The one-time premium is paid when the policy is issued and covers the collector for the lifetime of ownership of the work.
Coverage automatically extends through the life of ownership of the collector’s heirs-at-law and for the duration of the ownership of any tax-based entity which the collector has formed and to which the collector transfers the art assets as part of estate management.
Purchasers receive the benefit of full defense of title in addition to the financial guarantee of the value of the work plus the ability to demonstrate best-in-class practices, which can be important for reputation and legal reasons.
There are two types of policies: an Owner’s policy for pending sales or existing collections and a Lender’s policy for lenders facilitating clients borrowing against their art.
Title insurance for fine art and other important collectibles covers four general risk categories:
Contemporary and historical theft
Import and export defects
Liens and encumbrances and
Illegal or unauthorized sales.
There is no exclusion for legal title risks of which an insured “should” or “could” have known. There are certain exclusions which are standard with real property title insurance policies.
We invite you to contact ARIS to ask for a copy of our title insurance policy form for you and your advisors to review. Please see the specimen policy form for all controlling policy terms, conditions and exclusions.
Wednesday, February 22, 2012 
