How To Keep Art Safe With Art Gallery Insurance?

Art is subjective; something that may be ugly to one may be beautiful to another. Some art pieces look like paint splatter but show emotions through the work. Although sometimes ‘art’ can seem absurd, can you believe a banana taped to the wall sold for US $120,000? However, art has no limits, and some artists spend days creating unique pieces. It is truly a fantastic industry full of talented individuals and businesses. In the art industry, the artists are responsible for creating art pieces, and a business (exhibition) is responsible for revealing them to the public.

However, exhibiting art comes with its own risks. These risks include unforeseen damage, loss, theft and more that could occur at any point. Art can be fragile, and exhibitions/auctions can be unpredictable. One of these risks could destroy the artist’s hopes and efforts.

Thankfully, there is a specific insurance policy for the art industry. We wouldn’t typically link art and insurance, but art gallery insurance is critical for artists and exhibition businesses. The insurance helps reduce and recover from unpredictable risks. This article will explain the common risks the insurance covers and why.

What is Art Gallery Insurance?

Art gallery insurance is among the most popular types of insurance in the industry. It is designed for recognised artists and exhibition businesses. The insurance can help art galleries and artists obtain the best protection needed to ensure complete stock protection, no matter what happens.

Art gallery insurance provides comprehensive coverage from the point the art collection has left the owner (artist or seller) to the point it’s been sold or returned. Therefore, the cover includes when the art is in transit, in the gallery and in transit to another location.

Many things could go wrong with art transportation and exhibitions, and fixing them can cost thousands to millions of dollars.

 Art Gallery Insurance Cover

On-Site Damage

Being an art gallery business is stressful. The company is responsible for all the art on its property. Therefore, they must be cautious about storing, handling, and exhibiting the art. Some risks include sudden fires, floods, handling accidents and more. The riskiest times are when the public views the art– not everyone will read the ‘Do not touch’. A slightly heavy touch can ruin the art and cost the exhibition thousands to renovate.

An example of on-site damage is when an artist took three days to delicately arrange US$15,000 worth of Legos, which was destroyed by a five-year-old in a few seconds. Unfortunately, the child pushed it over accidently, even though there was a barrier to the public. In such cases, the gallery will be liable to pay hefty compensation to the artist, even if it was not their fault. Additionally, artists may lose profits from the damaged artwork and be unable to reuse it in other exhibitions.

In such situations, art gallery insurance is the perfect asset. It will cover any on-site damage, no matter how it occurs. Gallery insurance will also cover the restoration and compensation costs to the policyholder. Additionally, it will provide a loss settlement fund if the art is beyond repair. Finally, it is the perfect insurance as the business can’t always control such accidents.

Loss At Any Point  

There is always a chance that an art piece will be lost during transit or misplaced. Loss of art can include the entire piece or a component. Even if an element goes missing, it can change the look and expression. Unfortunately, parts can be lost when a gallery deals with 50-plus pieces. The company has to report it, but the art may not be found. Some pieces have become famous because no one knows where they are.

A multi-component sculpture transported by truck may suffer a detached component due to bumpy roads. If unnoticed by the off-loader and later disposed of by the driver, the art loses its original value.

Loss of art is complicated, and investigations will be conducted to ensure it is not a fraud. After experts have completed the investigation, art gallery insurance will help the gallery or artist move forward. If possible, the insurance will cover the cost of re-creating the component. If that is not possible and the art has lost value, the insurance will cover the lost value cost and settlements.

In-Transit Damage

Art is vulnerable to damage, whether stationary or in transit. Collections in galleries, museums, auctions, or buyers’ locations often move, and the risk of damage is high if not handled carefully. One sharp turn or slip can ruin an art piece.

For example, in 2002, the famous Rembrandt’s “Portrait of an Elderly Woman” was accidently slashed when dropped on the route from Moscow to Houston. If a high-value painting, like the example, is a victim of a travel accident, it could happen to any piece of art. An accident like this can cause the business significant financial loss and embarrassment.

According to experts, around 60 % of art damage insurance claims are due to transportation. Art gallery insurance is the perfect cover in such situations, covering the renovation and loss settlement similar to on-site damage. No matter the duration of transportation, an accident can occur at any point; artists and galleries should be prepared with insurance.

Stollen Art

Art robberies occur worldwide, with some paintings disappearing forever. While new technology has reduced art crimes, they still occasionally happen, especially in small galleries. Art criminals are mysterious; they might only steal a part of a piece, like the gold from a sculpture.

For example, the most recent big art case occurred in 2020. A well-known painting, Frans Hals’ ‘Two Laughing Boys with a Mug of Beer’, was stolen from the Hofje Van Aerden museum in the Netherlands and has not yet been recovered.

In criminal cases like these, insurance companies work with the police and investigate professionally to solve the crime. The investigators will do their best to find the criminal and the stolen art. If the experts cannot recover the art, the insurance company will reimburse the policyholder for the cost of the art and loss settlement costs. Theft may be rare now, but it’s better to be ready with art gallery insurance in such situations.

Restoration – Expert Connections 

After an art piece is damaged, it needs to be restored by experts as soon as possible. Restoration is a crucial step that can save or destroy art. Therefore, the art gallery must find the best restoration expert to restore it to its best value. One wrong brush stroke can ruin a costly art piece, and there is no redo after that.

One of the best examples of a restoration disaster is the ‘Ecce Homo’, a 19th-century fresco by the Spanish painter Elias Garcia Martinez. The painting was beautiful, and the owner trusted an armature restorer, who ruined the painting beyond recognition. The outcome was a disaster in the art industry and embarrassing.

With art gallery insurance, art galleries can avoid an incident like this. The insurance provides the policyholder with a connection to a range of experts. These experts are known for their restoration quality and will guarantee a good outcome. So you can stop the mistake with art gallery insurance before it happens.

Why Does Every Art Business Need Art Gallery Insurance?

It offers various benefits to artists and exhibition businesses in the art industry, making it a must-have insurance when dealing with multiple art pieces.

The insurance provides financial protection and peace of mind, making it perfect for handling such situations and keeping the art alive. Additionally, art is not just a painting or a sculpture—it could also be a classic car collection, historical books, and more. Insurance allows the exhibition or owner to protect their art from risks.

Art gallery insurance can be the ideal solution for any challenging situation in an art gallery or exhibition.

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To Learn More about Art Gallery Insurance and get the best coverage for art collections, contact Red Asia Insurance.