5 hidden risks that art galleries and picture framers often overlook

Art galleries and picture framers play a significant role in preserving and sharing greatness and history. When protecting great art for years to come is your priority, sometimes protecting your business can take a back seat, especially when it comes to the type of risks that regularly get overlooked. At Edwards Insurance Brokers, you can leave the insurance to us, while you continue to protect the artwork that tells stories and brings people together.

Alan Kafoor, Head of Sales at Edwards Insurance Brokers, explains how to avoid some surprisingly common risks, that you might not have considered.

“We often speak to gallery owners who assume their standard business policy covers everything inside their premises. But when it comes to consigned artwork, transit risks, or changing valuations, that’s rarely the case. That’s why a tailored policy makes all the difference.”

1. Don’t assume standard Business Insurance is enough

Many galleries and framers take out a general business or shop insurance policy and assume it covers artwork. Many standard policies may not cover consigned artwork.

If you’re holding works on behalf of artists, collectors or lenders, you may not be adequately insured. It’s worth checking whether your policy includes stock held in trust and covers both owned and consigned works. If it’s not clearly stated, ask whether it can be endorsed onto your policy.

2. Gaps in transit and unattended vehicle cover

Like many other business assets, artwork often moves between studios and galleries, exhibitions, and buyers. Typically, standard policies only cover items while they’re on your premises. This could leave you exposed when artwork is in transit and when items are left in a vehicle.

To avoid being underinsured for art in transit, look for a policy that includes an outside limit for transit. This ensures artwork is protected from ‘nail to nail’. If you ever leave items unattended in a vehicle – even momentarily – ensure unattended vehicle cover is in force. Without it, you may not be due a payout in the event of a break-in. 

3. Underestimating artwork values

The world of art is fluid, and the value of pieces can change significantly, especially upon the death of an artist. That’s why it’s essential to ensure our policy protects your pieces for their current valuations, otherwise you could be underinsured when it matters most.

Make sure to review your valuation basis regularly and keep an up-to-date inventory of artworks. This helps ensure your cover reflects the true value of your collection. 

4. Overlooking liability risks

For any public-facing business that welcomes visitors daily, it’s essential to have adequate public and product liability cover in place. If a visitor injures themselves or their property is damaged due to your business, resulting liability claims can be costly.

If you have employees or volunteers, you will most likely need employers’ liability cover too.  

5. Not reviewing cover as the gallery evolves

As a gallery, do you attend trade fairs or exhibit internationally? Has your gallery recently expanded, or do you have plans of growth in the future? As your business evolves and moves, your insurance needs to grow with it. Failing to review your cover at these times could leave your business vulnerable. That’s why having a broker by your side who is involved with the art world can help.

Speak to someone who understands your sector

At Edwards Insurance Brokers, we’ve worked with galleries, framers, and collectors for many years. We understand the nuances of the art world and tailor policies to suit your needs, whether you’re a small independent or a larger exhibition space.

If you’d like to review your current cover or talk through your options, call us on 01564 730 900 or email enquiries@edwardsinsurance.co.uk.