Art Dealer Insurance

Art Dealer Insurance

Art dealers can interact with valuable art pieces, either as the buyer or seller or the intermediary between the buyer and seller. Some of the artwork that art dealers see can be hundreds of years old and worth thousands or even millions of dollars.

Before putting artwork away in their shop or selling the pieces to a collector or museum, the art dealer must ensure that the artwork is safe and undamaged. And while art dealers are incredibly careful with the artwork they are responsible for, we want to make sure they are protected if an accident ever happens.

ALIGNED can help create a custom art dealer insurance with coverage to protect art dealers in unexpected events.

Art Dealer InsuranceLooking for art dealer insurance in Canada? Contact us HERE to get your online quote started now!

FAQ

Why is Art Dealer Insurance Important?

All art dealers face risks when handling valuable and sometimes historic art pieces on behalf of their clients. Some of the risks can include:

  • A glass of wine knocks over onto a painting, staining the canvas, which needs restoring or repairing.
  • An art dealer provides facilities for art classes or studios, and one customer is injured or suffers property damage while on their premises.
  • An art dealer is repairing, cleaning, or framing an art piece that a client brings in but damages the artwork in the process.
  • The art dealer’s commercial space or studio can suffer from an act of nature, theft, or vandalism that leaves costly damages.

Any of these risks can create massive debt, leading to bankruptcy or other financial setbacks.

What Does Art Dealer Insurance Cover?

Art dealer insurance is designed to cover a range of financial losses that can occur on the commercial premise of art dealers.

Commercial General Liability Insurance – Also known as CGL insurance, commercial general liability insurance covers bodily injury and property damage that clients suffer from your services or while on your premises.

Commercial Property Insurance – This covers your commercial premises, studios, pieces of art and most contents against insured perils like floods, theft, fires, and more. Commercial property insurance is essential for art dealers because they carry a lot of inventory. However, depending on the type and cost of the art specialized fine arts and property in transit extensions may be required.

Professional Liability Insurance – This is beneficial if you provide appraisals or authentication of art. You must have valid qualifications, and all art appraisals should have verifications to prevent losses from claims.

Do you need insurance to sell art?

While you don’t need insurance to sell art, it’s always good to consider a commercial insurance policy for any of your business activities. Whether you sell art from a private home studio, a commercial organization, or at art galleries and other events, insurance can protect your business against common risks that an art dealer faces.

How much does it cost to insure artwork?

It depends on the value of your artwork. Insurance companies typically ask you to get a provenance or documentation to prove the total value of your artwork.

To get an exact quote for insurance rates, it’s best to speak with an insurance provider or one of our insurance specialists. We can walk you through the types of art dealer insurance policies and rates available based on your art collection.

What insurance do I need as an artist?

It depends on your budget and risk management tolerance.

We typically recommend a standard commercial general liability insurance policy for all businesses, including artists. It protects your company against third-party liability claims alleging property damages or injuries and covers medical, legal defence, and settlement expenses. Most general liability policies also include product liability insurance.

You might also consider commercial auto insurance if you have commercial vehicles, such as trucks and vans. It protects your fleet in the event of an accident or auto collision.

Commercial property insurance is also essential because you might have an art studio and art equipment that you rely on for smooth operations. Damages to your equipment and property could result in financial loss and loss of income.

How do you insure valuable art?

Most insurance companies require you to provide documentation to prove that the artwork is yours. They also want proof of the total value of your artwork. You can provide proof of ownership, a replacement estimate, provenance, recent appraisals, and a bill of sales.

Every few years, you need to reappraise your artwork to keep your files updated with the insurance company. The frequency of appraisals depends on the insurance company you use.

Find the Right Art Dealer Insurance from ALIGNED

ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Click Here To Get A Quote or contact one of our business insurance experts for information or with any questions you may have.

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