This week, Smith Greenfield MD Steve Smith joined an expert panel at Christie’s, London to share insight into the importance of insurance for private collections. Steve was delighted to take part in The Importance of Being Informed, part of 21st Century Collecting – a new course devised and led by CURA Art’s Georgia Powell for Christie’s Education giving experienced and new collectors alike a unique opportunity to learn from established collectors, artists and specialists about the joy – and responsibilities – of collecting.
The session highlighted the benefits of good collections management and how, by seeking expertise and engaging with new technology, private collectors can safeguard their collections – and the starting point is simple: knowing what you have, what it is worth and where it is.
Steve outlined steps for due diligence, beginning with provenance. The more that is known about the provenance of a work, the easier it is to manage the risk – and to make sure it has the right insurance.
A condition report should be requested at the earliest opportunity, so that the collector is fully informed about the condition of a new acquisition from the outset. This also means that, should damage occur, it can be established when this happened and also its extent.
A current valuation of the work is also critical, again to make sure the object is accurately insured and also for Agreed Value cover, so that in the event of a claim, you will receive an agreed amount.
At home, the advice is to minimise the risk. Whilst museums must comply with a code of ethics which does this, for private collectors the risks of displaying and keeping art at home can be overlooked. For example, protect fragile works from over exposure to sunlight and changes in humidity. When you’re away, make sure your property is secure and think twice about your social media posts, which can indicate that there’s no one at home.
Risk management is all-important when it comes to transporting work and also when it is on public display. “Sharing the collection is great for everybody,” Steve said, “But these two activities can present significant risks. We advise collectors to use specialist art handlers when moving works of art and also to make sure that the environment in which the work will be displayed won’t be detrimental.”
Steve recommends checking loan agreements thoroughly and establishing the insurance cover that the museum, gallery or display space has in place to safeguard your work whilst it’s there.
Highlighting some of the benefits of specialist art and antiques insurance cover, such as ‘All Risks’, Restoration & Framing and Death of an Artist, Steve encouraged collectors to speak to their insurer or specialist broker to find out more.
“Communication is key,” Steve said, “and the more we communicate with each other, the more we can mitigate risk.”
Smith Greenfield recommends:
- Begin working with professionals as early as possible to avoid problems.
- Expert advice from your broker and working with specialist insurers will aid in understanding the appropriate guidance for transport, display, storage, security and to reduce the risk of damage through environmental factors.
- A risk and insurance review costs nothing but could be essential in protecting these treasures for years to come.
Smith Greenfield is an independent insurance broker specialising in insurance for exclusive lifestyles and collectors of valuable objects including: art insurance, antiques insurance, watch insurance, jewellery insurance, vintage car insurance, fine wine insurance and more. To discuss specialist insurance for your lifestyle, please contact our Premier Client Adviser, Imran Moideen, via email imran.moideen@smithgreenfield.co.uk