Banker's Blog: Insurance

Is your artwork insured? I hope so! Now that we have established this fact, I will move on to the topic of this blog, which is not about obtaining insurance. Instead, I am going to discuss what to do after you have our work insured. If you read no further, at least read this:

It is extremely important to keep a record of your current inventory and a record of past sales!

As they say, hope for the best, but prepare for the worst. We can all hope that nothing will ever happen to your artwork, but no matter how careful you are, things do happen. If your artwork is lost, stolen, or damaged, the first thing your insurance agent will ask you is this: What is the value of the piece? The second thing will be: Prove it.

Can you prove it? Do you have a record of similar works and what they have sold for in the past? No? Then you might be out of luck.

Simply stating the retail price of the piece to the insurance agent won't cut it. Unless you have proof you have sold work just like it or similar at that price, the retail price means nothing to the insurance company. They are interested in the market price, meaning what price buyers will actually purchase it for.

Inventory your existing work and your sold work.
o Photograph all work. If you don't have skills in this area, hire a professional to do it. It is worth the money! Don't forget to photograph the piece from all angles.
o Record sizes, medium, and all other details of the piece including the date of sale.
o Keep all paperwork involved with a sale- invoices, copies of checks, etc. (You should have all this for bookkeeping purposes anyway, but be sure to keep it on file!)
o Create a comprehensive record of sold works in one place. You may try keeping a notebook or photo album that includes an image of the piece sold piece, the details, the price it sold for, to whom, and date of purchase. Even better, if you have a website, mark works as sold with the sale price and any other pertinent information.
o Have a back up of all this information off site -- away from the work itself. (A website is a good place for this!)

If, in the event of a claim, you are able to hand your insurance agent this comprehensive record, it will greatly speed up the process and likelihood that the claim will go through. Having a link to send to an insurance agent is a good start towards proving your past sales, but they will also want to see the paperwork to back it up!

Artwork Network provides a solution for our members by including a sold section with their online gallery. We will load any work sold by that artist even if it was sold before they were a member. But, like any tool, it is only useful if it is utilized.

Keep in mind that the same process applies even if work is damaged while in the possession of someone else. First off, the third party is not obligated to claim the loss or damage on their insurance. If they are nice enough to do so it will still be up to you to prove the worth of the piece.

Basically, if you are insured, but cannot prove what your artwork is worth based on previous sales, than you will likely only be able to claim the cost of materials for the piece.

The information provided above is based on our past experience only. Please talk to your insurance agent if you have any questions.

Helpful Tips for Artists: Tracking your Inventory

It's 10am. Do you know where your art is?

It's 10am. You are settling into your studio for a nice long day of dedicated creating when a potential client calls. They are interested in a piece of artwork they saw on your website.
"Can I come to your studio and look at it?"
"It's not here, I have it on display."
"Oh, well, where is that? I am happy to go there to see it-but I am only in town for today."
"Um, sure, let me call you back."

The problem is that you don't know where this particular piece actually is. And unfortunately in this instance, that sale will likely be lost since the client won't be around to wait for you to find your missing piece. This scenario may sound absurd to most people, but you would be surprised! We have had many conversations with artists who are trying to track down their work at various locations.

Keeping an up to date inventory of your art in one document is a crucial aspect to managing your art business. Even more so if your work travels a lot from venue to venue. You want to be able to see, at a glance, where your art is located at any given time. Don't count on the gallery or other venue to keep track of your art. Some places will be more organized than others. Take it upon yourself to be on top of it-after all, this is your livelihood!

One of our member artists keeps organized with a simple Excel spreadsheet.

The top row can contain information such as this:
Title, Size, Price, year created, Framed/Unframed, Sold/Unsold, To Whom, % of sale you retained, Location, Exhibition.

The row on the left can list the works by series or alphabetically by title.

I went ahead and created a sample for you to use! Click here to download.

Other important reasons to keep an up to date inventory list:

Sales History. Not only do you want a record of where your art is located, an inventory is also helpful to show a record of your sales and pricing so you have a history for yourself and for potential buyers. We often have buyers wanting to know what the artist's work has sold for in the past. If this information is not readily available, a buyer will likely move on to something else rather than wait for you to find the information.

Client History. Your inventory list can also indicate who purchased a specific piece so you can market new work to them in the future. This is a captive audience who should be the first notified if you have new work they may like.

Website Creation. When you create a website, you will have to provide much of this information to the person putting it together. If you already have the information in one place, all you have to do is email it over!

Insurance Purposes. Providing your insurance company with your inventory list including photographs of each piece is essential.

Other helpful tips:

Name your piece and stick with that name. Don't have one name on your website, another written on the back, and another on a tag. It can become very confusing for others handling/selling your art if the name does not stay consistent. If you must name a piece 'Untitled', we would recommend putting a number behind. 'Untitled123' for example. Again this is to avoid confusion for yourself and others!

Keep your inventory up to date! Creating a system is one thing. Using it is another. If you are not computer savvy, download and print the sample spreadsheet we have created. You may manually enter the information in the boxes, then have a friend help you keep it up to date on the computer.

Do have other ingeniously simple ways of tracking inventory? Please share them in comments!