London-based R K Harrison Insurance Services (RKHIS), part of the employee-owned insurance broker, R K Harrison Group, has developed a new Professional Indemnity insurance policy for art market professionals.
The company described the new product as the first of its kind. it is ”unique in the scope of coverage and high limits it offers, and helps to address the increasing threat of litigation to art businesses that has recently emerged as a result of rapid increases in value in the market.”
The coverage can be purchased by dealers, conservators, advisers and other art market professionals based in the European Union. R K Harrison said it “has been tailored to specifically address the exposures faced by businesses in this market. This includes coverage of legal costs in the case of actions brought against the holder related to faulty attribution or authenticity, defective title and negligent valuation.
“It also offers an indemnity of up to £5 million [$8.1 million] to help provide effective recompense in this high value market. Sensitive to the potential reputational risks of a court battle, the policy also covers mitigation costs and, with the agreement of the insurer, the insured may be able to access the indemnity without resorting to legal action.”
This coverage is part of a suite of policies RKHIS offers to art businesses, “including bespoke [tailor made] cover for dealers’ stock and restorers’ entrustments. It can be purchased in conjunction with these or as standalone coverage.”
Filippo Guerrini-Maraldi, Executive Director of the Fine Art team at RKHIS, explained the rationale for creating this cover: “Up until now, the focus for insurance in the art world has been on coverage for stock, but as incidents of litigation increase and settlements and fees amount to millions of pounds, it has become clear that art business insurance needs have evolved beyond that.”
Chris Allen, Executive Director of Professional Risks at RKHIS, added: “PI adds value to businesses by helping to protect their future financial well-being and reputation, and dealers can benefit from this additional security as much as other professions. There was nothing specific available to them, so we tailored the PI policy to include specific coverage for issues like faulty attribution and negligent valuation – so it addresses the risks faced by art market professionals directly.”
Source: R K Harrison