Art Gallery Business Insurance
Getting insurance for your art gallery is essential.
Art galleries need to be protected against claims involving things like property damage, copyright infringement, breach of contract, or misrepresentation.
For example, a private collector’s painting was damaged while being exhibited at your gallery, or an artist may claim that you did not pay them according to your agreed-upon contract.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for an Art Gallery
General liability insurance is — generally speaking — one of the most important insurance policies for art galleries.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
That said, many art galleries typically employ several supplementary insurance policies to help protect against the full range of potential risks they commonly face. Some of these include:
- Commercial property insurance
- Professional liability insurance
- Commercial auto insurance
- Commercial umbrella insurance
You will notice that insurance providers generally fall into one of two categories for you to choose between:
- Traditional brick-and-mortar insurers: Refers to those providers with a physical storefront that commonly employ an insurance agent to provide clients with highly personalized quotes and advice. These include most of the largest firms (e.g., CNA and Hiscox).
- Online insurers: Refers to those providers that are entirely based online and use AI to offer quotes. This type of provider has been rapidly growing in popularity since the combination of AI and low overheads enable them to offer accurate quotes quickly and conveniently.
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Cost of General Liability Insurance
On average, art galleries in America spend between $300 - $600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an art gallery to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for an Art Gallery
Example 1: While a visitor’s child plays near a small sculpture on a pedestal, he bumps the pedestal and causes the sculpture to fall. The impact breaks the child’s foot, and his mother demands you pay for his medical treatment. General liability insurance would cover the child’s medical bills.
Example 2: During a visit to your gallery, an artist slips on a slick spot on the floor and breaks her wrist. She sues your company, claiming you didn’t display a sign warning of the danger. General liability insurance would cover your legal fees and any required settlement.
Example 3: As an employee transports a large piece of art on a handcart to a customer’s car, she loses control and the cart slams into the customer’s luxury vehicle. General liability insurance would cover the customer’s vehicle repair costs.
Other Types of Coverage Art Galleries Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
You made a major investment in the artwork you display and store in your gallery. If you own the building in which you operate, commercial property insurance would cover the cost of repairing or replacing your business-related property in the event of a fire, theft, or natural disaster. This includes structural damage to your building or grounds as well as the artwork and business equipment housed there.
Professional Liability Insurance
While your clients come to you for knowledgeable advice and guidance about works of art, there’s always a chance someone could accuse you of errors that caused them harm. If a client files a lawsuit based on your advice, professional liability insurance would cover your legal fees and any required settlement.
Commercial Auto Insurance
Any car or truck you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any artwork or other business materials you carry in your vehicle.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your art gallery:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Art Gallery Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
It is generally advisable for your art gallery to acquire adequate business insurance prior to starting to ensure there is no lag time between its exposure to potentially costly risks and the start of its coverage.
Although, in some cases, it is not merely advisable as insurance may be a legal requirement for legitimate operation.
Not necessarily. Certain exceptions may be written directly into your art gallery insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.