Last week an artist emailed to ask about insuring work while in the studio, in galleries, in transit, at shows, and so on. I figured this would make a worthwhile blog post, so I’ll share what I know and do and ask everyone else to chime in.
In the studio: our home insurance is with Allstate, and I had talked specifically with them about insurance for paintings in our house. That conversation is lost in the dim mists of time, and I should probably revisit it, but I think we decided that no special rider was needed at that point, and that the general house coverage would do it. I’m not sure now that this is the right/best answer; however, I don’t generally have a lot of work here at any one time.
In transit: I used to use UPS for all my shipping needs, because it’s easy to pay extra for coverage of up to $5000 on a box (and I pack very carefully). However, I had some frustrating experiences with UPS in the last year - damage to frames on 3 different shipments within 3 months - and they gave me such a huge hassle and runaround on the frame replacement that I switched to FedEx. At least one of my galleries told me they’ve done the same thing for the same reasons. However, FedEx won’t insure past $500, so I have generally used them only for shipping smaller pieces.
I’ve recently needed to send several commissions to a collector in Canada, and used UPS for that because I felt it imperative to insure the pieces fully. Just ask me how fun it is to fill out paperwork for this (commercial invoice, NAFTA free trade forms, declarations of value, assignment of customs fees … all in triplicate). It took 45 minutes on the phone with UPS the first time to do it all correctly.
At galleries: any reputable gallery should have wall-to-wall fine art coverage. Be sure your gallery contract states this.
At shows: every exhibition with which I’ve dealt has insurance for the work while it’s there. The “Birds in Art” show even goes so far as to pay all shipping and insurance fees for the art as well; you just pack it up and put on the FedEx label they give you. Since I don’t do booth shows, though, I can’t speak to insurance at those types of events.
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May 5th, 2009 at 9:39 am
Thanks Julie for all the great info! It really helps starting artist like myself (who currently have no insurance on her paintings)
May 5th, 2009 at 10:33 am
I had a nice meeting with my insurance agent yesterday regarding this topic. My homeowners is through Allstate; my vehicles with State Farm. I spoke with both agents prior to my meeting. Allstate indicated that my paintings are only insured for $1,000 and the deductible applies to any loss. Also, should I be on the road or in transit, it is questionable whether the policy would cover the art as I am technically (”conducting business”). I have a program that keeps track of my art inventory - paintings, prints, notecards, etc. and when I ran the inventory report, I was astounded. At State Farm, I was enlightened much further when I applied for Business Liability Insurance with an Inland Marine - Fine Arts Dealer Floater.
This policy covers my office equipment, my display materials, art supplies, office supplies, etc, and also covers me in the event I am sued by someone who may be injured while at my home conducting business; while in my display (indoors or outdoors) or injured generally in the show and just sues everyone to find the deepest pocket. It also covers my home office equipment, supplies, my art supplies, etc. The INLAND MARINE - FINE ARTS FLOATER covers my actual artwork from damage or loss by theft, fire, accident, storm blows my tent over, water line break at the gallery, etc., whether it is at my home, in my car, in transit (i.e. in my car en route to a show - or being shipped via carrier), in a gallery, etc. The premium for the liability portion of the policy is a little over $250 - the premium for the floater is being determined. Several recent events - gallery destruction in Montana and storm destruction in Minnesota - raised my awareness level. What would I do if my art was destroyed? I would have nothing to sell for quite a while. Perish the thought of having to go back to being a secretary!
I would urge all artists who believe their homeowners insurance covers their art or them if they get sued, to contact their agent and PRESS them for answers. If you have a large inventory in your home - ask your agent if the work is covered at market value. What about your equipment, supplies, etc. Is it covered while in a gallery (does the gallery have ENOUGH coverage)? You might be surprised to hear the answers.
Even if you don’t get the liability insurance - it may be worth it to check into an INLAND MARINE policy with a FINE ARTS FLOATER to cover your work fully. While your agent may not know what that is, the underwriting department at your insurance company will.
May 5th, 2009 at 12:22 pm
Thank You Ladies for all the GREAT information!! I really need to check into this. If you don’t mind me asking what does it cost per year if you do the “Fine Art Floater”??
May 5th, 2009 at 2:58 pm
Angie - I don’t know yet - I will hopefully have a quote before Thursday when I leave for Wichita. My agent chuckled when she said “we should have a quote by Thursday, then you can decide how you want to pay for it.” I’m holding my breath! I believe the premium will be based on the value of the art (I’m just a no-name artist with some sales so my prices reflect that).
May 5th, 2009 at 5:09 pm
I carry “off premises” insurance along with my regular business policy with State Farm. It covers my “inventory and equipment” when I haul everything to a festival. My agent consulted with the underwriters, as I recall, and I was allowed to insure the paintings for their retail value without getting everything appraised.
I ship paintings to the juried shows in Air Float crates via Fed Ex Ground and then cross my fingers since I was told that without an appraisal I would only be reimbursed for the cost of the materials. I like the Fed Ex tracking system.
The little eBay paintings are wrapped in bubble wrap and mailed via the USPS as a flat rate envelope. They are all on canvasboard and unframed. About eight have gone out so far with no problems.
May 7th, 2009 at 8:56 am
Check the FedEx policy, they only pay $500 under certain circumstances, and it is very limited. UPS has always covered losses for us when we carry insurance, usually due to poor handling, (2 in 11 years) but I am sure we have all heard nighmares with shipping. We also use Freighters and Craters, with success especially for wood sculptures. Had a museum ship a large sculpture back with household goods as content, we were not happy with that.
We have in Inland Marine policy for shows $250 and a new Fine Dealers policy with State Farm, $100,000, for inventory…$1,320. per year. Expensive, but we are on the road most of the time. This policy can also be used for shipping insurance in the future and will most likely recoup some of this since we pass on shipping to the buyer.
We plan to check out other insurance providers this year and see if there are any other carriers with better rates, so if you find someone who is competitive let us know.
Debbie
May 8th, 2009 at 6:47 pm
I now have my quote for the Fine Art Dealer portion of my business Insurance - which came in much less expensive that I imagined. Since I don’t have as much “inventory” as Debbie - and am only on the road once or twice a month, my policy to cover my art was about 1/3 of what her’s was (also thru State Farm). Together, the liability and fine art was under $500, which was my target! Thankfully I can pay it monthly!
August 4th, 2009 at 8:33 pm
Honestly, this is new info for me. I don’t know anything about art insurance. I have heard of it but I don’t know how you go about it or how it actually works. Very helpful info.