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Can I get more information about art insurance?


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Q:

Greetings. This is Tracy from a Hong Kong Art Gallery. We intend to deliver a piece of artwork from Hong Kong to France and we are looking for insurance covering the delivery. Please could you advice a quotation based on the below? -The artwork is fragile with glass door, however in a rectangular shape - Artwork value of approximately HKD60,000 - 90,000 - Artwork dimension is 117 x 70 x 17 cm - We have representative handling the export declaration and delivery by air. Artwork would be in crate. What document is required for the application with the policy insured being the artwork recipient? What would the claiming process and what factors would it be assessing if a claiming happens? Thank you and we look forward to hearing from you. Best, Tracy

A:

There are a number of art insurance products available in Hong Kong from a range of insurance companies. Unfortunately, CCW Global is unable to provide any quotations through our ASK CCW service; you can Contact Us or call +2114 2840 to discuss your specific requirements regarding the art shipment.

In terms of the pricing of art insurance, this will vary depending on the insurer providing coverage. However, a majority of the art insurance underwriters in Hong Kong will be able to provide specialist coverage for the shipment of a piece of art – and many general insurers are able to offer cargo coverage which would be suitable for your purposes. Generally, the cost of a cargo or shipment policy will not exceed 3.5% of the total value of the shipment. It is important to note that there will be a number of companies offering substantially lower rates than this, but that this figure does represent the upper tariff limit for cargo insurance in Hong Kong.

When applying for any form of art or collections insurance policy you will normally be required to complete an application form. In this form you will outline the items being covered including details such as:

·        The Artist
·        Title of work
·        Medium of work
·        Total value of the work
·        Origin and Shipment Destination

Again, some insurers will vary and may require further details including the purchase/commission date, location of purchase, and any additional details which may be pertinent to the risks involved in covering the piece.

An accurate valuation of the artwork should be provided to the insurer. A purchase receipt or 3rd party independent valuation will be needed in the event of a claims situation in order to establish the actual value of the work. Consequently, it is often helpful to provide the artworks’ proof of value to the insurer with the initial application to ensure there are no complications with a claim should one need to be made.

In a worst-case scenario where a covered loss claim is made, under a standard art policy the procedure is fairly simple. You would contact the insurer and submit your claim – completing any paperwork and additional documentation as required. From there the insurer will normally make a decision to either repair or replace the artwork depending on whether there is a partial or total loss, and whether the work is even in a condition to be repaired.

Under a cargo insurance policy, the resolution to a claim can be far more complicated as marine law will normally come into play – salvage rights, proximate cause for the loss, was the cargo sacrificed, was the ship wrecked, was there any jettison issues… Marine cargo insurance policies are extremely robust and will cover against a wide range of losses but settling marine cargo claims can be very complex due to the sheer number of variables involved in a marine loss.

Simply put, CCW Global can provide a wide range of art insurance options and a wide range of cargo options – it really depends what specifically you would like to cover. If you would like to speak to an expert CCW Global insurance broker about your Hong Kong art insurance options please Contact Us or contact +852 2114 2840 today!

Answered on: 17 July, 2018 15:00


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