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.
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.
Craft a Custom Art Dealer Insurance with ALIGNED
ALIGNED works with Canada’s top insurance companies to provide custom insurance packages at affordable prices. Contact an ALIGNED commercial insurance specialist for a free quote, or use our free online tool.