Hi Annelies
I've read responses received thus far from your question regarding insuring an exhibition that will travel to other venues. There are three ways to insure exhibitions: 1. Stand Alone Exhibition Policy. 2. Each Venue provides their own insurance. 3. Using the Organizer's Policy's Transit and Any Other Location Sub-limits.
1. Stand Alone Exhibition (Highly recommend and preferred approach)
I usually recommend that the best approach is to insure the full term of the exhibition under a single stand alone exhibition policy
A stand alone exhibition policy provides consistency and continuity in that coverage is truly "wall-to-wall". Should loss or damage occur it's clear that the claim would be adjusted and settled by the exhibition policy's insurer. Any claim made under the exhibition policy should not have an impact on your museum's annual insurance renewal. Lenders would receive one Certificate of Insurance for the policy's term. The premium cost could be shared equally with the other venues and included in the exhibition fee.
2. Each Venue provides their own insurance. (Not recommended, can be cost cutting, but can have issues and possible gaps)
Whereas, if each venue were asked to cover the exhibition while on their premises and for the outbound transit to the next venue, there would be multiple policies in place. If this path is selected, it's important to carefully review each venue's policy to ensure that all policies mirror the same terms, conditions, coverage and share the same standard fine art exclusions. Should loss or damage occur, and if the cause of that loss is questionable or a coverage gap is identified you may have a difficult time with multiple Insurers. If there is any possibility that an insurer can transfer the liability to another insurer, they will. If this happened, it would be unfortunate and unfair to you and the participating venue, But most important, to the lender and any delay may be damaging to the relationship the lender has with your institution. This approach is usually cost effective from a premium standpoint however requires increased paperwork, careful policy review so that coverage from one policy to the next is "apples to apples" and that each policy mirrors the insurance and liability sections of the signed Loan Agreement which is a contractually binding document between the borrower and the lender.
3. Using the Organizer's Policy's Transit and Any Other Location Sub-limits. (Unfavorable & Not recommended approach)
General rule - transfer risk whenever possible especially while objects are not in your immediate care, custody or control. Do not place your policy at risk, which will ensure that every renewal will be a beneficial experience.
That being said, this approach although charitable and certainly appreciated by the borrower can be costly to the lender. Should losses occur, at renewal underwriters may increase their rate and limit or restrict coverage. But we do realize there can be other reasons to use the museum's annual policy rather than accepting coverage provided by the Borrower. If this is the case, and you feel the borrowers policy is deficient, there may be other deficiencies.
To circumvent the possibility of jeopardizing your museum's fine art policy, and if this practice is prevailing ask your broker if the insurer offers an Outgoing Loan Policy. An OLP is separate from the annual policy which provides "wall to wall coverage" that is consistent with coverage provide under your museum's annual fine art policy but includes agreed upon pre-set transit and location rates, usually includes a maximum limit, requires Underwriter's approval that results in a premium charge for this exposure. The borrower will receive a COI as evidence of coverage against the Outgoing Loans Policy.
The borrower will be coverage. and p will be , and museum's that organize exhibitions or loan works to other institutions sell the assume that any loss or damage would be covered by the lender's fine art insurance policy. This practice places your annual policy at risk since the policy would respond to any loss or damaged caused when the object is not in your immediate care custody and control. This jeopardizes the policy's integrity and may be difficult at renewal should loss or damage occur, especially if underwriters are not made aware that the policy is used in this way.
Hope this information is helpful and best wishes for a successful exhibition!
Kind regards,
Jeff
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Jeff Minett
Senior Vice President
Huntington T. Block Insurance Agency An AON Company
New York NY
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Original Message:
Sent: 04-29-2020 03:05 PM
From: Annelies Mondi
Subject: Insurance
When organizing an exhibition with loans from multiple lenders and touring several venues, does your institution typically insure the exhibition for the run of the tour or do have the individual venues cover the insurance for the exhibition under their policy while in transit and on their premises?
Thank you.
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Annelies Mondi
Deputy Director
Georgia Museum of Art, University of Georgia
Athens GA
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