Not all Art Dealer policies do. The reality is most art dealer insurance forms exclude or limit coverage important to your business operations.
Those policies either specifically exclude artwork on consignment, off premises, at exhibitions, and in transit. Fortunately ArtInsuranceNow.com | Bernard Fleischer & Sons Inc. offers coverage with policies designed specifically around the conditions of the Art Dealer.
Unlike typical Dealer Policies, ours are designed specifically to the unique circumstances around your business. We will work with you to help design a policy that fits your budget, exposures, and style.
Our services also include polices for Galleries, Private & Corporate Collections, Museums, Curators, and Artists.
If you have valuable artwork in your possession, you should speak with us about adequate coverage. Fine Art Coverage is unique in nature, we work with many Insurance Companies to help place broader, or special coverages to satisfy your requirements.
Recent news out of the insurance industry suggests rates are moving higher. This makes it a prime opportunity for us to review what you currently have and review your business exposures. Contact us today!
Call us at 800-921-1008 to discuss your particular situation or for a direct quote apply below.
Commissioned Princeton University Artist’s studio destroyed by firemen’s overspray. Did her Artist studio policy cover her? No! and this is why.
She never bought one. If she did, all of her artwork in racks, stands, files, and on walls, is covered. Her materials and tools are covered. Even the reference library is covered.
I feel for artists that see financial hardship when there is a loss similar to this.
For $1,000 per year, your art is covered up to $100,000, not just in the studio but also in transit, at exhibitions and in storage, everywhere worldwide.
Follow our link at the bottom of this article and purchase an Artist studio policy today.
Art studios give artists the space they need to create as well as a way to store their completed works of art and sell art from the studio. Due to the nature of the work in an art studio, art studio insurance is essential. Risk exposures such as natural disasters and unexpected events like fire, flood, earthquakes, and storms, can cause extreme damage to the building and contents. Protect these risks by obtaining an artist insurance policy offered by Art Insurance Now / Bernard Fleischer & Sons Inc.
Many artists neglect to insure their practice because they mistakenly believe they’re already covered by a homeowner or rental policy—which are strictly limited in coverage to assets that aren’t considered part of a business. (Sorry, but at least in this case, your art, if it’s for sale, is considered a business.) Sometimes, insurance riders—essentially add-ons to a general policy—can be purchased to cover works of art or business practices, but an insurance brokerage like Bernard Fleischer & Sons Inc. / ArtInsuranceNow.com concentrates in the more complicated policies that art insurance typically requires. Our agency is experienced at navigating provenance and the complicated methods for valuating works of art and a familiarity with insuring studios and art collections.
Other artists hesitate with insurance because they’re unsure at what point a work of art is technically finished—at what point it stops being a conglomerate of a couple hundred dollars’ worth of material, and starts becoming a valuable “piece.” Fortunately, in this case, the insurance industry is largely unconcerned with such philosophical questions. Generally speaking, insurance adjustors will use an artist’s past sales to determine valuation. If you sold a similar painting for $1,000 (and can provide legitimate documentation), expect a valuation of about $1,000, unless you’ve started working with precious metals.
Certainly, the most tragic losses in the event of a disaster are those of human life. Second to that, for many people in the arts, are cultural artifacts. Therefore, it’s important to insure our cultural legacy. Meanwhile, insurance companies can feel very far removed from the arts—with their talk of “assets”—and scare collectors, gallerists, and, yes, even artists, from maintaining proper insurance coverage.
We at Bernard Fleischer & Sons Inc. / ArtInsuranceNow.com speak the language of the arts as well as insurance and can bridge the gap between the art community and the insurance industry to protect the legacies of the collector, gallerist, museum and artist.
Visit us at www.ArtInsuranceNow.com to learn more or call us at 800-921-1008 to speak with someone who can help with your particular needs.
Affluent art collectors are passionate about art. While they tend to expect their acquisitions to appreciate in value, they buy for personal and aesthetic reasons. Affluent art collectors are inclined to be extremely focused on acquiring and not very interested in disposing of art. This often means that at death they have amassed significant collections. What is surprisingly common is that many affluent art collectors do a substandard job of addressing their artwork in their estate plans.
Failing to plan for the disposition of collections upon death can prove quite costly to the family, as there is the potential to having to pay higher estate taxes. It can result in the unfair division of the art resulting in family conflict and litigation.
“Art is left to loved ones or other individuals, donated to charity directly, or in trust at the death of the collector. Proper planning means that the artwork is transferred to others very tax efficiently,” explains Frank Seneco, president of the advanced planning boutique Seneco & Associates. “Unfortunately, many times wealthy collectors have adopted the default option of not properly planning. For example, the collector is not sure which family members to leave which pieces to resulting in procrastinating and procrastinating until it’s too late. However, smart planning can often resolve these issues. One approach involves using corporate entities to own the art. This approach can not only address many ownership issues, it can simplify probate as there would not be the need to retitle the art.”
When dealing with meaningful and valuable collections, proper planning is more than constructing an estate plan. According to Evan Jehle, partner of FFO Business Management & Family Office, “Many of the ultra-wealthy have substantial art collections that they have not appropriately included in their estate plans. But, it’s more than just making sure the artwork is addressed in the plan. For example, with our clients we make sure they build files of ownership to make sure no questions arise concerning provenance. These files include certificates of authenticity, bills of sale, insurance records, and the like. A good rule of thumb is that the greater the distance between the collector and the artist and the older the artwork, the more likely there will be questions of provenance.”
Many wealthy individuals from business owners to celebrities do not construct effective estate plans. This is also true of a percentage of affluent art collectors. As in all these situations, by working with qualified professionals, the prosperous are able to ensure their wealth is passed on to whom they choose and done so while mitigating taxes.
For one investor that dream came true. The painting ‘Salvator Mundi’ believed to be painted by Leonardo da Vinci purchased for £45 just sold for $450 million. So, is investing in art a good way to get rich quick? And how should you proceed? “with extreme caution” say financial advisors.
While stories like the recent Leonardo da Vinci sale and endless Antiques Roadshow episodes make it seem very attractive to invest in paintings and objets d’art, such cases are relatively rare. What you get back is based on supply and demand and there are big movements upwards or downwards if particular works or artists come in or out of fashion.
Attending a neighborhood garage sale or popping into a local thrift store can leave a lot to be desired. After sifting through dented furniture, chipped ceramics, and strange art, one is often left feeling that the presented merchandise is worthless. But if you are lucky enough, you may just find a diamond in the rough.
Some Top Garage Sale Finds:
$3 for a Ceramic Bowl, Sold at Auction for $2.2 million
Andy Warhol Sketch Purchased for $5, Valued at $2 Million
50 Cents for a Painting worth $10,000
Tiffany Mirror Purchased for $2, Valued at $25,000
The high sale price of the Leonardo painting was not typical, a recent academic study, based on examining data from 1.2 million auction house sales of paintings, drawings and prints, concluded that art appreciated in value by a modest 3.97% per year, in real US dollar terms, between 1957 and 2007.
Given the current environment of low interest rates, that’s still a better return than many savings accounts will give you. Paintings are seen as attractive investments because it’s very clear what you’re buying. Part of this is driven by investors’ desire for “real assets”.
Many investors lost money in the financial crisis by investing in products they did not understand, they are turning back to things such as art. Wealthy clients spend an increasing part of their wealth on art and collectibles.
You don’t necessarily have to be super-wealthy to invest in art.
The ArtInsuranceNow.com sponsored 2017 Spring Affordable Art Fair was an excellent example of great works of art that are accessible. There are a growing number of art fairs and online marketplaces such as Artfinder aimed at buyers with a more modest budget.
The Affordable Art Fair (AAF), which started out in London’s Battersea Park in 1999, now holds fairs in more than 10 cities around the world. But while it may be becoming more affordable, just don’t bet on becoming a millionaire yourself.
With a keen eye and a lot of luck you may come across a valuable find but most art industry experts suggest that you buy a piece of art because you like it, not because you want to get rich. “If it goes up in value that should be just an added bonus.”
Protect your valued finds by visiting us at ArtInsuranceNow.com, voted a 2017 Top Broker and listed as the “Cream of the crop” in our respective area of Art Insurance by Insurance Business Magazine. We can help with all Art related insurance requirements. Apply here or Contact William Fleischer CIC at 800.921.1008 to discuss your unique situation.
I must receive at least 20 calls a year asking if they can insure a mural painted on walls, inside, outside, on buildings, fences, and anywhere else you can think of. Street-level placement Murals will invite graffiti vandals to leave their mark. As a contracted job to produce the Mural, there is an insurable value from the start to the finish of the work.
Since usually these art installations are designed and planned in advance with the cooperation of the building owner, coverage can be found to cover the installation process; a claim is paid based on the percentage of completion.
There is a possibility Insurance may be obtained when the Mural is completed. This will depend on exactly where it has been placed and the safeguards. Regardless almost all insurers would exclude coverage for:
Vandalism and Mysterious Mischief
Wear and tear, any quality in the product which causes it to damage or destroy itself, gradual deterioration
Insects, vermin, or rodents
Changes in or extremes of dampness or dryness of atmosphere or temperature
I develop programs exclusively for the Art World, covering, Museums, Collectors, Curators, Gallerists, Artists, and related Art businesses. My policies include Art owned or loaned, in Storage, in Transit, at Auction Houses or Dealers.
I can help with all Art related insurance requirements. Visit us at ArtInsuranceNow.com to apply or Contact me at 800.921.1008 to discuss your unique situation.
There’s a big difference between buying art and collecting art. Buying art is more of a random activity based on likes, preferences or attractions at any given moment while collecting art is more of a purposeful, directed, long-term commitment. An important step in good collecting is not the most delightful one to talk about, but it is among the most necessary, and that is to plan for the unforeseen.
As an art insurance broker, I readily come across collections that are an intricate part of retirement and inheritance planning. It’s a great asset to pass down. Baby boomers bought artwork for the love of the art. Art as an investment vehicle was a small part of the decision-making, not like today which is the main focus.
In the past 15 years as the art market sales and demand took off, Art purchased 40, 30 or even 10 years ago is worth a lot. Hence, I am seeing collector’s policy limits rise into the millions. I will explain some key differences in the type of policy offered in today’s marketplace. Art Insurance and collectible insurance demands are a new focus with some insurers. Beware, like the art world, no two are the same, read the exclusions, conditions and valuation clauses in a policy.
Understand what schedule means and its limitations, some say the maximum they will pay is what is on the schedule or schedule plus 125% or 150% and then some added or market value whichever is less. A popular coverage is Blanket Insurance; usually, this is for the collection under $300,000. The advantage is that you are not required to supply the companies with appraisals, bill of sale or any other documentation when you bind the coverage.
Only at the time of loss, the onus of proof of value is on the collector. This is not a lengthy process; either go back to your paperwork and ask for a current valuation from a dealer or show your work to a dealer and put the value in a letter. Both methods of either scheduling the art or using the blanket limit are tools I use when working with my clients. Each person looks at insurance in different ways and has different requirements. Let me work with you and answer all your questions to present a program which is satisfactory to all those involved.
Visit us at ArtInsuranceNow.com, Apply below or Contact me at 800.921.1008 to discuss your unique situation.
Renowned Mugrabi family which owns the largest private cache of Andy Warhol pieces says its business has been brought to a standstill by a company that’s holding its entire $100 Million, 1,300-plus-piece art collection “hostage” at a New Jersey storage facility.
In a lawsuit filed in New York City, David Mugrabi accused Mana Contemporary of preventing the family from removing any art from its storage facility in Jersey City since last month.
Mana Contemporary had agreed in 2014 to store the collection in exchange for the Mugrabis’ recommendations of Mana’s services to their clients, Mana now wants more than $500,000 for storage fees, according to the complaint, and the company has also damaged 11 works of art in its custody — including pieces by Frank Gehry, Richard Prince and Jenny Saville, according to the suit.
Would our Collector’s policy cover the damages?
YES! Our Collector’s policy covers Art owned by the Collector and covers damages while in storage. The main focus would be the loss settlement. Restorers and appraisers would evaluate the work to determine the “Current Market Value”, the “Loss of Value”, and the value of the art if scheduled. Once all information is established, then the insurance company would pay the claim.
A Total Loss: the company will pay “current market value” of the property at the time of “loss” or damage occurs. The “loss” or damage shall be ascertained or estimated according to such current market or schedule values.
A Partial Loss: The company will pay the Collector an amount mutually agreed upon based on the following:
(a) The cost to repair the property to its value immediately before the “loss”; or
(b) The difference between the value of the property before and after the “loss”; or
(c) The cost to restore the property as nearly as possible to its condition immediately before the “loss”. If the restored value is less than the value immediately before the “loss”, the company will pay the difference between the restored value and the value immediately before the “loss”.
Having the right policy in place with the right coverages help to rebuild and or restore amazing collections. The purpose of Insurance is to indemnify and restore the Insured to the situation prior to a loss. Sadly, Art is one of those objects which is very difficult to return to its original grandeur. Nothing lasts forever, but one would hope, through proper insuring of a collection, it could be rebuilt with similar works or genres.
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
Napa Valley is typically a peaceful, relaxing place but not for Glass artist Clifford Rainey who lost his home, his studio and most of his work in the Atlas wildfire. The wildfires Fueled by powerful winds have scorched more than 200,000 acres including the beautiful homes of artists and collectors.
On Friday morning, Oct. 13, as Rainey surveyed the damage for the first time after his Mount George home and studio burned, said “Every single piece of artwork I own I’ve had since college was lost”.
Rainey’s life’s work is far from all lost. His work has exhibited extensively, featured in numerous public collections, including the Victoria and Albert Museum in London, the Corning Museum of Glass in Corning, New York, the M. H. de Young Memorial Museum in San Francisco, and the Los Angeles County Museum of Art, as well as in the permanent collections of the Museum of Arts & Design, New York, Museum of Fine Arts, Boston, the Irish Museum of Modern Art, Dublin, and the Montreal Museum of Fine Arts.
The emotional value cannot be replaced but having an artist’s policy to cover financial losses prevents having to start from zero. Our Artist Insurance Policy is designed for the active Artist. Your Art is covered while in the Studio, in Transit, while at Exhibitions and when in storage along with Your Materials, tools and reference library. No more worrying about, Theft, Fire, Water Damage or Vandalism. These coverages and more are covered in our Artist Insurance Policies.
For more information or to discuss your particular situation contact me, William G. Fleischer CIC | Principal. T: 212 566-1881 ext.111 or visit us at www.artinsurancenow.com to fill out a quick EZ application for a fast, free quote.
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