One question a venue and artist will face together is, “Who insures the art?” In the Hosting Agreement template ArtPrize provides, we leave it up to the venue and artist to decide who does the insuring, but it makes the most sense for a venue to insure. Here’s why.

Most venues will already have an insurance policy they can add a rider to. The annual rate for fine arts coverage is normally between $0.15 – $0.50 per $100 of value, depending on the type of art. (Some insurance companies may want a minimum premium and/or a minimum deductible for issuing the rider.) Once ArtPrize is over, the venue can request cancellation of the rider and the refund of any excess premium.

Three steps to insuring art work:

1. Artist sends a letter including the name, description, date of completion and dollar value of the work
2. Venue requests a rider to the current policy (a more robust policy may already cover items on loan and the rider is unnecessary)
3. Venue names artist a “loss payee” on the policy

Let’s say a work is valued at $100,000 and subject to a rate of $0.40/$100. The rider would be $400 annually, but for one month of coverage, the actual cost would be at $33.00. (Be sure to ask your insurance agent for exact requirements and costs.)

However, an artist may have to open a new policy, which could have a base fee of $250 or more. So, whether the venue absorbs the fee as part of participating in ArtPrize or requests reimbursement from the artist, the process is simple and costs the venue far less than it would the artist.

Thanks to Tom Burr of Burr & Company for talking me through the process. Burr & Company has insured exhibits at the UICA and GRAM.