Art Work in Transit Transit is automatically included in most dealers’ policies, but
the large amounts shipped may exceed the limit on your policy. Check the total
value of shipment and increase if necessary-this may cost more.
Art at Fair (‘Stay Risk’) Coverage at fairs is not automatically included on most
policies. A coverage extension might be required from your insurance company.
Insurers have limited available insurance (aka capacity) in one location. At the
larger shows like TEFAF and Miami Basel, art insurance companies may not be
able to accommodate your request. Check the policy and request increases as early
as you can. Remember, your At Other Location Limit does not always apply to show
coverage.
Event Cancellation A unique form of business interruption not included in standard
business insurance. It can cover your incurred sunk expenses, such as participation fees, travel/hotel costs, and insurance/shipping costs if the fair is cancelled,
postponed, or unexpectedly shortened.
Liability Sometimes referred to as ‘slip and fall’ insurance - part of a Business
Owners Policy aka “package”. Dealers should already have this coverage to protect
against lawsuits from 3rd parties alleging physical injury or property damage. Fair
organizers often require it, and ask that they be listed as ‘Additional Insured’ on your
policy in case someone gets hurt in your booth. Additional premium cost, if any, is
minimal.
Non-Art Property Typically included in your business package policy. While most
property you take to a fair is art; laptops, furniture and lighting are not covered on
the art policy. Make sure you extend your policy to cover these.
Travel Accident Special insurance, not typically part of a standard business policy,
that covers medical treatment and/ or emergency medical evacuation expenses
overseas. You will hopefully never need to use it, but if you do, you will be glad you
bought it.
420 Lexington Ave, Suite 2700
New York, NY 10170
Foreign Package Your business policy probably does not insure you for claims or
suits overseas. Investigate a foreign package policy for liability, property and
Workers Compensation coverage overseas.
This publication is provided solely for informational purposes and is not intended to provide legal advice or create a binding contract. This publication does
not describe all available insurance options. Coverage is subject to the terms, conditions, limitations and exclusions of the specific insurance policy.
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License # 0C28262
Art Fairs:
What to Know Before You Go
Fine Art IN
SURANCE
SIDER
WINTER 2014
INSIDE THIS ISSUE
• Art Fairs: Worth the Risk
• Art Fairs: Before You Go
• The Impresario of Photorealism
• Interview with Melissa Lalka of Chubb
Art Fairs: Worth the Risk
Today, more art is sold at
International art fairs than
anywhere else in the world. At
December’s Art Basel Miami,
$3 billion worth of art was
shown by 258 galleries to more
than 70,000 collectors,
museums, investors, entrepreneurs, socialites and art lovers.
Art fairs have become the
premier marketing and sales
platform for dealers around the
world. Some dealers don’t even maintain
a permanent gallery space and transact
business exclusively at art fairs. As dealer
David Zwirner said in The New Yorker,
“This is the most commercial part of what
we do.”
Damage to the artwork, whether in transit
to or at the fair, is a major concern for
insurance companies. While an individual
dealer will worry about his inventory, major
art insurers are concerned with the mass
concentration of value in a single building.
Christiane Fischer, President and CEO of
AXA Art in the Americas, states, “At any
given moment, there are billions of dollars
of art aggregated at global art fairs.
Beyond the cost of insurance, the galleries
who participate in these fairs are
challenged with the expenses and logistics
required to ship, install and exhibit works
of art.”
THE IMPRESARIO OF
PHOTOREALISM
Louis K. Meisel coined the term “photorealism” 45 years ago, and since then has
been the primary dealer, collector,
exhibitor, passionate supporter, and
historian of this exacting genre and its
artists.
In November, the prestigious Abu Dhabi
art fair was forced to shut down when the
Gulf’s biggest storm since 1993 caused a
major leak in the roof. Hundreds of
millions of dollars’ worth of artwork - and
sales - were threatened. Fortunately, the
show was moved next door and continued.
Gary Waterston, a Director at Gagosian
Gallery recently said, "Despite the damage
to the Pavilion, the fair was able to
continue in the other venues. Thankfully
no one was hurt and little, if any, art was
damaged. The fair organizers reimbursed
dealers a portion of their participation
fees, but next time, we may not be so
lucky. It has forced us to think about our
risks when participating in fairs where so
many things are out of our control. Even
the decision to continue, delay or
abandon - is in the hands of the organizers, not the galleries.”
Front: Banksy Brooklyn Broken Heart wall courtesy of Keszler Gallery.
“The paintings are startlingly
realistic. It takes an incredible amount of detail, skill,
vision...everything
artists have needed
throughout history,”
says Meisel.
At his gallery in
New York’s SoHo
district, Meisel
says, “I sell to
collectors who love
art, to museums, and
not to decorators, not for
investment or prestige.” He
is also a partner at the Bernarducci Meisel Gallery on 57th Street.
“Photorealism has never been popular with
critics, but then, you never need a critic to
explain it...The world has embraced
realism,” he says. “The Guggenheim has
23. I think 20 came through me. The
Museum of Modern Art has ten and The
National Gallery has 23. I’ve donated
paintings, and eliminated commissions
when museums buy from my artists.”
Meisel has helped assemble and contributed to more than 300 exhibits in
museums around the world. The current
Photorealism, 1967-2012, has drawn
crowds at major European museums.
Recently, it was at The ThyssenBornemisza in Madrid and is now in
Birmingham, UK before going back to
Bilbao.
“The current market for photorealism is
doing well,” he says. Paintings by
Chuck Close, Richard Estes,
Ralph Goings and
Charles Bell are into
the millions.
Significant
photorealistic
paintings go for
$50,000 to high
six figures.
Meisel and his wife
Susan have also
established a
semi-public sculpture
garden in Long Island.
This renaissance couple also
presents classical music concerts in
the Soho gallery, concert halls and
museums.
Just published, Meisel’s Photorealism in
the Digital Age is the fourth in his series of
art books that comprehensively document
“these visual marvels.”
After almost half a century, he still loves
this art and its “brilliant, hard-working
artists.”
Above: painting of Louis K. Meisel
by Ben Schonzeit
Interview with
Melissa Lalka
Chubb’s Fine Art Practice Leader
Chubb Insurance is one of the largest
underwriters of art collections in the
country, insuring billions of dollars in
art, representing many of the top
collectors. We sat down with Melissa
Lalka, head of Chubb’s Fine Art
Practice, to discuss the trade…
Describe your new role?
I am the Worldwide Fine Arts Program
Manager for Chubb Personal Insurance.
What is your biggest challenge?
I’m challenged with the same thing that
many folks are, mainly finding the time
to do it all.
What are you going to do differently?
I plan to reenergize the fine arts practice
by bringing together Chubb’s resources
throughout the world - to take a more
holistic approach to how Chubb delivers
services to its clients.
As such, I am responsible for the
strategy of Chubb’s fine arts practice
What artist(s) would you collect if you could?
and for coordinating Chubb’s fine arts
Cindy Sherman’s Film Stills. These were
resources around the world.
displayed at MoMA last year, and seeing
them in person just made me fall in love
What is the best part of the job?
with them even more.
I am really in awe of the importance of
grow and change over time as well as
What do you think about contemporary
art as the new investment?
seeing new clients develop their love for
The values are staggering. It’s unbeliev-
art. It’s the perfect job for anyone who
able how the values continue to rise. At
appreciates art.
Chubb, we understand why our clients
the works I’ve seen, how collections
want to invest in fine art, particularly
What’s the first thing you read in the
morning?
contemporary art. Chubb’s fine art
E-mail. I am an early riser, getting up
market and can provide consultation on
well before everyone else in the house. I
may not reply to e-mails at that hour of
the morning, but I always check them
when I get up.
Contact Melissa Lalka at [email protected]
specialists are really plugged into the
pricing and valuation trends as well as
referrals for appraisals, transit and storage.