Insuring art objects and archaeological discoveries has become a hot topic, in the context of the theft of the Dacian Treasure in the Netherlands and the discussion related to the compensation that the Romanian state may receive if these objects are no longer recovered.

Insuring cultural heritage – whether we are talking about works of art, archaeological discoveries, historical objects and buildings – is a branch of insurance that is extremely specific and personalized depending on the object being insured, its value, exposure and storage. If the objects in question are stored or exhibited in a museum, if they are sent to national or international exhibitions – and, therefore, transported by road or air -, all these factors are taken into account when insuring an art object/historical artifact or an exhibition with such objects. Therefore, it is difficult to establish a minimum, average or maximum value of such a policy, each object being treated individually and evaluated according to its specifics.

Thus, in the case of works of art, cultural heritage or archaeological discoveries, a “fine art” property insurance is concluded, which is intended to protect them against risks such as material damage, theft or loss. This is an insurance policy with a special regime, having particularities compared to standard insurance of goods and objects.

“The evaluation of a work of art for insurance purposes is based on determining its value in monetary form, taking into account both objective and subjective details. It is a detailed report that is usually carried out by an expert or authorized evaluator. Thus, depending on the history and provenance of the work, the physical condition, the authenticity and the expertise of the appraiser, the two parties agree on an amount. The insurance policy is generally concluded on an amount recommended by the expert or an amount agreed upon by the owner with the insurer,” explained Marius Constantinescu, Director of the Damage Department at Leader Team Broker Insurance.

Insurance premiums vary depending on the value of the work, the risks covered and the insured period, and can start from 0.1% of the value of the work and can increase depending on certain specific factors.

How to evaluate works of art for insurance
The first step in the process of insuring an art object/heritage is to establish the value of the object following an evaluation carried out by accredited specialists (auction houses, art galleries, authorized experts), an evaluation that takes into account factors such as the authenticity of the work, the notoriety of the author or, as the case may be, the historical importance of an archaeological discovery, the state of conservation, provenance, current market, etc.

A second important step is choosing the type of insurance. A policy can be taken out against theft and vandalism, against damage (caused by fires, floods, earthquakes or other unforeseen situations), for transport and exhibition (in the case of objects that are sent to other museums – the case of the Treasury) or insurance for private collections and museums, which are personalized for owners or institutions.

The insurer, in the case of works of art or heritage, can be local companies or brokers, or specialized international insurers, such as Lloyd’s of London, in the case of very valuable collections.

“If the objects are loaned and exhibited in a museum, the responsibility for concluding such insurance lies either with the owner of the work of art (in the case of a loan) or with the museum institution. The policy is intended to protect the works of art in the event of an incident, such as theft, physical damage or other risks. Ideally, there should be coverage from the moment the exhibition leaves the owner until it returns to him. In the case of the event that occurred in the Netherlands (the theft of the Dacian Treasure), at this moment there is a criminal investigation underway, and the Romanian state must wait for a response from the Dutch authorities, but the responsibility for compensation normally falls on the Dutch insurer. However, there may be other legal mechanisms established between the parties, such as the situation in which the Dutch state holds part of the risk (self-insurance) or certain deductibles are stipulated. The value and responsibility for compensation in the case we are talking about are extremely specific and depend on what the two parties established at the time of concluding the contract,” said Marius Constantinescu.

Generally, when works of art or heritage are moved from one place to another, an agreement and a contract with certain specifications are concluded with the insurer. The transportation of works of art must be done in accordance with specific instructions (temperature, humidity, inclination), in special boxes, which absorb mechanical shocks and dissipate kinetic energy. Ignoring them can lead to irreparable damage, such as deformation or cracking, color leakage in the case of paintings. The insurance policy can cover all risks, including damage that may occur due to handling, loading/unloading or faulty transportation.
How much compensation is received in case of theft and what happens if the objects are found later

In the case of theft of art objects or archaeological discoveries, the injured party must notify the insurance company as soon as possible (usually 24-48 hours), after the police have started the official investigation. In general, the insurer waits for the theft to be proven irrevocably, that is, for the police to establish that the goods can no longer be recovered.

The deadline for a claim resulting from theft to be paid can vary, but there is a tendency for the insurer to wait a minimum of 90 days to establish that the objects cannot be recovered. After this deadline is exceeded and the authorities issue a classification document, the insurer will be able to pay the compensation. In some cases, depending on the progress of the investigation, this deadline can be extended to six months or a year.

“If the objects are found after the compensation has been paid, the insurer may request the return of the money, and the beneficiary may have to repay the amounts. It is important to note that the valuation of a work of art for insurance may be done periodically, especially in the case of high-value pieces, to reflect any changes in the market or the condition of the work. If at the time of discovery, the artifacts have suffered damage and are deteriorated compared to their initial condition, the insurer pays the difference between the initially established value and the remaining value, including the costs of restoration and restoration,” the Leader Team Broker representative explained.

The global art market is valued at approximately 65.1 billion US dollars, growing by 7% annually. It is worth noting that digital art is in continuous expansion (growth by 25%), a fact generated in particular by the pandemic and the increase in online sales. The size of the art market in Romania is not known, but the most valuable works are those signed by Romanian artists such as Theodor Aman, Nicolae Grigorescu, Constantin Brancusi or objects from museum collections at the National Museum of Art of Romania.

About Leader Team Insurance Broker:

Leader Team Insurance Broker is an insurance brokerage company with 19 years of experience in risk management and insurance. The company is recognized as one of the most innovative insurance brokerage players with unique liability, health, cyber security, products for the IT industry, the naval industry, aviation, energy, marketing and HR. In recent years, the company has expanded internationally, offering personalized insurance packages for companies and professionals from 24 EU countries, plus the United Kingdom. The broker collaborates with all insurers in Romania, as well as with giant insurance companies on the international market Lloyd’s (London).

Leader Team Broker insured in 2013 the exhibition “The Human Body”, brought to Bucharest, as well as a variety of events such as the shows Cirque Du Soleil (2012) and White Sensation Romania (2012), as well as the UEFA Europa League Romania (2012). In 2016, the company also provided the event exhibition “Artists, members of the Romanian Academy”, an exhibition with over 50 works by some of the most valuable artists, members of the Romanian Academy.
For three consecutive years – 2021, 2022 and 2023 -, Leader Team Broker has been awarded the “Insurance Broker of the Year” distinction at the Corporate LiveWire UK Awards for the degree of creativity and innovation of insurance products, designed for new emerging industries and covering the new challenges of the business environment. The jury appreciated the way Leader Team Broker breaks the mold and comes up with creative products, for industries in full expansion and for the most diverse risks.

In 2020, the company’s performance was rewarded by the publication Piata Financiara with the title of “Insurance Broker of the Year” and by Financial Intelligence with the distinction of “Cybersecurity Insurance of the Year 2020”.

The London-based publication “Treat Technologies” dedicated to cybersecurity news included Leader Team Broker in the top 20 companies worldwide that offer the best insurance solutions and products in “cyber insurance”. In 2017, the company received the “Most Creative Insurance Broker in Romania” award, offered by Media Xprimm, and in 2019 it received the “Innovation and Digitalization” award, being the only brokerage company that used RPA technology for repetitive financial operations. The company was awarded in 2020 by the publication Piata Financiara, at the e-finance Gala, with the “e-Risk” award for the best product designed to prevent and cover the risk of cyber attacks.

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