Insurance is a contractual arrangement in which one party, the insured, is promised compensation by another party, the insurer, if a covered loss occurs. Covered losses are described within the insurance contract or policy. The insured makes periodic payments called “premiums” in exchange for the promised compensation. In the event of a loss, the promised compensation helps the insured to recover from what could otherwise be a devastating financial blow.

In the case of authors and artists, insurance protects against many losses. Authors and artists purchase property insurance to insure their work spaces and inventory. Specialty insurances also are available to authors and artists.

Artists who ship their work to buyers or art dealers often obtain transit insurance to guard against loss to their artwork during shipping. Another type of specialty insurance purchased frequently by galleries and museums is “wall to wall” insurance. It protects against damage to, loss of, or destruction of artwork from the moment it leaves the artists’ studio, all the while it is on display, and up to the time the work is returned to the artist. One of the most difficult aspects associated with insuring artwork is valuation. Artists should take care when choosing an insurance company or agent, making sure the company and agent have experience in insuring artwork. Artists also should be willing to pay for appraisals for particularly valuable works, so the proper value is attached to those works and the amount of insurance the artist purchases fully covers the risk of loss of such works.