Insurance implications if artwork is damaged
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Insurance Implications if Artwork is Damaged During Transit
| Many South Africans appreciate art and enjoy purchasing valuable pieces, which usually come at a very expensive price. However, because artwork is so delicate, it is always at risk of damage when it is being transported. Individuals who purchase artwork need to make sure they know what the insurance implications are if their valuable piece gets damaged while in transit. This is according to Heidi Groenewald, National Manager: Risk Management at MUA, who says that when a valuable piece of artwork is shipped, couriered or transported there is a tremendous risk involved because it is vulnerable to all types of damage. “Whether it is a newly purchased artwork, moving the piece between houses or to and from and exhibition, it is vital that art buyers ensure that their valuable artwork is specified in their insurance policy in order to submit a valid claim if the artwork is damaged.” She states that the moment when someone has a large sum of money invested in an artwork, it is vital to protect that investment on their insurance policy. “It is critical that the art piece is properly recorded in the insurance policy. In other words, all information of the piece should be captured which includes the artist, the medium, the size, how much it was purchased for and where from, a photograph of the piece, etc. The more information available the better and a valuation report well assist to serve as proof of ownership.”. She explains that art is usually insured on an Agreed Value Basis between the insurance company and the policyholder. “Some insurers offer the expert assistance of a Specialist Valuator to help the client with a reliable estimate. Some insurance providers have specific exclusions for damage to items whilst in transit, so it is important that the policyholder knows whether or not their piece will be covered for this type of damage.” Groenewald advises policyholders to ensure that the freight company they use to move their artwork, has the appropriate insurance cover in place or check that their own policy provides for all aspects of moving the artwork, before they allow their art to be transported. Should something happen to the artwork while in transit, she advises that consumers submit a claim with their insurance company if the item is covered under their policy. “The insurance provider will either restore the piece or offer a cash settlement as per a specialist valuator’s estimate. However, if the artwork is not specified under the policy the claim might be rejected.” “Damage to artwork in transit often occurs when those responsible for transporting the item do not ensure that all items are correctly protected from mishaps. People who own high value art must ensure that they always inform their broker of newly purchased pieces or when they are moving the piece from one location to the other to ensure that they are always financially covered for any loss or damage to their valuable art,” concludes Groenewald. |
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| Credit To: Groenewald, H. (2017, Apr 25). Insurance Implications if Artwork is Damaged During Transit. Money Marketing. Retrieved from: https://www.moneymarketing.co.za/insurance-implications-if-artwork-is-damaged-during-transit/ | |
 Also refer to the Art and Collectables Insurance article |
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