Neil Capozzi Speaks About News, Tools And Resources For Artists Beyond Paint, Paper And Supplies. Staying Safe From An Artist Scam And What To Do If It Happens

Scammers take advantage of emotions when approaching their victims. Visual artists are just as vulnerable as other scam victims. Art scammers play on your emotions and your desire/need to make a living from your art. Now that galleries, art shows, and art exhibits are closed due to the Covid19 outbreak, we are more vulnerable than ever!  We all know internet art scams exist, but sometimes it’s easy to forget about the warning signs with the excitement of a potential sale.  The Rickie Report speaks with Neil Capozzi, owner of Stuart Art Supply & Artists’ Nook Studio about the latest scams exploiting visual artists, how to avoid being a victim, and what you can do if you’ve been victimized.

 

 

 

 

 

Stuart Art Supply  & Artists’ Nook Studio

43 SE Kindred Street  Stuart, FL 34990

http://www.stuartartsupply.com

772.220.4500

n.capozzi@stuartartsupply.com

MONDAY – FRIDAY  10 AM – 5 PM

SATURDAY  10 AM – 3 PM

 

 

 

 

WARNING!   WARNING!   WARNING!

 

 

 

TRR:   Tell us some of the aspects of an artist scam

NC:

People figuring out how to exploit striving artists is nothing new, but technology and changing market structures have opened up some new ways to do it.  While I don’t subscribe to the notion that all artists are “struggling” or “starving”, these are creative people who are at their most vulnerable when approached for a “big sale”.

 

As a small business owner, I’ve experienced many unusual events throughout the years and one instance seems to be recurring. This is a good time to remind those in the creative sector to be careful with their online presence. If you get an offer to purchase something you sell, be attentive. Sometimes if an offer is too good to be true then it most likely leads you into a trap.

 

I was recently contacted by a client/artist (we’ll refer to as “A”) who is a novice in the online art world. Like so many, she posts her images on the web on various social media sites and her own website. “A” mentioned that she was contacted from her website by someone who was interested in purchasing some art as a gift for her husband. Since this was a cold contact via a website that doesn’t offer online sales, I was immediately suspect!

 

I asked “A” where she was in the transaction and she said they’d agreed on a price and the method of payment, shipping and how to compensate the shipper. I instantly suggested she not do anything else.  Understandably, she became nervous and we agreed that she would no longer make any attempts to move the process forward. The buyer continued to email “A” and praised the work she saw on her website. “A” called me, and we talked some more, and we decided to play along. The buyer would not give her address or her telephone number. The excuse was that this was a gift and that she uses a local company to ship the order anyway so there was no need for her to provide the information to the artist. The only contact was via email.

 

“A” was contacted via email by the buyer with updated payment information. The buyer said she issued a bank draft and gave”A” the UPS tracking number. “Wow, the buyer still seemed serious”, “A” thought!  “What should I do?” I told her to wait until the check arrived. The check arrived a day later. “A” was tense – “what do I do now?”. The amount on the check was $2500 and this amount was well above the agreed upon purchase amount. The buyer’s instructions were to pack the purchase and she would send her shipper to pick up the items and send them to her, the shipper would collect the balance of the $2500 check in cash.

 

I told “A” to call the bank on the check and asked if there were sufficient funds. When she did, the bank told her that the check was drawn on a fake account. So, if my client proceeded with the transaction, she would have been out the art and the cash she gave the shipper. It’s an old scam and it continues to catch people off guard. Remember, if you get an offer that is to good to be true it usually is!

 

 

 

TRR:  Preying on the vulnerability of an artist, whose ego is what is on the canvas, in a sculpture, or part of any visual art is appalling.  This is not the first time I have heard about this, which is why we want to share some specific information to avoid being scammed.  What are the “red flags”?

 

 

 

 

 


NC:

 

RED FLAGS

1. Impersonal Stories

The “buyer” uses a story to hook you about their wife liking your work or wanting art for a new home, but it sounds stunted and impersonal. A big tip off is that they do not even address you by name, but simply start with “Hello”. This way they can send the same email to thousands of artists.

2. A Foreign Emailer

The “buyer”usually claims to live in another country — far from where you live — to make sure the art has to be shipped. This is all part of their dastardly plan.

3. A Sense of Urgency

The “buyer” claims they need your art quickly. That way the art will be shipped before you find out the check or credit card details are fraudulent.

4. A Fishy Request

The “buyer” requests your personal information, including back accounts

The request doesn’t add up. For instance, the “buyer” wants to buy three pieces and asks for prices and dimensions, but doesn’t include the pieces’ names. Or, they want to purchase a piece that is marked as sold on your website. It will reek of suspicious activity.

5. Poor Language/ Spelling and Phrasing Errors

The email is riddled with spelling and grammatical errors and doesn’t flow as a normal email should.

6. Strange Spacing

The email is oddly spaced. This means the weasel carelessly copied and pasted the same message to thousands of artists, hoping some will fall for the scam.

7. A Cashier’s Check Request

 The “buyer” suggests non-traditional payment transactions or sending money to a third party.

The “buyer” insists that they can only pay by cashier’s check. These checks will be fake and you could be blamed when your bank discovers the fraud. However, by the time this happens the scammer will have already received your art.

8. Outside Shipping Wanted

They want to use their own shipper–which is usually a fake shipping company that is in on the scam. They often say they are moving and will have their moving company pick up your artwork.

9.  Be Cautious of “Relay Calls”

People with hearing or speech difficulties legitimately use relay calls. Scammers may also use this communication service to contact you.  Do Not Accept relay calls unless you know the person using this service.  Scammers often use a “third party” who “works” for a communications company.  Often, an “overage amount” is involved.  Hang up!

 

 

 

 

 

Remember that a scam email might not have all of these signs, but go with your gut.

 

Scammers can be clever.

 

Stick with the old adage: “If it seems too good to be true, it probably is.”

 

 

 

 

 

 

TRR:   If you are scammed, What can you do?

 

NC:

Being scammed or even experiencing an unsuccessful attempt can feel incredibly frustrating and insulting. It’s normal to want to somehow “get back” at the scammer. Some people satisfy this urge by engaging with the scammer in order to “waste their time”, but honestly this is just a waste of your own valuable time. Your best response is to ignore it and move on, or possibly submit a complaint to the FTC using the link below.

 

TRR:    As AARP.org reminds us, “It’s about emotion, not logic!”  Read the fine print of everything you sign!  If your eyes glaze over, it’s time to consider asking for legal help.  As I say in my art-marketing seminars…”do you know how to fix a car engine?  No?  So, you decide to bring it to someone who does. Then, why are you hesitating to get legal advice?”

 

A new scam trending upon the internet is the false premise of an online gallery.

Recently, one of InLiquid’s members received a scam. It was a “call for submissions” to a now-non-existent business called Faburry Gallery, supposedly located in Philadelphia. With a rather vague and platitudinous description of their mission, they have asked artists for submissions via email, also asking for a small fee of $5 per submission. Yes, it’s a small price, any independent contractor could eat up the loss, however it gives way to an entirely new scam-frontier: identity theft. Although we would typically suggest to deal art locally, this only further raises our eyebrows on what is considered safe. While eager to have one’s art visible on a national scale, this style of enticement couldn’t be more of a bait-and-switch. 

So to all our hard working artists out there, our only suggestion is to always be aware. Most scams come in patterns and, quite often, are too good to be true. As an organization dedicated to the promotion of artists, we will do our best to always keep you posted. 

 

This sickening strategy allows them to either steal your original works, money, or both. It’s crucial to know the signs and how to protect yourself, so you can continue to benefit from legitimate online opportunities. And, continue to sell your art to a whole new audience of interested, REAL buyers.

RESOURCES:

 

 

TRR:

Here are some helpful websites with information on frauds and scams.  Stay a step ahead of scammers and keep yourself updated with the latest information on scams and tips to help prevent yourself from becoming a victim.

Art Advocate and colleague, Carolyn Edlund, from ArtsyShark tells us, “I have seen this exact scam, but it doesn’t even need to be a payment for an art sale. I got one from a weird address at Paypal billing me for a domain name (which I do own) but for three times the price! I didn’t bite, but contacted Paypal and they asked me to forward it to spoof@paypal.com. One of my clients got something similar, simply telling her there was an issue with her account and that she should log in through a link. Paypal must address these problems, because surely there are a ton of people, including artists, getting ripped off”.   Again, when in doubt, contact Paypal!  For more information, contact Carolyn@ArtsyShark.com or visit www.ArtsyShark.com

 

Read this article from Agora Gallery:   https://www.agora-gallery.com

          (Look under “For Artists”  and then  “Artist Advice Blog”)

Read Kathleen McMahon’s Art Scam blog:  www.kathleenmcmahon.com

Federal Trade Commission – Scam Alerts

 

www.ftccomplaintassistant.gov

The Federal Trade Commission’s Scam Alerts page keeps consumers up to date on recent scam alerts with what to know and do about scams in the news.

www.consumer.ftc.gov/scam-alerts

Federal Bureau of Investigation – Common Fraud Schemes

The Federal Bureau of Investigation has developed their Common Fraud Schemes website to inform you on the most common scams that the FBI investigates and tips to help prevent you from becoming a victim.

www.fbi.gov/scams-safety/fraud

USA.gov – Consumer Frauds and Scams

The USA.gov Consumer Frauds and scams website hosts information and tips on how to avoid scams and fraud with a special section dedicated to current scams to be aware of.

www.usa.gov/topics/consumer/scams-fraud.shtml

Better Business Bureau – Scam Stopper

The Better Business Bureau’s Scam Stopper website has information on scams including top scams, the science of scams, who gets scammed and report a scam.

www.bbb.org/council/bbb-scam-stopper/

For more information about art supplies, art classes, or the opportunity to conduct art classes:

 

 

Check Out The Classes/Workshops  Here:

 

Stuart Art Supply  & Artists’ Nook Studio

43 SE Kindred Street  Stuart, FL 34990

http://www.stuartartsupply.com

772.220.4500

n.capozzi@stuartartsupply.com

MONDAY – FRIDAY  10 AM – 5 PM

SATURDAY  10 AM – 3 PM

 

 

For coverage of your events, to place an advertisement, or speak to Rickie about appearing in The Rickie Report, contact:

Rickie Leiter, Publisher

Rickie@therickiereport.com   561-537-0291

17019 SW Sapri Way   Port St. Lucie, FL 34986

 

Rickie Leiter Presents A Two Part Art Marketing Seminar At The Gilt Complex In Stuart Offering Strategies And Tips For A Successful Art Business

Artists who want to sell their artwork need a clear and easy business plan!  The Gilt Complex in Stuart is offering a 2-part workshop with Rickie Leiter, publisher of The Rickie Report and the knowledgable staff of the Gilt Complex on February 12 and 19. Don’t miss out on this hands-on practical knowledge seminar, including how to frame and hang your work to show your best advantage!  Numerous past seminar attendees and consultation clients have been accepted into traditional galleries, juried exhibits, won awards, and made major sales at Florida venues as well as at international venues. The skills they learned through these seminars and mentoring have taken them from hopeful to successful! The Rickie Report shares the details about the next seminar here.  Advanced registration is a must.  

608 Colorado Avenue  Stuart, FL  34944

772.463.0125     www.TheGiltComplex.com

Open Monday through Saturday from 10 to 5

(Or By Appointment)

 

 

 

 

P R E S E N T S :

 

 

 

 

Learn….

How to approach Galleries

Preparing a portfolio

Presenting your work

Pricing Your Work

Marketing your Work

Using Social Media

Answering Calls to Artists

and more…

Session 1: February 12th | 6 – 9 pm

Session 2: February 19th | 6 – 9 pm

$100 per person

RSVP by January 3, 2020

Reserve Your Seat  772-463-0125  

 

 

 

 

For more information:

The Gilt Complex

608 Colorado Avenue    Stuart, FL 34994

772-463-0125     www.TheGiltComplex.com

Facebook

Instagram:  @thegiltcomplex

 

 

 

For coverage of your events, to place an advertisement, or speak to Rickie about appearing in The Rickie Report, contact:

Rickie Leiter, Publisher

Rickie@therickiereport.com   561-537-0291

17019 SW Sapri Way   Port St. Lucie, FL 34986

 

 

 

Can Visual Artists Conquer The Changing Marketplace? Clark Hulings Fund For Visual Artists Brings The Tools, Inspiration, And Support At Art Business Conference February 1 & 2

The Clark Hulings Fund for Visual Artists (CHF) announces its Art Business Conference in Ft. Lauderdale, inspiring visual artists to “Conquer the Changing Marketplace.” This weekend long business development workshop will give professional working artists the chance to take a deep dive into the business side of their art careers. Scheduled for February 1 and 2, 2019, the event is funded in part by the Broward County Board of County Commissioners through the Broward Cultural Council. The two-day conference is co-sponsored by ArtServe, an active incubator for Broward County’s growing art community.  This is open to all visual artists.  The Rickie Report shares a $50 discount code for our readers.  Rickie will be one of the presenters at this event.

 

 

 

 

 

 

 

 

 

 

The event manifests CHF’s assertion that “Art is a business and artists should run it.” With the art market undergoing rapid and significant change—not only with regard to technology but also HOW art is marketed, bought, and sold—artists need to reclaim their rightful position at the center of the industry. The Art-Business Conference will help them to take charge of their careers, captivate their audience, maximize the extraordinary professional advantages they already possess and sell their art effectively and profitably.

 

 

 

 

 

 

 

Topics will include building an action plan, creating a brand story, rocking their portfolio, multiplying revenue streams, pricing for profit, selling art online effectively, building a strong support team, squashing resistance, sales strategies, and much more. All sessions are interactive, allowing artists to work together and engage conference leaders with their specific business questions.

 

Elizabeth Hulings

 

 

The program will be led by Elizabeth Hulings, CHF director and co-founder; Carolyn Edlund, CHF sales director, and events manager; and Daniel DiGriz, CHF education director. “South Florida has emerged as an important art hub,” says Hulings. “We are thrilled to be delivering tangible business skills and training in this exciting market.” Edlund, CHF sales director, and events manager; and Daniel DiGriz, CHF education director. “South Florida has emerged as an important art hub,” says Hulings. 

 

Carolyn Edlund

 

 

The event fee is $395.  Tickets are available here. In addition to conference admission, ticket holders will receive one year of “Colleague”-level access to CHF’s Business Accelerator Portal, a comprehensive online learning resource for working artists.

Rickie Report readers!

Use the $50. cost savings code

RICKIE50 when you register

 

Daniel DiGriz

About The Clark Hulings Fund:

The Clark Hulings Fund for Visual Artists (CHF) is a 501(c)(3) nonprofit organization that champions economic sustainability for working artists. We do this by delivering business education and entrepreneurial learning through a rigorous Business Accelerator, a Digital Learning Portal, in-person education events in local communities, and a federation of artist- formed and artist-led networks of opportunity. All of this work achieves one aim: equip visual artists to thrive as self-sustaining entrepreneurs.

 

For more information, please visit https://clarkhulingsfund.org

For press needs, please contact Susan von Seggern at susan.von.seggern@clarkulingsfund.org

 

 

 

 

 

For coverage of your events, to place an advertisement, or speak to Rickie about appearing in The Rickie Report, contact:

Rickie Leiter, Publisher

Rickie@therickiereport.com   561-537-0291

17019 SW Sapri Way   Port St. Lucie, FL 34986

Don’t Miss This Important Learning Event February 1-2, 2019. “Conquer The Changing Marketplace” Explores How Art Is Marketed, Helping Artists Be In Charge!

Will you be in Fort Lauderdale with other artists who will change their careers on February 1 – 2, 2019?  Don’t miss this important learning event at ArtServe in Fort Lauderdale! The Clark Hulings Fund for Visual Artists will present an Art-Business Conference, “Conquer the Changing Marketplace”.  Use the Rickie Report Code to save $50. on registration!  Broward County artists can take advantage of financial sponsorship!  Tickets are on sale now, with early bird pricing available until January 1st.  Give yourself this gift!  Rickie will be there and can’t wait to share this experience with you!  For all the details, check out this article.

 

 

 

 

 

 

The Clark Hulings Fund for Visual Artists

Presents an Art-Business Conference

 

“Conquer the Changing Marketplace”

 February 1-2, 2019

at

 ArtServe in Fort Lauderdale   

https://clarkhulingsfund.org/events/florida/ 

 

 

The marketplace is changing—not just technology, but HOW art is marketed, bought, and sold. You, the Artist, are at the center of this. Take charge of your career, mesmerize your audience, maximize your extraordinary professional advantages, and Sell-Sell-Sell. This is going to be an amazing event.

Tickets are on sale now!

Early-bird registration pricing available until January 1, 2019

Save another $50 by using your Rickie Report Code:  RICKIE50

 

 

Broward County Artists: take advantage of an opportunity to apply for financial sponsorship to the Art-Business Conference. Broward County Cultural Division has issued a Call for Artists:

http://broward.org/Arts/Funding/Pages/ClarkHulingsFund.aspx

and will be covering all but $95 of the registration fee for in-county artists who are selected. Deadline to apply is December 28, 2018.

 

 

The conference schedule is below:

Friday, February 1st:

8:00am Registration, Mingle & Coffee

8:30am Conference Kickoff

9am Conquer the Changing Marketplace

10am PLAN: Define What You Want

11am EXECUTE: Build Your Action Plan

12pm Lunch Break

12:30pm Expert Panel Discussion

1:30pm Nail Your Brand Story

2:30pm Win Your Audience with Storytelling

3:30pm Take Your Story Live

4:30pm Rock Your Portfolio

5:30pm OPTIONAL INTERACTIVE: Brand Story Fish Tank

 

 

Saturday, February 2nd:

 

 

8:15am Mingle & Coffee

8:30am Elizabeth Hotseat

9am Multiply Your Revenue Streams

10am Price for Profit

11am How to Sell Art Online

12pm LUNCH BREAK

12:30pm OPTIONAL INTERACTIVE: Ask the Directors

1pm Recruit Your Tribe & Hunt with a Pack

2pm Squash Resistance

3pm Retool Your Plan & Go

3:50pm CONFERENCE WRAP-UP

4:00pm OPTIONAL INTERACTIVE: Sales Strategy Fishtank

6:00 pm Cocktail Party

 

 

For more information, please visit https://clarkhulingsfund.org

For press needs, please contact Susan von Seggern at susan.von.seggern@clarkulingsfund.org

 

 

 

 

For coverage of your events, to place an advertisement, or speak to Rickie about appearing in The Rickie Report, contact:

Rickie Leiter, Publisher

Rickie@therickiereport.com561-537-0291

17019 SW Sapri Way   Port St. Lucie, FL 34986

Visual Artists: How Will You Optimize Your Business? Come With The Rickie Report To The Next Art-Business Conference February 1-2

Artists and creative professionals lead busy  – heck, not just busy, INDUSTRIOUS – lives!  That’s the key reason The Clark Hulings Fund For Visual Artists brings art-business education to regions of the country (Dallas, New York City, Santa Fe, Denver, and Ft. Lauderdale).  CHF gives working artists key opportunities to accelerate their careers and optimize their businesses without  committing to a residency far from their studios or to return to their alma mater and ask, “Why was this not built in from the start?”  The next Art-Business Conference takes place in Ft. Lauderdale on February 1-2.  Save an extra $50 with a special discount code for our readers!  This is open to ALL visual artists.  Rickie will be appearing on one of the panels. 

 

 

 

 

 

 

 

 

 

 

 

Arts organizations are already on the ground in these communities, and each one seeks to serve its local constituency. The Art-Business Conference is a way for CHF to collaborate with those groups to extend their mission, bring in powerful expertise, and create more engagement and awareness around what they offer. We do this by inviting those organizations to participate directly, through logistics and sponsorship.

 

 

 

Local and enterprise businesses have more in common with artists than they often realize. Creative professionals are not only powerful economic contributors, but they utilize other businesses, creating a net gain for both sides. Many companies have already declared a cultural mission or made a commitment to corporate social responsibility, and CHF provides a way, through commercial sponsorships, to achieve those aims while also connecting them with new customers and loyal brand advocates.

 

 

 

Other community groups focus on goals such as creating a resilient local culture, sponsoring minority and women’s participation in career growth and economic development, and fostering a more robust business community. These groups are natural partners that find in CHF an organization that “gets it” and offers creative ways to do something that’s visible and garners publicity, yet also substantive, producing a measurable effect, through solid data, metrics, and analytics.

 

 

It doesn’t end with live learning or professional networking events. CHF offers follow-up programs to every event attendee, including a digital learning portal, online community, and—for those who are interested—our rigorous Art-Business Accelerator Fellowship (for which we are currently reviewing the 2019 applicants).

 

 

FORT LAUDERDALE: It’s still early enough to get involved (as an artist or entity) in the Ft. Lauderdale Art-Business Conference, February 1-2, 2019.

 

 

Artists and creative professionals will be blueprinting their careers, developing an action plan to make their businesses thrive, creating a brand narrative to win significant audience share, and building a strategy to optimize their income streams.

 

Everything CHF stands for can be understood from what we’re doing on the ground in locations all over the US. If you want to learn more, recruit us as a partner to your company or organization, or plug into one of our programs. Visit us at clarkhulingsfund.org to let us know you’re interested.

 

 

 

 

For more information, please visit https://clarkhulingsfund.org

For press needs, please contact Susan von Seggern at susan.von.seggern@clarkulingsfund.org

 

For coverage of your events, to place an advertisement, or speak to Rickie about appearing in The Rickie Report, contact:

Rickie Leiter, Publisher

Rickie@therickiereport.com   561-537-0291

17019 SW Sapri Way   Port St. Lucie, FL 34986

 

The Clark Hulings Fund For Visual Artists Announces Art-Business Conference In Fort Lauderdale, February 1-2

The Clark Hulings Fund for Visual Artists (CHF) is excited to announce its Art-Business Conference in Fort Lauderdale, an event that seeks to inspire visual artists to “Conquer the Changing Marketplace.” This weekend-long business-development workshop will give professional working artists the chance to take a deep dive into the business side of their art careers. Scheduled for February 1 and 2, 2019, the event is funded in part by the Broward County Board of County Commissioners through the Broward Cultural Council. The two-day conference is co-sponsored by ArtServe, an active incubator for Broward County’s growing art community. The Rickie Report shares the details and urges you to sign up now for the cost-saving Early Bird (ends Nov. 15). In addition, we offer a $50 discount code for our readers! We look forward to seeing you there! This is open to all visual artists.

 

 

 

The event manifests CHF’s assertion that “Art is a business and artists should run it.” With the art market undergoing rapid and significant change—not only with regard to technology but also HOW art is marketed, bought, and sold—artists need to reclaim their rightful position at the center of the industry. The Art-Business Conference will help them to take charge of their careers, captivate their audience, maximize the extraordinary professional advantages they already possess and sell their art effectively and profitably.

 

 

 

 

 

 

 

Topics will include building an action plan, creating a brand story, rocking their portfolio, multiplying revenue streams, pricing for profit, selling art online effectively, building a strong support team, squashing resistance, sales strategies, and much more. All sessions are interactive, allowing artists to work together and engage conference leaders with their specific business questions.

 

Elizabeth Hulings

 

 

The program will be led by Elizabeth Hulings, CHF director and co-founder; Carolyn Edlund, CHF sales director, and events manager; and Daniel DiGriz, CHF education director. “South Florida has emerged as an important art hub,” says Hulings. “We are thrilled to be delivering tangible business skills and training in this exciting market.” Edlund, CHF sales director, and events manager; and Daniel DiGriz, CHF education director. “South Florida has emerged as an important art hub,” says Hulings. 

 

Carolyn Edlund

 

 

The event fee is $395, with CHF is offering an extra early-bird price of $295, until November 15, and an early-bird price of $345 until January 1, 2019, when the regular price of $395 starts. Tickets are available here. In addition to conference admission, ticket holders will receive one year of “Colleague”-level access to CHF’s Business Accelerator Portal, a comprehensive online learning resource for working artists.

Rickie Report readers!

Use the $50. cost savings code: RICKIE50 when you register

 

 

Daniel DiGriz

About The Clark Hulings Fund:

The Clark Hulings Fund for Visual Artists (CHF) is a 501(c)(3) nonprofit organization that champions economic sustainability for working artists. We do this by delivering business education and entrepreneurial learning through a rigorous Business Accelerator, a Digital Learning Portal, in-person education events in local communities, and a federation of artist- formed and artist-led networks of opportunity. All of this work achieves one aim: equip visual artists to thrive as self-sustaining entrepreneurs.

 

For more information, please visit https://clarkhulingsfund.org

For press needs, please contact Susan von Seggern at susan.von.seggern@clarkulingsfund.org

 

For coverage of your events, to place an advertisement, or speak to Rickie about appearing in The Rickie Report, contact:

Rickie Leiter, Publisher

Rickie@therickiereport.com   561-537-0291

17019 SW Sapri Way   Port St. Lucie, FL 34986

Do Artists Need Special Insurance? A Special Report By Caren Hackman

The Rickie Report receives numerous calls and emails from artists regarding business issues they deal with.  A common concern is insurance.  We asked Caren Hackman, a fine artist and owner of a graphics business to interview Sheryl G. Wood, Esquire on this topic.  Please note: This is not intended as legal advice. Any advice will always depend on the specific facts and circumstances of a particular situation. We share their discussion here.

 

 

 

Insurance for Artists

Q and A

with

Caren Hackman, Fine artist 

 

and

Sheryl G. Wood, Esquire

 
Representing Collectors, Artists, Dealers and those with an interest in the Business of Art

 

 

 

CarenHackmanSherylWoodcertificatenyu-art-cert

Please note: This is not intended as legal advice. Any advice will always depend on the specific facts and circumstances of a particular situation.

 

 

CH: Insuring artwork and the contents of my studio makes sense but the task is daunting. Can you help clarify the process?

 

 

SW: Looking into insurance coverage for a professional artist is a sound business move. The cost of business insurance is not prohibitive, however, replacing your studio and not being able to work are. You may have a homeowner’s policy if you work in the home, but be sure to read your policy, they typically only provide up to $2500 for business equipment or no coverage at all for business related assets. It is estimated that less than one third of artists have their works covered under business insurance.

 

There are three types of coverage you may want to consider:
• For Buildings, to cover the physical structure of your studio;
• For your Personal Property, to cover the contents of your studios such as tools, equipment, raw materials, works in progress, finished works, important papers and electronic records; and finally,
• Business Interruption, that covers loss of business income due to time studio is closed for an emergency.
If you can’t afford complete coverage, purchase what you can. Some is better than none. But carefully assess what you need and avoid unnecessary coverage. It is important to insure all works in the studio, including works in progress.

 

 

CH: How will the insurance company determine what rates the artist pays and what is covered?

 

 

SW: An insurer will determine insurance based on the artist’s stance in the marketplace. What do the paintings, sculptures, or works on paper sell for? If an artist is dealing with a well-established gallery, they should have coverage spelled out in the consignment agreement. However, even some of the established galleries may require artist coverage so they don’t end up covering those losses. Larger insurers typically cover mid-level to blue chip level artists. The reason is that it is easier to underwrite them. An insurance company looks at the way your art is consistently handled. For instance, do you transport your art in a vehicle vs. using a professional shipper and do you make individual miscellaneous sales vs. selling your work through galleries and auction houses.

 

 

 

CH: So how would an artist find insurance for his or her artwork?

 

SW: Finding a good broker is important, and you can ask colleagues or friends who they use. You need to feel comfortable with whoever you choose, so it’s okay to shop around and get a few quotes. You might decide to go with a broker who represents a specific company or companies, or to go with an independent broker who directly represents you in the marketplace. If the works are very valuable, it is important to speak to a broker that specializes in fine art insurance, they can better dictate how a claim is handled. I spoke to independent broker Sarah Court, sarah.court@aon.com from the Aon Private Risk Management Insurance Agency in Miami. Aon specializes in Fine Art Insurance Coverage worldwide.

 

 

CH: Will an insurance company cover the all of the artist’s works, both finished and works in progress?

 

 

SW: For works in an artist’s studio, at a minimum, the works need to be insured to cover your cost of materials and time you have put into the piece. Premiums are based on risk and the value of those works. You will also want to advise your broker if you are represented by a gallery or receive a commission to do one or more works, whether from an individual or gallery. Schedules of the works will become a part of the policy, and the policy needs to have a rotation schedule as new works come on and others are sold. Individual works should be well documented with a photo and description of work including the title if any, subject, date made, dimensions, medium, condition, frame, special notes about the work, any history of exhibitions or mention in periodicals or electronic media.

 

 

CH: Could you give me the names of some insurance companies that cover artworks about which you have knowledge?

 

SW: There are a handful of insurance companies that specialize in fine art coverage, all of which would need a broker such as Aon to access. Generally, premiums run between $1000 to $10,000 annually for $1,000,000 to $2,000,000 in coverage. The policies tend to cover theft, weather and other emergency damage, and damage in installation, deinstallation and transit.
AXA, www.axa-art-usa.com
XL Catlin, http://xlgroup.com/insurance/insurance-coverage/specialty-insurance/fine-art
Aspen Insurance, https://www.aspen.co/Insurance/Insurance-lines/Marine-Aviation-Transportation/Specie-and-Fine-Art/
Ironshore, http://www.ironshore.com/usa/fine-art-specie/c47
Berkeley Asset Protection, http://berkleyassetpro.com/products/fine-art-and-collectibles-insurance/

 

 

CH: Are there other avenues that an artist might consider when shopping for insurance?

 

SW: Another avenue for a smaller art business is to check for coverage from an industry specialist such as American Crafts.

 

www.studioprotector.org

 

The policies are relatively inexpensive and offered by different groups dependent on your medium, based on your needs, and can include Business Contents Coverage – On & off premises Coverage for Goods While at Shows & In Transit, Coverage for Tools, Equipment, Product Inventory & Supplies at installation sites, in transit and away from your premises. It would be a good idea for all artists to view this website for good tips for safekeeping your artistic records and keeping your artwork safe and secure. http://studioprotector.org/. The Studio Protector is the first product of the Coalition for Artists’ Preparedness and Emergency Response, a national task force that was formed in 2006. There is a lot of information, so check it out.

 

 

CH: Sheryl, thank you so much for sharing your knowledge with us. How can you be reached if readers have further questions?

 

 

SW: You are very welcome. I can be reached at artlaw@earthlink.net.

 

This article is a Copyright of Sheryl Wood and Caren Hackman 2015

 

 

 

Additional information about signing agreements for exhibit and art insurance can be found at

http://carenhackman.com/blog/the-big-art-insurance-question/

 

 

Sources:
Sarah K. Johnson Court | Director | Global Fine Art Practice
Aon Private Risk Management Insurance Agency, Inc.
1001 Brickell Bay Drive | Suite 1100 | Miami, FL, 33131
Direct: 305-961-6126 | Cell: 305-608-6375
Toll Free: 866-225-5266 FREE
sarah.court@aon.com | aon.com
CERF+ Craft Emergency Relief Fund + Artists’ Emergency Resources
http://www.studioprotector.org/

 

 

 

For more information about Caren Hackman:

Caren Hackman is a graphic designer and fine artist living in Palm Beach Gardens, FL. and author of a book about Graphic Design and Good Business practice: http://www.carenhackman.com/book/.

Be sure to check out Caren’s wonderful artwork – Caren is a talented artist in her own right! She is a founding member of the Artists of Palm Beach County.

www.carenhackman.com

 

 

 

 

For coverage of your events, to place an advertisement, or speak to Rickie about appearing in The Rickie Report, contact:

Rickie Leiter, Publisher

The Rickie Report

P.O.Box 33423

Palm Beach Gardens, FL 33420

Rickie@therickiereport.com

561-537-0291