DeWitt Stern created a customized Errors & Omissions insurance policy for the Fine Art industry. The scenarios outlined below are based on real claims that the policy is designed to address. This insurance will respond and reimburse you for defense costs and expenses as well as for settlements and judgments for all covered claims
CLAIM SCERNARIOS…for Dealers, Appraisers, Auction Houses and Consultants
You sell a secondary market work of art from a non-living artist. Years later the new owner enters into a sale agreement for this work with a private dealer. The artist’s foundation is enlisted to authenticate the work and they deem that the work is not authentic and the sale is canceled. The owner of the work sues you for the difference between their original purchase price and the amount of the potential sale.
Your gallery assistant is deemed your gallery’s official “Tweeter” and tweets some images from an artist’s studio visit. The artist sues the gallery claiming invasion of privacy and loss of value because the images posted were of unfinished works.
Security & Privacy Liability
Your disgruntled gallery assistant quits and takes with him the list of all of the artwork your gallery sold to a very important collector. The gallery assistant shares this information with friends and the collector finds out. The collector sues your gallery for breach of privacy.
A laptop containing confidential information about your gallery’s artists and clients is stolen from an art fair. Your gallery now has to take steps to secure legal representation, understand state/federal legal requirements, and potentially notify all affected parties.
The contents of this article are for general informational purposes only and Risk Strategies Company makes no representation or warranty of any kind, express or implied, regarding the accuracy or completeness of any information contained herein. Any recommendations contained herein are intended to provide insight based on currently available information for consideration and should be vetted against applicable legal and business needs before application to a specific client.