People collect art for a number of reasons, from enjoying the artistry to purchasing pieces as future investments. Although, if you’re planning to start your own art business from your home or a gallery, business columnist Nicole Long strongly advises that before you kick off your business, you must first meet state regulations, get an insurance policy, and take necessary business and legal measures that protect both yourself and your art pieces.

Whichever type of art collector you are, your pieces are likely worth a significant amount. And this is precisely why you should get them insured. On top of that, high-value pieces are susceptible to theft since their location is general knowledge; as well as being at the mercy of aging and potential devaluation. A good insurance policy with comprehensive coverage is not recommended, it is necessary.

Safeguarding pieces from everyday threats

For causal art owners it’s easy to become complacent when your art piece is just sitting at home. However, while you may believe that theft is the biggest threat, artwork over the fireplace, over the tub, or by the window could be in a greater peril. Heat and humidity can quickly damage and devalue your art, so it’s important to monitor the air quality in your home. Art collection registrar Susan Sauls urges collectors to keep their art in areas with stable temperatures and good air circulation.

But even if you’re fastidious about monitoring the environment around the artwork, there’s still a laundry list of home accidents waiting to happen, such as a fire or an accidental wine splash. While you still need to take extra care, the right insurance policy will allow you to confidently display and enjoy your collection at home knowing that you have a strong contingency policy.

A Vital Part of an Art Business’ Structure

Artworks are generally priced based on the dealer’s prestige, the artists’ background, and several other nuanced trends—all volatile factors. As such, businesses belonging to the art sector are some of the most heavily insured in the world. Business owners are constantly looking for additional layers of protection, as any mishap or legal issue could end up costing them a lot of money personally.

This is why most galleries ensure that, alongside their insurance, they are also legally protected through their business structure, such as a corporation or LLC. Those who form a corporation in Pennsylvania will not only have the full protection of being a separate business entity, but will also have the funds, through the shareholders, to take out numerous insurance policies.

On the other hand smaller art businesses that form an LLC in New York, the art capital of America, will be able to set up knowing that their insurance and business will protect them. And with galleries in New York getting sued because of the recent pandemic, having this double protection is more vital than ever.

Protecting pieces that are always moving around

One way to increase the value of your pieces is through displaying them in different galleries, which is why you need to take the necessary precautions before handing your items over. The moment the pieces are in transit, they could be exposed to a number of dangers like improper storage or even theft by dishonest workers.

In a previous article for our surety bonding division BFBond.com, we talked about how U.S. businesses lose an average of $1.13 million due to employee theft. With a proper insurance policy—or, possibly, a fidelity bond— you will be protected from property damage, theft, and fraud. So draft up a thorough contract with the galleries you’ll be working with, and get your pieces insured.

Another important consideration to make is working with knowledgeable and experienced art insurance agents. As each piece of fine art is literally one of a kind, a comprehensive insurance policy is the best protection that you can get.

Written exclusively for ArtInsuranceNow.com

by Ana Cooler

Insurance Business Magazine, the leading business magazine for today’s sophisticated commercial Insurance Broker names William G. Fleischer and Bernard Fleischer & Sons, Inc. a top specialist broker for 2020. Read the article HERE 

Service is our top priority when it comes to our clientele, and it shows. A glance at our 5-Star Google reviews reveals unmatched customer satisfaction. 

Contact Bernard Fleischer & Sons, Inc. when you require a knowledgeable insurance broker that handles Fine Art, Surety Bonds and everything in between. Visit us for art insurance at ArtInsuranceNow.com and commercial Surety at BFBond.com or call 800-921-1008

ArtInsuranceNow.com has contributed to Redfin Blog article on how to incorporate art thoughtfully into your home, check it out above!

The fire that has destroyed Notre Dame is not the first incident to affect a site of great cultural and historical value. Unfortunately, it will not be the last. Just last year, we saw a fire destroy up to 90% of the precious artifacts and other items housed in the National Museum of Brazil. Our cultural institutions are under threat from a variety of risks both natural and manmade. What can we do to better protect our cultural treasures?

Works of art in buildings such as the Notre Dame cathedral are generally not insured because they are often priceless. Any artworks on loan from third parties would, however, be insured. While some of the large paintings at Notre-Dame could not be taken down in time, the mayor of Paris, Anne Hidalgo, said at the scene of the fire that a number of the many artworks in the cathedral had been rescued and were being put in safe storage.

Heritage sites, cultural institutions, independent galleries, collectors, and artists are uniquely vulnerable and often underprepared. Many cultural institutions have few resources or time to invest in preparedness and emergency response programs. While no amount of money in insurance payouts will bring back a lost stained-glass window or other masterpieces, not having insurance or not enough insurance is an even greater threat to works of art. For this reason, We at ArtInsuranceNow.com / Bernard Fleischer & Sons Inc. are raising awareness to the owners of cultural items such as fine-art and collectibles on just how important having the proper coverage is.

A valuable tool to have is a knowledgeable fine-art and collectibles insurance broker to guide you in the process of managing your risk. Insuring art requires an experienced broker that knows how to navigate the often-confusing details of high-value insurance. At ArtInsuranceNow.com / Bernard Fleischer & Sons Inc. we know art, and what it takes to insure it properly so you don’t have to. We are your resource and can answer any questions you may have regarding the protection of art and items of cultural significance.

Visit us at ArtInsuranceNow.com to live chat with a professional or call us at 800-921-1008 to speak to a friendly voice that can guide you through the process of risk management.

Art fair season is upon us, bringing together an extraordinary concentration of artworks, private dealers and galleries. The question between collectors attending these fairs is “what did you buy?”.

Well, we have a more important question to those art buyers… how did you insure it? Having a knowledgeable fine-art and collectibles insurance broker to guide you in the process of managing your risk is an integral part of the art buying process. Insuring art requires an experienced broker that knows how to navigate the often-confusing details of art insurance.

From an insurance standpoint, fairs represent a high-risk time for galleries, dealers and, of course, clients. Traditionally, the gallery or dealer covers the delivery of the piece to the new owner. But it’s important to know what questions to ask so you understand the details and/or can negotiate conditions to reduce risk, for example:

• Who’s responsible for the piece at what stage of the transaction – is it yours once it is paid for, when the title is transferred, or when it’s in your possession?
• Who’s responsible for packing and shipping – the gallery or a third-party fine arts vendor? Make sure professional fine art packers & shippers are used!
• Is the appropriate packing or crating (in some cases, customized) being used for the type of piece? Think about size, fragility, composition, etc
• If you’re at an international event, or a fair with international galleries represented, will the piece need to go through US Customs and, if so, what precautions will be made and by who?

Once home, how do you protect your investments?

Being a newcomer to the art scene can be intimidating. Someone starting to collect may not necessarily purchase very expensive pieces initially, so they may not think their art is valuable enough to warrant an insurance policy. We provide new collectors with the same coverage, service, and claims handling as someone with a higher collection value. And they are also protected against exposures they are vulnerable to in their day to day lives.

There is no reason a collector of any size should feel their investment isn’t enough to be insured properly. When your collection grows, so will our partnership with you. The limits can be increased and we can continue to provide support and peace of mind over the years.

At ArtInsuranceNow.com / Bernard Fleischer & Sons Inc. we know art, and what it takes to insure it properly. We are your resource and can answer any questions you may have regarding the protection of artwork, tools, studio space, museums or galleries.

This is the time many Galleries, Dealers, and Artists move inventory away from their premises to many different art fairs. Over the last few years art policies have changed, when was the last time you checked to see if you have the right coverage at the right cost?

Preparing for an art show/fair creates additional perils, which we address below;

• Transit for Dealers, Artists and Collectors: Make sure your policy covers the art while in transit by truck, airplane and boat. There are some policies in which you must notify your Insurance carrier when shipping or attending any art fairs. There are better policies that have these automatically built-in at no additional cost.

• Beware of transporters selling you insurance coverage: Many motor truck cargo policies or inland marine policies from truckers exclude art or when included, there are limitations like the maximum they will pay per complete conveyance, meaning all of the items including other people’s property, so there may not be enough limit to pay you in case something happens.
  • Another limitation is the cause of damage, exclusions of car, train, and plane accidents.
  • Valuation variants: Many of these policies will be based on the price not at current retail value but on what you paid for the item or net consignment.
  • Partial Damage: Many transport company’s insurance policies require you to use specific restorers or conservators without the option of declaring the art a total loss.
  • No payment for devaluation of damaged art.
  • Valuation is based on weight not value. Check the bill of lading before you sign anything.
  • Packing and crating issues: The companies have this condition in almost 90% of the policies. As long as the art is packed in a manner that other dealers would have packed, you are in the clear.
  • Payment: Most transporter insurance polices will pay the transporter who will then pay you. But they can deduct storage, transport and other expenses from the money received from the loss. These polices are in the transporter’s name not yours, hence checks are made out to the transporter not you, unless you are a “loss payee” under their policy.

Be sure to buy the right coverage so you can focus on selling your art.

Call us at 800.921.1008 or visit ArtInsuranceNow.com and live chat with a professional to answer any questions you may have regarding your particular situation.

It’s important to be specific, especially when it comes to art insurance issues. You are expected to know exactly what is covered or not, when your coverage can be used, and what your responsibilities are in the event of a loss or a claim.

Insurance terms can be difficult to decipher, and problems can arise when you don’t quite understand what the words or phrases are describing.

The good news is Bernard Fleischer & Sons Inc. (ArtInsuranceNow.com) makes your policy easy to understand because we speak to our clients in plain English. Once you get a better handle on what your policy covers, you’ll feel more confident knowing your art is well protected.

Q. I notice that the words COMMERCIAL INLAND MARINE is on my policy.

If I buy the Insurance Policy, who is my broker and who is the company, Bernard Fleischer and Sons Inc. or Commercial Inland Marine?

A. We are the brokers (Bernard Fleischer & Sons Inc.) and the type of policy is a commercial inland marine.  It’s the insurance industry wording for the type of policy that covers your art

Q. I read this exclusion on my policy and I don’t understand this point:

1. Property Not Covered

Property while on exhibition at fairgrounds or on the premises of any national or international exposition, unless this coverage is added by endorsement and an additional premium is paid.

Does it mean that I’m not covered if I buy the Insurance?

A. Fairgrounds is not an Art-Fair. Art-Fairs are covered by this policy. Fairgrounds is a World Expo, World Fair, State Fair type of venue.

Q. My policy reads this about shipments:

‘Shipments by mail unless by registered first class mail or parcel post provided, however, such shipments by parcel post shall not exceed the sum of $1,000 in value nor the sum of $25,000 in value by registered first class mail. However, in no event shall we be liable for more than the Transit limit stated in the Declarations page.’

Does it mean that if I use Fed-ex or UPS or USPS, I’m not covered? I don’t really understand this.

A. USPS regular mail has bad experiences with shipping art.  Sending art just by registered mail is not recommended, hence limited values apply. Art sent by Fed Ex and UPS is fine and the full limit of $100,000 applies.

Q. I have already paid for an Insurance policy, but they don’t cover me for International transit and International exhibition. So that’s why I need a complementary policy, but I want to be sure to be covered for my specific needs:

– International transport, in my case it will be from NY to Paris

– an international exhibition, in my case in Paris (France). An exhibition which is to last 6 months to a year.

I understand that If I buy the Artist policy I will be covered for these specific needs, as the territory is worldwide, right? 

A. That is correct. I would rethink keeping the other policy unless its just covering your personal belongings or Liability. Our policy covers your art, art in progress, materials, tools, equipment and research library.

Q. For limits of Liability, I suppose that Paris is a covered location?

A. That is correct. For the full $100,000.

1. Please, could you clarify?

A.  ‘covered location’ is in the studio where the art is created, this is where the tools, materials and reference library are covered.

The ‘unnamed location’ is everywhere else, including Paris, storage facilities, galleries, even our offices 😉 Anywhere in the world, except countries without a trade agreement with the USA.

In conclusion, there are many different situations when it comes to risk management in the art community and we have the experience and know how to help you protect your art.

We are the trusted one-stop insurance for the art community. If you have any questions of your own we are available to answer them via Live Chat on our website at www.ArtInsuranceNow.com or give us a call at 800.921.1008 we are always happy to help. You can also read some of our customer reviews on Google here.