Art insurance is the most effective risk transfer system for art risk management. To establish the responsibilities and obligations of the parties through a legal contract. This transfer system involves one party (the policyholder) transferring financial risk and uncertain losses to another party (the insurer). The risk is transferred to the insurance company only if the insured buys the policy through a formal contract and pays the premium to the insurance company. At the same time, the insurance company will also give the policyholder in the process of warehousing, transportation risks to provide improvement Suggestions and services, to prevent risks and pending. From another respect, cast artwork insurance also is a kind of method that holds value for the work.
With the prosperity of Chinese art market and the gradual rise of art prices, more and more individual collectors and institutions invest in the art market for collection and investment. But as a result of the precious characteristic of artwork and uniqueness, it hides huge risk behind its huge appreciation space likewise. Especially for museums, art galleries and large-scale exhibitions, the centralized storage of a large number of works of art has self-evident risks.In the process of art transaction, transportation and collection, factors such as fire, flood and theft also pose threats to the safety of art works. In the wake of the bustling trade, many collectors and institutions have become anxious about how to properly preserve artworks and properly manage potential risks. Referring to the development experience of western art market, art insurance is undoubtedly the most effective means of risk control.
What is art insurance
Insurance is a kind of economic security system that "gathers the strength of the masses to save the disaster of the few", whose function is to disperse the risk and digest the loss. The construction of this economic security system must have three elements: there must be danger; A majority of participants is required; Insurance funds shall be established on the basis of reasonable apportionment. In the art market, the art itself is exposed to various risks, such as fire, flood are common threats; And as art prices rise, theft and vandalism are also a threat. And artwork insurance is the insurance that takes the pilferage of artwork, damage as mark namely.
Art insurance is the most effective risk transfer system for art risk management. To establish the responsibilities and obligations of the parties through a legal contract. This transfer system involves one party (the policyholder) transferring financial risk and uncertain losses to another party (the insurer). The risk is transferred to the insurance company only if the insured buys the policy through a formal contract and pays the premium to the insurance company. At the same time, the insurance company will also give the policyholder in the process of warehousing, transportation risks to provide improvement Suggestions and services, to prevent risks and pending. From another respect, cast artwork insurance also is a kind of method that holds value for the work.
What kind of protection will art insurance company provide to the policyholder
Art policies typically cover three basic risks: fire, flooding and theft. There are risk management programs that minimize or eliminate these risks. Basic risk management techniques include fire and theft prevention systems, and low temperature sensor warning systems. Art insurance policy usually does not provide artwork natural physical damage insurance business, such as: light and temperature lead to fade, fall off or melting, etc., because the damage is not occur in a specific time or period of time, and fire, flood and theft is at a certain moment in a specific emergency special events, thus insurance protection.
