Music equipment theft under the mic-roscope as claims severity escalates

A surge in high-value musical equipment thefts is hitting the UK music industry – with implications for insurers, brokers and loss adjusters working across entertainment.

The trend, highlighted by loss adjuster McLarens’ entertainment and contingency team, has seen a rise in claims frequency and severity.

Claims costs can run into the tens of thousands of pounds, with incidents ranging from studio burglaries to targeted thefts during live performances and overseas tours.

Speaking to Insurance Times, Ian McDonald, director and head of entertainment and contingency for the UK and Ireland at McLarens, said: “What we’ve spotted in particular in the last few months has been a very clear targeting of music facilities, hire houses and studios.

”The theft of microphones – high-end microphones, which can cost up to £10,000 each – has seen a significant increase. There’s definitely an upward trend in the frequency and severity of claims related to the theft of high-end equipment in the industry.”

A 2022 study from music streaming service Tidal confirmed this, finding that 24% of UK musicians have had gear stolen, with less than half (42%) being able to recover their stolen items.

Additionally, from a cover perspective, standard contents insurance may not suffice for expensive musical equipment – especially for freelance artists or small studios. 

Easy targets, easier resale

Despite an increase in microphone-related claims, they are far from the only target.

According to Steven Howell, media and music insurance broker at Music Insurance Brokers: “Most of the claims we get are for MacBooks, because everyone’s got one – no matter if you’re a freelancer or an artist or a company.”

However, Howell has also noted the recent spate of microphone-related claims.

He continued: “We have recently seen thefts of microphones, which can be up 10 grand a piece. [Thieves] can pop a microphone in [their] pocket and disappear with it on set or in a studio.”

High-end DJ gear is also being stolen more frequently, added Howell: “One of the things we’ve seen on the music side is compact disk jockeys (CDJs) – the remarketing and resale values for those are better than other things.”

But what is driving this spate of musical equipment thefts? Online resale markets and criminal networks fuel part of this, with the potential for profit fuelling this “cash conversion” trend for criminals, McDonald said.

He explained: “The rise in microphone thefts is becoming prevalent due to the ease of sale on the dark web – it’s a cash conversion style of moving stuff on that’s become easier for thieves to get away with.

“These microphones have one of two destinations – they either go into organised crime on an international scale, or to local gangs who quickly convert the stolen items into cash for drugs or other needs.”

Cameron Craig, executive director at the Music Producers Guild, explained that the studio model – wherein musicians can book recording time in professional settings –adds to the risk.

He said: “Quite a few studios, especially the more producer-owned or producer-led ones, don’t have an accurate inventory of what they have.”

That lack of oversight and a vibrant vintage market make some items more appealing to thieves.

“You can get a vintage mic that looks like most other mics, but could be worth £30,000 because it’s so rare,” Craig explained.

“To the untrained eye, they’re going to look like a mic they’ve seen in a magazine that’s £1,500 – and [thieves] think, ’Alright, well, that’s quick easy money.’”

Changing threats

The origin of these musical claims is also changing, with thieves developing different methods to avoid security when stealing equipment. 

McDonald explained that some criminals use deception rather than brute force in these robberies, necessitating the need for better security to mitigate against claims. He described multiple claims types, including traditional forced entry burglaries, but also thieves bluffing their way into studios

He said: “There are incidents where individuals bluff their way in. As I experienced recently at a rehearsal studio, a man convinced reception he was part of a band, walked in and took three microphones worth over £5,000.”

Such thefts have occurred in multiple locations across the country too.

“London is definitely the biggest area affected, but we have also seen thefts in places like Bristol and even Ibiza, where international touring bands have had their equipment stolen,” McDonald added.

McDonald stressed that the industry’s often dynamic approach to staffing adds exposure.

He said: “The dynamic nature of the music industry, with many temporary workers and changing staff, creates vulnerabilities. There are often ‘bad apples’ who can leave a business liable for theft.”

Festivals, with lots of fast changing, often voluntary staff, carry their own risks.

McDonald said: “At festivals, you have transitory freelance crews and security people and companies that don’t know much about the background of those working behind the scenes.” 

Howell agreed, noting that brokers are important in helping clients reassess security around this expensive equipment.

He said: “We encourage hire companies to increase their checking processes. Actual checks can uncover potentially fraudulent hires.”

But, while brokers can absolutely advise clients, insurance policies and risk mitigation tools must follow as the entertainment sector evolves.

For brokers and insurers, this means adapting propositions to address both the unique and evolving risks in music – from physical theft to cyber-enabled loss.

Craig added: “Especially in a high turnover vintage market, the price of something can escalate quite quickly because somebody famous used one on a hit record.”

As high-value items change hands faster and more discreetly than ever, the market must stay ahead of both criminals and claims trends.