Tag Archives: •Private Collectors and Corporate Collections

Art Insurance: Insuring Your Art

Abridged, originally published on Art Business.com

“The Scream” and “Madonna,” two major paintings by famous Norwegian artist Edvard Munch, were stolen several years ago from the Munch Museum in Norway by armed robbers in broad daylight. The significance of the art theft is notable, but what’s really shocking is that the art was not insured against theft (although it was insured for fire and water damage, for restoration costs that would be incurred to repair the paintings if they were damaged). According to a BBC news story, John Oyaas, managing director of the museum’s insurers, said of the paintings, “They are not replaceable so you can’t buy ‘The Scream’ on the street and put a copy up there. The focus is on other issues than insuring them. To a certain extent, this is common practice because these items aren’t replaceable.”

Now let’s take a close look at that statement. Oyass appears to be saying that the paintings are so valuable that they’re not worth insuring, or put another way, since the paintings are not replaceable, insuring them is a waste of money. This thinking makes absolutely no sense. The museum should have had theft insurance (assuming that’s permissible in Norway); all museums should have theft insurance, as should all art galleries and private collections. Whether or not a work of art is “replaceable” is not the issue. The issue is getting compensated if the art is stolen. What’s better– a stolen painting and a $5 million insurance settlement or a stolen painting and a $0 insurance settlement?

“But theft insurance is way too expensive.”

(not true, Call me 800-921-1008)

Yes, the cost of insuring a museum’s entire collection is prohibitive, but thieves don’t normally steal the entire collection. They only steal part of it, and usually a pretty small part. So insure only a part of it. Theft insurance covers “incidents,” not specific works of art, unless the insured specifies individual coverage for specific works of art in the policy. In other words, if you purchase theft insurance, you’re insured for the coverage amount no matter what gets stolen. You may not recoup the entire amount of the loss, but at least you’ll have something.

“But insuring even our few most valuable paintings is still too expensive.” Not true again, we represent AXA, Chubb, Chartis, Markel, Travelers, each one approaches the total risk cost differently)

So that’s a rationale for not insuring anything? How about this idea– pay for as much insurance as you can afford, maybe $1,000,000, maybe $10,000,000? That way, if art gets stolen, at least you have enough money to hire top quality private investigators to try and recover it, get publicity for the theft, or perhaps even pay a ransom. Or use the money to buy a state-of-the-art security system for your museum (or gallery or private collection) so that theft doesn’t happen again. Forget about whether or not art is replaceable or unique or iconic; receiving compensation for a theft is what counts, and using that compensation to either recover the art, offset the loss in revenues that may result from the art being stolen, or make life more difficult for people who steal art, so difficult, hopefully, that many will stop stealing it.

Insurance tips for anyone, public or private, who owns expensive art:

* Photograph and document your collection or at least the most valuable works in your collection. Include current appraisals, original sales receipts, and any additional paperwork that speaks directly to the value of your art.

* Buy as much insurance as you can comfortably afford, whether or not that amount covers the entire value of your art. Most loss, damage, or theft affects only a portion of a collection, not the entire collection. To repeat– receiving some compensation is better than receiving no compensation at all.

* Make sure you understand your insurance policy. This means reading the fine print and asking every question about every conceivable loss or damage situation that you can think of. You don’t want to find out after a loss that you were not covered for that specific type of loss. For example, I once had a computer stolen while in transit from one destination to another. I contacted my insurance company to report the loss. They told me the computer was not covered. I asked what the additional cost would have been to cover the computer. They told me the annual increase in premium to cover $5000 worth of electronic office equipment was about $10! Had I known this when I purchased the policy, I would, of course, have added it on– and did add it on the instant I found out.

* Theft/damage insurance for art, added to your home insurance, generally costs $1-$2 annually per $1000 of coverage (less if you have a good security system in place). (we represent) Several insurance companies specialize in covering art and antiques exclusively. Coverage details can be discussed and/or negotiated with your insurance company,( better rely on your broker, who understands the difference in conditions and forms).

There’s no excuse for not insuring an art collection. If you can afford the art, you can afford the insurance. And remember– you don’t have to insure for every last penny of value in your collection. Loss or damage rarely affects an entire collection, and you’ll find that in the large majority of cases, even partial coverage will reimburse you for a substantial percentage of the dollar amount involved in most occurrences

Iconic Muhammad Ali print stolen from museum.

The Print, which was stolen while the museum was open to the public depicted Ali in a classic boxing pose painted in the brilliantly colored, expressionist style that LeRoy Neiman was known for. Brazen thieves ripped the print from the wall even with security cameras watching, It’s important to understand the value of art insurance and protect yourself by covering your valuable collection.

Although risk extends beyond theft (47 percent of art loss is attributed to damage during transit according to The New York Times) art trafficking is a very real thing and according to statistics ranks third behind drugs and arms.

In a case of  theft, the loss is irreversible. Not only the artwork is irreplaceable itself but also even the reputation of the organization suffers from a mere fact that such situation has occurred. Without having a comprehensive fine art collectors insurance from a trustworthy art insurance broker, the masterpieces are subjected to risk.

Apply for coverage here or call me if you have any questions or to discuss your options.

William G. Fleischer CIC | Principal
T: 212 566-1881 ext.111
E: wfleischer@bfbond.com
W: ArtInsuranceNow.com

 

 

David Bowie’s Art Collection to be auctioned, how would a collectors policy respond?

Not just David Bowie’s Estate sends work to the art auctions but individual collectors do also.

The most popular conversations I have are collectors looking to insure their work while in transit to an auction house like Christie’s, Sotheby’s, de Pury, and Phillips house.

Many times the auction house will either visit the collection or ask the collector to send the item to be auctioned directly to the house, either to be further evaluated or to be inserted into the auction rotation.

The preferred Collector’s insurance policy I like to sell, include and is not limited to coverage in transit and away from premises, in exhibitions and in storage and does not exclude auction houses.

The evaluation of the Art is based on two different models. Depending on the Art Insurance Company policy wording, One base is on the schedule amounts of the item on file (either with the Insurance company or the Collector) and the other is based on the current market value (onus of proof is on the collector).

In the case of David Bowie, Jim Hendrix or even Robin Williams, the auction house receives these items on consignment and will charge a hefty fee to insure them while on the premises.  I advise my clients to not use auction house insurance because most of the policies I sell have coverage for unnamed locations or broad enough to cover the works given for sale on a stated amount.

One of the downfalls of using the insurance, the auction houses give you, is how their insurance establishes values of the art at claim time.  Usually, it is not based on the artwork consignment agreement but on the lowest estimated value. The cost to you for using their insurance is usually much more expensive than what you are currently paying. The standard auction house’s most common policies have wording to the effect of;

Property of others consigned to you for auction, at the lowest pre-sale estimate” and “Where no consignment receipt exists but the article appears on your records fully described, such property shall be valued at the lowest anticipated pre-sale estimate or the amount for which you are held legally liable, whichever is less”

This may be lower than your schedule or market value to entice attention for a bidding war.

When in doubt, call me to discuss your unique situation.

William

William G. Fleischer CIC | Principal
T: 212 566-1881 ext.111
E: wfleischer@bfbond.com
W: ArtInsuranceNow.com

 

Art and Antiques Specialist Risk Management Advice

Because I am always receiving all sorts of art related information I have decided to share some excerpts.

This is from a Zurich informational flyer.  Its a helpful flyer breaking down various aspect’s, like:

Understand how to Assess the risk, climate control for fine arts and Antiques,  placement of rugs and carpets away from fireplaces. The flyer gets into special care for paintings, moving art, security advice and professional valuations and photographs.   it’s worth a quick read.

Click here for an application to insure your Art and antiques.

William G. Fleischer, CIC

President

29 Broadway, Suite 1511

New York NY 10006

212 566-1881 ext. 111

Email: wfleischer@bfbond.com

www.ArtInsuranceNow.com

How to Insure Prehistoric Art properly.

Prehistoric Art is Art from Ancient Near East, Ancient Egyptian, Greek, Roman, Islamic Art, etc was created on many different types of Median, Ceramic, Gold, Silver, Tapestry, Bronze, wood, stone. etc. over the years these work of art have become scarce, fragile and valuable.

I am insuring a dealer in Indian Art who specializes in Prehistoric Art.  He reminded me that Long Island in NY had one of the largest concentrations of Arrowheads.

Addressing the Insurance coverage for those Art items which you care for, I have a very special understanding of the risk of damage, theft while in the home or in a Exhibitions.

Art Insurance policies are not all the same. Some are written through LLOYD S of London, AXA Art, Travelers Insurance Company to name a few players.  The Art Insurance company will include Transit by Sea, Air & Land. Coverage is usually extended to a Storage facility or the final destination.

To have these items insured, the underwriters in most cases will require a condition report if in long-term storage or if newly purchased, a bill of sale or appraisal.
Visit ArtinsuranceNow.com to complete the Collectors application to cover your prehistoric, Modern and contemporary art.

William

art insuranceart insurance  art insurance

 

APPLICATIONS:

Art Dealers
Artist Transit/Exhibition/Studio Insurance New Program
Auctioneers
Conservators/Restorers
Corporate Collections
Personal Collections
Exhibitions
Museum Collections
Business Owners Liability

What is Conversion exclusion in a fine art, Antique, Jewelry policy

The Story;

A collector or Museum consigns a work to a dealer to sell.  The dealer does his job and sells the work, but does not pay the Collector or Museum.  This is now considered a loss of property and if your current policy does not address this type of loss you may not have coverage.

Now if the consignment date has expired and the dealer is not willing to return the work, in many incidences this would be classified as theft and be covered by your fine arts policy.

For more information on Conversion Exclusion call us at 1.800.921.1008, visit our website at www.ArtInsuranceNow.com or fill out one of the applications below for a fast and easy quote.

APPLICATIONS:

Art Dealers
Artist Transit/Exhibition/Studio Insurance
Auctioneers
Conservators/Restorers
Personal Collections
Exhibitions
Museum Collections
Business Owners Liability

What AXA Says about Insurance

ain-axa
AXA is a worldwide leader in financial protection strategies and wealth management

 

Fine Art and Collectibles Coverage
(applications: www.ArtInsuranceNow.com)

We understand the collector’s passion and desire for expert service, responsiveness, and absolute confidentiality. We cater to those needs while writing policies that are as individualistic as the collectors themselves. Because we understand the risks involved far better than a non-specialist insurer, we can generally provide important benefits. For example, we can often be flexible in our rating for certain large collections based on one probable maximum loss, providing the insured with sufficient coverage yet at significant cost savings over less sensitive plans. Our underwriters are highly qualified fine art and collectibles professionals who will understand a collector’s needs and the many insurance options open to them. They will make the task of providing the right coverage easy for you and simple for your client.

Personal Jewelry Coverage
(applications: www.ArtInsuranceNow.com)

Few people have to think twice about insuring valuable jewelry. But doing so with a firm renowned as the world leader in art insurance might seem unnecessary. Why not a rider on a standard homeowners policy? At AXA Art, we understand that jewelry is an art form. Whether artist—designed, antique, fine or costume, jewelry has three kinds of value: financial, which we can insure; cultural, which we can help you preserve; and value to you, which is everything. In addition to a wide and flexible range of Personal Jewelry policies, we offer conservation advisory and services to help you keep your pieces precious.

Rare Books Coverage
(applications: www.ArtInsuranceNow.com)

Books, said Thoreau, are carriers of civilization. Rare volumes also give intense pleasure — and can fetch high prices. A rare book is a complex object with conflicting needs. Made of paper, glue, textiles, leathers, adhesives, inks and perhaps other materials, it requires informed handling, proper care, and a protective environment. The experts at AXA Art can provide bibliophiles with comprehensive insurance and a complete range of conservation and other services needed to help preserve a book’s value and the enlightenment it contains.

Antique Weapons Coverage
(applications: www.ArtInsuranceNow.com)

Many antique weapons — those at least 40 years old — are products of exquisite craftsmanship or technical wizardry, mark an important technological advance, or are famous as a result of an owner. Theodore Roosevelt’s African Safari rifle, for example, sold for $550,000 at auction in 1994. An antique weapon may seem durable. After all, unless strictly ceremonial, it was made to serve in the field. But a startling variety of accidents and deterioration have befallen antique weapons, and restoration — when possible — can be costly. AXA Art specializes in affordable protection for antique weapons against loss and damage, and in providing collectors with a complete range of support services, from appraisal through conservation, shipping, handling, and exhibition.

Vintage Wine Coverage
(applications: www.ArtInsuranceNow.com)

Wine differs from other collectibles in that its eventual purpose is to be consumed. Proper care and handling can ensure wine’s drinkability and help retain its value. The best protection is a storage facility with stable temperature and humidity control, accompanied by a Vintage Wine policy, so your wine can mature and mount in value with security. AXA Art believes in covering not only your vintage wine collection against accidental loss or damage but also the means to controlling its environment: our insurance can include wine containers, storage units, climate control systems, wine cellar furnishings and accessories.

Vintage Vehicles Coverage
(applications: www.ArtInsuranceNow.com)

Classic and antique vehicles have caught on the last two decades and those of great marques — Bugatti, Hispano Suiza, Rolls—Royce, Duesenberg — have been excellent investments. The same is true for certain beloved production models. And what collectible can be driven at highway speed? This is precisely why a rare automobile requires insurance from a specialist. We offer Vintage Vehicles policies against accidental loss or damage to antique vehicles at least 25 years of age, classic vehicles of unique or rare design, and most limited production models. We understand the passion collectors have for their cars and tailor our policies to their needs, including insuring as a matter, of course, a trailer used to transport a vehicle to a meet, concourse or show.

Rare Stamps and Coin Coverage
(applications: www.ArtInsuranceNow.com)

Philately and numismatics are deeply rewarding areas of collecting, with at least one thing in common: Many collectors in each field are underinsured. One reason: The fulfillment of finding and owning a rare stamp or coin seems far above pedestrian finance or security. At AXA Art, we understand both the compulsion to possess something rare and the necessity of securing one’s investment of time, effort and money in both senses: financial and conservatorial. As the world leader in art insurance, count on us to understand the nuances of a focused collection and a collector’s many needs, including secure and protected travel, the value of a personal reference library and a controlled environment. You’ll find that we embrace them.

Emerging Collectibles Insurance
(applications: www.ArtInsuranceNow.com)

The major areas of collecting were once thought fixed and unvarying. Then the second half of the 20th century occurred. Today thanks to durable glamour, historical necessity, potent nostalgia, or simply keen interest, many classes of objects from couture to cooking utensils, rock guitars to tin cars, have acquired value and an active market fed by dealers, curators, collectors — and AXA Art. As the world leader in art object coverage and related services, we are quick to understand the value of rare objects. We are familiar with the collector’s reluctance to divert funds that could be used for purchases, the complexities of risk, and the need to provide proper conservation. As a result, our collectibles insurance is surprisingly cost-effective.

Exhibition Coverage
(applications: www.ArtInsuranceNow.com)

As the world’s leading fine arts and collectibles insurer, we thoroughly understand the many complex and delicate issues involved in exhibiting, borrowing, handling and shipping fine art. Our coverage is genuinely worldwide and as flexible as you wish. It is generally wall to wall — that is, starting when it is removed from its place of residence until it is returned — and covers just about everything in between but government seizure or nuclear hazard. Because we understand the risks involved, we can provide virtually any type of coverage imaginable — at extremely competitive rates.

Museum Coverage
(applications: www.ArtInsuranceNow.com)

We are insurance and art professionals and we understand the many complex and delicate issues involved in exhibiting, conserving, and handling and shipping fine art, including objects from a museum’s collection as well as objects on loan. We are a large-capacity insurer and our underwriters understand that museums have to contend with large volume and small budgets. We are renowned to be creative and flexible to accommodate those we insure. Working as a team, our underwriters share their expertise to bring forth the very best solutions for comprehensive policies — and most of all achieve important cost-efficiencies for the institutions as well.

Corporate Fine Art Coverage
(applications: www.ArtInsuranceNow.com)

We are experts in the insurance of fine art and collectibles and we appreciate the numerous benefits of a corporate collection to a company’s well-being and corporate culture. You will find that we thoroughly understand the many complex and delicate issues involved in handling a large collection. In addition to broad, worldwide coverage we offer automatic coverage on newly acquired objects of up to 25 percent of the total policy limit with a 90 day-reporting obligation. Our coverage is extremely flexible — we welcome small and large collections and tailor our terms and conditions to fit the needs of those we insure. For example, we cover a collection’s works of art whether on corporate premises or in private homes.

Fine Art Dealer Coverage

Our focus on fine art and collectibles allows us to better serve the specific needs of those we insure. Our underwriters follow collecting trends and fluctuations in the art market. They understand that galleries are in the business of installing and de-installing shows at short notice. We are usually able to bind coverage on both large and small risks over the telephone. Because we share a collector’s interest in and passion for fine art and collectibles and understand the risks involved, we can provide virtually any type of coverage imaginable — at extremely affordable rates.

Historic Property Program
(applications: www.ArtInsuranceNow.com)

We are pleased to offer a special insurance program designed specifically for Historic Properties. Many Historic Properties are themselves works of art. As such, they are expressions of a life-ethic, a bygone era that inspires artists still today. Prime examples of these structures demonstrate the artistic flair of the men and women who designed them, built them, furnished them and lived in them.

The descriptions of policy provisions in this web site provide a broad overview of coverages only. All coverages are subject to conditions, coverage limits, limits of liability, limitations, and exclusions as contained in the policy. See the policy itself for an exact description of the coverage provided. AXA Art is licensed to write insurance in every jurisdiction in the U.S. with the exception of with the exception of American Samoa, Guam, Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands.

(applications: www.ArtInsuranceNow.com)

Art Collection Insurance

Art Collection Insurance

Consultation for fine art, collectibles and personal property management.

Bernard Fleischer & Sons have developed a unique, valuable service for collectors, other high net worth individuals and families. We review with you or your Art Consultant, Curator, or Family member alternative coverage options. We can introduce ways to help assure that your insurance coverage is always up to date and as responsive as possible. William Fleischer, CIC is a highly knowledgeable and experienced professional. His New York-based network has access to appraisers, trust, and estate advisors, dealers, and attorneys.

Our focus is on individual, family and corporate needs. Our client confidentiality is very important to a long-term relationship.
As one of New York’s oldest brokerage firms, we work with the best Insurance companies in the business.

Let us protect you and help design the appropriate protection for your collectibles:

•Fine art and antiques
•Musical instruments
•Rare books
•Jewelry
•Photographs
•Sculpture
•Art glass
•Porcelains
•Stamps
•Antique silver
•Auction Houses
•Dealers
•Exhibitions
•Fine Art Packers and Shippers
•Galleries
•Museums
•Private Collectors and Corporate Collections
•Stately Homes
•University libraries and collections
•Vintage Cars

Art Insurance Now, AXA, Chubb, Chartis, Markel, and Travelers all have a history of working with:
auction house experts, dealers, trust and estate advisors & attorneys.
affiliate-logo-layout-1Their referral lists can help you in:

  • Obtaining specialized appraisers
  • Inventory management systems and cataloging
  • Specialized shippers, warehouses, restorers
  • Working with galleries and auction houses

For more information and to fill out an application for a fast free quote visit us at www.ArtInsuranceNow.com or call 1.800.921.1008