What is Art Title Insurance?

You would never buy a home without the assurance that you have clear legal title.  It is normal course of business to be certain that a seller actually owns the property you want to buy – unfettered by liens or other claims to ownership.  You buy a home because you love it.  You would not dream of having to give it back.

Why would you buy fine art without that same assurance?  Contested ownership and provenance is not a rare phenomenon anymore.  Ownership claims are occurring with increasing frequency: art is becoming a distinct asset class; buyers are demanding the same transactional confidence they expect in other business contexts; art is a form of personal property, which banks are increasingly accepting as direct loan collateral; art and banking professionals are grouping art for investment purposes; and tax authorities are increasingly scrutinizing art transactions before allowing a charitable deduction for gifted art or a "like kind exchange" to effect a deferral of capital gains tax.  Art transaction issues span the industry, with international laws affecting art sold not only from the U.S. and Western Europe but also from dozens of other countries where historical events affect art which was once present in those countries. 

ARIS provides title insurance for works of fine art.  ARIS' underwriting uses a proprietary process and database, developed over the course of six years, to accomplish what so many in the industry have wanted for so long.

Forget handshakes, nods and even verbal assurances.  When the art matters, so does the security of the transaction.

Art is forever, now so is ownership.

 

 

 

 

 

 

 

 

Policy Highlights

Art Title Protection Insurance (ATPI®)

The ARIS ATPI® policy is a title insurance policy structured to address the chain of title and lien risks inherent in art as a form of personal property.  The ARIS ATPI® policy guarantees clear legal title, insuring against two general title risk categories:

Art Provenance/Chain of Title Risks

  • Theft - contemporary or historical
    (e.g., WWII)
  • Illegal import or export

“Classic” Title Risks

  • Security interests
  • Creditor liens 
  • Authority to sell

The ARIS ATPI® Policy is a Damages-Plus Defense Cost Policy 

  • Coverage is for the face value of the policy plus the cost to defend against a claim. 
  • Appreciation of the value of the art can be addressed via policy endorsement. 

The ARIS ATPI® Policy Term 

  • Indefinite, until the insured work is re-sold or otherwise transferred by charitable gift or donation.  
  • The policy term is automatically extended to the insured's successors in interest at law, e.g., heirs.  
  • The insured has the option to elect a shorter term of coverage. 

The Time Window for Covered Risk Occurrence  

  • For provenance title risks, those occurring at any time before the date the policy is issued.  
  • For "classic" title risks, those arising at any time during the Seller's ownership (or most recent period of ownership). 
  • For authority to sell risks, any lack of legal authority to sell at the time of the transaction and policy issuance. 

Policy Exclusions 

  • Those consistent with real estate title exclusions.  
  • A general exclusion for affirmative misrepresentation.  
  • ARIS ATPI® is a "tell us what you know" policy, but it is not contingent on what the insured "should have known." 
  • Exclusions for claims against ARIS and its reinsurer(s) in the nature of defamation of title, impairment of value or damage to reputation of transaction principals asserted because of the ARIS ATPI® application or underwriting processes. 

 

< Return to top of page

 

 
   |       |    secure client portal