My buddy’s band needed a kit for a tour. I lent him my vintage Ludwig Vistalite. Two weeks later, he called me: “Man, I’m sorry, someone stole it from the van.” I filed a claim. My insurer denied it. “Voluntary Parting. You gave him custody. His negligence is not a covered peril.”
Key Takeaways
- “Voluntary Parting” Exclusion: Many policies exclude theft if you voluntarily handed the item to someone else. It is considered a civil dispute (Conversion), not theft.
- “False Pretense”: If the friend disappears with the gear (steals it), that is “False Pretense.” Standard policies exclude this.
- The Friend’s Liability: His insurance should cover it under “Non-Owned Equipment,” but most musicians don’t have that coverage.
- MusicPro/Heritage Difference: Specialized policies are often “All Risk” and do cover theft while in the custody of others, provided you didn’t sell it to them.
The “Why” (The Trap)
The trap is “Care, Custody, and Control.”
Insurance covers your property in your control.
When you lend it, you relinquish control. The insurer cannot assess the risk of your friend (is he responsible? does he lock his van?).
Therefore, they exclude coverage while it is loaned out unless specifically endorsed.
The Investigation (My Analysis of Borrowing)
I checked how to insure loaned gear.
MusicPro
- The Clause: Covers instruments worldwide, even if loaned (usually), as long as you didn’t transfer ownership.
- The Requirement: You need a police report. If your friend refuses to file one (because he sold it for drugs?), you have a problem.
Homeowners Policy
- The Denial: “Entrustment Exclusion.” We do not cover loss caused by any person to whom you entrust the property.
Written Contracts
- The Fix: Always have a rental/loan agreement making the borrower responsible for the value. This allows you to sue them, even if insurance denies.
[IMAGE: Graphic showing a drum set with a “Coverage Void” stamp as it is handed from one person to another]
Comparison Table
| Scenario | Standard Policy | Specialized Music Policy |
| Friend gets robbed | Denied (Entrustment) | Covered (Theft) |
| Friend steals it | Denied (Conversion) | Maybe (False Pretense) |
| Friend damages it | Denied | Covered (Accidental) |
Step-by-Step Action Plan
- Don’t Lend Without Paperwork: Even a text message: “You are responsible for the $3,000 value if lost.”
- Verify Their Insurance: Ask: “Do you have Non-Owned Equipment coverage?” If no, don’t lend high-value items.
- Check Your Policy: Call your agent. “If I lend my guitar to a friend, is it covered?” If they say no, don’t do it.
- AirTags: Put a tracker on it. If he “loses” it, you can verify if it’s really lost or sitting in a pawn shop.
FAQ
Does this apply to consignment?
Yes. See the “Consignment” article. It’s voluntary parting.
What if I charge him rent?
Then it is a business transaction. You need commercial rental insurance.
Can I sue my friend?
Yes. That’s usually your only recourse if insurance denies.