created a pro audio-friendly policy domain at his agency in Albany, N.Y., Capital Bauer Insurance, which covers gear for studios and individuals, recommends working out a contractual agreement with the touring sound companies you work with to cover your deductible rather than supplying temporary insurance. Your gear will likely be covered under the employer's umbrella loss policy, but it's less complicated to put in a claim directly with your own company, knowing the deductible is covered. And professional premiums are tax-deductible.
(The type of coverage applied to itinerant entrepreneurs such as yourself is known in the insurance biz as an "inland marine"-type policy, which harkens back to the days when Lloyd's of London was still operating out of a coffeehouse and was devised to differentiate less easily identifiable losses of ocean-going cargo. But it's now just a term–you're covered pretty much globally, as long as you stay out of war zones.)
The premium difference between scheduled property (you give the insurance company an itemized list of equipment) and unscheduled (blanket coverage) is minimal, as long as the bottom line value of all the equipment is the same. The latter works to reduce paperwork on claims and you won't have to constantly update the list to the insurance carrier every time you buy or sell a piece of gear. However, you should always have your own itemized schedule with dates of purchase, purchase price and serial number. It also helps to review the valuation of gear once a year or so, as well, to stay aware of its true market value. Web sites such as eBay can help do that. Make sure your policy will cover any borrowed or loaned gear that will be in what's termed your care, custody and control. Also ask for a wallet-sized certificate of insurance to carry around–rental companies expect you to cover rented gear while it's in your possession, and they will want to see proof of insurance, especially when you're not local.
Liability insurance is a bit more complicated. Ostensibly, as an employee or a subcontractor, you're covered under the policies of the touring company or other entity that's paying your wages. As an independent contractor, that's less clearly defined. In any event, if someone is injured at a performance, particularly a member of the public, the litigious nature of the culture we live in tends to cast a wide net, and you could be named in a lawsuit. Having liability coverage is double-edged sword: on one hand, it's a cushion protecting your assets in the event the worst happens; on the other hand, it makes you a target for litigation since you have a policy that has some value, often as much as $1 million. It's the least-used of the business policies you'll consider, so it makes sense to review the liability policies of companies you contract to and see what they cover.
In terms of medical coverage, you are putatively covered as an employee and a subcontractor under workman's compensation statutes. But as with equipment insurance, you're better off with a policy that you can count on to cover you globally all the time. Ditto for disability insurance.
Not the world's most scintillating topic, but one of the most important.
