Statues, antique furniture, fine art, musical instruments, and other important collectibles are classified as assets. If you are a corporate collector, individual collector, fine art dealer, antique dealer, or if you have museums or hold art exhibitions, it makes sense to go with art insurance to provide comprehensive protection to the insured property against losses or damages.
Here the art insurance offers coverage against any unforeseen and sudden physical loss or damage from various causes other than those which are specifically excluded in the policy. It also includes fire insurance which offers protection against losses or damages due to fire.
In the case of art insurance, the property in transit is covered on a ‘wall-to-wall basis. The insured property is covered on a ‘wall-to-wall basis’ if it is transported for display, including storage of items, within the territorial limits as given in the schedule for business activity.
It means, from the time the property is removed from a display through packing, shipping, and unpacking until it is installed at a different place for the next display, the coverage will be offered on a wall-to-wall basis. It covers the property while packing and unpacking but is not limited to while in possession of packers, storage locations, and custom clearing houses. This insurance policy is essentially useful for museums and art galleries.
Usually, art insurance covers the collections kept inside the museum. However, ‘wall-to-wall’ coverage can be purchased to cover exhibitions while they are lent to other art galleries or institutions. It means the art will stay covered at all times even if the artifact is off-site.
Even though, insurance is available on a ‘wall to wall basis,’ it is imperative to take appropriate care to safeguard your fine arts and special collectibles from losses or damages. In case the insurer comes to know about the mishandling of items, they have all rights to reject your claim.
Similarly, those agencies which choose to exhibit third-party artwork or special collectibles should make sure that proper insurance coverage is there in place for the exhibits. Also, proper security measures should be followed.
The actual amount that the insurer will pay for a claim concerning an art or exhibit depends on the value at the time of loss as computed by experts on the basis of the inherent value, general availability, market value, and any other detail. One can use the services of a professional appraisal for rare and irreplaceable items before they are put on display.
It is necessary to note that the insurer will not cover loss or damage which arises due to settling, shrinkage, or cracking of walls unless they are caused by or results from an insured peril.
Case
Situated in Delhi, T.S Art Gallery had a vast collection of paintings of renowned artists. One of its paintings, on Nature, was quite popular among people. Considering the losses or damages that could arise, the gallery bought art insurance as well.
Last year, Paint Gallery, Pune requested T.S Art Gallery to give its famous Nature painting for 10 days so that they can display it in their gallery. T.S Art Gallery happily agreed to give its painting. As it had bought wall-to-wall coverage under an art insurance policy, the insurer agreed to cover the painting that was being agreed to send to Paint Gallery.
The day the painting reached Paint Gallery, an accident happened that hampered the painting. Workers who were carrying the painting slipped on stairs which broke some parts of the painting. In this case, the art insurance policy bought by T.S Art Gallery agreed to cover the loss. As T.S Art Gallery at the time of buying the insurance had cited the price of the painting, the insurer considered it while settling the claim.
Here, it is important to note that though, the painting was moved from its original place, the insurer extended the cover simply because it was covered on a ‘wall-to-wall basis. The art stayed protected even when it was removed from its original site.
