Nail-to-Nail Insurance: Definition
Nail-to-nail insurance is one of the most recognized forms of protection in the art world and fine art logistics.
It is defined as an all-risks insurance that covers an artwork from the moment it is taken down from its original location until it is safely re-hung at its final destination, after an exhibition, transport, or loan.
The expression “nail-to-nail” highlights this continuity: from the initial nail to the final nail, the artwork benefits from seamless protection. This uninterrupted coverage is what makes nail-to-nail insurance the gold standard for securing the movement of artworks worldwide.
Detailed Definition of Nail-to-Nail Coverage
In practice, nail-to-nail insurance covers every critical stage an artwork is exposed to during its journey, including:
- Professional packing and crating,
- Transport (by road, air, or sea),
- Handling during loading, unloading and transfers,
- Customs procedures and transit periods,
- Exhibition itself (installation, display period, dismantling),
- Return transport and reinstallation at its original location.
It differs from “wall-to-wall” or exhibition-only insurance, which covers only the display period, excluding the outbound and return journeys.
Who Takes Out Nail-to-Nail Insurance?
In most cases, the organizer or borrower (museum, gallery, auction house, institution, or corporate collector) is responsible for purchasing nail-to-nail insurance.
The lender (often a collector, private owner, or institution) usually requires a certificate of insurance before releasing their works.
This certificate demonstrates that the artwork is protected throughout the entire journey—not only while hanging in the exhibition space. It is a standard requirement in most loan agreements.
Scope of Coverage
Nail-to-nail insurance is renowned for being comprehensive all-risks coverage, typically including:
- Physical loss or damage (breakage, fire, flood, accident),
- Theft, disappearance or vandalism,
- Incidents occurring during transport, handling, or temporary storage.
Some policies go further by covering:
- Restoration costs of a damaged artwork,
- Diminution of value (depreciation) after an incident, even if the piece has been restored.
This last extension is crucial for high-value works, where restoration does not necessarily eliminate the loss in market value.
Declared Value vs. Agreed Value
When insuring artworks nail-to-nail, valuation is key. Two approaches exist:
- Declared value: the insured party declares the value. In case of loss, compensation is based on this declaration.
- Agreed value: the artwork is appraised, and a value is contractually approved by the insurer. In case of damage, this value serves as the reference for compensation.
Agreed value is often preferred as it simplifies claims settlement and avoids disputes.
Typical Exclusions and Precautions
Like all insurance, nail-to-nail coverage includes exclusions. Common ones are:
- Inherent vice or natural deterioration of the artwork,
Inadequate or improper packing, - Minor cosmetic damages not affecting the structure of the work,
- Certain theft conditions (e.g., unattended vehicle, lack of security).
These exclusions highlight the importance of using specialized fine art shippers and complying with professional standards (climate-controlled crates, trained handlers, museum-approved procedures).
How Are Premiums Calculated?
The cost of a nail-to-nail insurance policy depends on several factors, primarily:
- The insured value (main criterion),
- Duration of transport and exhibition,
- Geographic scope (domestic, European, or worldwide),
- Additional cover (depreciation, restoration, zero deductible).
Premiums are generally calculated as a rate applied to the insured value, often with a minimum fee.
Nail-to-nail insurance has become an industry standard in the art world.
It ensures the legal and financial security of both owners and organizers, protecting artworks from departure to return.
Beyond its definition, it represents a guarantee of trust between lenders and borrowers, and remains essential for any exhibition, transport, or loan of valuable artworks.
FAQ – Nail-to-Nail Insurance
What is nail-to-nail insurance?
It is an all-risks insurance covering an artwork from its initial removal to its final reinstallation, including transport, handling, transit and exhibition.
How does it differ from exhibition-only insurance?
Exhibition-only coverage is limited to the display period. Nail-to-nail insurance includes outbound and return journeys, as well as related operations.
Who is responsible for purchasing it?
The borrower or organizer (museum, gallery, institution) usually subscribes to the policy and provides proof of coverage to the owner.
How is compensation determined in case of loss?
Either on the basis of a declared value (stated by the insured) or an agreed value (pre-approved by the insurer).
What are the main exclusions?
Inherent vice, inadequate packing, minor cosmetic damage, or non-compliance with transport security conditions.
