Art is a complex concept, difficult to define, even harder to measure, but easily valued at high amounts. In this sense, artwork represents an investment, just as if you owned some stocks or bonds. As with any investment, you want to protect it. And that’s where insurance comes in.
When you buy insurance for your artwork, you’re protecting not only the value of your property, but also your peace of mind. In this article, we’ll explore the importance of insurance for art work, what types of coverage are available, and how to choose the right insurance policy for you.
Backlink is more important now than ever before because the art market is booming. Auction houses sold over $12 billion worth of art in 2020 alone. With great profits come higher risks, and the risks associated with owning art go far beyond accidental damage, theft, and natural disasters. In addition, the authentication process can be lengthy, complex, and expensive, and there’s always the possibility of discovering a forgery in your collection that can translate into huge losses.
By securing the right insurance policy, you’re not only protecting your investment, but also ensuring it can continue to appreciate in value.
Types of Insurance Coverage for Art Work
When it comes to insurance for art work, the main types of policies that come into play are transit, exhibition, and permanent collections insurance. Here is a rundown of each:
Transit Insurance
Artwork can easily get damaged during transportation, and that’s where Transit Insurance comes into play. As the name suggests, Transit Insurance covers an artwork from the moment it leaves your possession, during its transportation to the destination, and until its delivery or return to you.
Exhibition Insurance
Exhibition Insurance covers artwork while it’s on display, whether at an art fair, or a gallery exhibition. It typically covers loss or damage that occurs as a result of things like theft, natural disasters, and accidents.
Permanent Collections Insurance
Permanent Collections Insurance provide comprehensive coverage for art that is in a permanent collection, like a museum. This type of policy typically covers all causes of loss except war. When it comes to insuring museum collections, there are some additional considerations, like inadequate security, lighting, and temperature control.
How to Choose the Right Insurance Policy for Your Art Work
Initially, you need to determine the value of your artwork. Then, you should research multiple insurance companies, understand their policies, terms, and conditions, and compare their quotes. It can be tempting to choose the cheapest option, but the lowest price doesn’talways match the best coverage. You must ask questions to ensure that the chosen policy covers all the potential risks that you could face.
Here are some tips on what to consider when selecting an insurance policy for your art work:
Work with a specialized broker: Choose an insurance broker that specializes in art. This broker would understand the complexity of the industry, liability, and the nuances of art insurance.
Consider the policy’s exclusions: It’s essential to check the policy’s exclusions to know the situations that insurance wouldn’t cover your artwork. If you have any doubts, it’s best to seek clarification.
The policy limit: Ensure that the policy you choose has adequate coverage limits to cover the total value of your artwork. Some policies have maximum limits, which might be lower than the total worth of your art collection.
Deductibles: Deductible is the amount you must pay in case of a loss. Ensure that you understand the deductible amounts, and also the structure of deductibles for multiple artworks.
Conclusion
insurance for art work may seem like an unnecessary expense. However, it’s a crucial investment in protecting your financial investment and securing peace of mind. With a specialized insurance broker, you can find the best-fit policy for your art collection. A comprehensive policy guarantees that your art is protected from all potential risks, from transportations to exhibitions until it’s a permanent part of your collection.
When it comes to art, the adage that prevention is better than cure rings true. Invest in insurance for your art work today and avoid costly regrets.