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Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an art gallery.

Art Galleries

This article will discuss the primary insurance coverage for art galleries, general liability insurance, as well as additional policies that are appropriate for this industry.

Art Galleries Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: A visitor’s youngster is playing near a little sculpture on a pedestal when he bumps against the pedestal, causing the sculpture to collapse. The child’s foot is broken as a result of the hit, and his mother insists that you pay for his medical care. The child’s medical expenditures would be covered by general liability insurance.

Example 2: An artist stumbles on a slippery patch on the floor while visiting your gallery and fractures her wrist. She sues your firm, saying you failed to post a warning notice about the hazard. Your legal bills and any needed settlement would be covered by general liability insurance.

Example 3: While transporting a major piece of art on a handcart to a customer’s automobile, an employee loses control and the cart collides with the customer’s luxury vehicle. The customer’s car repair expenses would be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

In the United States, art galleries typically pay between $300 and $600 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Art Galleries

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all art galleries should have are as follows:

Insurance for Commercial Property

You put a significant investment in the artwork shown and stored in your gallery. Commercial property insurance would cover the expense of repairing or replacing your business-related property in the case of a fire, theft, or natural catastrophe if you own the building in which you operate. This covers structural damage to your structure or grounds, as well as artwork and business equipment.

Insurance for Professional Liability

While your customers look to you for educated counsel and assistance on works of art, there’s always the possibility that you made mistakes that caused them damage. Professional liability insurance would pay your legal bills and any needed settlement if a client filed a case based on your advise.

Coverage Options for Some Art Galleries

In addition to the insurance listed above, your art gallery may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Commercial Vehicles

Any vehicle you use mainly for work must have commercial auto insurance to safeguard the vehicle, driver, and others on the road in the case of an accident. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any artwork or other business items you transport in your vehicle.

Umbrella Insurance for Businesses

While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will remove unnecessary variables from common tasks and create a safe, consistent environment for conducting business.

If your business is an LLC, look into LLC Insurance.