Presentation on theme: "INSURANCE FOR ARTISTS Frances Fogel MA Marketing & Growth Consultant In-house Art Historian."— Presentation transcript:
INSURANCE FOR ARTISTS Frances Fogel MA Marketing & 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 prints Photography Antique or collectible furniture or lighting Arms and armour Books, manuscripts and maps Valuable fossils or minerals Memorabilia Valuable rugs or carpets Tapestries Sculptures, statues or figurines Textiles or costumes Antique Jewellery Clocks and Watches Antique 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 RISKS Product / 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 Lingo Lesson 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 Lingo Lesson 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 Lingo Lesson 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 Paintings Cleaning and Securing Statues How to Clean Furniture Prevention: How to protect your possessions against fire, water and burglary How to catalogue your collection Opening up Your Home to the Public Caring for Photography Shipping and Packing Artwork Condition Checks and Reports Inventory and Cataloguing Services Art Authentication Services and Security Storage Solutions Specialist Framing Installation Conservation DNA Marking – SmartwaterSmartwater DNA Marking - IdentidotIdentidot Alarm 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 Fogel Marketing & Growth Consultant Art, Personal & Business Teams Brownhill Insurance Group