I commissioned a $30,000 sculpture for my garden and paid a $15,000 deposit. The artist purchased materials and began the work, but then unfortunately passed away (in another case, simply disappeared). I was left with no sculpture and no refund of the $15,000. When I attempted to file an insurance claim, the company denied it, stating: “You didn’t lose property—you lost money. We don’t cover bad business deals.”
Key Takeaways
- No Physical Good = No Property Coverage: Property insurance covers existing items. A commission is a future item.
- Contract Risk: This is a contract dispute, not an insurable peril.
- Escrow is the Answer: In 2026, smart collectors use escrow services (like Escrow.com or Art specific smart contracts) to release funds only upon milestones.
- Artist Life Insurance: For massive commissions ($500k+), some collectors take out “Key Man” life insurance on the artist.
The “Why” (The Trap): Voluntary Parting
You voluntarily gave the artist the money. There was no theft.
The policy covers “Direct Physical Loss.” Since the sculpture never existed in your possession, there is no physical loss to your property.
Even if the artist stole the money, it falls under “Voluntary Parting” exclusions.
[IMAGE: Graphic showing the flow of funds in an Escrow arrangement vs. Direct Deposit]
The Investigation: I Called Them
Is there any policy that covers a deposit lost to a flaky artist?
1. Standard Home Insurance
- Answer: No.
- Reason: Financial loss is not property loss.
2. Event Cancellation / Non-Appearance Insurance
- Context: Used for concerts.
- Applicability: Too expensive and complex for a single art commission.
3. Credit Card Protection
- Answer: Maybe.
- Limit: If you paid via Amex/Visa, you might dispute the charge for “Goods not received.”
- Constraint: Time limits (usually 120 days). Commissions often take longer than that.
Comparison Table
| Payment Method | Protection | Risk |
| Check / Wire | None | Total Loss |
| Credit Card | Chargeback (Time limited) | Moderate |
| Escrow Service | 100% Protection | Minimal (Funds returned) |
Step-by-Step Action Plan
- Use Escrow: Set up a milestone payment. 10% start, 40% upon photo of casting, 50% upon delivery.
- Contract Clauses: Include a clause that ownership of the materials (the bronze, the stone) transfers to you immediately upon purchase. If the artist dies, you at least own the unfinished work.
- Check Artist Solvency: Don’t commission an artist who is known to be in debt.
- Small Claims Court: If the deposit is under $10k, this is your only real recourse, not insurance.
FAQ Section
If the artist dies, can I hire someone else to finish it?
Legally tricky. It depends on “Moral Rights” (VARRA). Altering an artist’s work might be illegal. You usually have to accept the unfinished work “as is.”
Can I insure the unfinished work?
Once materials exist, you can insure them under “Work in Progress” if you own the title to the materials.
What if the finished work is ugly?
That is “Taste.” Insurance definitely does not cover you not liking the result!