Survey - Insurance For Damage to Customer's Art By Employees

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Rob Markoff

Rob Markoff

PFG, Picture Framing God
Joined
Mar 8, 1999
Posts
5,183
Loc
San Diego, CA USA
I learned the hard way that while I had been with the same insurance company for MANY years, when I went to file my first claim for a piece of customer's art that was accidentally damaged while being defit (the glass shattered, scratching the piece), I found that customer's goods while actively being worked on were not covered for damage by marring and scratching. I always assumed that I had adequate coverage.

How many of you (who do not specifically have the CAPAX Frame It package that does have this coverage) would be willing to call your insurance agent and ask the specific question "If a piece of customer's art is damaged by an employee while actively being worked on by marring and scratching, am I covered?" and post your results here?

A bailee's policy often specifically excludes art, so if your agent says that you have a bailees policy (or an inland marine policy) you need to verify that the coverage applies for pieces being actively worked on (meaning being FRAMED) not transported or stored.

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Rob Markoff, CPF
San Diego, CA
 
We did have a claim a few years ago that was paid for by Firemans Fund, It involved a print that accidentaly fell out of a sleeve and was creased. yhe customer was a (****),
but the agent was very responsive and helpful. We have since switched to the Capax package since it was priced much lower for much more coverage. Maybe this went well for us because with 24 years of being insured, we had no prior claims.
Accent
 
Interesting question--I am planning to own my own shop but at present I work at someone else's...and we have a $250 disclaimer at the bottom of every work order that the customer has to read and sign.

My question is, why would you want to have insurance on customers' artwork? I live in Texas, and there is not the art appreciation down here that exists further north...I doubt people would want to pay the price i would have to charge to insure their artwork.

And we have never had any complaints on that policy, nor have we screwed up anything that couldn't be reprinted or salvaged. As a shop-owner, I would have a policy of replacing anything that was damaged, if I could, but I would never put it in print, because I have seen too many people try to pull a fast one.
If we call customers just to tell them their work may be a day late, they immediately demand discounts and insist that they NEED it desperately. All of a sudden. *grin* Even though they won't come pick it up for two weeks if it IS finished on the date due. *sigh*

So I would never give that insurance knowledge to a customer...although I would do my best to replace whatever I could.

Anybody else have any thoughts on this...? Is artwork insurance all that common?

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I don't care what color your sofa is.
 
Audrey-

As an industry, successful shops represent themselves as "experts." I don't think that putting a value/liability disclaimer on our workorders that we are not liable for over $250 reflects a positive image. Just because Aaron Brothers and Michaels do it (or your current employer) doesn't mean others should as well.

We frame hundreds of pieces that are worth much more than $250 and the framing jobs we do reflect the value of the artwork. We have been in business for twenty years and frame at least 175 pieces per week. While we don't take pride that some things get damaged, the more you frame, the greater your chances that SOMETHING will eventually get damaged that you cannot replace/salvage.

If you want to run your own shop someday, here is a good question to think about......

Lets assume that your shop damages a piece of artwork and it is worth more than $250, but you have protected you out of pocket liability and limited your loss to $250. How much profitable work does a shop, earning 8-11% bottom line profit have to do to earn the $250 back?

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Rob Markoff, CPF
San Diego, CA
 
Rob:

The correct answer is $2272.00 to $3125.00 in retail dollars, according to my 19th century arithmetic.

We have never had to file a claim for damage to expensive customers' property -- but of course we've damaged a few posters over the years, and replaced them gladly out-of-pocket.

I've always been concerned about ruining a piece of expensive art. And we've had some collections valued in excess of $100,000.00 on our benches at one time. I don't sleep well during those limited times, and get them done & out ASAP. To lessen my concerns, years ago I bought an "inland marine" policy rider that covers everything, no matter what, no matter where, so long as it's in my custody. It is expensive coverage.

Now we have the Capax policy, which is a much better deal.

Our work orders have a line at the bottom:
"INSURANCE VALUE declared for item(s) on this order is $______. I understand that unless insurance value is declared, the financial responsibility of ARTFRAME, Inc. is limited to purchase price or replacement value, not to exceed $200.00." Signed:________

So, customers are invited to declare value, but if they do not, then our liability limit is $200.00. This takes care of those cases where we do not know the value until it is too late. It works for us.
 
Rob:
Check out "Insurance,..." Jan 5, 2001 for more lively debate on this topic. (wish I knew how to create a link...)
The Framing Goddess welcomes you to the Grumble!
But be aware... we will pick your brain!(Glad you're here!)
-FG
 
Jim- We have similar notation on our orders, and while I agree with Rob on the possible message it sends, it helps to cover the possiblity that the under $100 piece of art doesn't turn into an irreplaceable family heirloom the day after the accident. That actually happened to us once, and believe me we played heck with our insurance and the customer to arrive at a settlement. And guess who was caught in the middle?
 
Rob
I read your message this morning and promptly called my agent and presented the question, word-for-word, as you wrote it.
Guess what...??? NOT COVERED!!
Geez am I p'd. Thanks alot for the tip. Will immediately start checking into CAPAX.
I encouage EVERYONE out there to do as I have and present that question Rob asked!!! 10 years with this agent and essentially I find out hes been lying to MY FACE.
 
Guess what? I'm not covered either. Does anyone know if Capax will deal with Canadian merchants or do any Canadians have a policy with them or something equivilant? A phone number would also be helpful.

Thanks!

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Lisa Kozokowsky C.G.A.H.
Frameswest Inc.
 
We have had CAPAX for two years, but that won't prevent my calling the agent and presenting the question. I THOUGHT I had it covered, but will know now for sure. Good tip.
 
Rob-Thanks for re-visiting this question. An earlier post started Jan 5 (as noted by Goddess) examined the very same scenario. Some of the same people that responded then, learned the same lesson from you. Evidently, it's the messenger, not the message. You Silver-tongued devil, you.
 
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