All Risks Except coverage is fairly common in Artwork insurance contracts. Unlike comprehensive policies that cover only stipulated risks (like fire or water damage for a house, etc.), excluding all the rest, All Risks Except contracts cover any risks or damage that may occur by accident, except for risks and damages that are specifically excluded by the contract.

a document that is drawn up when a change is made to a contract.

an event that has occurred… and the loss suffered due to water damage, fire, theft, etc..

The value of the asset covered by the contract as indicated by the Insured Party to the Insurer. In the event of a claim, the onus is on the Insured Party to provide proof of the indicated value of the asset, as well as of its existence and possession thereof.

The deductible is a fixed amount to be paid by the Insured Party in the event of a claim.

The term ‘depreciation’ for a work of art which has incurred damage following an insured claim shall refer to the effective reduction in the market value of the said work after restoration carried out with the Insurers’ approval.

This is the date on which the coverage starts. It may differ from the renewal date.

This is the policy’s renewal date which should be taken into account when giving notice of termination.

These are common to all Insured Parties covered by the same Insurer.

Includes all the information pertaining to the Insured Party and the contract coverage. It serves as proof for the entire period of validity.

This document is the legal bond between the Insured Party and the Insurer. It must be legible, contain the names and contact detail of the Insurer and the Insured Party, indicate the object that is insured, the period covered, and any exclusions, which must be perfectly legible. It consists of Specific Terms and Conditions and General Terms and Conditions. The insurance contract by its essence is a random contract (art. 1964 of the French Civil Code) that covers an uncertain event. In principle any random event can be insured, whereas a non-random event (i.e. of which the occurrence is certain or that has already occurred) cannot.

A document that the Insurer asks the Insured Party to sign when a claim is settled, whereby the Insured Party accepts the indemnity offered by the Insurer and agrees not to claim any further amount.

This means that insurance coverage starts the moment when a work of art is taken from its initial storage place to be transported to its destination. It therefore covers any handling, transport from point A to B and back, and the time in which it is kept elsewhere. The expression literally evokes the image of a picture that is taken down from its nail, and that will be insured until it returns to its nail.

Contracts with a tacit renewal clause contain a notice of termination period of 1 to 3 months. This is the period of time that the Insured Party or Insurer must observe when giving notice of termination of the policy. As an example, for a contract that expires on 1 July with a 2-month notice period, the Insurer must receive the termination request no later than 30 April at midnight.

The register in which art dealers must enter all their purchases and deposits. It is stamped by the police prefecture and is mandatory.

The subscription amount that the Insured Party must pay to the Insurer in order to be covered. It includes the net amount, taxes, any possible handling fees, and the amount, all taxes included, that is to be paid.

Laid down by the French Insurance Code, it can be applied by the Insurer if, following a claim, they notice that the Insured Party had unintentionally underestimated the risk. They can then reduce the indemnity to be paid out in proportion to the premium rates that were applied, compared to the premium rates that would have applied had they known the full extent of the risk (proportional premium rule), or in proportion to the capital insured compared to the real capital (proportional capital rule). Note! If the Insurer can prove that the insured party had intentionally refrained from declaring the full risk, the contract shall be considered void and no indemnity will be paid.

Specific Terms and Conditions personalise a contract by adjusting it to each Insured Party’s situation. It must indicate the Insured Party’s name and address, chosen coverage, deductible and premium. Its provisions prevail over any contained in the General Terms and Conditions when it is to the Insured Party’s benefit.

When settling a claim, the Insurer becomes entitled to enforce the rights of the insured party. In other words, it can for its own benefit sue a Third Party that may be liable for the damage that gave rise to the indemnity.

The natural or legal person who asks for the insurance, signs the policy and pays the premium.

Certain contracts have a tacit renewal clause, while others do not. A contract with a tacit renewal clause will automatically be renewed on the expiry date. To terminate it, the Insurer must be informed by observing the period of notice. A contract without a tacit renewal clause contractually expires at the end of the period that is covered by the contract.

Whereby the Insured Party or the Insurer ends the insurance contract.  It can be done without any justification, provided that the period of notice is observed, or if events stipulated in the French Insurance Code have occurred (e.g. elimination of the risk (by the Insured Party), non-payment of premium (by the Insurer)), under specific conditions that were formally set out.

Whereby the insurer undertakes not to sue any third party liable for the damage.