Q: From an insurance perspective, what should a business consider when reviewing their Commercial Property policy’s fine art coverage?
A: There are a lot of things to consider: Most traditional commercial property policies provide limited coverage for art and collectibles. They often have specific, narrow definitions of what they deem fine art to be. On top of this, they often carry a large deductible and many restrictions on what they will and will not cover. In contrast, specialized fine art insurance policies, like ours at Great American Insurance Company, are designed to cover almost all manner of art (and collectibles), with a broad terms and limited restrictions. Our commercial fine art policies are bespoke, depending on our client’s needs and level of investment.
Q: Is there a growing trend of businesses incorporating art into commercial spaces?
A: Definitely! In the last 10 years, there has been a clear increase in businesses across a variety of sectors budgeting for art to be housed within the confines of their office space, or in the lobby of their buildings. If you visit the Financial District of any major city, more than likely, there will be some kind of sculptural installation within the grounds of the building and more art in the lobby. It is important to remember that these purchases may represent significant financial investment and should be considered balance-sheet items.
Q: How come? Is the there a correlation between the integration of art and its effect on business?
A: Yes there is a strong correlation. Studies have shown that if you are in the commercial real estate leasing and sales business, and integrate art into your spaces, your ability to lease or sell that property goes by as much as 30%. Not only that but tenant turnover rate is reduced and overall real estate values can increase as much as 15%. At the end of the day, people like to work, live and socialize in places that are attractive. Art fuels that. It changes a visit to a public space being purely transactional to a place they are going to want to visit, grab a coffee and stay awhile. As a result, both the neighbouring businesses and communities thrive.
fineartandcollectibles.com
@theartinsurer
email: rallahiq@gaig.com
