Major broker Jardine Lloyd Thompson has warned art dealers against the impact of art forgeries after the painting An Unknown Man, thought to be by Dutch artist Frans Hals and sold for £8.5 million was recently declared fake.
According to Sotheby’s, tests revealed that the painting was “undoubtedly” forged. The firm had “rescinded the sale and reimbursed the client in full.”
JLT warned that in many cases, collectors will not be able to claim against their insurance if they discover that their art pieces are forgeries. However, there are certain policies that cover these cases, according to Daniel Smith, a member of JLT’s Fine Art, Jewellery and Specie team.
“Although the take-up of this sort of policy is relatively low, I think we’ll start to see a significant increase as the possibilities of more forged Old Masters are uncovered,” he said.
Smith said dealers can purchase professional indemnity insurance to protect themselves from customers’ lawsuits resulting from art forgeries. However, most dealers don’t bother getting cover because of the costly nature of the policy, Smith noted.
“In light of this recent issue as well as a number of similar high-profile forgery cases this year, I would urge dealers to consider safeguarding themselves against the impact – both in terms of money and reputation – that cases such as these can have on their business,” Smith said.