Charles Bennardo of The Bullen Group speaks about the insurance aspect of collection loans to exhibitions and more…
I have tried to ask Charles Bennardo, an expert insurance advisor to high net worth individuals, questions that would be of concern to collectors who are insuring their works of art and also their homes and properties in general. I also asked Charles to add information that , in his experience, is valuable for both the emerging and established collector in protecting their investment and a source of pleasure and intellectual engagement. I would welcome any and all questions and concerns that come to mind when reading this. Please respond and I’ll ask Charles to provide addtiional expertise in this intrinsic area of consideration when building an art collection.
IN TERMS OF THE COST OF INSURANCE, WHAT ADVANTAGES DOES THE BULLEN GROUP PROVIDE BY ITS STRUCTURING OF INDIVIDUAL MULTI-FACETED INSURANCE PROGRAMS THAT ADDRESS ALL OF THE BUSINESS AND PERSONAL NEEDS OF THE CLIENT?
In terms of insurance cost, Bullen is an independent brokerage firm which enables us to market your insurance needs to a wide range of carriers and to obtain the best coverage and pricing. We only represent the highest rated insurance companies in the business. our long-standing relationships with these companies have put us in a position to negotiate and customize insurance programs to specifically meet the needs of high net worth families.
WHAT EXPERIENCE HAVE YOU HAD IN DEALING WITH A CILENT’S ART COLLECTION THAT IS MOST MEMORABLE?
My most memorable client had a cereal box collection insured for $2,000,000. (no typo, guys, Two Million Dollars!)
It started on whim and through careful selection and quality became a serious passion and hobby for our client. It was fun to see what would be acquired next. So from trains to cereal boxes to digital art, there is a potential for worth and a serious need for insurance.
WHAT IS YOUR EXPERIENCE WITH CLIENTS WHO LEND WORKS TO MUSEUM AND GALLERY EXHIBITIONS? WHAT ARE THE ADVANTAGES AND WHAT ARE THE RISKS?
Most of our affluent clients lend works to museums and galleries. A museum loan offers a philanthropic opportunity to share your passion for the work of art that is not otherwise available to the general public. museum exhibitions can enhance the provenance of your artwork. Additionally, a museum may provide valuable, scholarly details about your collection. A loan to a museum can also result in a tax benefit.
The risks are not knowing how your works are protected at the museum gallery. Before you agree to a loan, consider the following: Standards vary between museums. Also, standards of the U.S. museums differ greatly from those overseas. Make sure that the museum is properly accredited. The first thing we suggest is that they do not sign a waiver of subrogation. By signing this form, you are limiting the right for your insurance company to subrogate. We stay in close contact with the curator before, during and after the loan or sale has taken place. The insurance company is notified and depending on the loan, coverage may be adjusted accordingly.
Next, Charles will detail the considerations and concerns of insuring works in multiple venues and speak about the nature of art insurance in the context of general insurance.