Sedgwick
Protecting artwork in transit: insurance considerations
Precious goods have long been transported by land and sea. In fact, traces of flint and pearls are found to follow human routes in the Paleolithic era. As early as the 17th century, renowned collectors such as Cardinal de Richelieu bought and collected important pieces from faraway lands via sleigh, which could take up to two years. While the methods of transportation have since changed, the risks are still just as prevalent.
When it comes to art and precious objects, many insurers prefer static risks. However, some works of art must be moved — for the dissemination of culture or for their own sake (to be digitized or restored, for example). This is why “nail by nail” insurance has gradually developed alongside marine insurance.
Primary characteristics of these claims
Many claims occur during transport, packing or unpacking, with very few total losses. In the majority of cases, partial losses are most common. This means that claims expert have to calculate both the cost of restoration and the depreciation of the artwork.
Our fine art clients are diverse: public institutions, town halls and public museums, as well as private museums, major companies and luxury goods houses, gallery owners, art restorers and private individuals. They all have one thing in common: their high standards, whether as owners of the work or as representatives. This particularity, combined with the nature of the works involved, explains why there is no possible standardization.
Art transport insurance is a niche market, requiring tailor-made products and agility. For certain exhibitions, there is also the question of accumulation, when numerous items are stored in the same place. In such cases, market players coordinate to ensure that all objects are rightly covered.
Transport arrangements
Brokers and insurers seek to strike a balance between the safety of transport solutions, their cost, and the time required to complete the journey. When road transport is an option, it is often the preferred channel. For long distances, air travel is the most popular solution. Boats are reserved for transporting works of art that are out of the ordinary in terms of size or weight. Owners are typically concerned not only with safety issues, but also with shock, humidity, or extreme heat during transport.
The loss adjuster’s role
Insurers and brokers often depend on loss adjustors to assess the condition of the work before departure, and on arrival, to confirm its nature and any points of fragility. But the expert’s role also involves recommending specific packaging and transport conditions.
In the event of damage, the question of depreciation is often the most difficult one. Added to this are the consequences of the inalienability of works of art held in public museums. As they cannot be sold either free of charge or for a fee, their valuation requires a very high level of expertise.
Outlook for the future
Like any other activity, the transport of works of art must be considered from a sustainability point of view. If the protection of works of art requires the custom-built construction of wooden frames, we need to consider their reuse for other transports, or their recycling as furniture. Transport itself can use low-carbon methods, be weight-optimized, and so on. The experts, with their in-depth knowledge of the needs of this market, can usefully take part in these discussions.
Appraising works of art, valuables and jewellery requires technical skills of certified professionals who are authorised to carry out the most reliable approach and the most appropriate investigation for each claim — whether it be due to theft, loss, breakage, water damage or fire. Sedgwick is equipped to adjust the property damage and interneve before a claim takes place.
Learn more > Visit our website for insight on the prevention, preservation and restoration of assets — whether they be of significant sentimental and/or financial value.
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