I recently received an email from a discouraged artist whose painting came back from a gallery with a five-inch gash through the canvas. The gallery owner—who happened to be closing shop—refused to take responsibility, claiming their contract was no longer valid. The artist had repaired the work beautifully, but the whole experience left them frustrated and unsure what to do next.
It’s a painful scenario, and while thankfully rare, it raises questions every artist (and every gallery owner) should understand long before a crisis hits.
Custodianship and Responsibility
When an artist consigns artwork to a gallery, the gallery becomes its custodian. That means it takes on both moral and financial responsibility for the work while it’s in its possession. If a painting is damaged in the gallery—whether by staff, a visitor, or during storage or shipping—the gallery should assume full responsibility.
The rule of thumb is simple: “You break it, you buy it.” That principle doesn’t change just because the artwork is consigned rather than purchased outright.
I’m not a lawyer, nor do I play one on TV, but this is how I think about it—and how I encourage other gallery owners to think about it. If a client or artist entrusts their work to you, you’re responsible for protecting it.
A Closing Gallery Doesn’t Close the Contract
A gallery going out of business doesn’t erase its contractual obligations. A signed consignment agreement remains valid, even if the gallery closes its doors. Still, enforcing that obligation is another matter.
If a gallery is insolvent, you can’t recover what doesn’t exist. Legal action—while justified—can be expensive, time-consuming, and emotionally draining. Sometimes the best course is to consult an attorney about your options, then decide whether pursuing the matter is worth the cost and energy.
Knowing When to Push and When to Let Go
In situations like this, you face more than a financial decision—you face an emotional one. You have to weigh whether it’s worth the conflict, time, and stress to pursue compensation. Peace of mind has value, and sometimes walking away protects your focus and creativity far better than a drawn-out fight ever could.
That said, there’s also something to be said for standing up for what’s right. If a gallery acts irresponsibly, choosing to hold them accountable—through conversation, small claims court, or even public transparency—can help prevent the same thing from happening to others. There’s no universal answer; each case requires a balance between principle and peace.
Insurance: The Safety Net That Should Be There
Every professional gallery should carry insurance that covers consigned artwork in its care. It’s one of the most basic responsibilities of doing business. That policy is what allows a gallery to make things right if the worst happens.
Artists should feel comfortable asking for proof of coverage before delivering work. If a gallery hesitates or doesn’t carry insurance, that’s an important red flag. You can also ask your own insurance agent whether a studio policy or rider would make sense for your situation.
Lessons for Artists and Galleries
Clear consignment agreements and mutual understanding protect both sides. When things go wrong, professionalism and integrity matter as much as contracts. If a gallery damages work, owns up to it, and resolves the issue fairly, the relationship can survive and even strengthen. When they deflect or deny responsibility, it’s a sign to move on.
Damaged artwork is never just a financial loss—it’s an emotional one. But these situations remind us why strong agreements, responsible partners, and honest communication matter so much in the art world.
Have you ever faced a situation where a gallery—or a client—damaged your work? How did you handle it, and what did you learn from the experience?