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Suisscourtage

“The biggest risks are associated with transportation”

The business of insuring works of art and valuables is a niche marketplace. How does it work? How much
does it cost? What are the risks involved with auctions? We clarify these points with Suisscourtage, brokers
specialised in this field.

Created over 30 years ago for the needs of value. If there are receipts, then the customer how to optimise the security of collections.
the Pastor family, Suisscourtage, which is may not necessarily need a valuation. For a Thefts, though, are rare, as works of art are
now the 15th-biggest broker in the French large collection, however, we would advise bulky and difficult to sell on.
marketplace, quickly started specialising in insuring the agreed value. Once the items have
insurance for objects of value. “Historically, been valued by the expert of their choice, the The clientèle has a varied profile: individuals,
insurance for works of art and jewellery for client does not need to prove the value in the family offices, foundations, museums and
private clients is an Anglo-Saxon tradition. Our case of a claim, which avoids any possible companies but also sports federations:
special relationship with Lloyd’s of London conflict with the insurance company, since the “Because so many company directors are art
has certainly strengthened our progression,” value has been determined at the moment of fans, more and more businesses are investing
explains Stéphanie Démarest, Suisscourtage signing the contract, after valuation,” clarifies in collections of works of art. In fact, France
Monaco Private Clientèle Director. Stéphanie Démarest. has put favourable fiscal laws in place in this
respect and we henceforth offer insurance
Agreed Value Or Declared Value Average Estate Insurance: €2 million policies to our corporate clients for works of
Insuring works of art is a niche market. Contrary In Monaco, these specialised insurance art,” adds Sébastien Comte.
to popular belief, insuring valuables is not policies mainly concern works of art (and
commonplace amongst the French, with only particularly modern art collections) but also Auctions: Transportation and Storage
some 20% of the population doing it. “In France, collector’s vehicles, watches, jewellery and Covered
this is probably linked to a fear of taxation. leather goods. “The most expensive work Suisscourtage also insures for auctions, in
Despite an exoneration since the creation of the insured by us is estimated at €110 million. particular with the HVMC. “These are custom
ISF solidarity tax on wealth, the question of tax Usually, estates are in the order of €2 million. contracts negotiated for the period of one
on artworks continues to be raised regularly and We also have many clients with policies of year with auction houses and galleries. A
some people are hesitant to declare the value of €300,000 or less. Art is an investment and guarantee is defined, according to the amount
their possessions to their insurance company, we advise our clients to have their contracts of items involved. We look at the nature of the
even though this information is confidential. re-evaluated every three to five years, as the objects, whether they are precious or fragile
In Monaco, this market is more significant but value does fluctuate.” and estimate their average value,” informs
there are no official figures,” explains long-time Sébastien Comte, before adding, “The auction
head of the Private Clientèle Department at the For example, in order to insure a collection house is then insured within a contractual
expert insurance brokers. “These are ‘All Risks worth €1 million, it costs between €1,000 limitation of compensation, this being the
Except” contracts, meaning that all risks are and €1,500, depending on the number of maximum commitment of the insurer per
insured except what is excluded in the contract items, how fragile they are and the risk of claim.” The policy covers all transportation
(deterioration by a rodent, gradual loss of accidental breakage...In this sector, where the and storage locations, such as warehouses,
value in the case of extended humidity and number of claims is low and one third of them customs offices and gemological workshops.
so on). We can insure jewellery, works of art are due to accidental damage (breakages in “Transportation is the biggest risk factor, as
and collections kept in homes under the same transportation etc), the biggest claims are in there is a lot of handling – a painting passes
contract – and we can do this anywhere in the the case of fire: “Concerning the risk of fire, we from person to person and it might be badly
world,” notes Stéphanie Démarest. Depending often advise the installation of smoke alarms, packed or could be dropped,” points out
on the contract, the client can choose, in the as well as vigilance in everyday life. Accidents Camille Fabre.
event of a claim, either a reimbursement or can happen quickly: a faulty computer cable
a restoration. left on a duvet can heat up and catch fire...then Clearly, from a security point of view, organising
there’s the classic example of the Christmas sales off-site requires special measures, such
For works of art, there are two main types of tree that catches fire when the fairy lights as hiring guards, in order to protect items of
insurance. “The client can insure the declared or adaptor malfunctions,” warns Camille a high value. “That is one of the subjects we
value, in which case, when they claim they Fabre, Director of Private Clientèle and art discuss when we draw up the contract,” notes
need to prove the existence of the work and its specialist, who is used to giving advice on Sébastien Comte.

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