Would Crown Prince Mohammed Bin Salman take the Insurance Risk displaying Da Vinci’s Salvator Mundi on his Superyacht?

By Dirk Vanduffel - Wednesday, June 19, 2019
Would Crown Prince Mohammed Bin Salman take the Insurance Risk displaying Da Vinci’s Salvator Mundi on his Superyacht?

In an article from Artnet, journalist Kenny Schachter claims to know the whereabouts of the legendary Da Vinci painting Salvator Mundi. ArtDependence asked Jan Van Hecke, Fine Art Manager at insurance broker Vanbreda Risk & Benefits in Antwerp, Belgium, what the potential premium might be for such a high risk position, whether the work would be insurable in these circumstances and what the conditions would be.

Image: Leonardo Da Vinci, Salvator Mundi, c.1500

 

In an article from Artnet, journalist Kenny Schachter claims to know the whereabouts of the legendary Da Vinci painting Salvator Mundi. His information is said to be derived from a number of different sources. The work is alleged to be on display on a yacht that belongs to Saudi Arabia’s Crown Prince, Mohammed Bin Salman. The yacht is called “The Sirene”. 

 

 Leonardo Da Vinci, Salvator Mundi, c.1500

 

ArtDependence asked Jan Van Hecke, Fine Art Manager at insurance broker Vanbreda Risk & Benefits in Antwerp, Belgium, what the potential premium might be for such a high risk position, whether the work would be insurable in these circumstances and what the conditions would be. 

Mr. Van Hecke suggested that the Salvator Mundi could be insured by a large company such as Lloyds and or/ with the risk being divided over multiple insurance companies. If so, Van Hecke suggests that the premium would be between 0.50‰ and 0.65‰, meaning a premium of around $225,000 - $292,500 per year. 

Again, if an insurer is willing to insure a $450,000,000 art work that is stored on a yacht, there will be many imposed limitations on the policy conditions. Here are a few possible limitations: 

- The insured value is considerably lower then the price paid for the work

- Insurance excludes acts of terrorism 

- Strong safety measures are put in place

- The work can not be transported due to the risks of transportation  

A piece of art work that is stored within a bank or a freeport is considerably easier to insure than a work that is displayed at a clients’ home, let alone on a yacht. No matter how wealthy Mohammed Bin Salman is, will he be willing to take these conditions on in order to display his work on The Sirene?

Dirk defines the overall policy of ArtDependence Magazine, in addition to conducting interviews. He specializes in valuation and auctioning.

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