Galleries, Art Dealers & Auction Houses
Insurance cover for a dynamic and international working environment
Galleries, auction houses and companies in the art trade operate in an extremely dynamic and international market. Successful work in the art market places special demands on insurance cover. The insurance conditions must take into account the factual needs of the working environment of companies active in the art market:
Clear, concise insurance terms and conditions
Insurance values in line with the market that differentiate between art in your own portfolio and on consignment, art on view with prospective buyers and artworks that are already sold, yet still in your care or in transit to the buyer
Flexible shaping options according to individual insurance needs
Worldwide coverage of transports of various kinds (transports by art forwarders, in your own custody, by courier services such as Federal Express, UPS or DHL), external warehouses, exhibitions and fair participations
Efficient, fast and art savvy as well as art market savvy management of the insurance cover in day-to-day business and in the event of a claim
A low level of coordination effort and declaration requirements, a high degree of flexibility
Our insurance concepts for gallery owners, art dealers and auction houses are designed in such a way that day-to-day business, exhibition activities and art fair participations are fully covered by the annual premium. This eliminates the need for notifications and individual settlements for exhibitions and participation in art fairs, for transports and for interim storage and stays at unnamed locations.
Essential parameters of the premium calculation are the average stock of art on consignment and owned, for auction houses the annual turnover, number of branches at home and abroad, number and places of participation in art fairs and exhibitions as well as the average annual transport volume.
Flexible options to shape your individual insurance wording exist in, among other things:
- Deductible and profit-sharing alternatives
- First loss and layer coverage
- variable allocation of limits of indemnity
- Co-insurance of branches abroad
- Flexible allocation of sums insured between several insurance locations
- Co-insurance of commercial and technical equipment
- Option to individually agree the basis of settlement provision (purchase or sales price with surcharge or discount, fair market value)
Emerging risks in the art market
The international art market is constantly evolving. Growth, a global clientele, progressing regulation by supervisory authorities with regard to framework conditions for trading in art and diversification of business models, which increasingly extend into the digital space, are associated with new and emerging risks.
Players with different backgrounds and commercial interests are increasingly active in the art market. With this development, risk management by galleries, auction houses and companies in the art trade is gaining importance. Claims for damages can quickly arise from day-to-day business, for example if buyers or sellers doubt the expertise and claim financial loss, which is said to be based on violations of duties of care in the exercise of professional activity and false advice.
Valuations, statements on authenticity, attribution, age and state of preservation may be subject to claims for damages if they turn out to be incorrect. A financial loss liability insurance protects against the financial consequences of claims for damages.
New forms of work and communication and cyber risks
Digital progress and the flexibility it entails, both in terms of location and time, are changing the way we work and communicate. Companies active in the art market are extending their presence into the digital space and putting online viewing rooms on the internet as new sales and digital experience platforms. Online-only auctions are experiencing significant growth. Communication with clients, business partners and colleagues is increasingly digital. This creates new potential for cybercrime and liability for compliance with data protection regulations.
Phishing in particular, which is the tapping of personal data such as bank and credit card details, invoices, home addresses, telephone numbers etc. by means of false e-mails and websites, poses a high risk for the sensitive data associated with the art market.
However, other cyber-attacks can also lead to significant restrictions and business interruption. The resulting damages can run into the hundreds of thousands. They affect not only the hacked gallery, auction house or art foundation itself, but also their business contacts and clients. As a chain reaction, this results in a considerable liability risk vis-à-vis these third parties and, as a consequence, damage to one’s own reputation.
