This is the time many Galleries, Dealers, and Artists move inventory away from their premises to many different art fairs. Over the last few years art policies have changed, when was the last time you checked to see if you have the right coverage at the right cost?
Preparing for an art show/fair creates additional perils, which we address below;
- Transit for Dealers, Artists and Collectors: Make sure your policy covers the art while in transit by truck, airplane and boat. There are some policies in which you must notify your Insurance carrier when shipping or attending any art fairs. There are better policies that have these automatically built-in at no additional cost.
- Beware of transporters selling you insurance coverage: Many motor truck cargo policies or inland marine policies from truckers exclude art or when included, there are limitations like the maximum they will pay per complete conveyance, meaning all of the items including other people’s property, so there may not be enough limit to pay you in case something happens.
- Another limitation is the cause of damage, exclusions of car, train, and plane accidents.
- Valuation variants: Many of these policies will be based on the price not at current retail value but on what you paid for the item or net consignment.
- Partial Damage: Many transport company’s insurance policies require you to use specific restorers or conservators without the option of declaring the art a total loss.
- No payment for devaluation of damaged art.
- Valuation is based on weight not value. Check the bill of lading before you sign anything.
- Packing and crating issues: The companies have this condition in almost 90% of the policies. As long as the art is packed in a manner that other dealers would have packed, you are in the clear.
- Payment: Most transporter insurance polices will pay the transporter who will then pay you. But they can deduct storage, transport and other expenses from the money received from the loss. These polices are in the transporter’s name not yours, hence checks are made out to the transporter not you, unless you are a “loss payee” under their policy.
Be sure to buy the right coverage so you can focus on selling your art.
Call us at 800.921.1008 or visit ArtInsuranceNow.com and live chat with a professional to answer any questions you may have regarding your particular situation.