Art Collector, Art Dealer, Art Insurance, Art transit Insurance, Artist Insurance, Auction Houses, Transit Insurance

Art in Transit: Why we insure

The reasons for art being shipped varies greatly, a collector may move or place artwork in storage while their home is being renovated, they often sell artwork at popular art fairs and even lend pieces to museums.

A dealer or gallerist may sell artwork to a collector from out of town or even another country, the working artist sends their commissioned works to buyers, galleries, etc. Auction houses frequently send and receive works of art. There are many different reasons for art transit, including shipping art out of harms way in cases of hurricanes and wildfires.

Other than hauling that hidden ‘masterpiece’ in the attic down to the Antiques Roadshow, artwork should be handled with care, shipped by professionals, and most importantly insured.

Transit insurance is extremely important to the safety of your investment. If you have the opportunity to talk with anybody in the insurance world for fine art, most of the losses by frequency — something like 70% — are caused by damage while it’s being handled through transit. Even so, not all insurance policies cover works of art.

Standard homeowners insurance likely won’t extend to cover your art collection, which is why most artists, collectors, dealers, and auction houses purchase a stand-alone policy that often includes protection for new works while they are being shipped to your home or business but it’s important to speak to knowledgeable art insurance professionals like Bernard Fleischer & Sons Inc. (ArtInsuranceNow.com) and understand what’s covered and what is not.

It is important to know that most transporters limit their liability and folks are often quite surprised at how low their liability is. So, make sure your insurance policy covers the work of art as it’s being shipped.

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. Visit artinsurancenow.com or call 800-921-1008 we can help you with all of your Art Insurance requirements.

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Art Insurance, Artist Insurance, Private Collectors and Corporate Collections

Fair Market And Insurance Value For Works Of Art

Fine-Art Insurance valuations aren’t so complicated, as some may think. Here is the breakdown. The IRS defines fair market value as the price that property would sell for on the open market, as agreed upon between a willing buyer and a willing seller, with neither being required to act and both having a reasonable knowledge of the relevant facts.

Usually, this means the auction market (buyer’s premium included), because auction is the predominant market of open exchange. If the property in question sells predominantly or exclusively at retail (i.e. in a gallery), however, retail is the market used by the appraiser. All IRS appraisals are fair market value appraisals.

Insurance appraisals have a different criterion for valuation. Here the assumption is that the insured item needs to be replaced in a timely manner. Waiting for a similar item to come up for auction could be unreasonable and impractical. So instead of a valuation based on the auction market, retail replacement is the most appropriate valuation.

This is the price that one would expect to pay for the same or similar item in a retail setting at the present time. Oftentimes the insurance value is even a bit higher than retail to accommodate for shipping and other costs related to the purchase.

Also, check out our informative article on Schedule VS. Blanket Coverage for an in-depth look at how policies are written in terms of valuation.

As a knowledgeable Art Insurance broker, I can guide you through the process of navigating the often confusing insurance industry and properly protecting your Art. Give us a call at 800.921.1008 or Live Chat with us at www.ArtInsuranceNow.com you can even get a free quote by following the link below.

 

Art Collector

Art Collector’s Tips on Protecting your Artwork

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As Art Collector’s, you have spent considerable resources and countless hours curating the perfect art collection the last thing you want is for that collection to be compromised due to environmental hazards or improper care.

We have some pro tips provided by one of the largest privately owned galleries in America on how to care for your artwork and retain its value.

1. AVOID OR LIMIT DIRECT SUNLIGHT.
Exposure to direct sunlight can fade the color of almost anything, including your new work of art. Avoid hanging your artwork anywhere where it will receive regular exposure to direct sunlight.

2. KNOW WHEN TO FRAME WITH ACRYLIC PLEXIGLASS, NOT GLASS.
What if you specifically wanted to hang that perfect picture in your sunroom? If you don’t want the sun dictating your design choices, just make sure that your picture is framed with a UV filtering acrylic rather than glass. It’s actually lighter than glass and will protect your art from fading or yellowing in direct sunlight.

3. PAY ATTENTION TO HUMIDITY.
The amount of water in the air can have a huge impact on the overall health of your art. Make sure to monitor the humidity level in your home and, ideally, keep it around 55%. (You can track your home’s humidity with a simple hygrometer.)

4. WATCH YOUR HANDS.
Always avoid directly touching your paintings or acrylic framing surfaces without wearing cotton gloves. If you do, you risk damaging them by exposure to your fingerprints and natural oils.

5. KEEP YOUR GLASS OR ACRYLICS SQUEAKY CLEAN.
When cleaning the glass or acrylic panel protecting your artwork, always use a soft non-abrasive cloth or microfiber towel. You should also consider purchasing an acrylic or ammonia-free glass cleaner.

6. DUST—DON’T CLEAN—YOUR PAINTINGS.
If you have a unique painting that’s not behind glass or acrylic, don’t use any cleaners or solvents on the surface to clean the painting…EVER. Instead, just lightly dust off the artwork with a soft feather duster or sable brush.

HOW TO PROTECT YOUR ARTWORK, IF IT’S UNFRAMED:

7. DON’T LEAVE YOUR ART IN A TUBE.
If you’re not ready to hang your art yet, definitely do not leave it rolled up in a protective cardboard tube. You always want to store your art flat. Acrylic paint or embellished paintings stored in tubes can become stained, cracked, or dried up if they’re left rolled up for too long.

8. KEEP YOUR STORED ARTWORK SEPARATED.
When you’re storing multiple works of art, always keep something in between each work while they’re laying flat. Place a 2- or 4-ply rag or conservation matboard cut 2 inches larger than the artwork in between each work. This will help protect the artwork from acidic damage, curling, and potential creasing.

9. STORE ART IN A COOL, DRY, DARK PLACE.
Pantry rules apply when you’re trying to protect the unframed artwork. The best way to avoid damage from sunlight, humidity, and temperature fluctuations is to keep your art somewhere cool, dry, and dark.

10. CONSIDER A SOLANDER BOX.
If you want to be sure that your art stays protected, you might want to invest in a solander box. These are acid-free print boxes with hinged front panels that can be purchased from conservation suppliers.

After acquiring Art, protection and conservation are important steps in keeping its value and beauty intact so you can enjoy it for many years to come, and pass it on to future generations.

Bernard Fleischer & Sons Inc. (ArtInsuranceNow.com) cares deeply about your collections, provides resources to help you mitigate risk and with our comprehensive Art Collector’s Policies, you can be assured that you have all the bases covered.

Give us a call at 800.921.1008 with any questions about your specific situation on how to properly protect your artwork. We can also be reached via live chat at www.ArtInsuranceNow.com or click below to get a free quote online with our user-friendly application.

 

 

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Uncategorized

FAQ about our Artist’s Insurance Policy

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.

 

 

Business Owner's Policies

Business Insurance Basics

You may not be able to protect against all the risks your business faces, but you can manage some of them with business insurance. This is what a business owner’s policy, or BOP, is designed to help you do.

Risk comes with the territory when you run a small business. Negative cash flow, personnel issues, accidents on your premises, fire or flood — these are just a few of the risks that can disrupt the stability of your business. One lawsuit or catastrophic event can be enough to set your business back and may even force you to close your doors.

Business Owner’s Policy: Designed for Small Business Owners

A BOP is a policy designed specifically for the needs and budget of small business owners, and the risks they commonly face. BOPs bundle two types of protection in a single policy — commercial property and general liability insurance — which allows providers to sell them for less than two policies sold separately.

BOPs are also customizable. You can add on coverages to tailor a policy to the specialized needs of your business or industry.

A BOP may be right for you if your business has fewer than 100 employees, meets certain maximum income requirements and is a low-risk operation. Businesses that are larger, highly specialized or have high-risk operations may need more coverage than a BOP can provide.

Here’s a closer look at the coverages that are included with a BOP.

Property Insurance

The property portion of a BOP covers damage to your business caused by fire, explosion, windstorms, theft, vandalism and any other perils specifically listed in the policy. The types of property that are covered by a BOP include:

  • Buildings you own, lease or rent
  • Essential business personal property such as equipment, inventory and supplies
  • The property of others while it is in your care

If your building is vandalized, for example, your BOP policy will help cover the cost to repair the damage and replace any damaged contents. If a customer’s property on the premises was also damaged, a BOP will help pay to replace that, too.

But BOP property coverage is not all-inclusive. When purchasing a policy, be sure you understand what business properties and perils are included and excluded to avoid any surprises should you need to file a claim. If you want broader protection beyond the standard BOP, you may be able to purchase a “special” BOP form that provides all-risk coverage for a higher premium.

Liability Insurance

Lawsuits can be costly even if you’ve done nothing wrong. The liability portion of a BOP offers financial protection if a third party sues you for:

  • Damage to the third party’s property while under your care
  • Physical injuries suffered on your premises, such as slip-and-fall accidents
  • Advertising injuries, including copyright infringement, slander and liable

Your BOP policy will help pay lawyers’ fees, settlements or judgments and other costs related to a lawsuit. It may also cover up to one year of medical expenses for an injury sustained by a third party on your premises or as a result of your business operations or products.

Business Income Insurance

Property insurance may cover your business’s physical assets, but it does not cover lost revenue that results from those damages. Business income insurance is a way to help sustain cashflow if you need to suspend operations while recovering from a covered property loss.

Many BOPs include business income insurance as part of the property coverage. If your business is interrupted, this important coverage can help pay for ongoing expenses such as employee payroll and rent. It may also cover the extra expense of running your business out of a temporary location while your property is restored.

Many policies limit business income protection to six or 12 months of lost revenue. Be sure to review the time limits associated with your policy with Bernard Fleischer & Sons Inc.

Additional Coverages

If your business or industry faces additional hazards beyond those covered by the BOP, you can customize your policy with riders or endorsements that add insurance protection for specific risks. For example, many insurance providers offer endorsements for:

  • Data breach: If your business experiences a data breach, this coverage can help with the cost of notifying affected parties, protecting stolen identities and engaging credit monitoring services, as well as help with legal defense, settlement or judgment costs.
  • Professional liability: This coverage protects your business from lawsuits claiming that your business committed a negligent act, error or omission in professional services provided to a client or customer.
  • Spoilage insurance: If you sell perishable stock such as food or plants, spoilage insurance can protect your lost income should stock expire due to contamination, equipment breakdown or a power outage.

A standard BOP covers the primary risks associated with running a small business, but it doesn’t cover everything. You’ll still need to purchase workers’ compensation insurance if you have employees, commercial auto insurance if you have a business-owned vehicle, and other types of insurance depending on your business. If you need extra coverage beyond the limits of the standard BOP, you can also supplement your coverage with an umbrella insurance policy.

Talk to us to learn if you qualify for a BOP and if you do, what coverages and limits may be right for your business.

We are here to help. Call us at 800.921.1008 and Live Chat with us at www.artinsurancenow.com

 

Art Collector, Art Dealer, Art Insurance, Uncategorized

Join us at Tribeca Art + Culture Night!

ArtInsuranceNow.com / Bernard Fleischer & Sons, Inc. is proud to be a sponsor of the TRIBECA ART + CULTURE NIGHT

As leaders in Fine-Art Insurance, we understand the importance of art and that not only should it be protected, but it should be experienced by the public. Cities gain cultural, social and economic value through art. It reflects and reveals our society, adds meaning to our cities and uniqueness in our communities.

It is free and open to the public. The event presents a program of events like a FESTIVAL, showcases venues/organizations like an ART FAIR, unlocks spaces to the public like an OPEN HOUSE, and offers art-walks to showcase exhibitions like an ART NIGHT.

It is also an ART MARATHON. Attendees can choose their own adventure mixing exhibitions with workshops, talks, demonstrations, and performances. In just 3 hours, from 6-9 PM, visitors join together to attend a curator-led tour, learn a new skill in a creative workshop, watch a live dance performance, and discover the unexpected in a contemporary gallery they may have never found otherwise. TAC Night is an adventurous playground showcasing artists, performers, curators, scientists, chefs, wellness experts, musician, designers, authors, thought leaders, and makers.

 

Uncategorized

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

 

 

Art Insurance

Will the Glasgow School of Art rise from the ashes again?

Mackintosh Building at The Glasgow School of ArtDesigned by Charles Rennie Mackintosh and fully completed in 1909, the Grade A-listed Mackintosh Building is one of the Glasgow’s most cherished architectural works, and one of the finest examples of Art Nouveau in the world. Before the recent fire broke out, the building was undergoing an extensive £35 million restoration following a previous fire in May 2014, in which 90% of the building and 70% of its contents were saved. The building was due to reopen sometime in 2019.

The restoration, which began in 2016, centered on the Mackintosh’s iconic library, using original wood species and historical documents. As part of the restoration, a fire suppression system was being installed which was reportedly weeks away from completion. In a cruel irony, large pumps needed for the water mist system had arrived at the construction site just one day before the fire.

After news that the art school would be rebuilt, recent drone footage and laser scans have revealed that parts of the facade have to be dismantled because they are unsafe, putting the future of the building in jeopardy.

The Mackintosh library at The Glasgow School of Art.
The Mackintosh designed library.
The Mackintosh library after the fire
The Mackintosh designed library after the second fire.

The school has produced many of Britain’s leading contemporary artists, including Douglas Gordon, Alison Watt, David Shrigley, along with three recent winners of the Turner Prize: Simon Starling, who won in 2005; Richard Wright, 2009; and Martin Boyce, 2011.

The building had attracted around 25,000 visitors each year before the 2014 blaze, with tours conducted by art school students. It is a tragedy that this storied institution has been devastated and we hope it will be returned to its former glory.

Mackintosh Building Gallery
Mackintosh Building Gallery
Mackintosh Building Furniture Gallery
Mackintosh Building Furniture Gallery

Worst case scenarios sometimes happen, and while insurance cannot always bring back what has been lost, It can help to restore what has been saved.

Call us at 800.921.1008 and visit ArtInsuranceNow.com to get an evaluation of your current policy or a free quote.

 

 

 

 

 

Uncategorized

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 Collector, Art Dealer, Art Gallery Insurance, Art Insurance, Artist Insurance, Artist Studio, Comtemporary Art Insurance

The Art Police

Detective Don Hrycyk , LAPD Art Theft Detail, shows a fake Jim Dine painting, left, and a fake Renoir painting “La Loge (also called Au Theatre)

If you believe Hollywood’s version, the average art thief has many gadgets, scales walls, and dances through laser beam alarm triggers to steal Rembrandts and Renoirs. But when Detective Don Hrycyk of the LAPD Art Theft Detail solves an art crime, the guilty party is usually a trusted friend or business associate of the victim, not Tom Cruise in a catsuit.

The problem isn’t always smart criminals, Many leave themselves vulnerable to opportunists, with state of the art alarm systems that are never turned on, treasures locked away in safes with the combination left in an unlocked drawer nearby. Detective Hrycyk has seen it all.

The Art Theft Detail was formed by the LAPD in 1983 in response to a rash of unsolved High-value art thefts. It was a smart decision as they have recovered $122,999,616 in artwork since 1993. It is the only law enforcement unit in the country dedicated to fighting art crimes full-time.

They investigate by publicizing thefts and staying in constant contact with local galleries, museums, auction houses, and collectors. They tackle everything from phony estate sales stocked with fake antiques to consignment fraud, home burglaries, art-related insurance scams, and occasionally dramatic heists.

Picasso’s 1937 drawing “Faune”, for example, was recovered back in 2001 after a man tried to sell his $100,000 “ugly painting” to Christie’s in Beverly Hills. An alert appraiser checked the LAPD website, saw the stolen work and called the police. Turns out the thief was a chauffeur who had broken into the house of his movie-producer boss.

Sometimes it isn’t a very happy ending though, sculptor Kewal Soni had a break in and lost a $10,000 sculpture that he worked on for a year. The burglar then took it to a metal recycling plant and sold it as scrap for a measly $9.10. Although later the thief was caught and convicted.

The importance of insuring your art cannot be overstated. Art is a passion for most and when you love something it’s natural to want to protect it. Allow us to help by providing easy to understand comprehensive insurance coverage for your artwork.

Already covered? Let us examine your current Artist’s, Collector’s, Dealer’s, Conservator’s, Gallery’s, or Museum’s policy. Maybe you’re overpaying, under protected or have the wrong coverages.

Our policies have diverse coverages to meet the specific requirements of the Art Community. We help clients select adequate coverage and to help mitigate potential exposures, we provide recommended loss control procedures.

 

 

 

 

 

Insuring Art, Art Gallery, Art Dealer, Artist and the Art world needs