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.
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Limits start at $100,000
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Premiums start at $1000
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