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Fine-Art Shipping Horror Stories

Sixty percent of all Art-Insurance claims are for works in transit. Art is most vulnerable when being moved and shipped. Prominent cases include Picasso’s “The Painter” worth an estimated $1.5 Million, which was lost at sea, along with 229 lives, when Swissair Flight 111 crashed in Canada in 1998.

Picasso’s “The Painter”

 

Rembrandt’s “Portrait of an Elderly Woman”, suffered a large gash after being sent from the Pushkin Museum of Fine Arts in Moscow to the Museum of Fine Arts in Houston, in 2001

Rembrandt’s “Portrait of an Elderly Woman”

 

Galleries often send artworks to collectors “on approval”. One such New York gallery sent a crate of paintings worth many millions of dollars to an extremely wealthy collector on an approval basis. The collector decided against buying them but didn’t do a good job of packing them back up to ship back to the gallery, when they arrived, they were destroyed as they didn’t hire a professional shipper to have them sent back. The gallery had to sue an important collector, which would obviously sever the relationship forever.

Another main concern when insuring artwork is working with insurance agents who are knowledgeable vendors able to provide advice for your specific situation. Transit coverage is a must for Art Dealers and Collectors alike. Art moves regularly during acquisition, on loan to Museums, Art shows, and Fairs. The good news is ArtInsuranceNow.com / Bernard Fleischer & Sons Inc.  policies’ have transit coverage included.

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

 

 

Mother, daughter wreak havoc at Art Museum

 

Museum officials say a mother and daughter destroyed a sculpture while visiting an exhibit named “Fair and Square,” at the Susquehanna Art Museum in Harrisburg, PA. The sculpture features children’s toys and a life-sized swing set that has been welded to resemble the scales of justice.

The women mistook the sculpture for an interactive piece and pulled the swings down to ride them. Artist Sean Matthews says the piece took two years to create, and is insured for $5000. It is unclear if the women will pay for the damage. The artist is waiting to see if he will be reimbursed.

“I looked away for a moment and then, boom, it’s down,” museum director Alice Anne Schwab says. “The swings were swinging … We were just devastated. Schwab said the two then walked to a different section of the museum and picked up pieces of a different art installation despite signage telling visitors not to touch anything.

These are the risk exposures when an exhibition is open to public view. ArtInsuranceNow.com / Bernard Fleischer and Sons Inc. helps to mitigate those risks by providing coverage to Artist’s, Museums, Galleries, Collector’s, and Dealer’s.

Call us at 800.921.1008 to receive a competitive quote for comprehensive coverage that includes transit, multiple locations and more.  You can also visit us at www.ArtInsuranceNow.com.

 

Art vandal slashes $3 million painting, is vandalism covered?

A British man has been accused of slashing a multi-million dollar painting in an art gallery in Aspen, Colorado, last year.

Surveillance footage shows a bearded man in a hat and sunglasses saunter into the Opera Gallery, lay down a plank to block the doors from shutting fully, head straight toward the painting, then slash its bottom-right corner twice.

In May, Aspen Police identified Nicholas Morley, a 40-year-old British businessman, as the perpetrator. He has been charged with felony criminal mischief and a Colorado judge has issued a warrant for his arrest.

Morley flew from London to Denver with a false name a day before the slashing, rented a car from the airport, and flew back to London two days after committing the crime, The Aspen Times reported, citing court documents.

As It turns out, Morley’s father, Harold, owned the $3 million painting through a holding company in Barbados that traded art.

In a situation like this what is covered? what is not? Fine Art’s risk exposure while on display is something that all artists, gallerists, and collectors should consider and insure accordingly.

 

William Fleischer, CIC and Principal of Bernard Fleischer & Sons Inc. explains further: “Most Art Insurance policies will cover Vandalism, but, how the values are determined is what I’d like to focus on here. If you are an Art Dealer, Art Collector or an Artist, the consignment agreement drives the answer to this question.”

  1. Almost all Art Dealer Policies value the art based on the agreed net consignment amount to be paid if sold +10% for the dealer’s commission. The check is made to the dealer.
  2. If you are a collector and have your own Insurance policy, then the valve would be either what is scheduled on your policy or the Market Value at the time of loss either way you would receive a higher payout than the dealer’s policy would pay out.
  3. If you are an Artist, and purchase our special artist’s policy, your Art is valued, better than a dealer’s policy, not at net consignment amount, but Market value minus 30%

When displaying art in public spaces, know your exposures and insure for them accordingly. A knowledgeable art insurance broker like Bernard Fleischer & Sons Inc. / ArtInsuranceNow.com can guide you to peace of mind and help protect the things you are passionate about.

Call us at 800.921.1008 or visit ArtInsuranceNow.com for a free quote to protect your artworks.

Caught on camera! Banksy print stolen

Watch the theft take place!

 

How secure is your artwork on loan? Is it really “insured”?

Police are investigating the theft of a Banksy print from an exhibit curated by the artist’s former manager. The Art of Banksy exhibit – curated by his former manager Steve Lazarides, but reportedly not endorsed by the artist – opened in a Toronto industrial building dressed up as an art gallery, as part of a larger North American run.

Every dealer’s insurance policy is unique, all have exclusion, conditions and limits.  some have handling warranties, alarm warranties, unpacking warranties, storage warranties.  Many have very high deductibles, and no transit coverage.  Most have exclusions for water damage, vandalism, mold, fire and theft. My advice to the collector is DO NOT Trust the gallery’s or anybody’s insurance coverage.

Buy your own policy, know your coverages and know that if anything does happen, the decision how to handle the loss is with you and most importantly, the check is made directly to you!

When loaning art for display, be sure to have the proper coverage. ArtInsuranceNow.com policies are tailored to cover works of art while on or off premises, in transit, storage, in exhibition, in a museum, auction house, and worldwide.

Call us at 800.921.1008 and visit ArtInsuranceNow.com to learn more and get a free quote by clicking below.

 

Chelsea Art Galleries catch fire

A Chelsea, NY building that’s home to several art galleries caught fire while the spaces were open for business, FDNY officials said. The one-alarm blaze broke out inside the Paula Cooper Gallery on the top floor of the two-story building that houses several other Art Galleries including the Tina Kim and Tanya Bonakdar Galleries. Following the inferno, people could be seen moving out wet boxes from the building and other items like chairs wrapped in plastic.

People rarely expect worst-case scenarios but as insurance professionals we have seen it happen too many times, the question we’d like to ask is “are you covered?”  Art Galleries give artists the space they need to exhibit their craft, gain exposure and sell art. And we provide value in knowing if something goes awry, the work is Insured.

Due to the nature of Art in a gallery, Gallery insurance is essential. Risk exposures such as unexpected events like fire, flood, earthquakes, and storms, can cause extreme damage to the building and its contents. Manage these risks by obtaining a gallerist insurance policy offered by ArtInsuranceNow.com / Bernard Fleischer & Sons Inc.

Call us at 800.921.1008 or visit ArtInsuranceNow.com by clicking the link below.

 

5-Year-old destroys $132,000 Art Sculpture

5-year-old Kansas boy knocks over $132,000 art sculpture on display at a local community center. Surveillance video captured the little boy reaching for the sculpture, called “Aphrodite di Kansas City” on display in the lobby of the Tomahawk Ridge Community Center in Overland Park, Kansas when it toppled over.

“It was a piece that was loaned to us that we are responsible for. That’s public money,” Sean Reilly, a spokesperson for the City of Overland Park said. “We are responsible to protect the public investment.”

“The public investment” could have easily been protected with a policy from ArtInsuranceNow.com / Bernard Fleischer & Sons Inc. Our customized insurance policies are geared toward your typical Art Galleries, Museums, Exhibition space, and Dealer businesses.  We combine General Liability and Public Liability (Bodily Injury and Property Damage) into one straightforward policy.

Don’t wait until a loss occurs to learn more. Call us at 800.921.1008 or visit us at ArtInsuranceNow.com

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.

How Editions and Negatives are Valued

The value of Editions and Negatives vary.

I was recently reading an appraisal trying to establishing values on Editions and Negatives for a sale of the collection.  I then started to read different policy forms to see how insurance companies would payout if there was a loss. How art is valued varies, read on.

  • Current market value is the present day value.
  • Future value on a single item is an unknown, hard to project the future.
  • The original from which multiple proof editions are made has a value from being the original #1, but each type of edition and sequence has a value.
  • If all editions are printed and no future editions are ever made, then that inventory is fixed so a total can be calculated accurately. Now, if that inventory does not sell in 2 years for example, then the inventory is overvalued and total should be lowered.
  • A photo negative has value and each copy has a value, but unless the negative is destroyed the copy has little value.
  • With digital photos and copies, there is no degradation in future copies and unless it is hand numbered by the artist then there is little value.
  • If you have the Getty photo library, then all photos have a future value based upon licensing fee and there is no physical loss but there is a Business Interruption loss

Visit www.ArtInsuranceNow.com to learn more, apply here or feel free to contact William Fleischer, CIC at 1.800.921.1008

Art Fairs and Protecting Art in Transit

Underwriting the transportation of fine art can be tricky. Using an experienced, trusted agent is important to protect yourself from the pitfalls.

 

Artists, Art Dealers, Collectors and Institutions use art transport services regularly, but insurance in particular, is a gray area in which most losses occur. Shippers charge high rates with high deductibles and with hidden exclusions. 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, in storage and while exhibited.

Whether buying or selling at Art Fairs be sure that your work or investment has the maximum coverage with minimal headaches by using the Trusted One Stop Art Insurance for the Art Community since 1949, Bernard Fleischer & Sons Inc. www.artinsurancenow.com or call 800-921-1008 Ask for William Fleischer, CIC.  so he can help you with all your Art Insurance requirements.

apply online here

Upcoming Art Fairs

 

viennacontemporary underlines it’s significance not only as a marketplace but as a location for the presentation of young and established artists and for the information on the development of the art scene in the focus countries of the program.

Apply for Transit Insurance Here

 

a contemporary art show in the heart of southern California featuring an international slate of artists and galleries. The show features over 500 leading contemporary artists, museum exhibitions, Art Labs, events, and Art Talks focused on collecting. Now in its ninth year, the four-day event attracts over 15,000 high-net-worth collectors. Join us for an unforgettable four days of cutting-edge art, entertainment, and special events.

Apply for Transit Insurance Here

 

FOTOSEPTIEMBRE USA SAFOTO 2017 runs from August 26 through October 30 across various galleries and other venues in San Antonio and the Texas Hill Country.
October 2017 Art Fairs

Apply for Transit Insurance Here

 

  • Frieze London (London, England)

    October 5 – 8, 2017

Frieze London features more than 160 of the world’s leading galleries. View and buy art from over 1,000 of today’s leading artists, and experience the fair’s critically acclaimed Frieze Projects and Talks programmes

Apply for Transit Insurance Here

 

  • Frieze Masters (London, England)

    October 5 – 8, 2017

Frieze Masters features more than 130 leading modern and historical galleries from around the world, showcasing art from the ancient era and Old Masters to the late 20th century.

Apply for Transit Insurance Here

 

Now in its 8th year, Moniker Art Fair aims to spotlight emerging and established talent from a burgeoning and increasingly diverse contemporary art movement forged by its subversive and innovative spirit. Staged during London’s most important art week in October, Moniker Art Fair attracts some of the most talked about artists, galleries and collectors from the finer side of the street art movement and its related subcultures.

Apply for Transit Insurance Here

 

  • Art Silicon Valley (San Mateo, CA)

    October 5 – 8, 2017

Art Miami’s International Contemporary and Modern Art Fair on the West Coast, centrally located between Silicon Valley and San Francisco.

Apply for Transit Insurance Here

 

Texas Contemporary, Houston’s leading contemporary and modern art fair, brings top galleries to the area’s discerning collector base.

Apply for Transit Insurance Here

 

  • FIAC (Paris, France)

    October 19 – 22, 2017

For its 44th edition, which will be held from 19 to 22 October 2017 in Paris, FIAC hosts at the Grand Palais a selection of the most important galleries on the international art scene. The fair reinforces the presence of the leading galleries, covering the modern and contemporary periods, and renews its support for the emerging galleries through a 2017 promotion of the Lafayette Sector which will not fail to surprise by its freshness, diversity and relevance. The fair, an unmissable event this autumn, confirms the attractiveness of the Place de Paris on the market.

Apply for Transit Insurance Here

 

October 27 – 29, 2017
CLIO ART FAIR 2017 focuses attention on the kinds of contemporary art and interventions that are being created by independent artists the world over. Without the constraints and usual concerns of the art business, these artists have no set boundaries – using different materials and media to deviate from accepted art practice definitions in the gallery space. The works exhibited seek to foster a dialogue that transcends prescribed geographies, hierarchies, and markets, expanding the opportunities for greater expression of new media and groundbreaking content.
November 2017 Art Fairs

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The IFPDA is an organization of expert art dealers who champion

the work of artists in the artistic medium of printmaking.

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Paris Photo, the first international fair dedicated to the photographic medium, will present its 21st edition from 9 to 12 November 2017 at the Grand Palais in Paris.

A must-see for collectors, professionals, artists and art lovers, Paris Photo focuses on the diversity and quality of the artists and works presented and proposes an ambitious and demanding public program.

Apply for Transit Insurance Here

 

The Salon Art + Design welcomes the world’s finest galleries exhibiting historical, modern and contemporary furniture, groundbreaking decorative arts, and late 19th and 20th century fine art. Visitors will find designs by the great 20th century masters, as well as creative works by today’s most innovative young artists.

Apply for Transit Insurance Here