Insurance and art quilts

Collection Care: Considering Insurance

by Fran Phillips

It’s exciting to have your work or a quilt from your collection included in an exhibition. You expend the time and effort necessary to see that the paperwork is filled out and the quilt is carefully packed, labeled, and delivered to the carrier. Tracking number in hand, you return home and wait. Your part is finished. The rest is glory.

Until it isn’t. There’s only one way for this story to end happily. Your quilt arrives at its destination, is hung properly, and the show is a success. After receiving due acclaim, it is returned to you, in the same condition it left your hands.

The ways this tale could end unhappily are legion. The quilt could have been damaged during the installa t ion or exhibition, or stolen from the venue or its storage facility. It could disappear in transit or be damaged. While these scenarios are mercifully infrequent, they do occur, and given the number of quilts travelling the world’s courier routes and being exhibited at any one time, chances are quite a few fine works will meet such a fate. While there’s no way to prevent this from happening, you can, like a good Scout, be prepared.

One insurance resource you may be overlooking is your homeowner’s or tenant’s insurance, which covers your possessions as well as your residence. If the value of your quilts or quilt collection falls below the coverage limit, you probably are safe. Most such policies have a sublimit (cap) on items deemed portable and valuable, such as fine art, jewelry, firearms, etc. The cap might cover items collectively or singly, and your policy will spell this out. If your quilts are worth more, you have two options. You could schedule those items at replacement value on your policy. Or you could secure a personal articles floater, which is a stand-alone policy. The coverage is generally broader and less expensive, and compensation is at an agreed value.

Compensation comes three ways: actual cash value, replacement cost, or agreed-upon value. Actual cash value is the market value minus depreciation —good for cars but impractical for art. Replacement cost is what it would cost to replace the item. Agreed value acknowledges that the item cannot be replaced and that it will be paid for at the price mutually agreed upon. So, what’s it worth?

You’ll need to know the value of the work. An appraiser will consider such things as whether the maker is a “name” or an emerging artist, past sales, whether this work is recognizable as part of a body of work or is a new (unestablished) direction for the artist. While art appraisers may feel competent to evaluate any media, you are probably better off choosing an appraiser who specializes in textile arts. Keep in mind that in coming to a settlement, you may be offered less than the stated value but not more.

If you are working with an art shipper, they will be able to guide you through their insurance requirements. Some have insurance groups with which they work, others prefer you to consult your insurance professional. All the art shippers we’ve investigated require insurance of some form. You’ll need to ask about “ocean marine” policies which cover international transport regardless of transportation method, or “inland marine” policies which cover personal items within the United States, its territories and possessions, and Canada.

Let’s look at transit problems first, remembering that your first defense against loss during transit is to package the quilt securely in a sturdy container. The carrier services most often used by quilters are the United States Postal Service (USPS), United Parcel Service (UPS), and Federal Express (FedEx). All three deliver worldwide. So do you need to insure your

package? It depends on the value of the item and your risk tolerance. UPS and FedEx cover each domestic package against loss or damage to $100. USPS provides $100 automatic coverage only on Express Mail. If your package is worth more than $100 it must be declared, otherwise the carrier’s maximum liability is $100. Extra protection costs more and it varies by carrier. Additionally, some items have their maximum declared value capped. FedEx, for example, limits the declared value of art and antiques to $1000. In such cases, you should seek third-party insurance like those listed above. This information is found in the often-ignored fine print that each carrier is mandated to supply. Print it out and keep it with your documentation for that shipment.

Documentation should include a copy of the shipping form and photos of the ready-to-ship package and the quilt (front, back, and identifiable details such as labels). You should have a copy of these images inside the box as well. If the box or label is damaged, the quilt could find its way home on the strength of the paperwork packed with it. Keep track of your quilt using the tracking number, and if you see anything amiss, contact the carrier promptly. It’s rare for the carrier to spot a problem and contact you about it. For a heart-breaking account of a lost quilt, read Susan Lenz’ “Guardian Angel Lost by FedEx” (strataseries.blogspot.com/2015/11/ guardian-angel-lost-by-fedex.html). Though Lenz did everything right, the system failed, and the quilt has not been found.

Not every lost quilt has a shipper as villain. You might be asked to show work in a local show or gallery. Before you sign on, read the paperwork. Make sure the conditions of the loan are stated clearly and that you understand and agree with them. Some shows ask you to waive liability, while others restrict settlement to a stated dollar amount. If the amount will not cover the loss of the piece for you, you will need to ask your insurance professional about additional coverage. If you show a quilt or collection frequently, your policy would reflect that. This will generally drive a higher premium, but there is a lower chance of denial in the event of loss because the quilt obviously is valued. If you are dealing with a reputable gallery, the loan agreement papers should include liability information. If they do not, you must ask for this information to be provided in writing as part of the agreement. This is not being pushy or uncooperative, it’s sound business practice. You’re protecting your investment. You also need to know the procedure for making a claim if a quilt is damaged while being exhibited. Whose insurance covers the claim? Yours or the venue’s?

You may also be asked to exhibit a quilt in an unconventional venue such as a restaurant or an office building. Newer artists eager to connect with a viewing audience might be tempted to say “yes.” Consider whether you want to reach viewers at any cost or on your own terms. These venues also bring unique problems to the insurance table. In many cases, they are unsecured areas with heavy outside traffic. In many cases, these casual installations are uninsured. One gallery owner friend, in speaking to an office manager who wanted to borrow artwork for a waiting room and hallway, asked how she could borrow work without insuring it, knowing that it had a real chance of being damaged or stolen. Think twice about situations that whisper to the ego rather than to your good business sense.

Receiving compensation for a lost work is not the same as selling it even if the dollars are the same. At the end of an emotionally tumultuous experience, there is only cash. When an artwork is purchased, the artist has the pleasure of knowing that the work is appreciated, understood for itself and its place in the vast panorama of the arts. A collector can take pride in recognizing those attributes when acquiring an art quilt. The lost or damaged quilt can be reduced to financial terms, but the payment can never truly compensate for the loss to either an artist or collector.

You can, like a good Scout, be prepared.