In$urance Value, Whole$ale Price, Retail Price for $HIPPING
August 22, 2012
When shipping your art or craft, save money by understanding whether to use the wholesale price or retail price for shipping insurance. It doesn't matter how much shipping insurance you purchased for shipping -- your documentation for the value of the shipped item is the critical issue.
Here is an excerpt for the Q & A from the SNAG Professional Development Seminar. I describe the scenario briefly. (P.S. This is the first time for me to insert an audio file MP3 in a post. If it doesn't work for you let me know.)
When sending work to a store/gallery or exhibition sponsor, insure the art or craft at the wholesale price. This is all you will receive if the work is sold. This is all the insurance company will pay you (the artist) if the work is lost or damaged during shipping. You must be able to prove that you have received this wholesale price for the same or similar work.
However, if the art or craft has already been sold at the retail price (and you have a receipt to prove it), then insure the art or craft for the retail price during shipping. The invoice for the purchase price will be adequate documentation for the insurance company that you expected to receive this amount.
Insuring for a higher or lower amount than the actual value may be considered fraud. So honesty is the best policy. Insure for the accurate value given each circumstance.
Sometimes when shipping art or craft, the insurance is provided by the exhibition sponsor. In this case, the insurance value is either A) the wholesale price if still owned by the artist, or B) the retail value if owned by a collector. A collector can show a purchase receipt to prove value. As an artist, a successful insurance claim depends on being able to prove that you have sold similar work for similar amounts to the insurance value. The insurance company will expect documentation such as:
- invoices for purchase;
- copies of past checks for similar or identical work; or
- appraisals from qualified persons to establish value.
Posts about Insurance Value, Wholesale Price & Retail Price:
In$urance Value, Whole$ale Price, Retail Price - Under$tand the Money defines the terms.
Insurance Value, Wholesale Price, Retail Price For EXHIBITION CONTRACTS
The SNAG Professional Development Seminar presented three hours of shipping information for artists and makers. We covered shipping jewelry from precious metals to large sculptures, making a custom-made shipping box to international shipping. And more!
There were nine presentations and handouts with information about shipping.
Additional information about shipping, including a number of the SNAG Professional Development Seminar presentations, can be found on my website and ASK Harriete
Ask me which presentation is the best for your interest or media.
11 boxes in my living room ready to ship to Alaska.
2 boxes are ready to ship to Los Angeles, CA.
Last week was a busy week!
This post was updated on June 17, 2022, to provide current links.
<p>Previous posts about Insurance Value, Wholesale Price & Retail Price:</p>
<h3><a title="Insurance Value, Wholesale Price, Retail Price For EXHIBITION CONTRACTS"
<h3><a title="Insurance Value, Wholesale Price, Retail Price - Understand the Money " href="http://askharriete.typepad.com/ask_harriete/2012/08/insurance-value-wholesale-price-retail-price-undertand-the-money.html" target="_blank">In$urance Value, Whole$ale Price, Retail Price - Under$tand the Money</a> defines the terms.</h3>
<h3><a title="Insurance Value, Wholesale Price, Retail Price for Shipping" href="http://askharriete.typepad.com/ask_harriete/2012/08/insurance-value-wholesale-price-retail-price-for-shipping.html" target="_blank">In$urance Value, Whole$ale Price, Retail Price for $HIPPING</a></h3>
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