Art collectors must protect their investments and associated risks by securing the right kind and amount of insurance. One common place for loss or damage is during transportation and storage. We can assist with identifying the right service providers, and making custom-tailored contractual arrangements, designed to drastically reduce that risk in the first place.
It is critical to be proactive and prepared in the event of a loss that will precipitate an insurance claim by keeping a careful inventory of your art collection, as well as careful documentation of the provenance of every piece in the collection. Serious collectors must take the steps necessary to ensure that every piece in their collection is regularly appraised and insured for the appraised value. They must also ensure that their fine art is fully insured every step of the way during transportation of the art.
Of course, an investment in fine art is also an important component in your wealth and estate planning, and proper fine art insurance coverage, in concert with a fine art estate plan, protects this investment for future generations.
Our experienced attorneys can assist you with:
- Understanding your fine art insurance policy, and explaining what exactly it covers.
- Making sure you have the right insurance coverage to protect your fine art investments.
- Determining whether your damaged, lost, or stolen fine art should be covered by your insurance policy, or that of another individual or entity, and helping you do what is necessary to prove and receive payment for your loss.
- Assisting with the selection of an appropriate provider to transport or store your fine art.
- Negotiating and preparing contracts for the transportation and storage of your fine art, including with any secured lenders.
- Providing advice about the formation of appropriate legal entities to own or display the fine art, thereby limiting personal legal liability exposure.
- Advising on tax consequences and strategies related to the fine art.
- Taking legal action against your insurance company, or other responsible individual or insurance company for a wrongfully denied, delayed, or underpaid insurance claim or for the damage, loss or theft of your fine art.
- Developing and updating your fine art estate plan to ensure a smooth transfer to the next generation, in coordination with your insurance policy or program.
- Working with artists on copyright matters to protect their creative work.
U.S. & London Insurance Markets
Although fine art insurance policies are often placed within the US insurance market, it is also common for them to be placed with specialist insurers doing business within the London insurance market, including Lloyd’s of London.
Flaster Greenberg understands the structure and mechanics of overseas insurers and the strategy needed to ensure the most successful outcome for fine art insureds. We also work closely with an experienced UK insurance coverage lawyer based in London who is able to provide additional input and assistance regarding claims against the insurers in the London insurance market and assist with in-person negotiation of suitable settlements.
Artists: The Importance of Copyright Protection
If you are an artist, it’s important to understand how the copyright laws protect your work and how to prevent unauthorized use or reproduction of your valuable original works of art, whether those works constitute fine art, photography, illustrations, or one of the many other forms of expression that fall within the definition of art:
Our Intellectual Property Law Attorneys can help by:
- Securing copyright protection through registration processes.
- Reviewing and analyzing complex copyright ownership problems to determine a client rights.
- Representing you in the enforcement of your copyright rights.
Learn more about our Intellectual Property Law Department.
Frequently Asked Questions
How Does Art Insurance Compare to Home Insurance?
What Types of Art Insurance Coverage & Provisions Are Available?
How Does The Claims Process Work In The Event Fine Art Is Damaged, Lost, Or Stolen?
Fine Art Matters
The Runaway Dog
This case involved a painting with a mysterious hole in the center. The art collector claimed not to know how it happened and filed a claim with his insurer. The insurer hired counsel and filed a subrogation claim against the company that transported the art. The attorneys at Flaster Greenberg worked to show that the damage was caused by the owner of the painting’s dog, and the claim against the art transportation company was dropped.
The Dumpster Painting
This case involved a painting that was shipped from auction in London to an art gallery as part of a larger shipment and allegedly lost in transit. The attorneys at Flaster Greenberg showed that the art gallery received the painting, but negligently threw it away (thinking there were 2 paintings in the crate instead of 3) by failing to check the shipping crate before discarding it. The attorneys at Flaster Greenberg were able to have the case against their client dismissed on a motion.
Diamond Cartel Investigation
The attorneys at Flaster Greenberg assisted their client in favorably responding to grand jury subpoenas related to a Department of Justice investigation into an international diamond cartel.
White House Move
The attorneys at Flaster Greenberg helped facilitate the transportation of presidential goods from the White House as part of the Presidential transition.
Shattered Crystal Vase
Flaster Greenberg assisted a private collector who inadvertently shattered a high value crystal vase that was specifically listed on his insurance policy while sweeping the room in his house where it was on display. The collector was able to have the vase repaired by a specialist. The owner’s insurance company initially denied insurance coverage for the claim because of late notice of the loss, and because the owner only asked for the cost of repair and loss in value after the repairs were made. Flaster Greenberg attorneys were able to resolve the claim favorably without litigation.
French Table
A marble table was severely damaged by a client during collection for transportation to an auction house. The value of the table was alleged to be $1.5 - $2.0 million. The attorneys at Flaster Greenberg facilitated work to have the table restored, which resulted in it being sold at auction for an amount in excess of the pre-auction estimates, thereby favorably resolving the case on behalf of the client.
Vandalized Sculpture on Loan to a Museum
Flaster Greenberg assisted the owner of an important sculpture on loan to a museum which displayed it outside. The sculpture was vandalized by thrown rocks, and the parties disputed who was responsible for the damage. The museum’s insurer initially did not want to pay for the damage; however, Flaster Greenberg was able to successfully resolve the claim on behalf of the owner.
Cracked Pumpkin
A famous pumpkin sculpture was damaged during transportation from a museum in Ohio to California. The damage was not discovered until the sculpture was removed from its crate in California. Several insurance carriers were involved in the claim, and it was entirely unclear how the damage had been caused. The attorneys at Flaster Greenberg successfully moved the case to a more favorable forum, which helped them secure a finding of limited liability. The case then settled on very favorable terms.
Our Art Law attorneys share a passion for fine art and work together to provide comprehensive representation for our clients. We offer experienced counsel to US and global clients in Art Law related matters.
We also work closely with attorneys across the firm to meet the real estate, tax, corporate, employment, and estate planning needs of our clients.
Please expand the above attorney menu to learn more about our art law attorneys.