Fine Arts Coverage
Business that operate in the art world require special insurance coverage to protect their invaluable collections. Art and antique dealers, museums, galleries and other companies that are in the business of selling and displaying art and collectables face insurance risks as unique as their collections.
FAQs
Property damage
Fine arts insurance can provide coverage for inventory that is owned by your business and for property that may be on consignment or loan. Most artwork can be easily damaged by fire, water and other disasters. A broken pipe could cause catastrophic damage to your carefully curated collection. Gallery visitors can also cause severe damage to irreplaceable artworks. According to Art Business News, “human intervention” is the primary reason artwork is damaged. Would your gallery be able to comfortably cover the cost to restore a damaged piece of art?
Valuation
The value placed on art is often subjective so it is important to have appraisals done by a qualified professional to help determine the value of artwork. You’ll also want to make sure your pieces are valued on a replacement cost basis versus their actual cash value so you don’t just get reimbursed for the cost of the canvas. Likewise, it is crucial to ensure that pieces owned by someone else on display at your location are insured for their sales price or consignment value. The total value of art in your possession can vary widely given display and inventory changes so it is imperative to find a policy that allows for flexibility with your coverage limits.
Off premises coverage
Given the mobile nature of fine art and museum collections, many exposures can come into play. It’s important to ensure that your business has coverage that includes transit, short term and long term loans, art fairs, temporary and permanent exhibitions and storage coverage. These coverages are often included on a fine arts policy or can be endorsed on to help you manage the risks at both your gallery and at other locations.
Shipping & handling
It isn’t just museums and galleries that need fine arts insurance. Business that ship, handle, crate and store artwork also require specialized coverage for their operations. If a piece of artwork is improperly crated or packaged, it could be more susceptible to damage and loss.
Property damage
Fine arts insurance can provide coverage for inventory that is owned by your business and for property that may be on consignment or loan. Most artwork can be easily damaged by fire, water and other disasters. A broken pipe could cause catastrophic damage to your carefully curated collection. Gallery visitors can also cause severe damage to irreplaceable artworks. According to Art Business News, “human intervention” is the primary reason artwork is damaged. Would your gallery be able to comfortably cover the cost to restore a damaged piece of art?
Theft and vandalism
While many businesses don’t think they’ll be the victim of theft, it is important to contemplate the cost associated with a stolen painting or sculpture. If the piece that is stolen is owned by an artist or another fine art institution, you could also be sued for security negligence. Although it isn’t often thought of, there is the possibility that protestors of a controversial exhibit or bad actors could vandalize your displays.
Pairs & sets
This type of coverage refers to the instance when a pair or set has a higher value than an individual piece from the pair or set. If your gallery has a set of matching vases but only one is damaged, it can reduce the value of the remaining vase significantly. Although often overlooked, pair and set coverage can make all the difference.
Cost
Premiums for fine arts insurance depend on numerous variables including: the value of the art, the location of your gallery and even the number of employees or visitors you have.
Other coverages
Property coverage isn’t the only type of insurance an art gallery or museum needs to be protected.
- Liability covers patron injuries during their visit to your space, like if a sculpture falls on visitor.
- Business income can provide a continuation of income if you are forced to shut down due to a major water leak.
- Workers compensation would come into play in the event one of your employees fell while hanging a painting.
- Flood and earthquake are crucial if your gallery is located in a high risk area.
- Employee dishonesty protects you if an employee steals from your business.