Category Archives: Exhibtion Art Coverage

As a Curator, do you buy an Exhibition or Art Dealer policy?

Lately, I have been asked this question by curators that insure Art Exhibitions. There is silence when I ask if you are a curator or dealer. I feel it is essential to distinguish the difference.

An Art Curator has many roles when mounting a show; What is the exhibition about? Is the reason for the show the promotion of the Gallery, Artist, Collection, or yourself? All have a common thread… the “Consignment Agreement.” 

Focusing on the Consignment Agreement terms is where I look to help design the right policy for the show. Usually, this transaction comes with two different approaches to this agreement. When the work is consigned to the show, is it for just show or sale?

If the Artwork being shown is Just for display, an exhibition policy is offered to protect the art for the consignment amount and transit wall-to-wall. Wall-to-wall or Nail-to-Nail has a meaning. To insure Artwork from the time of pick, during transit, storage, exhibition, and on return to the source.

I usually add a few extra days to the policy so the insured is not caught without coverage because Insurance always ends at 12:01 am. Quite often, this will not change the insurance cost. Adding 2 to 3 extra days will take care of any unforeseen delays. 

When the work is for sale, and the curator or venue receives compensation, like a commission, selling fee, or a donation, then the Curator or Venue can be classified as a dealer.

A dealer policy is a year-long policy; the work does not have to be scheduled. There is an established limit for all exhibitions; transit and storage of the art. It works similarly to a collector’s Blanket policy, based on limits, not items. It is covered on a blanket Limit and is not limited to this single exhibition. You will have coverage for all your shows for the year. Also, there is no time restriction for returning the art after the show. It is still a wall-to-wall or nail-to-nail type of policy. As for the cost, it is usually about even with an exhibition-type policy.

In conclusion, both types of policies protect the owner of art in a curated show. Like all Insurance, I recommend reviewing the policy wording to understand the evaluations, limits, conditions, and coverages.

5 Star Service for Art Insurance with ArtInsuranceNow.com

Are you an artist, art dealer, collector, exhibitor, or gallerist that requires asset protection? ArtInsuranceNow.com / Bernard Fleischer & Sons Inc. has provided insurance services for the art community for 70 years. We love educating our customers and giving them the right tools to create or maintain a successful art business or collection.

Many artists surveyed do not have the proper insurance or coverage for their situation, the numbers are quite alarming. Our goal is to educate and provide resources that the art community requires to mitigate the unique risks they face.

As the global art market expands, risk also increases. Artists, auction houses, and art dealers often display art at multiple locations to discover a larger number of buyers, including a growing number of art fairs around the world like Art Basel.

The high volume of art exchanging hands increases the risk of improper handling, accidental damage during transit, and theft. Therefore, this increases the number of fine art insurance claims. If your art studio or location is not properly covered, you could be headed for a loss.

We at ArtInsuranceNow.com / Bernard Fleischer & Sons Inc. take pride in our stellar customer service. (Don’t take our word for it, check our 5-star ratings on Google HERE) We will walk you through the process step by step and get you insured fast, and with great rates via our user-friendly online applications. We are uniquely qualified to handle all art related risk management solutions due to our extensive experience in the field, and to put it simply, we just love art!

Call us at 800-921-1008, apply online at ArtInsuranceNow.com and live chat with us, or visit our offices at 29 Broadway, Suite 1511 New York, NY 10006

$60,000 Jeff Koons’ Sculpture Destroyed at Amsterdam Exhibit

One of Jeff Koons’ reflective “Gazing Balls” was shattered into pieces, after a curious visitor touched it in an Amsterdam church. The glass work was on display in an exhibition at Nieuwe Kerk (a 15th Century church known for its high-profile art exhibitions) when it was destroyed on the last day of the show.

In the “Gazing Ball” series the artist has taken 35 masterpieces, including Manet’s Déjeuner sur l’Herbe, Géricault’s Raft of the Medusa and Rembrandt’s Self-Portrait Wearing a Hat and had them repainted in oil on canvas, and added a little shelf, painted as if it had sprouted directly from the image and placed a blue glass orb upon them, as a follow-up to his 2013 series that balanced gazing balls on plaster sculptures.

The gazing ball was the centerpiece of the exhibition. A spokesperson for Nieuwe Kerk confirmed that a visitor had touched the glass ball, which immediately broke, leaving behind shards. The painting itself remains undamaged, and no one was injured.

Many risks are exposed to Fine Art during an exhibition, including those during the transportation of said Artwork. For the one-off or traveling exhibitions, we provide wall-to-wall coverage for items on display and in transit, this way your lenders can have the peace of mind that they are insured. Coverage can include:

Packing crates, catalogues & brochures, Items covered in transit, art in storage between transits, worldwide private & public venues, and touring shows. Coverage for items worth $50,000 up to $100,000,000

Nothing less than a comprehensive Fine Art policy supplied by trusted insurance broker ArtInsuranceNow.com / Bernard Fleischer & Sons Inc. for your valued Artwork will do.

Visit us at https://www.artinsurancenow.com or call us at 800.921.1008

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Artwork in Transit; Managing the Risks

The top risks art collectors might face surprisingly doesn’t include theft. In fact, its art that’s on the move that poses the biggest risk. A large proportion of art claims are derived from transit losses. Private collectors enjoy lending, particularly as exhibitions in major institutions can increase value, that’s all very well until something goes wrong.

The movement of art is massive, now art is transported coast to coast, internationally or just to your winter home or local Gallery. When handling artwork, packing for transportation is a top concern for insurance carriers.

Many policies list as a condition, professional packing, meaning it must be packed as someone in the industry would pack it, safe, secure and protective from breaking if possible.

If you use a transportation service, either a fine art mover, a local mover, or common carrier, you must verify if they have or offer Insurance, what are their limits, conditions and the cost of the coverage. Insurance carriers differ and may have restrictions or limitations while your valuables are on the road, on a ship, or in air transit. The most common, efficient and safe way of moving art over long distances, domestically or internationally is by air transport, but it is very common to move the work yourself, so make sure your policy covers self-conveyance.

Some art transporting choices such as those offered by, United Parcel Service (UPS), DHL, Federal Express (FedEx), and other private art handling companies or commercial air freight carriers have limitations on coverages, territory, and deductibles. Keep in mind that while these are services used for fragile and non-fragile fine art, things happen within their control and outside of their control. Looking to your own insurance policy for protection is the right way to limit your financial losses and the quickest way to have the claim settled.

Artists, art dealers, and institutions use these Art transport services regularly, but Insurance, in particular, is the gray area in which most misunderstandings occur. Pay close attention to the bill of lading and understanding the fine print. The standard form limits the exposure of a claim on the art to weight, not value.

Our policies are written either as a schedule or market value less a percentage. Either way, your art will be protected while in transport. Caution, it’s important when securing transit art insurance to add extra days of transport for the unknown delays. Also note the declared value placed in customs forms or the bill of Lading is usually not used when settling a claim but look for wording which would specify to the contrary.

According to FedEx, “shipments (packages or freight) containing all or part of the following items are limited to a maximum declared value of $500: Artwork, including any work created or developed by the application of skill, taste or creative talent for sale, display or collection.

This includes, but is not limited to, items (and their parts) such as paintings, drawings, vases, tapestries, limited-edition prints, fine art, statuary, sculpture, collectors’ items, customized or personalized musical instruments, Film, photographic images, including photographic negatives, photographic chromes and photographic slides.

Any commodity that by its inherent nature is particularly susceptible to damage, or the market value of which is particularly variable or difficult to ascertain.”

According to UPS, articles of “unusual value” are prohibited from being offered for shipment. This definition explicitly includes “works of art.” As the November New York-based auctions ended and Art Basel Miami Beach began, for collectors buying and selling art no doubt demanded lots of their attention, they also should be thinking about keeping their art safe and properly insured as it moves between locations.

With the expansion of the global art market, risks increase. To discover a larger number of buyers, auction houses and art dealers often display art at multiple locations, including a growing number of art fairs around the world like Art Basel. The high volume of art exchanging hands increases the risk of improper handling and accidental damage and therefore increases the number of fine art insurance claims.

You should know where your art will be stored while in the possession of art dealers or auction houses. This is critical. For example, many consigned works were stored in art gallery basements in Chelsea during Hurricane Sandy, leaving many damaged. Art galleries may also store artwork at an off-site storage facility. Being notified before your piece is moved from one location to another is also a precaution and obtaining confirmation on how it will be packed and transported will help to ensure a smooth consignment process.

Don’t presume that the auction house, gallery owner, art dealer, or shipping company with possession of your artwork has insurance for its loss, theft or damage. It’s very important to have your own fine art policy. Collectors should always consult with an insurance agent. The agent can tailor a policy to a specific collector and discover any special provisions in the collector’s fine art policy.
No matter what risks they face, creating an insurance policy for an art collector requires one-on-one consultation since every art collection is unique, no two collectors are alike and no two collections are alike.

Collectors and their advisers would be wise to work with knowledgeable insurance brokers like Bernard Fleischer & Sons Inc.  that can guide you in obtaining the right fine art insurance for your unique requirements. For more info visit www.artinsurancenow.com and live chat with us or call us at 800.921.1008

Art Exhibition Insurance – The Details

As representatives of the top Insurance carriers that insure exhibitions locally, in multi-states and internationally, we know coverages.

Each company has their own distinct forms to insure the unique exposures related to exhibitions. Coverages while in transit, at the exhibition venue, and in storage vary by company.

Below are some highlighted coverages to consider when placing insurance for an exhibition, how to protect the lenders, and what is the right valuation method.

 

About Exhibition Coverage

Most Art Insurance policies not only insure the work on exhibition, but also the didactic and ancillary materials such as vitrines, hardware, technology, and supportive structures.

A typical Policy I use with my insureds exhibition policy includes:

  • Agreed Value: We usually require a schedule prior to binding, but different terms can be negotiated.
  • Worldwide coverage for transit: is important when gathering works from overseas collectors.
  • Named Location: some policy covers only named location and excludes transit
  • Scheduled or Blanket: 
    • The schedule:  Establishes the price of the work to be insured.
    • Blanket: policy usually has a per item cap along with the onus of proof of value is on the insured.
  •  Loss Payee Certificates: These are issued if a lender requires proof of coverage and insures the check will be made to them in case of a loss.

 

  • Additional Important Exhibition Coverages one should verify if covered:
    • Packing crates, catalogs, and brochures included
    • Nail to Nail coverage:Coverage from point of pick up until returned.
    • Goods in transit
    • Art in storage in-between transit

 

  • Broad, all-risk coverage
  • Blanket limits on propertyin your care, custody, and control at scheduled locations and any other unnamed locations. Beware of sub-limits.
  • Domestic and international transit: To/from list of Exhibition Locations
  • No coinsurance clause penalty
  • Valuation clauses: important to know how a loss will be settled. Our policies are designed for the art industry
  • Coverage for jointly-ownedworks of art should be disclosed and understood how a loss will be paid in those instances.
  • Special clauses for “loss buy back” or “pairs and sets”
  • Relaxed appraisal requirements with most companies
  • Based on Consignment value established at time of pick up.

 

About Exhibition Exclusions and Conditions:

These policy forms usually include the standard and not so standard Exhibition polices.

Wear and tear, moth, vermin, and insects.

Damage resulting from any repair, restoration, or retouching process.

Nuclear, radiation, biological or chemical contamination.

War, invasion, an act of foreign enemies, hostilities, military or usurped power.

Confiscated, damaged or destroyed by or order of any government or public or local authority, except if taken at the time of a fire to prevent it’s spread.

In Conclusion: Art insurance has many variables and sections which can be negotiated, if you are a knowledgeable Art Insurance broker.

Murals – can they be Insured for Vandalism?

I must receive at least 20 calls a year asking if they can insure a mural painted on walls, inside, outside, on buildings, fences, and anywhere else you can think of. Street-level placement Murals will invite graffiti vandals to leave their mark. As a contracted job to produce the Mural, there is an insurable value from the start to the finish of the work.

Since usually these art installations are designed and planned in advance with the cooperation of the building owner, coverage can be found to cover the installation process; a claim is paid based on the percentage of completion.

There is a possibility Insurance may be obtained when the Mural is completed. This will depend on exactly where it has been placed and the safeguards. Regardless almost all insurers would exclude coverage for:

  • Vandalism and Mysterious Mischief
  • Wear and tear, any quality in the product which causes it to damage or destroy itself, gradual deterioration
  • Insects, vermin, or rodents
  • Changes in or extremes of dampness or dryness of atmosphere or temperature

But theft?…

I develop programs exclusively for the Art World, covering, Museums, Collectors, Curators, Gallerists, Artists, and related Art businesses. My policies include Art owned or loaned, in Storage, in Transit, at Auction Houses or Dealers.

I can help with all Art related insurance requirements. Visit us at ArtInsuranceNow.com to apply or Contact me at 800.921.1008 to discuss your unique situation.

William G. Fleischer CIC

Corporate Art Insurance 3 trends

As a leading Art Insurance Broker, I have seen a rise in 3 types of  policies focusing on the Art Corporation are showing in their  businesses.

  1. The rise of using  Art leasing/ renting companies for a short time, rotating exhibition space. These new type of lending services,  fill a niche by adding style to an office by using a wide range of art, Prints, Sculptures, Paintings, Glass and tapestry.  I have insured the works in Doctors’ offices, hospitals, corporate offices and temporary spaces, not to mention in all types of residences.
  2. Pure old fashion Corporate Art insurance. Art can make a space interesting and appealing to visitors or staff. Manny CEO Private Collections are starting to show off their collection. I design policies to insure the art while in the office, in storage or enjoyed at home.
  3. Exhibition Insurance. Many curators are able to assemble a strong show, using a common theme or thread to enhance the corporate culture creativity. They invite Artist or ask Collectors to loan works fulfilling the vision of the project.

 

EZ to apply at  www.artinsurancenow.com

As Art Basel Miami 2016 approaches, we look at the necessity of a good art insurance policy

artbasel-miami-beachArt Basel, the international art fair with three shows staged annually in Basel, Miami Beach and Hong Kong. The shows offer parallel programming produced in collaboration with the host city’s local institutions. Art Basel provides a platform for galleries to show and sell their work to collectors, museum directors and curators. The 2015 show in Miami presented 267 leading international galleries from 32 countries. Over five days the show attracted 77,000 visitors including private collectors and directors, curators, trustees and patrons of nearly 200 museum and institution groups. The show hosted first-time collectors from Cambodia, Ethiopia, Nicaragua, Romania, Togo and Zimbabwe. That’s a lot of art moving around and collectors Art policies should cover Art, when purchased, on consignment and in transit, it’s about knowing your coverage situation before it’s too late.

art-basel-miamiThe transportation of art is a tricky thing, and as fine art transportation insurance leaders we can tell you exactly what you require to know so that your insurance program will be effective and  cover you properly.  Insurance coverage during transportation, installation and exhibition of irreplaceable works of art, antiquities, and memorabilia isn’t optional and the best way to obtain the finest coverage is to visit artinsurancenow.com or call us at 800.921.1008 to speak with a knowledgeable fine art broker that can advocate for you in seeking the best possible insurance terms.

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5 Things Every Collector Needs to Know about Art Insurance

anFor many of us, amassing a robust collection of works by the artists we love is more a dream than a reality (though startups like Art Money are working to provide interest-free loans that should make buying art more manageable). But for emerging collectors and seasoned vets alike, the actual purchase of a piece is only the beginning of what it means to actually own art. Though not flashy, art insurance is a crucial part of collecting. It ensures that, should an artwork be damaged, it can be repaired or, in the case of a total loss, some kind of remuneration can be provided. So what do you need to know about art insurance? We sat down with Robert Pittinger, senior vice president and director of underwriting at AXA Art Americas Corporation, to get some helpful tips.

Know the Process

When a collector buys specialty art insurance, they’ll work directly with a broker who can assess the collection and determine what policy the collector might need. That broker, in turn, works directly with the insurance companies to find the right fit. A common misunderstanding of the process, Pittinger says, is that “collectors confuse the broker with the insurance company.” It’s helpful to know that “the role of the broker and the art insurer complement one another; however, the roles themselves vary and they are different. A specialized fine art broker is an advocate for the collector in seeking the best possible insurance terms for their clients.” As an insurer, AXA itself works with a select group of fine art brokers.

Keep Documentation

The first step toward getting insurance is—unsurprisingly—to determine what is going to be insured and for how much. To this end, documentation is key. “One of the biggest things is that the collector needs to have all the documentation for their collection before they go to the broker, because the broker has to have a very thorough understanding of the price of the collection,” Pittinger says. When approaching a broker, collectors should have a list of all the works, descriptions, invoices of sale prices, the purchase dates, and subsequent appraisal prices.“The collector’s management of their collection is critical, whether they have an online management system or a spreadsheet or they have manuals with all the documentation and their appraisals—that is a critical part of purchasing the insurance,” Pittinger says.

Assess Your Needs and Options

All this information is important to provide to the broker so they can determine what insurance is best for you. Though most collectors who need insurance already have it, some collectors think they’re covered by everyday, run-of-the-mill homeowners insurance. And they can be. But, as Pittinger notes, “A homeowner package policy generally is an add-on coverage. It doesn’t go into detail.” Homeowners insurance that covers art might have high deductibles, might not cover a collection across multiple houses, or might not cover the work during transit. That last one is a particularly sticky issue because “any time a collector moves their art, there is increased risk of damage,” Pittinger says. “That is the number one cause of loss for the insurance industry that specializes in art insurance.”

All this is why, for collections larger than just a few items, Pittinger recommends specialty art insurance. Even lower-priced works and emerging collections can receive insurance: For pieces priced as low as $2,500, AXA offers a 12-month policy of $75, with a minimum premium. Generally, however, it is hard to say exactly how much art insurance costs—it depends on too many factors. “Art insurance is very reasonably priced compared to other types of insurance,” Pittinger says. “The price range varies depending on the type of works, the size of the collection, security, where it is kept, if it is in a fine art storage warehouse or in their home or in a museum—all those factors go into pricing a fine art collection.”

Stay Up to Date and Be Careful

Broadly, in the event of damage, an insurance policy pays out in one of two ways: Either the policy will pay a set, agreed-upon amount determined by the insurer and the collector in advance, or the policy will pay out based on the work’s current market value. Pittinger says collectors opting for the predetermined payout structure may do so for a number of reasons, including peace of mind so that they “wouldn’t have to worry about substantiating the value of the works” in the case of damage. Agreed value can also move up and down over the life of a policy if the collector decides to get the work reassessed.

Current market value is exactly what it sounds like: The work is insured for its current value if that figure exceeds an agreed value. “But the important thing to remember is there would be a restriction—the company would by no means pay more than the total limit of the policy,” says Pittinger. In other words, if a collection is insured for $10 million total, and one work that has radically increased in value is damaged in excess of $10 million, the insurance would still not pay more than the total cap.

Be a Smart Buyer

One final note: Do your research. Make sure you get a full condition report prior to purchase. “It’s also critical that the collectors be careful with the provenance of the piece to make sure there’s not a gap in the ownership that could come back to haunt them later,” Pittinger says. If there is an issue and the work is seized for, say, having been looted by Nazis, insurance typically won’t cover that turn of events (there are, however, some specialty insurers that would protect against such loss with what is known as title insurance). So when it comes to art insurance, the old adage “buyer beware” certainly still applies.

—Isaac Kaplan

BY ISAAC KAPLAN

For a quote apply here or call us at 800.921.1008

Iconic Muhammad Ali print stolen from museum.

The Print, which was stolen while the museum was open to the public depicted Ali in a classic boxing pose painted in the brilliantly colored, expressionist style that LeRoy Neiman was known for. Brazen thieves ripped the print from the wall even with security cameras watching, It’s important to understand the value of art insurance and protect yourself by covering your valuable collection.

Although risk extends beyond theft (47 percent of art loss is attributed to damage during transit according to The New York Times) art trafficking is a very real thing and according to statistics ranks third behind drugs and arms.

In a case of  theft, the loss is irreversible. Not only the artwork is irreplaceable itself but also even the reputation of the organization suffers from a mere fact that such situation has occurred. Without having a comprehensive fine art collectors insurance from a trustworthy art insurance broker, the masterpieces are subjected to risk.

Apply for coverage here or call me if you have any questions or to discuss your options.

William G. Fleischer CIC | Principal
T: 212 566-1881 ext.111
E: wfleischer@bfbond.com
W: ArtInsuranceNow.com