What Does Exhibition Insurance Mean?
Exhibition insurance refers to the policy that protects either the contents (such as the art work) or the venue of an exhibition, or even both, in case of damage. It may also cover financial loss owing to circumstances like poor box-office attendance or cancellation because of a natural disaster that happens during the date of exhibition.
Insuranceopedia Explains Exhibition Insurance
A lot of artistic works, such as paintings or sculptures, are expensive. Lucian Freud’s Benefits Supervisor Resting, for instance, was sold for almost $34 million in 1994. That was a time when the painter was still alive, a fact that is sensational because most living artists don’t price their work in those figures. Because of their value, artists or exhibitors (who want to display the artists’ work in an event) might want to insure works of art to protect themselves from the financial risk because of damage while the pieces are transported to the venue or damage that might happen when they are already exhibited.
Exhibition insurance can also benefit the exhibitor if he or she avails of a clause that transfers a liability, such as damage to the venue at the time of the exhibition, to the insurance company.
If the exhibitor relies on attendance to profit from an exhibition and attendance is poor or even empty because of a natural disaster like a storm which occurs during the date of exhibition, exhibition insurance might also cover that risk.