Can a coin consignment gone bad be covered by insurance?
Coinstartled
Posts: 10,135 ✭✭✭✭✭
Just wondering as the insurers seem to make coverage for most contingencies available.
0
Comments
Maybe, define "bad"?
Not usually
The whole worlds off its rocker, buy Gold™.
BOOMIN!™
Wooooha! Did someone just say it's officially "TACO™" Tuesday????
It will depend on the facts and circumstances of the loss and the type of policy. If coverage is obtained under an IM (inland marine) policy, there is a greater likelihood there would be coverage for most perils. Usually IM policies offer the broadest coverage subject to exclusions. If it is something that does not involve direct physical loss to covered property, then coverage will not likely be afforded.
Experience the World through Numismatics...it's more than you can imagine.
I can think of two cases, one, the auctioneer absconds with the coins or more likely, runs into financial difficulty and cannot (or will not) pay the consignor after the sale.
1st world problems
I wonder if the collection insurance people have coverage for that?
Catchy name for an insurer.
Kryptonite!
Theft in most instances, theft is covered if time, place and opportunity can reasonably be established. Mysterious disappearance can be more problematic and some policies exclude it.
Experience the World through Numismatics...it's more than you can imagine.
In general, I would suspect that all but the most expensive policies would not cover consignments to be held by others. This is one reason that if you are to do a consignment, you should do your homework first.
In honor of the memory of Cpl. Michael E. Thompson
Perhaps auction companies should be required to be bonded. Common practice in many industries where there involves a fiduciary duty.
OINK
@MANOFCOINS : said
I would imagine Loyds of London would cover most issues
I would agree.
I doubt most standard policies would cover coins on consignment. It should be stated in the policy. Cheers, RickO
Don't you still hold title to a coin under consignment?