INSURANCE FOR ARTISTS

Frances Fogel MAMarketing & Growth Consultant

In-house Art Historian

Working as an artist or photographer – in a studio or on the road – comes with a combination of possibilities and risks that are difficult to predict and prevent…

WHAT DO YOU NEED TO INSURE?

• Your “STOCK” - works of art, collectables• Equipment and Materials• Photographic Equipment• Computer Equipment• Personal / Business Property and Buildings• YOUR BUSINESS ITSELF!

What IS Art??...“Anything with a market value or which can be bought or sold at auction”

Paintings Works on paper

Limited edition printsPhotography

Antique or collectible furniture or lightingArms and armour

Books, manuscripts and mapsValuable fossils or minerals

MemorabiliaValuable rugs or carpets

TapestriesSculptures, statues or figurines

Textiles or costumesAntique Jewellery

Clocks and WatchesAntique Dolls

WHAT YOU SHOULD INSURE AGAINST

• Accidental Loss or Damage• Theft• Damage in Transit• Business Interruption• Loss of Money and Personal Assault• Public and Products Liabilities• Employers Liability• Professional Indemnity• Deterioration of Film Stock (in cooling cabinets)• Unwitting handling of Stolen Property• X Ray Scanning (damage to unprocessed film)• Theft from unattended vehicles• Professional Indemnity• Loss of Documents

ADDITIONAL INSURABLE RISKSProduct / Public Liability Insurance provides cover in relation to:• Your legal liability to others for damage that you cause to their property and for

injuries that you may cause• Legal costs and expenses in defending any criminal proceedings brought for a

breach of the Health and Safety at Work Act)• Consumer Protection Act and Food Safety Act defence costs• Defective Premises Act • Overseas Personal Liability • Data Protection Act

Employers Liability Insurance provides cover in relation to:• Your compulsory insurance coverage to protect your legal liability to you employees

in case of injury, death or damage to their property whilst working for you• Legal costs and expenses in defending any criminal proceedings brought for a

breach of the Health and Safety at Work Act

Conditions of Insurance – Your Responsibilities

• Equipment Maintenance

– Insurance is likely not to cover breakdown

• Security:– Specified (locking) requirements for final exit door, other external doors and final exit doors

and/or maintained in accordance with manufacturers recommendations

– if sums insured get high e.g. above £75,000 (and depending on the area) an alarm may be required which will need to be annually maintained/monitored by an approved alarm installer and where necessary linked to the police.

• Stock needs to be:– personally accompanied in transit by known persons– Recorded, these records maintained

WHAT CANNOT BE INSURED

I.E. WHAT NEEDS PARTICULAR CARE AND ATTENTION FROM YOU!

• Stock– fraud or dishonesty– wear and tear / inherent vice– loss (unless certain security requirements met) from

• unattended vehicles• hotels, motels• works of art out in the open

• Property damage (ex stock)– wear and tear, electrical/mechanical breakdown– Damage to contents and/or stock which is not stored more

than 15 cm above floor level in any basement or cellar– Damage to flat roofs if more than 10 years old and/or not

adequately maintained• Specified All Risks

– wear, tear, electrical/mechanical breakdown – unexplained shortage or disappearance– loss from unattended vehicles unless concealed in locked

boot and all security devices operative and force used to gain entry

• Money and personal assault– loss from collection boxes not in your custody or control– loss from unattended motor vehicles– injury to anyone under 16 or over 70 years of age

• Public and Products Liability– damage to your property– professional advice given for a fee or where a fee would

normally be charged– Certain contractual liabilities

• Fines and penalties• Claims involving mould• War risks and terrorism• Pollution• Subsidence• Asbestos• False, fraudulent credit cards• Business interruption

– deliberate acts of supply undertakings– failure of electricity, gas, water or

telecommunications where the cessation of supply is less than 24 hours

One client was building a Swarovski crystal house but the underwriter thought the process was too ‘manual’ to consider… art is a grey area and specialist insurance is a bespoke one.

HOW DO INSURERS KNOW HOW MUCH TO CHARGE?

Insurance companies base premiums on their risk of losing the full Sum Insured against total destruction events.

Insurance LingoLesson 1: Underinsurance

Claim - the amount claimed against the policy after a loss

Current Value is the value the policy should be insured for

Sum Insured - the maximum amount to be paid out by insurers in cases of total destruction

Payout – the amount an insurer pays out after a claim is settled

Underinsurance occurs when Sum Insured is less than Current Value

Brownhill Insurance Group can help you make sure that your sums insured are correct – we can recommend a valuation service and help you think through what you have by way of stock, property and business exposures.

Insurance LingoLesson 2: Condition of Average

The Condition of Average is the calculation of a Payout against a claim where the policy undervalues the sum insured.

In the event of partial loss, the amount paid against a claim will be in the same proportion as the value of the underinsurance”

Conditions of average apply to the Property Damage (ex stock), Business Interruption and Specified All Risks sections.

It will always be tricky to insure artwork that is yet to come to the market.Our dedicated Art team will be able to think through with you how best to insure your

stock, material and business.

Insurance LingoLesson 3: Professional Indemnity Insurance

This provides cover for:

• Any demand for compensation or Claim for damages against the Insured

• The receipt by or on behalf of the Insured of either written or oral notice of the intention of any person or body to make a Claim against the Insured

• Any allegation of negligent act, error or omission which might give rise to such a Claim or the discovery of any such negligent act, error or omission

WHY BROWNHILLS

Expertise (Art, Personal, Business) & innovation+

Long term commitment, stability, responsive claims service & dedicated team

=Leading, specialist insurance provider

Brownhill Insurance Group is on hand to react quickly and painstakingly to a claim, whether for damage to

property, loss or theft.

We will happily promote any of our clients work

through our channels of communication with collectors, businesses and partners with the intention

of holistically supporting our creative client base.

RISK MANAGEMENT

Optimal Conditions of Art Works How to Hang PaintingsCleaning and Securing StatuesHow to Clean FurniturePrevention: How to protect your possessions against fire, water and burglaryHow to catalogue your collectionOpening up Your Home to the PublicCaring for PhotographyShipping and PackingArtwork Condition Checks and ReportsInventory and Cataloguing ServicesArt Authentication Services and SecurityStorage SolutionsSpecialist FramingInstallationConservationDNA Marking – SmartwaterDNA Marking - IdentidotAlarm Systems

Working closely with our specialist insurance and art service partners, Brownhill Insurance Group is able to draw on a panel of expertise and offer its clients the most up-to-date advice about art collection management.

FYI… We also insure• Up-and-Coming Art Collectors• Established Art Collectors• Art Dealers & Galleries • Public Galleries and Museums• Artists/ Photographers• Corporate Art Collections• Short and Long-term Art Exhibitions• Art / Trade Fairs• Restorers and Conservators• Specialist Art Shippers and Storage facilities• Valuation & Art Advisory Services

… Feel free to recommend us!

Frances FogelMarketing & Growth ConsultantArt, Personal & Business Teams

Brownhill Insurance GroupFrances.fogel@brownhillgroup.co.uk

020 8353 895507779 639 249