Artist Studios Need Insurance Too

Many artists neglect to insure their practice because they mistakenly believe they’re already covered by a homeowner or rental policy—which are strictly limited in coverage to assets that aren’t considered part of a business. (Sorry, but at least in this case, your art, if it’s for sale, is considered a business.) Sometimes, insurance riders—essentially add-ons to a general policy—can be purchased to cover works of art or business practices, but an insurance brokerage like Bernard Fleischer & Sons Inc. / ArtInsuranceNow.com concentrates in the more complicated policies that art insurance typically requires. Our agency is experienced at navigating provenance and the complicated methods for valuating works of art and a familiarity with insuring studios and art collections.

 

Other artists hesitate with insurance because they’re unsure at what point a work of art is technically finished—at what point it stops being a conglomerate of a couple hundred dollars’ worth of material, and starts becoming a valuable “piece.” Fortunately, in this case, the insurance industry is largely unconcerned with such philosophical questions. Generally speaking, insurance adjustors will use an artist’s past sales to determine valuation. If you sold a similar painting for $1,000 (and can provide legitimate documentation), expect a valuation of about $1,000, unless you’ve started working with precious metals.

 

Certainly, the most tragic losses in the event of a disaster are those of human life. Second to that, for many people in the arts, are cultural artifacts. Therefore, it’s important to insure our cultural legacy. Meanwhile, insurance companies can feel very far removed from the arts—with their talk of “assets”—and scare collectors, gallerists, and, yes, even artists, from maintaining proper insurance coverage.

 

We at Bernard Fleischer & Sons Inc. / ArtInsuranceNow.com speak the language of the arts as well as insurance and can bridge the gap between the art community and the insurance industry to protect the legacies of the collector, gallerist, museum and artist.

Visit us at www.ArtInsuranceNow.com to learn more or call us at 800-921-1008 to speak with someone who can help with your particular needs.

Estate Planning And Affluent Art Collectors

Art collectors, are you properly estate planning? We can help. visit us at ArtInsuranceNow.com

Affluent art collectors are passionate about art. While they tend to expect their acquisitions to appreciate in value, they buy for personal and aesthetic reasons. Affluent art collectors are inclined to be extremely focused on acquiring and not very interested in disposing of art. This often means that at death they have amassed significant collections. What is surprisingly common is that many affluent art collectors do a substandard job of addressing their artwork in their estate plans.

Failing to plan for the disposition of collections upon death can prove quite costly to the family, as there is the potential to having to pay higher estate taxes. It can result in the unfair division of the art resulting in family conflict and litigation.

“Art is left to loved ones or other individuals, donated to charity directly, or in trust at the death of the collector. Proper planning means that the artwork is transferred to others very tax efficiently,” explains Frank Seneco, president of the advanced planning boutique Seneco & Associates. “Unfortunately, many times wealthy collectors have adopted the default option of not properly planning. For example, the collector is not sure which family members to leave which pieces to resulting in procrastinating and procrastinating until it’s too late. However, smart planning can often resolve these issues. One approach involves using corporate entities to own the art. This approach can not only address many ownership issues, it can simplify probate as there would not be the need to retitle the art.”

When dealing with meaningful and valuable collections, proper planning is more than constructing an estate plan. According to Evan Jehle, partner of FFO Business Management & Family Office, “Many of the ultra-wealthy have substantial art collections that they have not appropriately included in their estate plans. But, it’s more than just making sure the artwork is addressed in the plan. For example, with our clients we make sure they build files of ownership to make sure no questions arise concerning provenance. These files include certificates of authenticity, bills of sale, insurance records, and the like. A good rule of thumb is that the greater the distance between the collector and the artist and the older the artwork, the more likely there will be questions of provenance.”

Many wealthy individuals from business owners to celebrities do not construct effective estate plans. This is also true of a percentage of affluent art collectors. As in all these situations, by working with qualified professionals, the prosperous are able to ensure their wealth is passed on to whom they choose and done so while mitigating taxes.

Originally published Jan 08 2018, Forbes.com

Visit us at ArtInsuranceNow.com or contact William Fleischer CIC at 212-566-1881 Ext 111

Could buying art make you rich?

One man’s trash is another man’s treasure.

For one investor that dream came true. The painting ‘Salvator Mundi’ believed to be painted by Leonardo da Vinci purchased for £45 just sold for $450 million. So, is investing in art a good way to get rich quick? And how should you proceed? “with extreme caution” say financial advisors.

While stories like the recent Leonardo da Vinci sale and endless Antiques Roadshow episodes make it seem very attractive to invest in paintings and objets d’art, such cases are relatively rare. What you get back is based on supply and demand and there are big movements upwards or downwards if particular works or artists come in or out of fashion.

Attending a neighborhood garage sale or popping into a local thrift store can leave a lot to be desired. After sifting through dented furniture, chipped ceramics, and strange art, one is often left feeling that the presented merchandise is worthless. But if you are lucky enough, you may just find a diamond in the rough.

Some Top Garage Sale Finds:

  • $3 for a Ceramic Bowl, Sold at Auction for $2.2 million
  • Andy Warhol Sketch Purchased for $5, Valued at $2 Million
  • 50 Cents for a Painting worth $10,000
  • Tiffany Mirror Purchased for $2, Valued at $25,000

 

Photo of Salvator Mundi (Leonardo da Vinci)
Salvator Mundi (Leonardo da Vinci)

The high sale price of the Leonardo painting was not typical, a recent academic study, based on examining data from 1.2 million auction house sales of paintings, drawings and prints, concluded that art appreciated in value by a modest 3.97% per year, in real US dollar terms, between 1957 and 2007.

Given the current environment of low interest rates, that’s still a better return than many savings accounts will give you. Paintings are seen as attractive investments because it’s very clear what you’re buying. Part of this is driven by investors’ desire for “real assets”.

Many investors lost money in the financial crisis by investing in products they did not understand, they are turning back to things such as art. Wealthy clients spend an increasing part of their wealth on art and collectibles.

You don’t necessarily have to be super-wealthy to invest in art.

Affordable Art Fair photoThe ArtInsuranceNow.com sponsored 2017 Spring Affordable Art Fair was an excellent example of great works of art that are accessible.  There are a growing number of art fairs and online marketplaces such as Artfinder aimed at buyers with a more modest budget.

The Affordable Art Fair (AAF), which started out in London’s Battersea Park in 1999, now holds fairs in more than 10 cities around the world. But while it may be becoming more affordable, just don’t bet on becoming a millionaire yourself.

With a keen eye and a lot of luck you may come across a valuable find but most art industry experts suggest that you buy a piece of art because you like it, not because you want to get rich. “If it goes up in value that should be just an added bonus.”

Protect your valued finds by visiting us at ArtInsuranceNow.com, voted a 2017 Top Broker and listed as the “Cream of the crop” in our respective area of Art Insurance by Insurance Business Magazine. We can help with all Art related insurance requirements. Apply here or Contact William Fleischer CIC at 800.921.1008 to discuss your unique situation.

Murals – can they be Insured for Vandalism?

I must receive at least 20 calls a year asking if they can insure a mural painted on walls, inside, outside, on buildings, fences, and anywhere else you can think of. Street-level placement Murals will invite graffiti vandals to leave their mark. As a contracted job to produce the Mural, there is an insurable value from the start to the finish of the work.

Since usually these art installations are designed and planned in advance with the cooperation of the building owner, coverage can be found to cover the installation process; a claim is paid based on the percentage of completion.

There is a possibility Insurance may be obtained when the Mural is completed. This will depend on exactly where it has been placed and the safeguards. Regardless almost all insurers would exclude coverage for:

  • Vandalism and Mysterious Mischief
  • Wear and tear, any quality in the product which causes it to damage or destroy itself, gradual deterioration
  • Insects, vermin, or rodents
  • Changes in or extremes of dampness or dryness of atmosphere or temperature

But theft?…

I develop programs exclusively for the Art World, covering, Museums, Collectors, Curators, Gallerists, Artists, and related Art businesses. My policies include Art owned or loaned, in Storage, in Transit, at Auction Houses or Dealers.

I can help with all Art related insurance requirements. Visit us at ArtInsuranceNow.com to apply or Contact me at 800.921.1008 to discuss your unique situation.

William G. Fleischer CIC

Art Insurance for Collectors; Schedule vs. Blanket

The Art of Collecting Art.

There’s a big difference between buying art and collecting art. Buying art is more of a random activity based on likes, preferences or attractions at any given moment while collecting art is more of a purposeful directed long-term commitment. An important step in good collecting is not the most delightful one to talk about, but it is among the most necessary, and that is to plan for the unforeseen.

As an art insurance broker, I readily come across collections that are an intricate part of retirement and inheritance planning.  It’s a great asset to pass down.  Baby boomers bought artwork for the love of the art.  Art as an investment vehicle was a small part of the decision-making, not like today which is the main focus.

In the past 15 years as the art market sales and demand took off, Art purchased 40, 30 or even 10 years ago is worth a lot.  Hence, I am seeing collector’s policy limits rise into the millions. I will explain some key differences in the type of policy offered in today’s marketplace. Art Insurance and collectible insurance demands are a new focus with some insurers. Beware, like the art world, no two are the same, read the exclusions, conditions and valuation clauses in a policy.

Understand what schedule means and its limitations, some say the maximum they will pay is what is on the schedule or schedule plus 125% or 150% and then some added or market value whichever is less.  A popular coverage is Blanket Insurance; usually, this is for the collection under $300,000. The advantage is that you are not required to supply the companies with appraisals, bill of sale or any other documentation when you bind the coverage.

Only at the time of loss, the onus of proof of value is on the collector.  This is not a lengthy process; either go back to your paperwork and ask for a current valuation from a dealer or show your work to a dealer and put the value in a letter. Both methods of either scheduling the art or using the blanket limit are tools I use when working with my clients.  Each person looks at insurance in different ways and has different requirements. Let me work with you and answer all your questions to present a program which is satisfactory to all those involved.

Visit us at ArtInsuranceNow.com to apply or Contact me at 800.921.1008 to discuss your unique situation.

William G. Fleischer CIC

Largest Warhol Collector’s Art Damaged in Storage, is it Covered?

Largest Warhol Collector’s Art Damaged.

Renowned Mugrabi family which owns the largest private cache of Andy Warhol pieces says its business has been brought to a standstill by a company that’s holding its entire $100 Million, 1,300-plus-piece art collection “hostage” at a New Jersey storage facility.

 

In a lawsuit filed in New York City, David Mugrabi accused Mana Contemporary of preventing the family from removing any art from its storage facility in Jersey City since last month.

 

Mana Contemporary had agreed in 2014 to store the collection in exchange for the Mugrabis’ recommendations of Mana’s services to their clients, Mana now wants more than $500,000 for storage fees, according to the complaint, and the company has also damaged 11 works of art in its custody — including pieces by Frank Gehry, Richard Prince and Jenny Saville, according to the suit.

 

Would our Collector’s policy cover the damages?

 

YES! Our Collector’s policy covers Art owned by the Collector and covers damages while in storage. The main focus would be the loss settlement. Restorers and appraisers would evaluate the work to determine the “Current Market Value”, the “Loss of Value”, and the value of the art if scheduled.  Once all information is established, then the insurance company would pay the claim.

 

A Total Loss: the company will pay “current market value” of the property at the time of “loss” or damage occurs. The “loss” or damage shall be ascertained or estimated according to such current market or schedule values.

 

A Partial Loss: The company will pay the Collector an amount mutually agreed upon based on the following:

 

(a) The cost to repair the property to its value immediately before the “loss”; or

 

(b) The difference between the value of the property before and after the “loss”; or

 

(c) The cost to restore the property as nearly as possible to its condition immediately before the “loss”. If the restored value is less than the value immediately before the “loss”, the company will pay the difference between the restored value and the value immediately before the “loss”.

 

Having the right policy in place with the right coverages help to rebuild and or restore amazing collections. The purpose of Insurance is to indemnify and restore the Insured to the situation prior to a loss. Sadly, Art is one of those objects which is very difficult to return to its original grandeur.  Nothing lasts forever, but one would hope, through proper insuring of a collection, it could be rebuilt with similar works or genres.

 

Visit www.ArtInsuranceNow.com to learn more, apply here or feel free to contact William Fleischer, CIC at 1.800.921.1008

How Editions and Negatives are Valued

The value of Editions and Negatives vary.

I was recently reading an appraisal trying to establishing values on Editions and Negatives for a sale of the collection.  I then started to read different policy forms to see how insurance companies would payout if there was a loss. How art is valued varies, read on.

  • Current market value is the present day value.
  • Future value on a single item is an unknown, hard to project the future.
  • The original from which multiple proof editions are made has a value from being the original #1, but each type of edition and sequence has a value.
  • If all editions are printed and no future editions are ever made, then that inventory is fixed so a total can be calculated accurately. Now, if that inventory does not sell in 2 years for example, then the inventory is overvalued and total should be lowered.
  • A photo negative has value and each copy has a value, but unless the negative is destroyed the copy has little value.
  • With digital photos and copies, there is no degradation in future copies and unless it is hand numbered by the artist then there is little value.
  • If you have the Getty photo library, then all photos have a future value based upon licensing fee and there is no physical loss but there is a Business Interruption loss

Visit www.ArtInsuranceNow.com to learn more, apply here or feel free to contact William Fleischer, CIC at 1.800.921.1008

Glass Artist Loses ‘Every Single Piece’ in Napa Valley wildfire; Our Exclusive Artist’s Insurance Policy Pays Off.

Napa Valley is typically a peaceful, relaxing place but not for Glass artist Clifford Rainey who lost his home, his studio and most of his work in the Atlas wildfire. The wildfires Fueled by powerful winds have scorched more than 200,000 acres including the beautiful homes of artists and collectors.

 

On Friday morning, Oct. 13, as Rainey surveyed the damage for the first time after his Mount George home and studio burned, said “Every single piece of artwork I own I’ve had since college was lost”.

 

Rainey’s life’s work is far from all lost. His work has exhibited extensively, featured in numerous public collections, including the Victoria and Albert Museum in London, the Corning Museum of Glass in Corning, New York, the M. H. de Young Memorial Museum in San Francisco, and the Los Angeles County Museum of Art, as well as in the permanent collections of the Museum of Arts & Design, New York, Museum of Fine Arts, Boston, the Irish Museum of Modern Art, Dublin, and the Montreal Museum of Fine Arts.

 

The emotional value cannot be replaced but having an artist’s policy to cover financial losses prevents having to start from zero. Our Artist Insurance Policy is designed for the active Artist. Your Art is covered while in the Studio, in Transit, while at Exhibitions and when in storage along with Your Materials, tools and reference library.  No more worrying about, Theft, Fire, Water Damage or Vandalism. These coverages and more are covered in our Artist Insurance Policies.

 

For more information or to discuss your particular situation contact me, William G. Fleischer CIC | Principal.  T: 212 566-1881 ext.111 or visit us at www.artinsurancenow.com to fill out a quick EZ application for a fast, free quote.

Marvel Exec’s $240,000 Collection Stolen, Is Entrusted Property Covered?

A contractor was hired to repair water damage at a Sparta N.J. Township home, he was just arrested charged with theft and burglary of a $240,000 collection.

The contractor snatched art and Rare Comic Books, valued at more than $239,000, from Joseph Quesada, Marvel Comics’ chief creative officer and former editor-in-chief. Authorities said Quesada hired a contractor as a handyman earlier this year, and asked him to repair damage caused by a burst water pipe. But the handyman had other ideas, he covered the property’s security cameras with towels, then he moved himself and his girlfriend into Quesada’s house.

Soon after, a friend called Quesada to ask why he was selling a portrait of his wife. Quesada didn’t know what his friend was talking about, but he did recall he kept that specific portrait in Sparta. Fearing the home had been burglarized; Quesada and his wife went to the house and found their art collection missing, including original comic book art. This is where a separate Fine Art Collectible Policy makes the difference.

 

Theft by a person you entrust with your property is covered by the AXA Fine Art Collectible Policy, Are you covered for any fraudulent, dishonest, or criminal act or acts by employees, dog walkers, home attendants, contractors, or trusted individuals?

 

Contact us today to help insure your Valuable Fine Art and Collectibles.

 

Visit www.ArtInsuranceNow.com to learn more, apply here or feel free to contact William Fleischer, CIC at 1.800.921.1008

Art Fairs and Protecting Art in Transit

Underwriting the transportation of fine art can be tricky. Using an experienced, trusted agent is important to protect yourself from the pitfalls.

 

Artists, Art Dealers, Collectors and Institutions use art transport services regularly, but insurance in particular, is a gray area in which most losses occur. Shippers charge high rates with high deductibles and with hidden exclusions. Pay close attention to the bill of lading and understanding the fine print. The standard form limits the exposure of a claim on the art to weight, not value. Our policies are written either as a schedule or market value less a percentage. Either way your art will be protected while in transport, in storage and while exhibited.

Whether buying or selling at Art Fairs be sure that your work or investment has the maximum coverage with minimal headaches by using the Trusted One Stop Art Insurance for the Art Community since 1949, Bernard Fleischer & Sons Inc. www.artinsurancenow.com or call 800-921-1008 Ask for William Fleischer, CIC.  so he can help you with all your Art Insurance requirements.

apply online here

Upcoming Art Fairs

 

viennacontemporary underlines it’s significance not only as a marketplace but as a location for the presentation of young and established artists and for the information on the development of the art scene in the focus countries of the program.

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a contemporary art show in the heart of southern California featuring an international slate of artists and galleries. The show features over 500 leading contemporary artists, museum exhibitions, Art Labs, events, and Art Talks focused on collecting. Now in its ninth year, the four-day event attracts over 15,000 high-net-worth collectors. Join us for an unforgettable four days of cutting-edge art, entertainment, and special events.

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FOTOSEPTIEMBRE USA SAFOTO 2017 runs from August 26 through October 30 across various galleries and other venues in San Antonio and the Texas Hill Country.
October 2017 Art Fairs

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Frieze London features more than 160 of the world’s leading galleries. View and buy art from over 1,000 of today’s leading artists, and experience the fair’s critically acclaimed Frieze Projects and Talks programmes

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Frieze Masters features more than 130 leading modern and historical galleries from around the world, showcasing art from the ancient era and Old Masters to the late 20th century.

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Now in its 8th year, Moniker Art Fair aims to spotlight emerging and established talent from a burgeoning and increasingly diverse contemporary art movement forged by its subversive and innovative spirit. Staged during London’s most important art week in October, Moniker Art Fair attracts some of the most talked about artists, galleries and collectors from the finer side of the street art movement and its related subcultures.

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Art Miami’s International Contemporary and Modern Art Fair on the West Coast, centrally located between Silicon Valley and San Francisco.

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Texas Contemporary, Houston’s leading contemporary and modern art fair, brings top galleries to the area’s discerning collector base.

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  • FIAC (Paris, France)

    October 19 – 22, 2017

For its 44th edition, which will be held from 19 to 22 October 2017 in Paris, FIAC hosts at the Grand Palais a selection of the most important galleries on the international art scene. The fair reinforces the presence of the leading galleries, covering the modern and contemporary periods, and renews its support for the emerging galleries through a 2017 promotion of the Lafayette Sector which will not fail to surprise by its freshness, diversity and relevance. The fair, an unmissable event this autumn, confirms the attractiveness of the Place de Paris on the market.

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October 27 – 29, 2017
CLIO ART FAIR 2017 focuses attention on the kinds of contemporary art and interventions that are being created by independent artists the world over. Without the constraints and usual concerns of the art business, these artists have no set boundaries – using different materials and media to deviate from accepted art practice definitions in the gallery space. The works exhibited seek to foster a dialogue that transcends prescribed geographies, hierarchies, and markets, expanding the opportunities for greater expression of new media and groundbreaking content.
November 2017 Art Fairs

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The IFPDA is an organization of expert art dealers who champion

the work of artists in the artistic medium of printmaking.

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Paris Photo, the first international fair dedicated to the photographic medium, will present its 21st edition from 9 to 12 November 2017 at the Grand Palais in Paris.

A must-see for collectors, professionals, artists and art lovers, Paris Photo focuses on the diversity and quality of the artists and works presented and proposes an ambitious and demanding public program.

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The Salon Art + Design welcomes the world’s finest galleries exhibiting historical, modern and contemporary furniture, groundbreaking decorative arts, and late 19th and 20th century fine art. Visitors will find designs by the great 20th century masters, as well as creative works by today’s most innovative young artists.

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Insuring Art, Art Gallery, Art Dealer, Artist and the Art world needs