In colorado, dealers are required by law to insure art work in their
gallery. Further, this is some part of the Uniform Commercial Code,
which is nearly universally adopted by all states. For those in
states where the dealers are telling you to provide your own
insurance, you might check the statutes. The following is the text
of the code in Colorado:
6-15-102 - Art dealers and artists - consignment of works of fine
art.
(1) Notwithstanding any custom, practice, or usage of the trade and
any of the provisions of section 4-2-326, C.R.S., to the contrary,
whenever an artist delivers or causes to be delivered a work of fine
art of his own creation to an art dealer for the purpose of
exhibition or sale on a commission, fee, or other basis of
compensation, the delivery to and acceptance thereof by the art
dealer is deemed to place the work on consignment and:
(a) Such art dealer shall thereafter, with respect to the work, be
deemed to be the agent of such artist;
(b) Such work is trust property in the hands of the consignee for
the benefit of the consignor; and
© Any proceeds from the sale of the work are trust funds in the
hands of the consignee for the benefit of the consignor.
(2) Notwithstanding the subsequent purchase of a work of fine art by
the consignee directly or indirectly for his own account, the work
initially received on consignment shall be deemed to remain trust
property until the price is paid in full to the consignor. If such
work is thereafter resold to a bona fide third party before the
consignor has been paid in full, the proceeds of the resale are
trust funds in the hands of the consignee for the benefit of the
consignor to the extent necessary to pay any balance still due to
the consignor, and such trusteeship shall continue until the
fiduciary obligation of the consignee with respect to such
transaction is discharged in full.
(3) Notwithstanding the provisions of the “Uniform Commercial Code -
Sales”, no such trust property or trust funds shall be subject to or
subordinate to any claims, liens, or security interests of the
consignee’s creditors.
(4) An art dealer is strictly liable for the loss of or damage to a
work of fine art while it is in his possession. The value of the
work of fine art is, for the purposes of this subsection (4), the
value established in a written agreement between the artist and the
art dealer prior to the loss or damage of the work. Source: L. 82:
Entire article added, p. 230, =A7 1, effective March 25. L. 95: (4)
amended, p. 192, =A7 2, effective April 13. Editor’s
note:Subsection (1) has been renumbered on revision to conform to
standard C.R.S. format. Cross references: For the article in the
"Uniform Commercial Code" concerning sales, see article 2 of title 4. =