Art Insurance

VIVEK COLLEGE OF COMMERCE
Art is a technique of communicationand the image is the most complete

technique of all communication.
ART INSURANCE 1
CHAPTER 1
INTRODUCTION OF INSURANCE
Insurance is an arrangement where the losses experienced by a few are

extended over several who are exposed to similar risks. Insurance is a protection
against financial loss arising on the happening of an unexpected event.
Insurance companies collect premium to provide security for the purpose. As
loss is paid out of the premium collected from the insuring public and the
insurance companies act as trustees to the amount so collected.
Insurance is a tool by which fatalities of a small number are compensated

out of funds (premium payment) collected from plenteous. Insurance companies
pay back for financial losses arising out of occurrence of insured events, e.g. in
personal accident policy death due to accident, in fire policy the insured events
are fire and other allied perils like riot and strike, explosion, etc. Hence, insurance
is safeguard against uncertainties. It provides financial recompense for losses
suffered due to incident of unanticipated events, insured within policy of
insurance.
EVOLUTION OF INSURANCE:
Marine insurance is the oldest form of insurance followed by life

insurance and fire insurance. The history of insurance can be traced back to the
early civilization. As civilization progressed, the incidences of losses started
increasing giving rise to the concept of loss sharing. The Aryans through their
village co-operatives practiced loss of profits insurance. The Mediterranean
merchants also practiced it in the 14th century through the issue of Bottomry
Bonds. The Code of Manu indicates that there was the practice of marine
insurance carried out by the traders in India with those of Srilanka, Egypt and
Greece.
ART INSURANCE 2
The earliest transaction of insurance as practiced today can be traced

back to the 14th century A.D. in Italy when ships were only being covered. This
practice of Marine Insurance gradually spread to London and during the 16 th
century it was established in the mercantile transactions. The history of Marine
Insurance is closely linked with the origin and rise of the Lloyds Ship owners.
The Lloyds Act was framed to set-up the Lloyds by whom they were
empowered to transact other classes of insurance. Today, Lloyds is regarded as
the largest insurance underwriter in the World.
MEANING:
It is a commonly acknowledged phenomenon that there are countless

risks in every sphere of life. For property, there are fire risks; for shipment of
goods, there are perils of sea; for human life there are risks of death or
disability; and so on. The chances of occurrences of the events causing losses
are quite uncertain because these may or may not take place. Therefore, with
this view in mind, people facing common risks come together and make their
small contributions to the common fund. While it may not be possible to tell in
advance, which person will suffer the losses, it is possible to work out how
many persons on an average out of the group, may suffer losses. When risk
occurs, the loss is made good out of the common fund. In this way, each and
every one shares the risk. In fact, they share the loss by payment of premium,
which is calculated on the likelihood of loss.
DEFINITION:
It is a form of a contract or agreement under which one party agrees to

pay in return of consideration an agreed amount of money to another party to
make good the loss, damage or injury due to some uncertain event in which the
insured has interest.
ART INSURANCE 3
NATURE OF INSURANCE:
On the basis of the definition of insurance, one can observe its following
characteristics
1. RISK SHARING AND RISK TRANSFER:
Insurance is a mechanism adapted to share the financial

loses that might occur to an individual or his family on the happening of a
specified event.
2. CO-OPERATIVE DEVICE:
Insurance is a cooperative device under which a group of

persons who agree to share the financial loss may be brought together
voluntarily or though publicity or through solicitations of the agents. An
insurer would be unable to compensate all the losses from his own
capital. So, by insuring a large number of persons, he is able to pay the
amount of loss. Like all co-operative devices, there is no compulsion here
on anybody to purchase the insurance policy.
3. RISK ASSESSMENT IN ADVANCE:
Insurance companies are risk bearers. Therefore, the risk is

evaluated before insuring to charge the amount of share of an insured,
herein called, consideration, or premium. The probability theory is used
to evaluate the risks.
4. COMPENSATION AT THE OCCURRENCE OF CONTINGENCY:
The compensation is made at a certain contingency

insured. If the contingency occurs, payment is made. Since the life
insurance contract is a contract of certainty, because the contingency, the
death or the expiry of term, will certainly occur, the payment is certain.
ART INSURANCE 4
5. AMOUNT OF PAYMENT:
On the occurrence of the contingency, the insurer is

legally bound to make good the financial loss suffered by the insured.
The amount of payment depends upon the value of loss occurred due to
the particular insured risk provided insurance is there up to that amount.
6. HUGE NUMBER OF INSURED PERSONS:
To make the insurance cheaper, it is essential to insure

larger number of persons or property because the lesser would be cost of
insurance and so, the lower would be premium.
7. INVESTMENT PORTFOLIO:
Since insurers collect premiums initially and make

payment later when (e.g. the insured persons death) or if (e.g. an
automobile accident) an insured event occurs, insurance companies
maintain the initial premiums collected in an investment portfolio, which
generates a return. Thus, the insurers have two sources of income: the
insurance premium and the investment income, which occur over time.
ART INSURANCE 5
CHAPTER 2
INTRODUCTION OF ART INSURANCE
ART
Art is a vital part of each nations heritage and as such carries a special
significance beyond its value as an asset. Artwork that was confiscated by the
Nazis or that changed hands as a result of forced sales touched a sensitive and
emotional cultural nerve. The United States recognized early in the Second
World War that art needed special protection from the ravages of the war.
In the Monuments, Fine Arts and Archives units in the US Forces that
collected art in the chaos of the end of the Second World War, we created a
special responsibility for the United States for the return of art stolen by the
Nazi regime.
We are also aware of the implications unclear provenance has on

museums and the international art market. We have sought to be as inclusive as
possible in preparing for this seminar and for the Washington Conference. We
met with claimants, museums, art dealers, auction houses, researchers,
historians, non-governmental organizations in the US and abroad, and
ART INSURANCE 6
governments to open dialogue and to seek areas of congruence on the resolution

of lost and stolen art from the Nazi regime.
ART INSURANCE
Art needs to insured separately from ordinary contents. Only those things
that can be replaced with reasonable ease can be insured with ordinary
replacement value insurance. Art is not replaceable with reasonable ease. Art
is unique and original.
`Each art or antique item needs to be listed carefully on the policy.

Updated appraisals will be needed periodically. The owner is responsible for the
appraisal.
The insurer can repair or replace when damage or loss occurs.

Replace means to give the owner the money amount agreed upon in the
insurance contract. Repair means the insurer will provide enough money to
repair the item up to the agreed limit of the policy.
ART INSURANCE 7
Art is normally insured based on a recent appraisal. The appraisal must be

done by a qualified person. The owner can insure the item at the appraised value
or a lower value but not a higher value.
The insurance company and the owner agree on a value. Agreed value
is a legal and binding term. The insurer will pay up to the agreed value if the
item is lost or damaged. The insurer will not pay more than the agreed value
even if the market value has increased.
The agreed value of the art or antique item is the basis of the insurance
premium charge. The basic rule of thumb is $1.00 charge per $100 of value. The
actual rates can vary based on circumstances such as security and location.
Some items that are extremely valuable but not protected could be
uninsurable. A gold chalice left out on an alter in a church that is not locked
would be an example of an item that is uninsurable. The gold chalice should be
kept in a locked compartment or safe when not in use to be insurable.
Ordinary home insurance or commercial building insurance is not

designed to cover art and special items. Art, jewelry, antiques and other
valuable and unique items need to be insured with fine art insurance.
Fine art insurance is known professionally as Inland Marine insurance.

This is a very old term. Inland Marine insurance has developed over centuries
with its own rules and limits. It has become the standard insurance for art,
antiques, jewelry, antiquities and rare items that are not replaceable.
ART INSURANCE 8
CHAPTER 3
IMPORTANCE OF ART INSURANCE
Often art is bought for a lot of money as an investment or a hedge against

inflation, it is wise to insure these items in case they are stolen or damaged
reducing or eliminating their cash value to the owners.
Need of Art Insurance
From the art enthusiast to the first timer, if you are an artist who wishes to
insure the artwork you have created or if you are art lover who collects art, be it
paintings and/or sculptures, you need to protect the pieces you own. We also
cover period furniture, books, carpets, clocks, gold, silver, precious metals,
antique jewellery, maps, metal ware, militaria, musical instruments, objects
dart, objects of virtue, paintings, sketches, prints, philatelic, photography,
political memorabilia, porcelain, pottery, ceramics, glass, jade, scientific
instruments, statues, sculptures, sporting memorabilia, toys and more.
You need to protect your pieces against theft, damage & potential
reduction in value. Art collections can inflate in value rather quickly, if a
percentage excess is exercised by your current insurer, this could result in a
hefty excess at the time of a claim. Our private collectors policies have zero
excesses.
Once an Agreed Value has been set, it eliminates the possibility of your
investment actually costing you a loss in your insurance claim, if say; the art
investment has decreased in value. Your claims will not have the possibility of
average applied.
ART INSURANCE 9
If you own a collection of art that has increased in value because it is a

set and if one of the items is damaged or stolen, a conventional insurer will only
reimburse you for the value of that one item!
However, with Barrington, we will compensate you for your actual loss,
being the value of the individual piece lost plus the reduction in value of the set
because of this one missing piece.
The duty of a conventional insurer is to put you back into your original
position before a claim occurred. If your art is damaged whilst insured on a
conventional policy, a simple restoration of your asset may be all that the
insurer is required and prepared to do. However, for the collector, the actual
value of the piece would have been severely reduced as any expert would be
able to see the restoration work done.
If your art is insured with Barrington, after the restoration is complete, an
independent valuator will assess the actual value you have lost and you will be
compensated accordingly.
ART INSURANCE 10
CHAPTER 4
TYPES OF ART INSURANCE
In this type of insurance, various things are covered by various

companies. There are various types of insurance policy which are related to art.
Which are listed below:-
1. Fine art insurance

2. Jewelry & Art Insurance
3. Public Art Insurance
4. Art Gallery Insurance
5. Theft Insurance
1. Fine Arts Insurance
Fine Arts Insurance covers the fine arts collections against loss and
damage brought about by fire, theft, water or breakage. Under the artwork
insurance items such as wine, rare books, antique furniture, sculpture, paintings,
jewelry and more alike are included. A number of art insurance policies also
offer certain additional services.
People with wide-range of art collections should own a fine art insurance
policy. The reason being the home owners' insurance cover usually will not
cover broken or lost items. They do not provide worldwide coverage and have
restrictions on transportation besides off-site storage. There are for all intents
and purposes two types of fine arts insurance covers. These are: scheduled
covers and blanket covers. With scheduled policies, every item is independently
listed on the policy for a confirmed insured amount.
An experienced fine arts insurer also must possess worldwide contacts,
including appraisers, conservators, adjusters, shippers, packers, besides global
warehouses. These contacts can be more than ever important at the many
ART INSURANCE 11
decisive moments. In the event of a loss that involves serious smoke or water
damage. For example, having instant access to an expert conservator can swiftly
steady the affected object, and in turn, may reduce the amount of permanent,
long-term harm besides loss of worth to the work of art.
All in all you need to protect your artwork collection by getting every
item in it registered by the Fine Art Registry. You need to get it appraised by an
art dealer so that you have a clear idea about the amount of coverage required
for your collections, before speaking to any agent offering insurance for art. If
you have a small home collection, get it covered under homeowner's insurance
policy. Otherwise contact the artwork insurance companies for more coverage
of larger collections.
2. Jewelry & Art Insurance
The insurance is specifically designed around the risk of the piece,

although most personal lines products covers this in the market today, it does
appear that these pieces are added to your normal day to day all risk cover with
the exact same limitations and excess.
Needs for Jewellery Insurance
All people who have jewellery pieces. If are in the market of obtaining
or purchasing jewellery from engagement to wedding bands to necklaces to
earrings, you will need this cover. You will need this cover if you own any
completed manufactured jewellery or designer jewellery with the exception
of raw materials, gems or gold bars.
Why should you take out Jewellery Insurance?

Any completed manufactured jewellery or designer jewellery (except for
raw materials such as gold bars and gems) does not only have its own value but
also has its own personal value. Should an incident arise where your priced
ART INSURANCE 12
designer pieces are damaged or stolen, one would prefer the claim to be handled
and settled in the most professional manner.
3. Public Art Insurance
This insurance is for the fabrication and installation of public artworks. It

offers general liability coverage for the artist during the fabrication, installation,
and/or the exhibition of the work. You can elect to cover the artwork itself as
well.
Public art liability insurance

It's liability coverage that protects you against claims for damage to a
location or injury to a spectator or innocent bystander during fabrication,
installation, and exhibition. Do note that this does not automatically include
coverage for damage to the artwork itself, so you're covered if the art hurts
someone but not if someone hurts the art. That's a separate policy.
4. Art Gallery Insurance
An Art Gallery Insurance Policy or Gallery Insurance Policy is a package

policy typically combining General Liability, Property Insurance and fine arts
or offering them separately to maximize coverage options and minimizing
pricing.
Majority of the art galleries all over the world settle for art gallery
insurance. They take one or the other type of art gallery insurance policy to
protect their valuable works of art.
One needs to know that art needs to insured separately from regular contents in
the gallery. Only those stuffs which may be replaced with practical ease may be
insured with regular replacement value insurance instead of art insurance. Bear
ART INSURANCE 13
in mind that art cannot be replaced with ease. It is not only unique, it is original
as well. So it requires insurance for art only.
5. Theft Insurance:-
Theft Insurance covers burglaries and robberies. Burglary is defined to
mean the unlawful taking of propertywithin premises that have been closed and
in which thereare visible marks evidencing forcible entry. Robbery is defined as
that type of unlawful taking of property in which another person is threatened
by either force or violence.
Need for Theft Insurance

Most businesses need this insurance. More often than not, general
insurance policies cover basics and this cover will protect you over items and
stock that has not been specified on other policies.
Having to replace items can be incredibly costly and it is often cheaper to
insure items than having to replace them. It also gives you peace of mind
knowing that your business is protected.
ART INSURANCE 14
CHAPTER 5
STEPS TO BUY ART INSURANCE
Purchase as much insurance as you can do, whether or not that sum
covers the full value of your art. A majority of loss, damage, or theft hurts only
to a part of collection, and not the complete collection. So, getting some
compensation is superior to getting no compensation at all.
Instructions:-
1. Step 1
Speak To Your Current Homeowners Insurance Company.
Many people who own art cover it under their homeowners property
policy. It is always easier to extend a relationship rather than start a new
one so check with your current provider to see the options they provide.
The next step is for those who are not satisfied with the plan under
their homeowners. These tend to be those with larger, more valuable
collections.
2. Step 2
Find An Outside Art Insurance Specialist.
If you have a larger collection then a specialty provider may offer
advantages that coverages under a homeowners plan don't. The most
common advantages are no deductibles, coverage of recent purchases and
less-exclusion.
Look for a specialty insurer that is knowledgeable in the field. Some
deal only with art and collectibles but some companies, mostly high net
worth insurers will specialize in art and collectibles also.
ART INSURANCE 15
3. Step 3
Get Your Collection Appraised. This can be either Step 2 or 3. It is
crucial to know how much your collection is worth in order to buy the
right coverage. Also, many times the company will offer discounts for a
collection that has been appraised in the last two years. After buying
insurance it is standard to have your collection appraised every 3 to 5
years as market prices often shift.
4. Step 4
Determine How Much Coverage You Really Need. The art
insurance company will tell you that you need coverage at 100% of the
value of your collection. However, many people decide to insure for less.
Usually these are circumstances where the art is held in different
locations, and the owner doesn't foresee disaster in all places at once.
Another instance is when owners don't move their art, as most claims
occur as a result of moving damage.
ART INSURANCE 16
CHAPTER 6
ART VALUATION
Art valuation, an art-specific subset of financial valuation, is the process

of estimating the potential market value of works of art and as such is a
financial rather than an aesthetic concern. Art valuation involves comparing
data from multiple sources such as art auction houses, private and corporate
collectors, curators, and specialized analysts to arrive at a value. Art valuation is
accomplished not only for investment and financing purposes, but as part of
estate valuations, for charitable contributions, for tax planning, insurance, and
loan collateral purposes.
1) The art market economic model
2) Art valuation generally
3) Valuation for tax and other law-related purposes
1) The art market economic model
The art market operates in an economic model that considers more than
supply and demand: is a hybrid type of prediction market where art is bought
and sold for values based not only on its perceived cultural value but on its
predicted future monetary value, thus valuing artworks for such a market takes
into account a variety of factors. Supply and demand affect the secondary
market, existing art that has been sold at least once before, more than it does the
primary art market, where new art comes to the market for the first time. Once a
work is sold on the primary market it enters the secondary market. Alpha
consumers (trend-setters) and gallery or agent promotion are the prime forces at
work in valuing works on the primary market: new, contemporary art that has
no predictive market history and thus its valuation is more difficult and
ART INSURANCE 17
speculative. In the late 1980's, investment firms focusing on both the primary
and secondary art markets began to spring up and study the market in-depth.
2) Art valuation generally
Art valuation activities concerns itself with estimating market demand,

liquidity capability of lots, works, and artists, and valuation trends such as
average sale price and means estimates.
Because the art market's participants are far more limited in number than
the securities or commodities markets, art valuation relies to a great extent on
the advice and enthusiasm of experienced private collectors, curators, and
specialized market analysts, and this limitation in turn increases the risk that
some items may be over or undervalued.
Additionally, the art market is seasonal rather than ongoing: art
valuations made for an autumn auction may be unrealistic for the following
spring auction season as fortunes in the financial markets during one season
affect the art market in the following season. In the case of contemporary art
especially, when an artist is not well known and hasn't any auction history, the
risks of incorrect valuation are greater. Valuation estimates are given in ranges
of prices to offset uncertainty.
Research data available from art auction houses such as Christie's,
Sotheby's and Phillips de Pury & Company are those tracking market trends
such as yearly lot transactions, bought-in statistics, sales volume, price levels,
and pre-auction estimates.
3) Valuation for tax and other law-related purposes
In the United States art bought and sold by collectors is treated as a

capital asset for tax purposes, and disputes relating to the valuation of art or the
nature of gain on its sale are often decided by the Tax Court and other courts.
Important cases include:-
ART INSURANCE 18
1. Crispo Gallery v. Commissioner (need to produce credible documentary

evidence of valuation as taxpayer has ultimate burden of persuasion),
2. Angell v. Commissioner (fraud perpetuated upon the IRS through inflated
appraisals),
3. Drummond v. Commissioner (cannot claim gain from art sale as income
from business unless actually in the business),
4. Estate of Querbach v. A & B Appraisal Serv. (appraiser's liability for
misidentifying a painting),
5. Estate of Robert Scull v. Commissioner (previous sales of the same property
without subsequent events affecting value are generally strong indicators of
fair market value),
6. Nataros v. Fine Arts Gallery of Scottsdale (in the absence of fraud or
negligent misrepresentation, buyers believing they have overpaid at auction
because of bad advice bear a heavy burden of proof),
7. Williford v. Commissioner (the 'Williford Factors' test: eight factors to
determine whether property is held for investment or held for sale).
ART INSURANCE 19
CHAPTER 7
ART APPRAISAL
Art appraisal is the process of evaluating the quality, condition, rarity,

provenance and source of a particular piece of art in order to establish its value.
The items appraised can range from paintings, sculptures, rugs, furniture,
jewelry and any other decorative items that are either one of a kind or produced
in limited numbers. Art appraisals can be categorized as the fine art wing of
personal property appraising, and both have the primary purpose of informing
an owner of the items value. In terms of value, both fair market and retail
replacement values are examined depending on the appraisals purpose.
Appraisers may be able to give an approximate value based on a series of
photographs but prefer to appraise an item first hand in order to better judge the
items condition and peculiarities.
Need for Commission Art Appraisal

Every work of art is unique and irreplaceable. A well-prepared value
statement in an appraisal report will help you and your insurance agent take
precautions to prevent or minimize loss.
Expertise, scholarly research on your object, and professional
presentation of companys value conclusion will convince your insurance agent
why your art work is unique and irreplaceable, and why it should be protected
and preserved properly.
Companys Consultation Appraisal for Acquisition (buy) will equip you
with the knowledge of the sophisticated global art market. To begin with,
inspiring works of Chinese art have an aesthetic quality and histories that are
difficult even for Ph.D.s to appreciate and explain.
In addition, the art market is quite unlike the real estate market, in that it
is mysterious, difficult to learn about, and subject to significant
ART INSURANCE 20
fluctuation. You cant just look up the previous sales records for the object you
wish to buy. These important pieces of knowledge, however, are provided in a
professional art appraisal for acquisition. Companys art experts (PhDs) are
happy to serve as an extra pair of expert eyes on your behalf and help you build
up a first-class art collection.
Companys Consultation Appraisal for Disposition (sale) prepared by a
first-rank art specialist (Ph. D. in Chinese Art and Tibetan Art) will allow you to
present your art object to the auction house or a dealer with an expert's
knowledge and confidence. You will not be overwhelmed by auction house
representative or dealers who do not take the time to explain unfamiliar
terminology from the worlds of Chinese aesthetics and modern art sales. A
knowledgeable owner, educated about the object as well as how objects like it
have fared on the market in the recent past, stands a much better chance of
profit when negotiating from a position of strength.
An expert art appraisal not only prepares you to deal with professional
buyers, but also opens new opportunities. Many people assume that an auction
house will always offer the best value for their object, but that is often not true.
You need to consider (and understand) an adjusted value estimate, the
calculation of insurance costs, fees for catalog illustrations, buy-back reserve
fees, and other extra charges and conditions typically subtracted from the
hammer price of an auction sale.
A professional art appraisal alerts you to these possible charges in clear
language and also helps you think creatively about other options, including
museum donation, gift to charity, and other measures that can help reduce your
tax burden.
Companys Appraisal for Bankruptcy (Forced Liquidation, Orderly
Liquidation or Salvage/Scrap) will allow you to stand firmly on your feet and
make a strong and convincing argument in court. We are the most qualified
ART INSURANCE 21
Chinese art expert appraiser in the field and our opinions carry weight in the
court.
No matter what your appraisal needs is, you are not alone. Companies are
dedicated expert art appraisers, working exclusively for you. The art appraisal
report prepared by Companys art specialists will provide all the information
you need to achieve your goals successfully.
NEED OF ART APPRAISAL
1. Appraisals for Owners Contemplating Sale
Whether you have owned your Chinese art for decades or recently
inherited it, an art appraisal will help you understand your piece, know its
potential value, and make informed decisions about whether, when, and where
to place it on the market. Our Chinese art appraisals offer in-depth analysis of
how your Chinese art object will fare in the current Chinese art market--a fast-
moving arena in which expert knowledge and advice are essential.
2. Appraisals for Insurance Claims
If you have art objects, such as sculpture, paintings, prints, rare books,
artifacts, antiques, or other collectibles, you should obtain a professional
appraisal that accurately lists, describes and provides current retail replacement
values for your personal property. A professional appraisal report may prove
invaluable to you, your insurance providers, law enforcement officers, and your
heirs in the event of accident, catastrophic loss, theft, or untimely death.
ART INSURANCE 22
3. Art Appraisal for Insurance (Coverage, Claim-Settlement)
when you need an appraisal, how to choose an insurance

broker/company, how to understand the value of your art object, and the
coverage considerations you need to know before you insure your art work.
ART INSURANCE 23
CHAPTER 8
UNDERSTANDING ART INSURANCE
1. Homeowner's Insurance Policy might be ideal for those with antiques and
colltibles worth a few thousand dollars. But a homeowners policy has
exclusions and deductibles. Art insurance companies usually adopt a Risk
Prevention Strategy to protect against any risk, such as damage or loss.
2. A Specialty Policy has broader coverage. It involves different valuations
(such as) aggregate, current value and loss limit values to underwrite a
specific type of collection.
3. The High-net-worth Coverage is favored by leading art insurance
companies, such as Chubb, AIG Private Client Group, AXA Art
Insurance, and Lloyd's of London, specializing in high-value art, antiques
and collectibles.
4. The "Inland Marine" Coverage means the coverage of all types of losses,
excluding acts of war, nuclear attack or government confiscation. This
coverage might be ideal for those who plan to ship his or her collectibles
back and forth between homes in New York and Palm Beach, Fla.
5. Liability Insurance for Fabrication, Installation, and /or Exhibition of
Works of Art that Are in Public Areas is designed to cover static works of
visual art (sculptures, mainly) that are in the area accessible by the public.
6. A Valuable Policy is structured to supplement homeowner's coverage if
you have valuables that exceed $10,000, the Atlantic Mutual recommends
considering this coverage.
7. Ownership Dispute Insurance is a title insurance policy structured to
address the chair of title and lien risks inherent in art as a form of
personal property. It is a "Single premium, indefinite term policy." In
other words, you pay once and get protection for as long as you possess
the art work.
ART INSURANCE 24
INSURANCE TIPS
For anyone, public or private, who owns expensive art:
Photograph and document your collection, or at least the most valuable

works in your collection. Include current appraisals, original sales
receipts, and any additional paperwork that speaks directly to the value of
your art.
Buy as much insurance as you can comfortably afford, whether or not that
amount covers the entire value of your art. Most loss, damage, or theft
affects only a portion of a collection, not the entire collection. To repeat--
receiving some compensation is better than receiving no compensation at
all.
Make sure you understand your insurance policy. This means reading the
fine print, and asking every question about every conceivable loss or
damage situation that you can think of. You don't want to find out after a
loss that you were not covered for that specific type of loss.
Theft/damage insurance for art, added onto your home insurance,

generally costs $1-$2 annually per $1000 of coverage (less if you have a
good security system in place). Several insurance companies specialize in
covering art and antiques exclusively. Coverage details can be discussed
and/or negotiated with your insurance company.
There's no excuse for not insuring an art collection. If you can afford the
art, you can afford the insurance. And remember-- you don't have to insure for
every last penny of value in your collection. Loss or damage rarely affects an
entire collection, and you'll find that in the large majority of cases, even partial
coverage will reimburse you for a substantial percentage of the dollar/rupee
amount involved in most occurrences.
ART INSURANCE 25
INSURING YOUR ART
"The Scream" and "Madonna," two major paintings by famous

Norwegian artist Edvard Munch, were stolen several years ago from the Munch
Museum in Norway by armed robbers in broad daylight.The significance of the
art theft is notable, but what's really shocking is that the art was not insured
against theft.
According to a BBC news story, John Oyaas, managing director of the

museum's insurers, said of the paintings, "They are not replaceable so you can't
buy 'The Scream' on the street and put a copy up there. The focus is on other
issues than insuring them. To a certain extent this is common practice because
these items aren't replaceable."
Now let's take a close look at that statement. Oyass appears to be saying
that the paintings are so valuable that they're not worth insuring, or put another
way, since the paintings are not replaceable, insuring them is a waste of money.
This thinking makes absolutely no sense. The museum should have had theft
insurance; all museums should have theft insurance, as should all art galleries
and private collections. Whether or not a work of art is "replaceable" is not the
issue. The issue is getting compensated if the art is stolen. What's better-- a
stolen painting and a $5 million insurance settlement or a stolen painting and a
$0 insurance settlement?
"But theft insurance is way too expensive."

Yes, the cost of insuring a museum's entire collection is prohibitive, but
thieves don't normally steal the entire collection. They only steal part of it, and
usually a pretty small part. So insure only a part of it. Theft insurance covers
"incidents," not specific works of art, unless the insured specifies individual
coverage for specific works of art in the policy. In other words, if you purchase
theft insurance, you're insured for the coverage amount no matter what gets
ART INSURANCE 26
stolen. You may not recoup the entire amount of the loss, but at least you'll have
something.
"But insuring even our few most valuable paintings is still too expensive."
So that's a rationale for not insuring anything? How about this idea-- pay
for as much insurance as you can afford, maybe $1,000,000, maybe
$10,000,000? That way, if art gets stolen, at least you have enough money to
hire top quality private investigators to try and recover it, get publicity for the
theft, or perhaps even pay a ransom. Or use the money to buy a state-of-the-art
security system for your museum (or gallery or private collection) so that theft
doesn't happen again. Forget about whether or not art is replaceable or unique or
iconic; receiving compensation for a theft is what counts, and using that
compensation to either recover the art, offset the loss in revenues that may result
from the art being stolen, or make life more difficult for people who steal art, so
difficult, hopefully, that many will stop stealing it.
ART INSURANCE 27
INTERNATIONAL INSURANCE REGULATION
Country/Region Description
European Union The European Union (EU) is a grouping of 27 European
countries which have agreed to a process of cooperation and
integration in economic, political and judicial affairs. The
body of legislation created at the EU level, which has evolved
over several decades, has an important impact on insurance in
member states as the EU works to complete the
implementation of the Financial Services Action Plan (FSAP)
adopted in May 1999. The FSAP has three objectives: a single
market for wholesale financial services; open and secure retail
markets; and state-of-the-art prudential rules and supervision.
Canada There are two levels of insurance supervisory authority: one at
the federal level and the other at the local provincial level. The
federal regulator is the Office of the Superintendent of
Financial Institutions (OSFI), established in 1987 by an act of
parliament. The OSFI supervises and regulates all banks and
all federally incorporated or registered trust and loan
companies, insurance companies, co-operative credit
associations, fraternal benefit societies and pension plans with
regard to financial solvency, prudential supervision, capital
and governance rules, including dynamic capital testing and
risk assessment. If a company is incorporated only at a
provincial level, the provincial authorities take on the
responsibility for the prudential supervision and each province
has a superintendent or equivalent, for example, the Financial
Services Commission of Ontario in that province. A trend has
been evident over the past three or four years for those
companies registered only at the provincial level to transfer,
with official backing and encouragement, to federal
regulation.
Japan The insurance supervisory authority is the Financial Services
Agency (FSA), a "super-regulator" which is responsible for
supervising the entire financial services sector. The FSA was
originally established on July 1, 2000 as an agency of the
Financial Reconstruction Commission (FRC). However,
following a ministerial reorganization, which took place on
January 6, 2001, the FRC was abolished and the FSA assumed
sole responsibility for financial supervision under the
authority of the Cabinet Office. A special minister appointed
ART INSURANCE 28
by the prime minister is responsible for the activities of the

FSA, though the organization itself is headed by a
commissioner. The current commissioner is Hirofumi Gomi.
China The insurance supervisory authority is the China Insurance
Regulatory Commission (CIRC), which took over from the
original supervisor, the People's Bank of China (PBOC), on
January 1, 1999. The CIRC was originally constituted as a
government division but was elevated in 2003 to a ministerial
public service department, which gives it the same status as
China's other financial market regulators, the China Securities
Regulatory Commission and the China Banking Regulatory
Commission. The CIRC reports to and carries out
administrative functions delegated by the State Council. The
CIRC responsibilities include:
formulating strategy for the development of the insurance
industry
drafting insurance laws and regulations
licensing insurance companies, foreign branches,
intermediaries, insurance asset management companies
and foreign representative offices
approving mergers, takeovers and share purchases
organizing bankruptcies and liquidations
approving senior management appointments
approving policy forms and premium rates
supervising solvency and market conduct
penalizing irregularities, including the conduct of
unauthorized insurance business
managing the policyholders' protection fund
ART INSURANCE 29
CHAPTER 9
ART INSURANCE IN INDIA
Axa-bharti general insurance company was started providing art

insurance in India from 2008. It is a first insurance co. who provides the art
insurance in India. The recent manager of axa-bharti general insurance
company, in Fort branch, is GIRISH GOPINATH, & sales manager is
YOGESH MEHRA as they do not have any branch in India.
They provide various types of products like fire insurance, water

insurance, and earthquake insurance. They also provide basic coverage to
customer such as handling coverage, fire coverage, and flood coverage etc.
They adopt various types of marketing strategies like, advertising on

hoardings, pamphlets, mouth to mouth publicity, broachers etc.
They make the valuation & appraisal of art by considering the following
factors which are as follows:-
1) Geographical factor.
2) Age factor.
1) Geographical factor:-
In this factor insurance company check the place of the art &
Decides the value of the art.
For e.g.:- In Gujarat for historical places insurance company may
check for earthquake intensity & decides the risk & provides the
insurance.
ART INSURANCE 30
2) Age factor :-
In this factor insurance company check that how old the art is. And
according to oldness of the art value is decided.
They decide the premium of the art according to the IRDA Rating.
For e.g.:- If the painting worth Rs.10, 00,000 then its premium is Rs.20000.
Awarness of
Art insurance
30%
Unawarness
70%
CUSTOMER AWARENESS ABOUT ART INSURANCE
CURRENT SENARIO IN INDIA
The Indian rich are warming up to insuring their art and valuable collections
thanks to the value-added services provided by insurers and their flexibility in
accepting 'agreed value' covers. Besides paintings and antiques, there are
instances of a high-net-worth customer insuring 350 pairs of shoes. But
extraordinary covers are nothing compared to what AIG insures in the US.
Valuables include $13 million worth of shrunken heads, a 15th Century book
written on human skin and a frozen art installation made in the artist's own
blood.
ART INSURANCE 31
The capability for underwriting art insurance was brought to India by AIG,
which has a joint venture general insurance company with the Tata Group. What
is now prompting the rich to insure their collection is the availability of 'agreed
value' policies based purely on expert valuation and the willingness of insurers
to provide cover without calling for invoices or other such proof. Also, most
buyers are choosing to insure their valuables not because they cannot afford the
loss but because of the support they get in restoration or replacement of the
valuables.
Indian insurance market is experimenting with the niche concept of art

insurance. In the last 5 years, the Indian art market has grown more than 500%
in sales. Affluents, young entrepreneurs, who choose art as an investment
opportunity, and an upward trend of the Indian art-work collectors are the key
drivers of growth for art market.
Insurance potential lies with art traders with stock value up to Rs 50 crore as it
is completely untapped. We feel that only 10-15% of potential in this segment
has been tapped yet. We have a comparatively small portfolio, yet a profitable
one, says Rajive Kumaraswami, head-risk and re-insurance, ICICI Lombard
GIC Ltd.
Some estimate that the value of art that can be insured in India totals to about
$1 billion. This has an estimated accretion of about 5% per annum. At these
levels, we estimate the premium potential of the art insurance market to be
about Rs 150-Rs 200 crore overall, says Gaurav Garg, MD and chief executive
officer, Tata AIG, general insurance.
Art insurance generally covers the risk like damage during transit, restoration
and framing. There are risks associated with handling the piece of art within the
premises of a gallery which can also be covered. It extends covers to natural
perils, accidental damages and terrorism damage.
ART INSURANCE 32
The target customers for the art insurers may be art galleries, art auction houses,
art funds, art warehousing service providers and private collectors. Private
players like ICICI Lombard, Tata AIG and Bajaj Allianz are the key players in
art insurance in India. Profile of the insured, location, security measures and
past loss history are some of the underwriting parameters regarding this policy.
Art insurance is yet to catch up due to the challenge of valuation which may
differ among different valuators. As insurers require the exact price of the asset,
it usually becomes difficult to ascertain the sum insured applicable. Also,
artworks such as paintings of sculptures require high maintenance in terms of
the care taken and security, due to which insurers may be reluctant to take on
this risk, says TA Ramalingam, head-underwriting, Bajaj Allianz General
Insurance.
ART INSURANCE 33
CHAPTER 10
CASE STUDY
THE WORLD'S LEADING INSURER OF FINE ART AND

COLLECTIBLES
AXA Art Insurance Corporation (AXA Art) was founded in 1987 to

address an urgent need: discerning, affordable insurance for fine art and
collectibles.
We are insurance and art professionals devoted to the treasures of our

culture - to protecting their owners against financial loss and preserving these
objects for future generations.
AXA Art is the only globally operating specialty art and collectibles
insurance company offering tailor-made coverage solutions for private and
corporate collections, museums, galleries and artists. Due to its global presence
and network of art experts deeply woven into the global arts community, AXA
Art maintains an in depth knowledge into the values and trends of the
international art market. AXA Art not only helps its clients to protect their
assets it also provides expert advice regarding all aspects of managing a
collection including loss prevention, mitigation and conservation.
ART INSURANCE 34
Axa-Bharti in joint venture for art insurance in India

Art insurance from Axa-Bharti
The speciality business of art insurance will come to India, An Axa-

Bharti joint venture is set to introduce art insurance business in India. France
based Axa owns Axa Art Insurance, which is the world's biggest specialist art-
insurance company. Bharti Axa General Insurance has already commenced its
India operations. It may be noted that the joint venture partners have floated an
asset-management company and a life- insurance company in India. Bharti
Telecom is owned by Sunil Mittal.
Kim-Soon Chua, General CEO of Bharti Axa General has announced that
the company is in the lookout for third-party administrators for the health
insurance products. Motor insurance is also on the offering from the company.
He has also added that given the regulatory nod the company will come up with
a host of new insurance products.
8 Aug 2008, Bharti Axa General Insurance announced its commencement

of operations. Although the main focus of the non-life company will be the
tradition lines of business, it has received some informal enquires on art
insurance from brokers.
In India, art owners have had bad experience with conventional insurers
who have rejected claims for minor damages to art work on ground that there is
no financial loss.
PRODUCTS & POLICES
At AXA Art, we pride ourselves on an individual approach to each risk;

therefore, we welcome you to discuss particular requirements you may have.
ART INSURANCE 35
Personal Fine Art and Collectibles Coverage

We understand the collector's passion and desire for expert service,
responsiveness and absolute confidentiality. We cater to those needs while
writing policies that are as individualistic as the collectors themselves. Because
we understand the risks involved far better than a non-specialist insurer, we can
generally provide important benefits. For example, we can often be flexible in
our rating for certain large collections based on one probable maximum loss,
providing the insured with sufficient coverage yet at a significant cost savings
over less sensitive plans. Our underwriters are highly qualified fine art and
collectibles professionals who will understand a collector's needs and the many
insurance options open to them.
Exhibition Coverage
As the world's leading fine arts and collectibles insurer, we thoroughly
understand the many complex and delicate issues involved in exhibiting,
borrowing, handling and shipping fine art. Our coverage is genuinely worldwide
and as flexible as you wish. It is generally wall to wall that is, starting when
it is removed from its place of residence until it is returned and covers just
about everything in between but government seizure or nuclear hazard. Because
we understand the risks involved, we can provide virtually any type of coverage
imaginable at extremely competitive rates.
Museum Coverage
We are insurance and art professionals and we understand the many
complex and delicate issues involved in exhibiting, conserving, and handling
and shipping fine art, including objects from a museum's collection as well as
objects on loan. We are a large-capacity insurer and our underwriters
understand that museums have to contend with large volume and small budgets.
We are renowned to be creative and flexible to accommodate those we insure.
ART INSURANCE 36
Working as a team, our underwriters share their expertise to bring forth the very
best solutions for comprehensive policies and most of all achieve important
cost-efficiencies for the institutions as well.
Corporate Fine Art Coverage

We are experts in the insurance of fine art and collectibles and we
appreciate the numerous benefits of a corporate collection to a company's well-
being and corporate culture. You will find that we thoroughly understand the
many complex and delicate issues involved in handling a large collection. In
addition to broad, worldwide coverage we offer automatic coverage on newly
acquired objects of up to 25 percent of the total policy limit with a 90 day-
reporting obligation. Our coverage is extremely flexible we welcome small
and large collections and tailor our terms and conditions to fit the needs of those
we insure.
Fine Art Dealer Coverage

Our focus on fine art and collectibles allows us to better serve the specific
needs of those we insure. Our underwriters follow collecting trends and
fluctuations in the art market. They understand that galleries are in the business
of installing and de-installing shows at short notice. We are usually able to bind
coverage on both large and small risks over the telephone. Because we share a
collector's interest in and passion for fine art and collectibles and understand the
risks involved, we can provide virtually any type of coverage imaginable at
extremely affordable rates.
POLICY PROVIDED BY AXA ART INSURANCE CORPORATION
1) FINE ARTS INSURANCE POLICY:-

A. GENERAL DESCRIPTION OF FINE ARTS POLICY
ART INSURANCE 37
This Section addresses the risks covered under the Universitys Fine Arts
Insurance policy. The coverage described below is a summary of the Fine Arts
Insurance policy; however, it is only to be used as a guideline and is not
inclusive of all of the terms, coverage, exclusions, limitations and conditions of
the actual insurance policy. Specific questions and discussions regarding
coverage should be addressed through Campus Risk Management or the Office
of Risk Services
B. NAMED INSURED
The Regents of the University of California, all corporations,

partnerships, joint ventures, organizations, and other entities, as have existed or
as now or may hereafter exist, or for which it is required to or has agreed to
maintain insurance, including any affiliated, associated, allied, and subsidiary
entities.
C. TERRITORY
Coverage is provided worldwide, except for the following countries:

Israel, Iraq, Iran, Afghanistan, Albania, Bulgaria, Libya, Liberia, Cuba, The
Czech or Slovak Republics, Hungary, Poland, or any of those territories
formerly comprising and known as the Union of the Soviet Socialist Republics
and the former country of Yugoslavia.
The countries listed above are excluded as a result of the known existence
of art theft rings and the high frequency of art theft.
D. LIMITS OF INSURANCE
Permanent Collections and Exhibits

$50,000,000 at any campus location (per loss)
$20,000,000 at any other location or in transit
$20,000,000 earthquake aggregate per campus
ART INSURANCE 38
$50,000 sub-limit for film Property of Others
Foreign Transportation and Exhibits

$5,000,000 any one loss
E. DEDUCTIBLE
$1,000 - Each claim for loss or damage separately occurring
$10,000 - Earthquake (each and every loss)
F. COVERED PERILS
1. Permanent Collections and Exhibits

All risks of physical loss or damage from any external cause,
except as excluded.
2. Property in Transit
All risks of physical loss or damage from any external cause,
Including War Risks for Overseas Transit.
2) JEWELLERY INSURANCE POLICY:-

Jewellery Insurance cost:-
The cost implication for the absolute cover and peace of mind depends on
the individual jewellery pieces. The rates are calculated on the value which is
accompanied by the valuation certificates.
The lack of competition and transparency in this misunderstood business
has led many families to pay well above the odds for jewelry insurance.
Is your jewelry insurance carrier charging a rate close to 2% of the
insured values? Is the same true for your art insurance carrier? If so, you are
paying far too much for coverage options that are most likely limited.
The lack of competition and transparency in this business has led many
families to pay well above the odds for jewelry insurance and art insurance. In
ART INSURANCE 39
some cases, the premiums charged are several times greater than the proven cost
of the risk.
Jewelry & Art Coverage
PURE provides coverage on a worldwide basis. Covered losses include
fire, hurricane, mysterious disappearance and theft.
We cover a wide range of valuable articles including:
personal jewelry
fine art
collectibles
coins, stamps, silverware
wine
Losses
In the event of a total loss to a valuable item, we provide market value up
to 150% of the items scheduled amount or 25% of the blanket amount.
For example,
If you have $500,000 in jewelry, but you only travel with up to $200,000,
if you choose the Off Premises Jewelry Loss Limitation, you are covered
outside of your home up to $200,000. In the event of a total loss to your jewelry
inside your home, you are covered up to $500,000.
3) PUBLIC ART INSURANCE POLICY:-
COST
General liability policies for most public art projects have been between
$425-525. Artwork coverage is based on the amount of the commission and
tends to cost anywhere from $300-600 (assuming the commission is between
$10K and $100K).
ART INSURANCE 40
TIME PERIOD
We try to get you a quote within 3-5 business days, though it can take
longer. If you like it, you can purchase the policy instantly online. You can then
request certificates as proof of coverage through our website.
DEDUCTIBLE
For the liability policy, no! For the artwork, yes! It's $1000 unless the
damage is due to earthquake, hail, or wind, and then it's $10,000
LIMIT
$2 million general aggregate (the total that the insurance company will
pay out); $1 million each occurrence; $1million personal and advertising injury;
$300,000 fire damage legal liability; $10,000 medical expense coverage per
occurrence; and $1,000,000 for rented vehicles
POLICIES
This insurance covers static works of visual art (sculptures, mainly) that
are in areas accessible by the public.
4) ART GALLERY INSURANCE POLICY:-
An Art Gallery Insurance Policy includes:
General Liability Insurance to cover your commercial liability and

premises liability
Business Property Insurance for physical assets, such as contents,
improvements to your space like decorations and furnishings and
Fine Art or Artwork
Property in Transit
Fine Art Valuation for Artwork and Works of Art*
ART INSURANCE 41
The package insurance policy may also cover loss of business income and
extra expense resulting from a covered loss.
The General Liability insurance coverage of an Art Gallery Insurance

Policy is comparable to a typical Commercial General Liability (CGL) policy,
providing protection against claims of bodily injury or property damage for
which your business may be liable.
In addition an Art Gallery Insurance policy may include, or you may be

able to select as an option:
Outdoor Sign Insurance

Money and Securities Insurance
Employee Dishonesty Insurance
Water Back Up Insurance
Not all businesses are eligible for an Art Gallery Policy.
Characteristics typically not eligible for Art Gallery Insurance include:
Large Premises Operations like Museums or Auction Houses

High risk or highly specialized operations with property values in excess
of $10,000,000
Majority of business conducted off-premise that rely heavily on outdoor
events, special functions or high media exposure activities
Requires liability limits higher than $10,000,000
COST
Although we are often asked this, there is no set answer. Every Art
Gallery has different needs, different property values, and different coverage
ART INSURANCE 42
requirements. Asking this is similar to asking "What the average cost of art
work?"
* Many Business Insurance policies offer ACV or actual Cash Value for
Business Property VS. agreed value or RCV, Replacement Cost Value.For
Artwork, ACV will pay the Actual Cash Value of the Art. This equates to the
cost of the materials i.e. canvas & paint. We can cater your coverage to offer
RCV or Appraised value to properly insure your Art Gallery Insurance
Coverage.
Typically, for the coverage offered, an Art Gallery Insurance policy is

very competitively priced, however remember the Art Gallery Insurance Policy
does not provide coverage to items such as Workers' Compensation,
Professional Liability Exposures or Commercial Auto Insurance, however they
are most certainly available and our agents will gladly assist you in custom
tailoring your insurance coverage to cater to your needs.
5) THEFT INSURANCE POLICIES:-
COST
We have a large book of clients with many different insurance companies, so

we will be able to find the most beneficial policy with the cheapest premiums
for your business
POLICIES
The most common and expensive claims come from burglars breaking
into your premises and stealing stock. The tricky part is to remember that your
items can also be stolen whilst in transit or at the home of employees etc. Let us
advise you on common claims and how our clients were protected against all
forms of theft.
ART INSURANCE 43
Considered along with Theft Insurance:-
It should be noted that your policy does not include coverage for loss or
damage from fire or explosion, loss or damage of glass or loss or damage to any
money, currency, cheques, current stamps, certificates, postal orders and so
forth. Please note this does not include electronic equipment, documents,
manucripts, business books, computer system records and media, plans, designs,
patterns, models or moulds.
It is very important that you have additional coverage and we can

certainly tailor package everything to your needs.
MAKING A CLAIM
AXA Fine Art Insurance
In the event of a loss our priority is to provide advice and professional

assistance at the earliest opportunity. Prompt action is essential. We need to be
informed through the brokers immediately so that steps can be taken to prevent
further damage or to alert the relevant authorities in the event of loss. In many
cases, please complete a Claim Report Form first. We may arrange to visit you
to discuss the details and circumstances or, if appropriate, we may appoint a
specialist art loss adjuster. We are a founder member of the Art Loss Register.
These computerized art indexes was set up to log stolen works of art and
compare their description against auction catalogues world-wide. Any stolen
items insured with us are automatically logged on the system free of chargea
considerable saving for clients.
1) Fire/Smoke Damage
Do not attempt to clean anything. We will appoint professionals.
ART INSURANCE 44
2) Theft/Burglary
List all the items that you think have been stolen. We will notify the Art Loss
Register on your behalf. If you have photographic records of the stolen items,
we will publish these in the trade press.
1. Callthe police immediately.

2. Notify your broker.
3. Make photographs of the stolen items available to both the police and us.
4. Alarms should be reconnected as soon as possible.
3) Water Damage
It is essential to act quickly as secondary damage and bacterial growth can

begin within just a few hours.
If you have a leak, arrange for a reputable, registered plumber to visit as

soon as possible. In the meantime, try to stem the flow or catch leaking water in
a bucket.
1) Carefully remove vulnerable or affected artworks to a dry location.

2) Carefully blot wet furniture and open any drawers or doors
3) Mop and blot up water from floors.
4) Use fans and dehumidifiers to assist the drying process.
5) Move small items into a controlled environment.
If furniture cannot be removed immediately to a controlled environment,
place small wooden blocks or aluminum foil under furniture legs and open
drawers to help the drying process.
4) Storm Damage
If damage has been caused to the roof, arrange for a reputable
roofer to visit at the earliest opportunity to secure and seal the damaged area.
ART INSURANCE 45
Carefully remove vulnerable artwork and/or musical instruments from the

exposed area. Useful information to have in hand when calling us:
1) Policy No.
2) Details of what has happened and when
3) List affected items
4) Severity of the damage/loss
5) If items have been removed from home and where they are now
We are then in a position to advise on the actions which should be taken
or arrange for one of our representatives to visit you to give advice.
CURRENT SCENARIO
Art fairs like Basel as well as similar events around the world are prime
opportunities for insurers that specialize in covering fine art to rub shoulders
with clients, court prospective ones, and maybe catch a glimpse of some of the
artwork they cover.
Travelers have been a sponsor of the Pulse Miami Contemporary Art

Fair, being held at the Ice Palace in Miami through Sunday, for four years. A
contingent from Chartis' fine art insurance group is here this week and Katja
Zigerlig, who heads the group, attends all the premier art shows and fairs.
``There's great opportunity in Miami. It's one of the places where people
take the pulse of the market,'' says Andrew Gristina, director of fine art
insurance at Travelers, who is here for the fair with Rebecca Glenn, Travelers'
underwriting vice president for this division.
Insuring fine art ``is a much bigger market than it was 20 years ago. Not
just because values are higher, but because there's more awareness of fine art,
there are more collectors, more museums,'' says Mike Roney, a vice president at
Fireman's Fund.
ART INSURANCE 46
Collectors just can't add coverage for their art or antique pieces to their
homeowners policies nor can dealers expect to cover works they exhibit with
their commercial property insurance. Specialized coverage is required.
ART INSURANCE 47
CONCLUSION
From the above survey, I have observed that 30% awareness created in
art insurance. This is comparatively low with respect to developing countries.
After my visit to art gallery I have observed that even officials in the art gallery
such as painters artist are not aware of art insurance.
There is need for the artist in India to be updated with the knowledge of
procedure for art insurance. From 22 odd insurance company along with LIC
only companies were founded to be engaged in art insurance.
It is surprise that India having a huge treasure of art & very creative &
talented artiest then also they are unaware to protect their art & talent for the
purpose government should take initiative. They should implement more
consumer awareness programmed for art insurance. For that they can conduct
seminars make advertisement in Newspapers, radio, T.V., Magazines.
ART INSURANCE 48
BIBLIOGRAPHY
Insurance
Art insurance
Art insurance and policies
WEBLIOGRAPHY
www.wikepeadia.com
www.google.com
www.lycos.com
Value notes.com
White papers.com
Finance biz.com
Gahoo yoogle.com
ART INSURANCE 49

Art Insurance

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Art Insurance

Uploaded by

Copyright:

Available Formats

VIVEK COLLEGE OF COMMERCE

Art is a technique of communicationand the image is the most complete

Insurance is an arrangement where the losses experienced by a few are

Insurance is a tool by which fatalities of a small number are compensated

Marine insurance is the oldest form of insurance followed by life

The earliest transaction of insurance as practiced today can be traced

It is a commonly acknowledged phenomenon that there are countless

It is a form of a contract or agreement under which one party agrees to

1. RISK SHARING AND RISK TRANSFER:

Insurance is a mechanism adapted to share the financial

Insurance is a cooperative device under which a group of

3. RISK ASSESSMENT IN ADVANCE:

Insurance companies are risk bearers. Therefore, the risk is

4. COMPENSATION AT THE OCCURRENCE OF CONTINGENCY:

The compensation is made at a certain contingency

On the occurrence of the contingency, the insurer is

6. HUGE NUMBER OF INSURED PERSONS:

To make the insurance cheaper, it is essential to insure

Since insurers collect premiums initially and make

We are also aware of the implications unclear provenance has on

governments to open dialogue and to seek areas of congruence on the resolution

`Each art or antique item needs to be listed carefully on the policy.

The insurer can repair or replace when damage or loss occurs.

Art is normally insured based on a recent appraisal. The appraisal must be

Ordinary home insurance or commercial building insurance is not

Fine art insurance is known professionally as Inland Marine insurance.

Often art is bought for a lot of money as an investment or a hedge against

Need of Art Insurance

If you own a collection of art that has increased in value because it is a

In this type of insurance, various things are covered by various

1. Fine art insurance

1. Fine Arts Insurance

2. Jewelry & Art Insurance

The insurance is specifically designed around the risk of the piece,

Needs for Jewellery Insurance

Why should you take out Jewellery Insurance?

3. Public Art Insurance

This insurance is for the fabrication and installation of public artworks. It

Public art liability insurance

4. Art Gallery Insurance

An Art Gallery Insurance Policy or Gallery Insurance Policy is a package

Need for Theft Insurance

Art valuation, an art-specific subset of financial valuation, is the process

1) The art market economic model

2) Art valuation generally

3) Valuation for tax and other law-related purposes

1) The art market economic model

2) Art valuation generally

Art valuation activities concerns itself with estimating market demand,

In the United States art bought and sold by collectors is treated as a

1. Crispo Gallery v. Commissioner (need to produce credible documentary

Art appraisal is the process of evaluating the quality, condition, rarity,

Need for Commission Art Appraisal

NEED OF ART APPRAISAL

1. Appraisals for Owners Contemplating Sale

2. Appraisals for Insurance Claims

3. Art Appraisal for Insurance (Coverage, Claim-Settlement)

when you need an appraisal, how to choose an insurance

For anyone, public or private, who owns expensive art:

Photograph and document your collection, or at least the most valuable

Theft/damage insurance for art, added onto your home insurance,

INSURING YOUR ART