• Client’s Insurance; Requesting Loss Protection
• Coverage Types, Scope, and Period
• Declared Value, Limits, and Fees
• Conditions of Coverage
• Exclusions
• Deductible and Settlement
• Claims
• General

1. Client’s Insurance; Requesting Loss Protection

A. No automatic coverage. Atelier 4, LLC (“A4”) does not automatically provide loss protection for Client’s goods during transit, packing, handling, installation, or storage. Client, its agents, and assigns warrant that they will maintain insurance on all goods transacted with A4 for one hundred percent (100%) of replacement cost. Client releases A4 from liability for any claim that is, or would have been, covered by that insurance, except to the extent of loss protection in force under these terms. Client’s insurance on the goods shall contain a waiver of subrogation in favor of A4 (General Terms Section 3.K, available at https://www.atelier4.com/terms-and-conditions).

B. Optional loss protection. At Client’s written request, A4 will seek to place loss protection on Client’s goods under A4’s Fine Art Packers and Shippers policy (the “Policy”). Loss protection applies only where (a) Client has executed the Client Loss Protection Instructions to Atelier 4, LLC, and (b) the signed estimate, sales order, or Approved Order shows the coverage type, the covered items, the declared value of each item, and the loss protection fee. An estimate or sales order without a priced loss protection line, or marked “loss protection declined,” means the goods are No Value Declared (“NVD”) and governed by General Terms Section 3.

C. Item information. For each item to be covered, Client must give A4 in writing, before the item comes into A4’s care, custody, or control: creator, title, date, medium, overall dimensions, and declared value. A4 may decline to cover any item that has no declared value or is not accurately identified.

D. Discretion to decline. A4 and its underwriters may each limit or decline coverage on any item, shipment, location, or project at their discretion. Loss protection is not in force for any item until A4 confirms it in a signed estimate, sales order, or Approved Order.

2. Coverage Types, Scope, and Period

A. Coverage types. Client may request one of the following for each item:

• All Risk – Transit & Handling. Covers: All risks of physical loss or damage, subject to the exclusions in Section 5. Applies to: Packing, unpacking, handling, loading, and transit worldwide (excluding Excluded Territories). VIR required: Yes, at origin and confirmed at delivery.
• Theft Only – Transit. Covers: Loss directly caused by theft following violent or forcible entry or exit. Applies to: Transit, including storage-in-transit (Section 2.C). VIR required: No.
• All Risk – Installation Only. Covers: All risks of physical loss or damage during installation where A4 is not the packer and shipper. Applies to: On-site installation. VIR required: Yes, plus Client sign-off (Section 4.E).

Items are rated as Fragile (porcelain, glass, terracotta, fine wines, marbles, antique furniture, jade, ormolu, ivory, and the like) or Non-Fragile (paintings, drawings, tapestries, works on panel, memorabilia, silverware, coins, stamps, scrolls, manuscripts, and bronze sculpture).

B. Attachment. Coverage attaches when A4 accepts responsibility for the item, or the item comes into A4’s care, custody, or control, whichever is first, provided Section 1.B is satisfied.

C. Continuous coverage. Coverage continues through packing, unpacking, handling (including mounting, dismounting, removal, and installation), storage-in-transit (as described in General Terms Section 12) in the ordinary course of the shipment, and transit by road, air, water, rail, or courier, until final delivery.

D. Termination. Coverage ends at the earliest of: (a) final delivery and Client’s confirmation of the delivery VIR; (b) release of the item to Client, its agent, or a carrier or warehouse not engaged by A4; (c) for international shipments, thirty (30) days after arrival at the final destination, unless extended in writing; or (d) the end of the storage-in-transit period under General Terms Section 12, unless A4 extends coverage in writing. Coverage resumes for any later A4 transit only under a new signed estimate, sales order, or Approved Order. Coverage for an item that remains in storage after the storage-in-transit period is available only under A4’s Storage Loss Protection Terms & Conditions (https://www.atelier4.com/storage-loss-protection-terms).

E. Named Locations. The Named Locations are:

• 35-00 47th Avenue, Long Island City, NY 11101
• 2170-2174 NW 87th Avenue, Doral, FL 33172
• 1636-1640 North Indiana Street, Los Angeles, CA 90063
• 1960 Cross Beam Drive, Charlotte, NC 28217

Storage-in-transit at any location other than a Named Location, other than in the ordinary course of a covered shipment, requires A4’s prior written approval.

F. Excluded Territories. No coverage applies to transit to, from, via, or within, or storage in, Russia, Ukraine (including Crimea, Sevastopol, Luhansk, and Donetsk), Belarus, Afghanistan, Iran, Iraq, or any country subject to United Nations sanctions at the time of shipment.

G. Not available. Loss protection is not offered on (a) projects fully outsourced to third parties without A4 handling, or (b) items with neon or plaster elements, unless A4 agrees in writing.

H. Storage not included. Except for storage-in-transit under Section 2.C, these terms do not cover goods held in storage. Loss protection for goods in storage at a Named Location is available only under A4’s Storage Loss Protection Terms & Conditions (https://www.atelier4.com/storage-loss-protection-terms), when requested and shown on a signed storage agreement, Dock Receipt, estimate, or sales order.

3. Declared Value, Limits, and Fees

A. Declared Value. Client shall declare the full replacement value of each item (the “Declared Value”). The Declared Value is the agreed insured value of the item and the maximum amount recoverable for it. Client may include freight, packing, and other A4 charges for the item in its Declared Value. Under-declaring an item limits recovery to the amount declared; A4 is not responsible for the adequacy of any value Client declares.

B. Currency. Declared Values are in U.S. dollars unless the Approved Order states otherwise. A value declared in another currency is converted at the rate in effect on the date of declaration and stays fixed at that amount regardless of later exchange rate changes.

C. Limit of liability. Loss protection is limited to USD 1,000,000 any one loss in any one event, and USD 500,000 any one installation under All Risk – Installation Only. Any item, shipment, or location with a total Declared Value above USD 1,000,000 may be covered only with A4’s prior written approval and, where required, the approval and endorsement of its underwriters.

D. Value changes. Client must notify A4 in writing of any change in an item’s value. A change takes effect only when A4 confirms it in writing, and the loss protection fee will be adjusted accordingly.

E. Fees. The loss protection fee is calculated on the Declared Value, coverage type, Fragile or Non-Fragile classification, and duration, and is stated in the estimate, sales order, or Approved Order. Fees are earned when coverage attaches and are not refundable. The fee for any Visual Inspection Report required by Section 4 is charged separately.

4. Conditions of Coverage

The following are conditions of coverage. If a condition is not met, coverage for the affected item does not attach, or ends.

A. Visual Inspection Report. For All Risk coverage, A4 or its appointed agent will unpack, visually inspect, and photograph each item unwrapped before coverage attaches, at Client’s expense, and record it in a Visual Inspection Report (“VIR”), as defined in the General Terms. The origin VIR is confirmed at delivery, rather than replaced with a new report. Where an agent prepares the origin VIR, that same report is confirmed at delivery. Theft Only coverage does not require a VIR.

B. Pre-existing condition. Condition noted on the VIR, or disclosed by Client or its agent, is pre-existing and is not covered. Client must disclose in writing, before coverage attaches, any known prior damage, repair, restoration, conservation, mold, pest activity, or instability.

C. Packing. Covered items must be packed to withstand the normal hazards of transit and storage, either by A4 or to A4’s standards:

• Domestic shuttle shipments: full cardboard slipcase, sealed box, sturdy shadowbox, travel frame, or crate.
• Soft packing alone (poly, Tyvek, bubble wrap, blankets, or micro foam) is not adequate.
• Import and export shipments must be crated. Cardboard is not acceptable.
• Crates not built by A4 must have battens, 3½-inch feet or skids, 2-inch foam on all sides, and lids at least ½-inch thick.

Items Packed by Shipper (“PBS”) are covered only if A4 inspects the item and the packing and records both on the VIR.

D. Client instructions. Coverage does not apply to loss or damage caused by Client’s instruction to ship, handle, or store an item unpacked or insufficiently protected, or to deviate from A4’s recommended method.

E. Installation only. Where A4 installs but did not pack and ship an item, a Client representative must be present at unpacking and must sign off on acceptance once installation is complete. Coverage ends on that sign-off.

F. Signed order. Client must sign the estimate, sales order, or Approved Order showing the loss protection line before coverage attaches.

5. Exclusions

A. Policy exclusions. Loss protection does not cover loss, damage, cost, or expense caused by or arising from:

• Flood or windstorm at the Doral, Florida Named Location.
• Earthquake in California.
• Wear and tear, gradual deterioration, moth, vermin, or inherent vice.
• Loss of market or delay, however caused, unless caused by A4’s negligence.
• Misappropriation, secretion, conversion, or infidelity, including by directors or officers of A4.
• Any repair, restoration, or retouching process, unless directed by the underwriters after a covered loss. Framing, re-framing, or de-framing is not repair, restoration, or retouching for this purpose.
• War, invasion, acts of foreign enemies, hostilities (declared or not), civil war, rebellion, revolution, insurrection, military or usurped power, or confiscation, nationalization, requisition, or destruction by or under order of any government or public or local authority.
• Radioactive contamination, nuclear material, or chemical, biological, bio-chemical, or electromagnetic weapons (Clause CL370).
• Use of, or inability to use, any computer, system, software, or electronic process, any virus or malicious code, or any related hoax; and any loss of electronic data. This does not exclude an otherwise covered physical theft of an item where a computer is used in a theft targeted solely at A4, A4’s property, or a Named Location (Clause JS2020-013).
• Any cover, claim, or benefit that would expose the underwriters to sanctions under United Nations resolutions or the laws of the European Union, United Kingdom, or United States (LMA 3100A).
• Terrorism, except while the item is in the ordinary course of transit, as limited by the Termination of Transit Clause (JC2009/056), and except as provided under the Policy’s Terrorism Risk Insurance Act endorsement.
• A communicable disease, or the fear or threat of one, including any cost to clean, decontaminate, monitor, or test (JS2020-011).
• Any entity, property, person, claim, or payment in Russia, Ukraine (including disputed regions and Crimea), or Belarus (LMA5583B).
• War between any of the United Kingdom, United States, France, Russia, and China (JC2023-024).

B. A4 exclusions. Loss protection also does not cover:

• Condition existing before coverage attached, whether or not visible, including condition noted on the VIR, concealed damage, and prior repairs.
• Items that are inherently unsuited to safe transit or storage as described in General Terms Section 5.A, including uncured paint or varnish, waxen, resinous, or viscous surfaces, unfixed plaster or concrete, and stone, glass, or ceramic with existing cracks.
• Mold, mildew, rust, or deterioration from changes in temperature or humidity, except where directly caused by a covered physical event such as fire or water discharge.
• Inadequate or improper packing not done by A4, or packing done to Client’s instruction against A4’s recommendation.
• Mechanical, electrical, or electronic breakdown or derangement of an item, unless caused by visible external damage from a covered event.
• Loss or damage while the item is in the custody of Client, its agent, consignee, or any party not engaged by A4, including at unmanned locations (General Terms Section 3.H).
• Inventory shortage or unexplained or mysterious disappearance, unless Client shows the loss occurred while the item was in A4’s care.
• Currency, specie, precious stones and metals, jewelry, negotiable documents, and any goods A4 does not accept under General Terms Sections 5.C and 5.E.
• Consequential loss, loss of use, loss of market value not caused by physical damage, and loss of interest, profit, or opportunity.

6. Deductible and Settlement

A. Deductible. Each covered loss is subject to a deductible of USD 1,000 any one loss or series of losses arising from one event, borne by Client.

B. Total loss. For a total loss, recovery is the Declared Value, less the deductible.

C. Partial loss. For a partial loss, recovery is the reasonable cost of restoration by a conservator approved by A4 and its underwriters, plus any loss of value after restoration as agreed with the underwriters. Recovery may not exceed the item’s Declared Value, less the deductible.

D. Pairs and sets. If one item of a pair or set is a total loss and cannot be replaced, recovery may be the Declared Value of the full pair or set, and Client shall surrender the remaining items to the underwriters.

E. Salvage and recovery. On payment of a total loss, title to the item passes to the underwriters. Client may buy back a recovered item for the amount paid plus recovery and adjustment expenses, or a damaged item at its fair market value, within sixty (60) days of notice.

F. Disputes over amount. If Client and the underwriters cannot agree on the amount of a loss, either may demand appraisal under the Policy’s appraisal clause.

G. Sole remedy. Payment under this loss protection, less the deductible, is Client’s sole and exclusive remedy against A4 for the covered loss, and Client releases A4 from further liability for it. A loss that is not covered (including excluded perils, the deductible, and amounts above the Declared Value or the limit of liability) remains subject to the General Terms, including Section 3.

7. Claims

A. Notice. Client must report loss or damage to A4 in writing within seven (7) days of delivery or of release of the item to Client or its agent (General Terms Section 3.J). Damage visible at delivery must also be noted on the delivery receipt or VIR. Claims not reported within seven (7) days are waived.

B. Preserve the evidence. Client must keep the item, crate, and all packing materials in the condition received, and make them available for inspection by A4, its underwriters, or their adjuster. Client must not repair, restore, or discard anything without A4’s written consent.

C. Mitigate. Client shall take reasonable steps to prevent further loss or damage.

D. Documentation. Client must provide photographs, support for the item’s Declared Value, a conservator’s report and estimate where applicable, and any other proof of loss reasonably requested.

E. Charges paid. No claim will be considered until all A4 charges are paid in full. Claimed amounts may not be deducted from A4 invoices (General Terms Section 10.D).

F. Payment. A4 presents covered claims to its underwriters. Agreed losses are paid to Client, or a loss payee Client designates in writing, within thirty (30) days after the underwriters accept proof of loss.

G. Subrogation. Client shall cooperate with any recovery against third parties and assign its rights of recovery to the underwriters to the extent of payment. The underwriters have waived recourse against A4 and its subcontractors, except air carriers and ship owners.

8. General

A. Policy controls. Loss protection is provided under, and subject to, the terms, conditions, exclusions, and limits of the Policy in force when the loss occurs. If these terms and the Policy conflict on the scope of coverage, the Policy controls. A summary of the Policy exclusions is available on request.

B. Not an insurance policy. A4 is not an insurer. Client is not a named insured under the Policy, and these terms do not give Client a direct right of action against the underwriters.

C. Misrepresentation. Coverage is void for any item where Client or its agent conceals or misrepresents a material fact, including the item’s identity, value, condition, provenance, or ownership.

D. Relationship to General Terms. These Loss Protection Terms & Conditions form part of A4’s General Terms & Conditions, including the disclaimers, limitations of liability, and indemnities, available at https://www.atelier4.com/terms-and-conditions or in print on request. For goods with loss protection in force under executed Client Loss Protection Instructions, these terms control over any conflicting General Terms provision. Loss protection for goods in storage, other than storage-in-transit, is governed by A4’s Storage Loss Protection Terms & Conditions, available at https://www.atelier4.com/storage-loss-protection-terms or in print on request. All other goods and losses, including NVD goods, are governed by the General Terms, including Section 3.

E. Updates. A4 may update these terms on written notice. Updates apply to coverage that attaches after the notice date. The version that applies to an item is the version posted when coverage for that item attaches; prior versions are available on request.

F. Governing law. These terms are governed by the laws of the State of North Carolina, with venue as stated in General Terms Section 3.K.