Art Title Protection Insurance
ARIS Art Title Protection Insurance (ATPI) is a title insurance policy structured to address the chain-of-title and lien risks inherent in art acquisitions and holdings as a form of personal property.
ARIS ATPI guarantees clear legal title, insuring against two general title risk categories: art provenance/chain-of-title risks and classic title risks.
Art provenance/chain-of-title risks
- Theft, either contemporary or historical (e.g., World War II)
- Illegal import or export
Classic title risks
- Security interests
- Creditor liens
- Authority to sell
Appetite & Availability
- Exclusions consistent with real estate title exclusions
- 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
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
The ARIS ATPI policy is a “damages plus defense costs” 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.