Whether you're a gallery, an artist, or a collector, understanding the intricacies of insurance coverage in fine art shipping is critical. In this blog, we’ll break down the differences between cargo insurance and fine art insurance, clarify why these are both important, and explain why we ask for artwork value when quoting your shipping costs.

1. The Difference Between Cargo Insurance and Fine Art Insurance

One of the most common points of confusion when it comes to shipping fine art is the difference between cargo insurance and fine art insurance. Here’s a quick breakdown:

• Cargo Insurance: This is standard insurance coverage that protects general goods in transit. However, cargo insurance typically does not cover high-value items like artwork, jewelry, or antiques. It is designed for common goods such as electronics, furniture, and other non-precious items.

• Fine Art Insurance: Unlike general cargo insurance, fine art insurance is specifically designed to protect items of high value, such as paintings, sculptures, rare artifacts, and other collectibles. Fine art insurance covers risks unique to these items, such as theft, damage, or loss due to mishandling, accidents, or shipping-related risks.

Why does this matter?
If your artwork is valuable, it’s essential that it is covered under fine art insurance because cargo insurance will not provide sufficient protection for high-value pieces.

2. Why Fine Art Shipping Requires Different Insurance

Fine art is not like any other type of cargo. It’s fragile, valuable, and irreplaceable. Shipping fine art comes with a unique set of risks that require specialized insurance coverage. Some of the most significant risks include:

• Fragility: Fine art, whether it’s a painting or sculpture, is delicate and vulnerable to damage from even the slightest mishandling.

• High Value: The financial value of fine art can be substantial, making it essential to insure it properly in case of loss or damage during transit.

• Complex Handling: Fine art requires specialized handling and packaging to ensure it arrives safely. The transportation and logistics involved can vary greatly from one piece to another.

3. The Role of Liability Insurance in Fine Art Shipping

At Arête Logistics, we carry liability insurance to protect both our clients and ourselves in the event that something goes wrong during transport. While cargo insurance won’t cover the artwork itself, liability insurance protects you against damage caused by our actions during handling, loading, unloading, and transport.

For example, if an accident occurs during transit — like a piece being dropped or a handling error — liability insurance helps protect against the financial consequences of those types of incidents. However, this does not replace fine art insurance, which is crucial for covering the true value of the artwork.

4. Why We Ask for Artwork Value When Quoting

At Arête Logistics, we request the value of the artwork when providing a quote because the value plays a role in our liability and cargo premiums. Our cargo insurance premiums are calculated based on the total value of the items we’re transporting, and the higher the value, the higher the cost of the premium.

Although we don’t offer fine art insurance, the value of the artwork is still an important factor in determining our shipping costs. It ensures that we are adequately covering our liability in the event of an unforeseen issue. If your artwork is worth $10,000, the premiums and costs associated with its shipping are much higher than for a $1,000 piece, which is why the value impacts your overall quote.

5. What’s Covered and What’s Not

To avoid any confusion, let’s clarify exactly what is covered under our liability and cargo insurance and what should be covered by fine art insurance:

• Our Liability and Cargo Insurance covers:

  • Accidents during handling (e.g., dropping a piece or damaging the artwork through poor handling)

  • Accidents during transport (e.g., vehicle accidents, natural disasters, etc.)

  • Loss or damage caused by our handling or shipping process

• Fine Art Insurance covers:

  • The full value of the artwork in case of theft, loss, or damage during transit, depending on the specific policy.

  • Valuation of the artwork, ensuring that the cost of any damage is reflected by the artwork’s true market value.

While our liability insurance ensures that we are covered for mistakes or accidents on our end, fine art insurance protects the artwork itself — providing the coverage needed for high-value pieces.

6. How This Impacts Your Shipping Costs

We understand that pricing is a crucial factor in choosing a shipping provider. Insurance premiums — both liability and cargo — do impact our shipping rates. The higher the value of the artwork, the higher the insurance premiums we incur, and that reflects in the cost of shipping.

While fine art insurance should be carried separately by the gallery or client, the liability and cargo insurance we carry allows us to safely transport the artwork and cover any risks that arise during transit. Our goal is always to provide transparent pricing and ensure that the necessary protections are in place throughout the shipping process.

Conclusion:

Understanding the ins and outs of insurance coverage is crucial when shipping fine art. While cargo insurance protects the transport process and liability insurance covers us during handling, fine art insurance is necessary for full protection of high-value artwork.

At Arête Logistics, we always recommend that our clients carry fine art insurance to ensure comprehensive coverage for their valuable pieces. However, we also take responsibility for providing safe, reliable, and secure shipping with the appropriate liability and cargo coverage.

If you have any questions about your fine art shipping needs or how insurance works, feel free to reach out. We’re here to ensure your artwork is protected every step of the way.