Although Chelsea galleries were not fully up and running by mid-December, as some had initially hoped, the recovery efforts after Hurricane Sandy continue.   At the same time as construction workers and gallery staff continue to rebuild onsite, insurance claims mount.  AXA Art Insurance, one of the largest art insurers, expects to pay out $40 million to New York art galleries damaged by the hurricane, while Reuters is reporting that physical damage to the galleries themselves as well as art losses may reach $500 million—the largest loss the art world and its insurers have ever sustained.

The large scope of the claims would virtually wipe out a full year’s revenue for the art-insurance industry, and could cause insurance premiums to rise by 5 to 10 percent, according to some estimates, reversing the trend of recent rate reductions prompted by competition among insurers. In spite of these rising costs, however, it is important for gallery owners and artists alike to adequately insure their inventory and their businesses, a small price to pay for protection in the event of another natural disaster like Sandy.