Errors and omissions insurance
Errors and omissions insurance protects against the financial consequences of claims for damages made by third parties due to a breach of the obligation to exercise diligence during professional activity.
Valuations, statements on authenticity, attribution, age and state of preservation of art can lead to claims for damages from clients and customers if they turn out to be incorrect.
The trade in art is essentially based on trust and the existence of specific expertise. If statements about works of art turn out to be false, trust placed by art buyers and art sellers may be impaired permanently.
Errors and omissions insurance can help to give structure to a situation, where it is a question of clarifying whether an artist’s estate, an art appraiser, art dealer, gallery owner or auction house was mistaken in their judgement about attribution, authenticity, condition and value. The insurance can absorb the financial loss that may have arisen as a result of the breach of the duty of care.