Category Archives: Art Insurance

Art and Antiques Specialist Risk Management Advice

Because I am always receiving all sorts of art related information I have decided to share some excerpts.

This is from a Zurich informational flyer.  Its a helpful flyer breaking down various aspect’s, like:

Understand how to Assess the risk, climate control for fine arts and Antiques,  placement of rugs and carpets away from fireplaces. The flyer gets into special care for paintings, moving art, security advice and professional valuations and photographs.   it’s worth a quick read.

Click here for an application to insure your Art and antiques.

William G. Fleischer, CIC

President

29 Broadway, Suite 1511

New York NY 10006

212 566-1881 ext. 111

Email: wfleischer@bfbond.com

www.ArtInsuranceNow.com

Informative WSJ Article features William Fleischer of ArtInsuranceNow.com

When you buy a piece of art, can you be sure it’s really yours? Many collectors don’t always feel certain on that score. They worry in some cases that after they make a purchase someone will show up, maybe years later, and claim the art was stolen at some point in the past—ultimately leaving the new owner empty-handed, without the art or the money paid for it.

That’s one reason many art advisers and lawyers recommend title insurance, which can at least partially protect a collector’s financial interests if a piece of art has to be surrendered. But theft isn’t the only issue. Title insurance also can help protect collectors if the person they bought art from becomes entangled in divorce, bankruptcy, probate or other legal proceedings that question the seller’s right to dispose of the art.

 

Some advisers say title insurance is particularly important because of the sharp increase in the prices of many artworks in recent years—buyers have more to lose. But title insurance has been a hard sell.

William Fleischer, president of insurance brokerage firm Bernard Fleischer & Sons Inc., says most collectors are willing to forgo the cost, in part because many already have paid advisers and lawyers to check on the authenticity and history of ownership of their art, and they have confidence in those experts.

For those who want additional reassurance, some insurance companies offer “defense of title” coverage, which typically pays up to $100,000 in legal costs in the event of a title dispute but doesn’t reimburse policyholders for the value of any objects taken away from them.

The leading provider of more-complete coverage is New York-based ARIS Title Insurance Corp., a unit of Argo Group International Holdings Ltd. It offers policies that cover legal costs in the event of a title dispute and the full purchase price of the piece if the buyer has to surrender the work. Collectors pay a one-time premium averaging 2% to 3% of the purchase price of the item being insured. They can increase coverage, for an additional premium, if the artwork’s value appreciates.

Mr. Grant is a writer living in Amherst, Mass. He can be reached at reports@wsj.com.

Original Article link below.

http://www.wsj.com/articles/art-collectors-weigh-title-insurance-1428894124

 

How to evaluate your own work as an artist

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.

So what are the methods of pricing one’s own work, and will the insurance company accept the sale price of an artist, who never sold?

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

 

  • Exhibition
  • Transit,
  • Studio
  • Storage
  • Worldwide Coverage
  • Includes Material and commissioned work in progress
  • Visit artinsurancenow.com for all your Art insurance

 

Premiums start at $1000

 

Kindly help me get the word out by passing this along

 

Thank You

 

William

William G. Fleischer, CIC
President
29 Broadway, Suite 1511
New York NY 10006
T. 212 566-1881 ext 111
F. 212 566-1615
C. 917 863-8787
wfleischer@bfbond.com
www.BFbond.com
www.ArtInsuranceNow.com

How is your Art being Insured?

Every day, I am helping to insure art collections.  art collections, Gun Collections, Rug Collections, Rare Books Collection, Prehistoric Art collections, Samurai Swords, Bibles,

In the past few days, I have insured rare books, Bibles, Photographs, Manuscripts Antique guns, and furniture. click here for applications

Your homeowner’s policy excludes perils like Roof leaking, wind-driven rain, back up of sewers and drains, Breakage, transit Loss of Value due to a loss.

Most fine art policies have these coverages included. If there is something which is valuable to you and your family, I can insure it.

Call Me 800-921-1008

William G. Fleischer, CIC
President
29 Broadway, Suite 1511
New York NY 10006
T. 212 566-1881 ext 111
F. 212 566-1615
wfleischer@bfbond.com
www.ArtInsuranceNow.com

Exhibition Policy or not?

Email regarding having Artist shows in an Office Environment.

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?

Thank you,
Warmest regards,

The Answer… or my Answer.

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.

 

 

Insurance for Art Galleries

Our customized insurance policies are geared toward your typical Art Galleries, Museums, Exhibition space, and Dealer businesses.  We combine General Liability, Public Liability (Bodily Injury and Property Damage) into one straightforward policy along with non-salable contents, desks, chairs, computers, fixtures, racks and business property. Our policies can include landlords, curators, and artists as additionally insured.

 

Qualify for better pricing if you combine General Liability and Property Insurance into a Business-Owners Policy with Fine Arts Insured under a separate policy to maximize coverage while minimizing price.

 

A Business-Owners Policy includes: 

General Liability insurance coverage of an Art Gallery insurance policy is comparable to a typical commercial general liability policy, providing protection against claims of bodily injury or property damage for which your business may be liable.

General Liability means liability insurance for the cost of defending lawsuits stemming from:

  • Accidents which  cause bodily injury and/or property damage
  • Trip and Fall Incidents on premises.
  • Claims such as libel, slander, and False advertising
  • Errors or negligence from professional service is not covered by a General Liability Insurance policy. Must purchase a separate policy for this.
  • Business property insurance for physical assets, such as contents, improvements to your space including decorations and furnishings non-salable items.
  • Can cover loss of business income and extra expenses resulting from a covered loss.
  • Outdoor Sign
  • Insurance Money and Securities Insurance
  • Employee Dishonesty Insurance
  • Water Back-Up Insurance
  • Off Premises power failure

 

Broader coverage on a stand-alone fine art policy:  fine art while in the gallery, storage or while in transit,

 

The same type of coverages can be found in our Museum, Exhibition, Private Dealer, and Auction House insurance policies.

 

What is the average cost of Art Gallery Insurance? Premiums typically start around $600 but every art gallery has different requirements, property values, and coverage requirements. Prices will vary.

Please call William Fleischer, CIC at 212 566-1881 ext 111 or visit us at www.ArtInsuranceNow.com

 

APPLICATIONS:

Art Evaluation formulas you might see in an Art Collection Policy

Here are most of the current options found in an Art Collectors Insurance policy

1. Stated Amount based on an appraisal.
2. Market value or appraised value whichever is less.
3. Market value or appraised value. Maximum value 1.5% of appraisal value.
4. Market value – Onus of proof ( insured to prove value) up to policy limit.
5. Unscheduled Items: can be based on maximum value per item –Maximum Blanket limit- Onus of proof for valuation
6. Newly Acquired Property their cash value, but not more than 25% on similar type of policy.
7. Newly Acquired Property the lesser of 25% on similar type on policy or $10,000.
8. The cost of reasonably restoring that property to it condition immediately before the loss
9. The cost of replacing that property with a substantially identical property.
10. Property of Others in your Care, Custody, and control Maximum, based on the agreed amount prior to Loss 25% of Policy Limit,
11. Jointly Owned Property, value as stated in an agreement with the co-owner(s) up to the amount of your interest.
12. A loss to your Art Reference library, including books, catalogs and “data and Media” Settled at Actual Cash Value.

William
William G. Fleischer, CIC
President
29 Broadway, Suite 1511
New York NY 10006
212 566-1881 ext 111
wfleischer@bfbond.com
www.BFbond.com
www.ArtInsuranceNow.com

APPLICATIONS:

Art Dealers
Artist Transit/Exhibition/Studio Insurance New Program
Auctioneers
Conservators/Restorers
Corporate Collections
Personal Collections
Exhibitions
Museum Collections
Business Owners Liability

Artist Insurance Policies include Studio, Exhibition and Transit protection.

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.

For more information about this innovative policy and a fast free quote, contact us at www.artinsurancenow.com, fill out an application here or call us at 1.800.921.1008

 

William G. Fleischer, CIC
President
Bernard Fleischer and Sons

29 Broadway, Suite 1511
New York NY 10006
212 566-1881 ext 111
wfleischer@bfbond.com
ArtInsurancenow.com

APPLICATIONS:

What is Conversion exclusion in a fine art, Antique, Jewelry policy

The Story;

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.

APPLICATIONS:

Art Dealers
Artist Transit/Exhibition/Studio Insurance
Auctioneers
Conservators/Restorers
Personal Collections
Exhibitions
Museum Collections
Business Owners Liability

How Important is my advice

I have been in the insurance business for over 35 years. The experience and situations I have encountered are many. When it comes to protecting your Assets, there are many variables which one must consider. Not all policies have the same terms and conditions.

Possible Exclusions are many, Earthquake, Flood, Named storms, Mold, Water, Theft from premises. Terrorism, other than Named locations, while in Transit, etc.

Conditional: vary too. Alarm warranties, Shipping, and packaging, Schedules, Unscheduled, appraisals. Notifications for removal from storage, vaults, when loaned at exhibitions, travel outside the continental USA. reporting form,

Valuations: variables are, Agreed amount, Appraisal value, percentage less sale price, percentage plus consignment, Onus of Proof.

Sub-limits: Bouillon, Jewelry, Electronics

Territory restriction, World wide, continental USA,

Deductibles: $1,000, 2,500, 5,000, 25,000, 100,000

Payment Plans: Direct Bill< Credit Card, Wire transfer, Check and Cash.

Insurance Company: Admitted. Non-admitted, Risk Retention Group, Foreign, AM Best Ratings

The above are just a few items which are negotiated during the process.  I like to speak to all my customers to get a sense of what they situations are and how to protect them from a financial loss.

Not everything is ever covered by a policy, most can be.  I have found many different niches which companies give very good policies, service, and prices.

Work with me and you can feel the importance of working with a human who can relate to your Insurance exposures.

www.artinsurancenow.com

William G. Fleischer, CIC

President,

Bernard Fleischer & Sons, Inc.

http://www.artinsurancenow.com/