As soon as a piece of art is removed from its spot, the risks of its damage increase manifold. Artwork that undergoes shipping typically changes many hands in transit, so its end-to-end protection becomes a top priority. The best method to protect your art property from start to finish is to acquire an art shipping insurance plan.
At present, either specialized art shipping companies or third-party insurance brokers can provide comprehensive insurance coverage, but this aspect of art management often looks overwhelming. How is the insurance premium calculated? What parameters are considered in the process? Here is a quick insurance pricing checklist to keep in mind.
Your Guide to Calculating an Art Shipping Insurance Premium
Though you will hardly elicit a universal formula for art insurance premium calculation from your insurance broker, the most typical calculation approach is as follows:
Premium = Rate x Insured Object’s Value x Risk Factors
Each underwriter has its own rate, with base rates typically fluctuating between 0.8% and 2%. The object’s value is also a more or less stable parameter. Yet, the final price you’ll need to pay for the insurance depends on the risk factors you want to cover. In most cases, your insurance broker will consider the following:
- Your art piece’s characteristics. The insurance broker takes into account the artwork’s medium, age, degree of fragility, glazing, weight, dimensions, and overall condition.
- Packing and handling. If your art object is professionally packed and crated for shipping, the safety of transportation increases. Therefore, the insurer is likely to reduce premiums for well-packed items.
- Delivery method. Those who use specialized fine art shipping companies for the delivery of their art freight may also count on lower premiums. Insurers treat such companies as sources of lower risks compared to general-purpose shippers.
- Mode of transport and time in transit. The longer your art needs to travel, the higher the insurance premium will be. Transportation modes also affect insurance costs because each of them is treated as a source of specific risks.
Always Insure Art to Enjoy Peace of Mind
If the checklist above looks too complicated for you, it’s not a good reason to neglect art shipping insurance altogether. This vital security layer guarantees the protection of your financial interests and gives you the peace of mind needed to manage a precious collection safely and responsibly. Fine Art Shippers is ready to help you navigate the complexities of the art insurance market. We partner with a reputable insurance company and can guarantee a purchase of comprehensive insurance policies under optimal conditions.