Steve Eelkema on wed 20 nov 02
The discussion about consigned work brings up a bigger issue about whose
insurance covers it. Insurance companies don't want to cover it because its
value is very hard to establish until someone pays a wholesale or retail
price for it. Most (or at least many) people assume that the gallery covers
it. I suspect that some galleries assume their insurance covers it. It
might take some pointed questions with your insurance agent to find the true
situation. My experience is that the coverage is hard to get and very
expensive. If someone is aware of a company that provides coverage of
consigned goods at a fair rate it would be great information to have.
Steve Eelkema
Penn Cove Pottery
L. P. Skeen on wed 20 nov 02
Steve,
My gallery is covered by Nationwide. The rates will vary, according to the
"features" you get (just got a notice that anything ruined by "fungi" are
not covered anymore, like I'd have thought to file insurance for
mold.....not.), and prolly according to where you live. I'm in NC and my
rate is about $1000/yr. They cover consigned goods at wholesale. Wholesale
is half of retail. Breakage/damage in the gallery is therefore covered at
wholesale, and that's spelled out in the consignment contract I have with
the artists.
If you have a gallery of work where none is on consignment, ie: it's all
yours or you bought it at wholesale to sell at retail, get thee to thy local
Erie agent - they won't cover consignment, but their rates are EXCELLENT,
and I've heard the customer service can't be beat. If you're in NC, I have
a great Erie agent for you, email me offline for a referral.
L
----- Original Message -----
From: "Steve Eelkema"
To:
Sent: Wednesday, November 20, 2002 11:48 AM
Subject: Consigned work Insurance
> The discussion about consigned work brings up a bigger issue about whose
> insurance covers it. Insurance companies don't want to cover it because
its
> value is very hard to establish until someone pays a wholesale or retail
> price for it. Most (or at least many) people assume that the gallery
covers
> it. I suspect that some galleries assume their insurance covers it. It
> might take some pointed questions with your insurance agent to find the
true
> situation. My experience is that the coverage is hard to get and very
> expensive. If someone is aware of a company that provides coverage of
> consigned goods at a fair rate it would be great information to have.
>
>
> Steve Eelkema
> Penn Cove Pottery
>
>
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Janet Kaiser on thu 21 nov 02
YMMV Steve, but in the UK it is impossible for anyone (artist or gallery)
to insure against *loss* or *theft*, if the work is in a retail situation
i.e. is for sale and has a price-tag attached. Insurance companies simply
regard theft of work on sale as "shop lifting". They will only cover for
robbery or burglary!
Galleries will usually be covered for other contingencies such as
accidental damage from the time they receive the consignment, but insurance
is yet another clause which should be in your Consignment Agreement with
the gallery. If it is not categorically stated, you may presume there is no
cover. Remuneration for damage/loss will be at the discretion of the
gallery, which is NOT a Good Thing. As you say, insurance premiums are
prohibitive and one can guarantee that any claim made will be covered...
Oh, yes! By an exemption clause! I always advise artists/makers to arrange
their own insurance to cover their work and then the insurance companies of
both parties can hammer out any claim for "loss" between themselves! That
way both the artist and the gallery have a fighting chance of being
well-served at the end of the day. No, it is not very satisfactory, but
that is the best on offer.
The "value" is a very difficult nut to crack too... Most insurance
companies will only pay an artist the cost of replacing the materials used
i.e. the cost of production without any "added value" or "profit". As you
say... it is very difficult to prove the worth, unless there is some sort
of financial transaction OR there is a well-documented and provable "market
value". This could be verified to their satisfaction through producing
catalogues, bills of sale, etc. but don't count on it.
Long-established galleries will know from bitter experience exactly what
their insurance does and does not cover. Whether they are open about it is
another kettle of fish. A lot of assumptions are made in this world... It
has been my own little crusade to make artists/makers aware of this
anomaly, but it is surprising how many simply do not believe me! It is
head-in-the-sand behaviour and as long as they do not suffer, everything
will be all right. I just hope they don't ask for my sympathy if/when they
find out the hard way. Some prestigious galleries have absolutely no
insurance and other public venues think their in-house security will see
them through. But even CCTVs are no guarantee that artwork does not walk
out... And it can be days, weeks or months before anyone even notices work
is missing presumed lost! Certainly long after the security videos have
been taped over...
Sincerely
Janet Kaiser
*********** REPLY SEPARATOR ***********
On 20/11/02 at 08:48 Steve Eelkema wrote:
>The discussion about consigned work brings up a bigger issue about whose
>insurance covers it. Insurance companies don't want to cover it because
>its
>value is very hard to establish until someone pays a wholesale or retail
>price for it. Most (or at least many) people assume that the gallery
>covers
>it. I suspect that some galleries assume their insurance covers it. It
>might take some pointed questions with your insurance agent to find the
>true
>situation. My experience is that the coverage is hard to get and very
>expensive. If someone is aware of a company that provides coverage of
>consigned goods at a fair rate it would be great information to have.
>
>
Janet Kaiser
The Chapel of Art =95 Capel Celfyddyd
8 Marine Crescent, Criccieth LL52 0EA, Wales, UK
Tel: 01766-523570 URL: http://www.the-coa.org.uk
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