Monday, July 25, 2022

If Your Art Arrives Damaged

 

Collectors: What To Do If Your Art Arrives Damaged

art shipping, art transit, art damage in transit, packing art, shipping art, art damaged, damaged artPhoto by Keagan Henman on Unsplash

Shipping fine art is an art form itself and doesn't always go as planned. Here's what to do if your art is damaged while in transit.

You’ve idled patiently on the waitlist, negotiated the price, and — finally — closed the deal on a work of art by an artist you’ve long admired. So what happens when that artwork arrives on your doorstep, with a gaping hole in the crate? 

Purchasing an artwork from a gallery is only the mid-way point of that piece. Having traveled from the artist’s studio to the gallery (or art fair) where it was installed, displayed and acquired, the piece now begins its journey to you, the buyer. No matter the quality of the shippers contracted to transport the piece, every art shipment is a gamble with fate and circumstance. 

The scale of the work, its weight, fragility, the competence of the shipping company’s art handlers and drivers, the materials used in crating — as well as the traffic, road and weather conditions at play during transit — are all variables that can disrupt even the best-laid art transport plans. 

Here’s what to do when arranging art logistics and the steps to take if your art arrives damaged.

Always insure the work while in transit and choose your carrier wisely

It’s recommended to discuss all shipping details prior to purchase, or, at the very least, at the time of sale. If you, the buyer, are paying for the shipping, make sure to get the details in writing from the gallery so that you have a paper trail.

Simply ask the gallerist or dealer to include a line on the invoice such as, “Work will be packed in a shadow box and crated for shipping.” That way, if the work then shows up in a flimsy cardboard box, you’ll have proof that the terms of sale were not properly implemented. 

Another best practice is to always pay for “insurance-while-in-transit” through the shipping company itself, which they will apply to the bill and which is usually based on the value of the artwork. When the shipping company uses their own insurance policy to cover works in transit, they’re generally more inclined to treat the artwork as if it were their own. 

It's recommended to choose your preferred carrier wisely. Laura Doyle, a fine art specialist with Chubb Insurance, told Artnet that, “When we’re advising clients on how to ship an item we always suggest that the truck has GPS, climate control, a security system, proper suspension, as well as two drivers. And then if possible, the truck should always take a direct non-stop route.” Ask the gallery to confirm these details, in writing, or get the shipping company itself to confirm them directly. Having a paper trail is always a best practice. 

Finally, make sure that you are informed about any particulars that may affect delivery to your residence. If you live in an apartment building, for example, make sure the piece will fit in the elevator. Check with your building's management to confirm what types of paperwork the shippers will need to present to your building's superintendent, such as a certificate of insurance (COI) or a bill of lading (BOL). This will save a lot of headache upon delivery.

Refuse delivery

If a shipping company arrives at your home with a crate that has clearly been damaged while in transit, the most immediate action you can take is to refuse delivery. Doing so will put the impetus on the shipping company and the shipper (i.e. the gallery that arranged shipping) to figure out the next course of action and work swiftly to resolve it. 

Accepting delivery of a damaged crate will, unfortunately, work against you in the long run, so do everything you can to be present during delivery so that you can inspect the crate/box/tube, etc. before accepting and signing off. If you are not able to be present and a crate with obvious damage is simply left on your doorstep, fret not, there are still actions you can take to protect your investment. 

art shipping, art transit, art damage in transit, packing art, shipping art, art damage, damaged art
Photo by Markus Spiske on Unsplash 

Photograph everything, even if no damage is apparent

Documentation is utterly critical to proving that the damage to the work occurred prior to its arrival at your home. With the ubiquity of cell phone cameras and videos, it’s recommended to simply film the entire delivery process, including opening the crate, removing the artwork, and inspecting it for damage. 

If damage is observed, take close-up photos of the compromised areas and include a reference for scale (like a measuring tape, pencil, or even just your finger). Some damage can be the simple result of human error, but that doesn’t mean that you should have to accept a less-than-pristine artwork, especially if the piece was in mint condition at the time of purchase. 

Document and preserve the packing materials

Certain packing materials can actually do more harm than good, especially if they are improperly deployed. A painting that’s been bubble-wrapped with the bubbles facing in (and without an initial layer of plastic sheeting) will leave perforations on the surface of your painting. That is because the art was wrapped incorrectly, either by a gallery staffer, the artist, or by the shipping company itself. 

This is why it’s so important to photograph the method of packing prior to unwrapping any artwork. Were the corners of the work properly protected? Often, when an artwork is not handled with care, the corners may crack or show signs of cracking or denting. This is especially true of mediums with fragile sides, think photographic prints on thin sheets of aluminum or works on paper. 

Heavy frames are also prone to cracked corners during transit, so if you receive an artwork and the corners haven’t been reinforced with extra packing materials, pay close attention to those areas.

If the piece is framed with glass glazing, the glass surface should be protected with artist's/painter's tape (usually applied in an X or grid).

If the work is a painting with a thick impasto or otherwise raised or delicate surface, it should be packed in a "shadow box" or "travel frame" to ensure that the surface isn’t compromised.

Photographing the work while still wrapped will indemnify you from any blame, in the event that the shipper, gallery — or even the artist — attempts to skirt responsibility for a poorly-packaged piece of art. Even if everything looks fine from the outside, always take pictures of the piece before unwrapping it — as a “best practice insurance policy.”

Should the art arrive in perfect condition, it's still important to note how the work was packaged — so that it can be replicated if the artwork needs to be crated again for shipping or storage. These details should always be added to the artwork's condition report. 

Condition reports may be required by insurance companies upon reporting a claim, so always ask the gallery or seller to provide one and then annotate any changes to the work's condition upon delivery and inspection. Artwork Archive allows collectors to keep all important condition reports and other insurance documents (invoices, etc.) organized, and in one place for easy reference.

To summarize: photograph everything, whether the work appears damaged or not, and keep your paperwork up-to-date.

art shipping, art transit, art damage in transit, packing art, shipping artPhoto by Robinson Greig on Unsplash 

Contact the gallery immediately

Reach out to the gallery and send all your documentation of the damage as soon as possible. Documentation includes the photographs you've taken of the damage and notes on where the damage occurred. You can include your own condition report — although the gallery should have provided one with the shipment. You can find condition report templates here, as well as a good overview on best practices.

Make sure to always keep copies of your artworks' condition reports, as they will be often asked for in the event of an insurance claim, or if you decide to resell the piece at a later date. A database like Artwork Archive enables collectors to keep their important files together with the artwork's data, as well as generate reports for insurance, resale, and appraisals.

The gallery’s insurance will typically only kick in if the artwork is completely destroyed, and the same goes for the shipper's insurance. Often, the gallery will first attempt to fix any damage, either by sending the work back to the artist for repairs, to back to the gallery itself, or to a local specialist — it’s really a case-by-case situation that will depend on many factors, from the amount of damage to the materials used.

If the artwork is so damaged that it is beyond repair, the artwork will need to be destroyed, and photographic evidence will need to be compiled to send to the appropriate insurance company. In this event, you should either get a full refund (including shipping costs) from the gallery directly, or you should get a new work (of the same value and comparable aesthetic) to replace your damaged piece. 

Determine the best path forward

Ideally, the gallery should advise you on the best path forward regarding your damaged art. Some galleries, however, might not want the artist (or the owner of the piece, if it is a secondary market sale) to be made aware that said artwork was damaged. That is a red flag and should alert you that this gallery does not operate with full transparency with its artist roster and/or consignors.

It’s important to understand that restoring a damaged work of art will take time — try to be patient with the process. That being said, until you have either been refunded your money in full, or have a work of art in your possession that is in the same condition as it was when you initially purchased it, you are the one out-of-pocket. 

You need to be kept informed as to all progress with timely communication. This communication should come either from the gallery or from the artist in the case of a direct sale. If you do not completely trust the other party, the best advice is to ask for a full refund immediately, so at least you get your money back while the issue is sorted out by the other side. 

Otherwise, you might be waiting around for months while the artist creates a new replacement artwork, only to find — when it arrives — that it doesn’t quite live up to your expectations, or to the quality of the artwork that you initially acquired. 

You get what you pay for

Galleries will often lament that art buyers always want the cheapest possible shipping option, even if it puts their newly acquired artwork at risk. FedEx is simply not a substitute for a professional art shipping company. In fact, they have a "limited declared value" on fine art shipments of only $1,000.

If you’re attempting to cut corners by using a standard carrier, rather than a shipping company that specializes in fine art logistics, you’ll have no one to blame but yourself when the work arrives in less-than-perfect condition. Still, the gallery or seller should assist in either replacing or restoring the damaged piece, so reach out to them immediately, and provide the proper paperwork and documentation (images, notes on damage, etc.) as outlined above. 

Additional cost factors, such as shipping and insurance, should be factored into your budget when assessing potential artworks to collect. Cutting corners on these costs will often end up costing you more in the long run, so always keep the "true cost of your art collection" in mind when making any substantial art acquisition. The devil is in the details! 

Art collectors trust Artwork Archive to preserve — and protect — their investment. Try it free for 30 days. 

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Gift: Art Collectors

 https://www.artworkarchive.com/blog/das-gift-art-collectors-museums-and-estate-planning?utm_soure=newsletter&utm_campaign=dasgift


Das Gift: Art Collectors, Museums, and Estate Planning

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Photo by Liam McGarry on Unsplash
 

Art collections are complicated assets to manage and maintain, in addition to (typically) being sources of sentimental value.

Establishing a clear plan for your collection, such as donating it to a museum, is a central part of being a responsible—and ethical—art collector. Still, the process can be daunting and highly complex, and definitely requires legal expertise. To help demystify the process, Artwork Archive recently hosted the free webinar “Estate Planning for Art Collectors” with expert panelist Melissa Passman, Esq., an attorney with an art world pedigree specializing in taxation and estate planning.

Donating art to a museum usually requires substantial negotiations and—unsurprisingly—a lot of paperwork. As outlined in this UBS report from 2017 entitled Negotiating Charitable Gifts, “Ideally, a donor and charity will openly discuss their objectives and priorities in order to understand the parameters and expectations surrounding the gift and come up with a mutually satisfactory gift agreement.

Sounds simple, right?

Not exactly.

“Often, collectors looking to donate artworks—for cultural prestige and, of course, tax benefits—approach a museum only to find that what they’re offering doesn’t mesh with the museum’s needs,” according to Artnews. “The cost of storage, insurance, and conservation can make a bestowed artwork more trouble than it’s worth.” The transfer of ownership isn’t always straightforward and can require lengthy discussions with multiple stakeholders.

Like any big-ticket transaction, both parties must agree on terms and conditions, timing, and other relevant concerns. Hammering out these details can take time, especially since art and cultural goods may also be subject to various legal ramifications, technical requirements for ongoing maintenance, and a range of other obstacles that can derail negotiations. 

Recently, a major donation made international headlines for its unusual distribution of art. Dimitris Daskalopoulos divided his formidable art collection among four museums—Athens’s National Museum of Contemporary Art (EMST), the Tate (London), the Museum of Contemporary Art Chicago, and the Guggenheim Museum (NY)—with certain works essentially being donated to two or more museums at once. 

According to Artnews, in this “unusual arrangement, the Guggenheim and the MCA Chicago will share their 100-work gift,” setting a new precedent for US institutions and proving that some art collectors are finding creative ways to make the most out of their donations. As the saying goes: where there’s a will, there’s a way (get it? Estate planning humor).

Artwork Archive allows collectors to create thematic collections within their art portfolios, as well as publish online private viewing rooms (password-protected, of course) to share with their networks, including art executors, estate planners, collection managers, museum curators, appraisers, various (future) beneficiaries, and attorneys. Learn more here.


Here’s a quick overview of important contractual language and terms that art collectors, collection managers, and anyone else involved in charitable art donations should know. 


Gift Agreements

This is the contractual document that art collectors and non-profit beneficiaries both need to sign in order to successfully execute a donation. 

Ann Bjerke, a Senior Wealth Strategist at UBS, writes that “Prior to negotiating the terms of a gift agreement, donors should ask the charity if it has a gift acceptance policy.” 

The Metropolitan Museum of Art, for example, outlines in their Gift Acceptance Policy that, “A gift agreement is required for all gifts and pledges of $100,000 or more, and may be required for gifts or pledges below that level.” 

These agreements will generally vary across institutions, although there will often be some standard clauses: just compare this Deed of Gift example courtesy the National Museum of Women in the Arts vs. this Gift Agreement template via the Library of Congress.

Artwork Archive allows collectors—and collecting institutions—to upload documents and PDFs, such as gift agreements, to each artwork record, contact record, or location record. Learn more here.

 

Pledge Agreement

A pledge agreement is generally for long-term donations, intended to be gifted over a prolonged period of time or upon the donor’s death. Here is an example pledge form from the Brooklyn Historical Society.

In the past, however, institutions have taken donors to court for their failure to complete a pledge, so only pledge what you can truly afford! Pledging over time can have certain tax benefits, but can also be difficult to fulfill, should the donor’s financial situation change unexpectedly, so it’s recommended to discuss any major pledge with a financial advisor and/or attorney.

 

Statements of Intent

This informal document, also known as a “letter of intent,” gives the donor the most flexibility, as it theoretically allows them to back-out of the donation should certain circumstances change. It may also be required as part of an initial submission for curatorial consideration. Consider it a “first step” of any charitable artwork donation.

For example, the Smithsonian Museum requires that all unsolicited art donations include a checklist of items, such as an artist CV, press kit, artwork reproductions, and a letter of intent. E-forms has an example letter of intent available for download, and advises that, “All monetary donations should be identified as being either a one-time, monthly, or annual pledge.”

 

Restricted vs Unrestricted Gifts 

Restricted gifts have strings attached—in this case, the museum will agree to certain terms that are favorable to the donor. 

Unsurprisingly, museums generally prefer unrestricted gifts, giving them the most control over when and how certain pieces are exhibited, put in storage, or even sold/deaccessioned. 

When collectors come to the table with a mile-long list of restrictions, it can be off-putting to museums. However, museums also understand that patrons have their own priorities and are generally interested in getting the most traction of their donation. Some collectors may even put together a “donation offer package” with their preferred terms and try to ignite a bidding war between institutions (not very charitable, but also not uncommon).

It’s been argued that donor intentions could, over time, run counter to their own best interests—such as when a restriction on selling donated art means a museum can’t raise badly-needed operating funds. For this reason, it's important to mitigate your own expectations when beginning the donation process.
 

Museum Obligations

If your collection or the artworks you hope to donate are of a certain significance, historically or monetarily speaking, then it’s not uncommon to request certain terms, by which the museum must oblige. 

In some cases, these “obligations” will be promises for exhibition of the donated objects, a printed catalogue, donor attribution, and/or public outreach programs related to the donation/exhibition.
 

Optionality

In some cases, giving the museum or recipient institution the option to exercise certain rights is advisable when donating your art. Options can include selling off parts of the collection to pay for its conservation or selling reproductions of artworks to facilitate further fundraising.
 

Naming Rights and Donor Recognition

Gifts generally require a donor attribution line, even if the donor wants to remain anonymous, i.e. Private Collection, US.

For donors who want their names prominently displayed, however, sizable gifts may give the donor enough leverage to permanently name exhibition wings, curatorships, etc. In recent years, widespread attention has been paid to the removal of certain donor names (Sackler, for example) from major museums worldwide, following successful protests by artist-led organizations. 

Naming rights may therefore include a morality clause of sorts, which will give the museum the option to rescind naming rights, in the event that the donor’s name is tarnished for any reason. On the flip side, naming rights can also reinforce an institution’s value system by putting their affiliation with a certain individual on display.

In 2020, film-maker, author, artist and countercultural iconoclast John Waters gifted 375 works from his inimitable art collection to his hometown museum, The Baltimore Museum of Art (BMA). As reported by The Art Newspaper, “To honor his generosity, the museum will rename a rotunda in its European art galleries after the film-maker—as well as a pair of restrooms in the East Lobby, ‘per his request’...” 

Tongue-in-cheek as always, Waters’ restrooms are much more than just lip service, they are a means for the collector to ensure that his beloved BMA makes space for those same individuals he has spent his life championing. Waters thus used his collection—which includes works by Diane Arbus, Nan Goldin, Richard Prince, Cindy Sherman, and Andy Warhol—to proudly weave his pathos into the very architecture, and utility, of the museum itself. 

For collecting Organizations: Artwork Archive includes a field for “donor attribution” in every artwork record, so you can always keep track of important credit information. You can also upload letters of intent in individual artwork records, or to a general contact record, and/or location record. Learn more here.

 

Want to learn more about how Artwork Archive can help you organize your art collection and execute your estate plan? Watch this short video and sign up for Artwork Archive's free 30-day trial to get started. 

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