Since my Launch of an Artist’s Insurance website: I have had numerous conversations regarding “How an Insurance Company evaluates Art.”
The policy evaluation is straightforward. Sales price minus 30%.
This is a simple formula if you have a track record of sales. Where the conversation turns, is when the artist is new to the market. I say this because I have worked with artists who, at various ages and experience are now, entering group shows and exhibitions.
A seasoned artist knows the consignment agreement or the exhibition agreement requires the artist to place a value of their Artwork in the form, but for the neophyte, this is where the “tire hits the Road” or the “paint hits the canvas” and takes the discussion deeper.
This is how I approach the question.
First, everything has a value. Fundamentally; material, time, education, experience, teachers, demographics, size shape, media, subject, along with time spent, researching and actually producing the work. etc…
Of course, the Artist understands this, but what is the valuation sale price, I tell them to just make up a reasonable sale price using the fundamentals as your guiding denominator. Usually, they are within range and the Insurance does not dispute and pay the claim.
In the policy form, it is up to the Artist to prove what the value of sales, so if they put an unrealistic sale price on the work, the insurance company using similar methods will determine the sale price is way over inflated. At this juncture, an independent third party will then appraise the work and the valuation will be established, and the claim would be paid out accordingly.
Bottom line, price your work based on the merits of your talent and experience with keeping the ego in check.
New Artist Insurance Program custom designed for the serious Artist.
Limits start at $100,000
Premiums start at $1000
Kindly help me get the word out by passing this along
I am an attorney, however, I put an art gallery in my law firm space. The agreement I have with the artists is that they allow me to hang their work for 3 to 4 weeks. I promote their work to my clients and throw a party in the artist’s honor, where the artists agree to be present and talk about art.
We serve some refreshments and invite everyone we see. There is no charge to the artist. I do not pay the artists. I do not sell art. There is no charge to the people who attend. It is a community event intended to bring a little culture to our small town and, admittedly, let people know where my office is without in-your-face law office marketing.
The rules in Iowa are the strictest in the country about regulating attorney advertising. I cannot hand someone a business card and say, “hi. I’m a lawyer. What can I do for you?” But, I can hand someone a party invitation flyer and say, “Hi, please come to my law firm’s gallery party and meet some cool artists, see some great art, listen to some inspiring music, and have a little wine and yummy appetizers. It’s so much fun!” I know. Crazy stupid.
When the party is over, the artists take their work away and three or four new artists bring in work to hang, and we do it all over again. My 4th party is November 14, 2014.
The artists for this party are asking if I have insurance to cover the art in the case of fire, vandalism, or theft. My insurance guy is not helpful. He says I have no insurable interest, so I cannot insure them with the exception that if I trip over them, my liability insurance might cover it. Lame.
The artist could sue me if something were to happen to their paintings while in my control. I do have an insurable interest, at least while they are in my custody and control.
Can you assist me in finding a way to obtain insurance or a bond of some type that will protect me in the case that something unthinkable would happen to these paintings?
When I further inquired I found the Artist work was hung without any paperwork. Interesting.
1. If the work was Loan during the show to the office, it may be covered under the office BOP policy, usually, there is $25,000 limit for Fine Art.
2. A dealer art insurance policy could be bought, for $150,000 on location limit, $30,000 Art Transit and $30,000 at unnamed locations.
3. Have the Artist buy their own Artist Insurance policy. $100,000 of Art Insurance while in transit, in the studio and while at Exhibitions for an annual price of $1,000.00.
4. Explain to the Artist, it’s a business risk and art is a risky business. The odds are higher of damaged or stolen while in transit, and less than their work in the studio, at lease your office is alarmed or locked 🙂
She explained to me even though a hold harmless could be drawn up and signed, there was still the exposure of a negligence lawsuit by the artist. So here is the question to ponder, buy insurance and not worry or understand it is a business risk you are taking verse the benefit of letting the people know your law office exists.
Everything has a connection and a direction. It all started one day while I was riding my Trek road bike on a 70-mile ride on the back roads of Piermont NY. I always pass a sign which read: Open studio visits and Gallery. As I passed by I decided to stop and check it out. The driveway hill was an 11.5% grade, not fun on the bike but “Art” cheered me on!
I was met by “The Art Student League” Artist in residence program director Gary L. Sussman. Many cyclists ride by, but it seems very few stop by, especially Art Insurance Consultants.
The Artists residence grounds are amazing. As I approached, I saw many buildings, a big barn, studio spaces and very nice living quarters. Mr. Sussman explained to me the artist residency program which is pretty comprehensive. 100% of the artists are on full scholarship, no worries of cost, so they can fully focus on the creative process and the artistic energy to experiment and make amazing ART.
I explained to Sussman, a New Insurance program I had developed just for Artists, an Artist Transit/Exhibition/Studio Insurance Program that insures the finished art piece, percentage of finished in the process of a new piece of Art, while the artwork is at Exhibitions and while in transit, along with libraries and materials.
I further explained to him, what the nicest part about this policy is, there is no schedule, list, or inventory required of values at the time of placing the insurance but is required at the time of loss to prove what the current value is because the settlement is based on current market value minus 30%. To establish the value at loss time, the artist would substantiate the claim by using previous sales, time and materials to create, photos and other tools which would justify the claim.
The key points of the policy are no schedule, the flexibility to have work made then displayed, Insuring work while in the studio, storage, transit and art shows. These Include materials, reference libraries, and tools.
William G. Fleischer, CIC
Bernard Fleischer and Sons
29 Broadway, Suite 1511
New York NY 10006
212 566-1881 ext 111
A collector or Museum consigns a work to a dealer to sell. The dealer does his job and sells the work, but does not pay the Collector or Museum. This is now considered a loss of property and if your current policy does not address this type of loss you may not have coverage.
Now if the consignment date has expired and the dealer is not willing to return the work, in many incidences this would be classified as theft and be covered by your fine arts policy.
For more information on Conversion Exclusion call us at 1.800.921.1008, visit our website at www.ArtInsuranceNow.com or fill out one of the applications below for a fast and easy quote.
This week, I insured an individual who was left with over 2 million worth of Art from an artist. There were over 1,000 works on paper, 600+ works on canvas. It is in the process of being cataloged and photographed. There were no appraisals since it’s in the gathering portfolio stage.
The call was triggered because some of the work was going to be exhibited and they wanted to protect the Art.
I recommended using the collector’s application instead of the Dealer application. The main difference is how the settlement option works. As a collector, you will be paid for the Art at Fair Market Value and as a dealer, it will be 30% less of the sale price.
Call me 212-566-1881 ext 111
William Fleischer, CIC
• Art Dealers
• Artist Transit/Exhibition/Studio Insurance New Program
• Corporate Collections
• Personal Collections
• Museum Collections
• Business Owners Liability
We represent Insurance Companies to make it easy for you to protect the things you collect.
Homeowners insurance alone does not provide enough coverage for your clients’ treasured items. That’s why our collectibles program is the perfect complement to your standard personal lines products. It enables you to protect the full collector value of your collections in the event of a total loss.
Designed specifically for collectors, our all-risk policy not only protects against accidental breakage, hurricane, flood, earthquake, fire, and theft – it also protects the packaging and accessories of collectibles. Plus, our optional Collectors’ Choice coverage provides your clients who are actively growing, displaying, or occasionally using their collection with the added level of protection they need to fully enjoy their hobby.
We offer deductible options (including zero deductible), rate options and discounts, and multiple collections in the household can all be covered by the same policy. Appraisals are not required to obtain this valuable, stand-alone coverage.
We’ll consider all types of collections including*:
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* Contact us regarding other unique collections at www.ArtInsuranceNow.com, or call 1.800.921.1008
I have been working with many artists who have opportunities to exhibit in venues where the venue only offers the space but not the Insurance for the Art installed.
Many times as I interview these Artists, I find out the Artwork limits requested and the time period required will trigger the policy minimum premium of $1,000.
Being that I care about artists and the expenses they go through I explain for the same cost, Insurance is available to cover Artwork in the studio, in storage, while in transit and while the Art is at exhibitions.
Call me at 1.800.921.1008 to find out how you can protect your artwork or fill out the artist application here at www.artinsurancenow.com
William G. Fleischer CIC
Bernard Fleischer & Sons