Here's something we are challenged with, but first, some background:

Three of us have been saving up our $, we presently have around $10000 and growing, to invest in some recording gear to start a home studio setup. The studio location will be in one of our homes, in balmy, Saskatchewan, Canada.

The pontial idea could be that we will eventual record and sell some of our "low key" music locally and if we become established enough, we might take on some other local recording jobs. However, we have no idea if it'll ever be a business, right now it's solely a hobby with the potential to one day be more.

Our issue:

The insurace compay wants us to take out business insurance for $1500+/year because of this setup. They said that even though we aren't a business yet, they couldn't cover it cause it's out of their "scope" or music teachers and video recording, to name a few others. Also, because three people are involved, that's more considered a business idea. We thought that if it was all in one name at the one home we could classify it as a personal hobby studio - which is technically what it is. They are also saying we need insurance for anything leaving the studio, anything in transit, anything we ever setup at another location and anything that other people bring in.

Finally, they informed us that if we make ANY money in music- singing at a funeral and getting an honorarium or otherwise, we each should be taking out business insurance on our gear and we aren't covered otherwise. .

YEASH! Insurace agents are beginning to be the biggest thorn in the flesh to me.

Any suggestions or ways to ease this painful insurance thing. I know, I know. . why did we even ask the insurance guy in the first place! :P

What are others doing regarding their home studio's and insurance.

PS - We also got the cheesy line, "Well, all that electrical gear could easily catch fire! There's greater risk involved!"