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Policies to Consider for your Art Gallery Insurance

Business Owners Policy (BOP) 

BOP is a comprehensive package of the following policies: 

• Commercial Property: It covers business property and equipment breakdowns. 
• Commercial General Liability: It provides coverage for personal and third-party bodily injury and property damage. 
• Business Interruption Insurance: It includes lost business income due to damage to business property. 

From art connoisseurs to handymen, an art gallery has many visitors, increasing risks of theft or vandalism. Hence, your gallery will need BOP insurance to cover such risks and liabilities.  

Worker’s Compensation Insurance  

Worker’s compensation insurance covers employees who suffer from injury or accident that occur on-the-job. The insurance package compensates for lost income to the employees and also takes care of  their treatment cost.

Working at an art gallery involves getting creative and utilizing spaces for exhibitions. From painting the gallery to setting up sculptures and installations, employees are vulnerable to risks and dangers. Hence, you will need worker’s compensation policy to safeguard your employees.

Commercial Auto Insurance  

Commercial auto insurance covers third-party claims on bodily injury or property damage in case of an accident.

Commercial Property Insurance 

Commercial property insurance covers business-owned properties from perils such as vandalism, fire, explosion and smoke damage.  

It provides coverages for damages caused in the artwork due to these perils with fine art insurance. Additionally, the insurance can also help you restore your gallery for property damages such as furniture, lighting and many more. 

General Liability Insurance

General Liability Insurance covers third-party damages that occur within the premises and claims that take place owing to business operations. The policy provides coverage for:

• Bodily injury
• Property damage
• Personal and advertising injury
• Medical payments
• Defense against legal actions

CGLI also includes coverage for another artist’s artwork that is being showcased at a gallery. For instance, in the event of a fire, the policy can cover the cost of replacements, compensation, or restoration for damaged artwork.

A painting conservator claimed that the average cost to restore a small painting can vary from $800 to$1,000 and large artworks from $10,000 to $15,000. CGLI excludes claims from errors and negligence of the professionals. Hence, you may want to purchase professional liability insurance. This also includes errors and omissions insurance and D&O insurance to add to your insurance coverage.

Employment Practices Liability Insurance (EPLI)

EPLI covers any claims against the business for illegal practices. It secures claims such as discrimination, sexual harassment, and unjust termination. 

Cyber Liability Insurance 

Cyber liability insurance will protect your business from losses caused by cyber-attacks. The policy covers vulnerabilities, losses, and damages caused by data breaches and malicious hacking. 

For instance, cybercrime is one of the fastest-growing offense. It is estimated that the cost of cybercrime damage will be $6 trillion annually by 2021. Your gallery’s computer is susceptible to cyber-attack as it saves important transaction history along with client’s personal information. Subsequently, hackers may be able to track their transactions in real-time. Therefore, cyber liability insurance will be your best bet against getting hacked! 

Inland Marine Insurance 

Inland marine insurance is a property insurance policy that covers property in transit. Cargo is a risky business, and when it comes to art in transit, it could get pretty messy. Inland marine insurance can help protect art while it’s on the road. However, a comprehensive commercial cargo policy insures all types of transit: land, air, and sea. 

Business Interruption Insurance (BII) 

BII covers the loss of income and operating expenses when a business shuts down due to disasters like theft, fire, storm, or vandalism.  

A research done by an art advisor, Magnus Resch, found that 55% of galleries make less than $200k per year while 30% were in loss. Art galleries are predisposed to many risks and may lose out on revenue after disasters such as fire and explosions, in such cases, BII will cover the loss of income of your gallery.

How Much Does Art Gallery Insurance Cost?

1. Location of the gallery
2. Size of the collection
3. Security
4. Type of artwork
5. Sales