Safeguarding MUSEUM State Campus... · 2019. 12. 16. · MUSEUM FINE ARTS INSURANCE PROGRAM & “Protecting the people and artifacts that define our past and inform our future”

MUSEUMFINE ARTSINSURANCE

PROGRAM&

“Protecting the people and artifacts thatdefine our past and inform our future”

SafeguardingFine Arts


P.J. Skarlanic, CPCU, ARMVice PresidentAlliant Insurance [email protected] / 415-403-1455


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Introduction

• Fine Arts Practice Leader, Alliant’s Public EntityGroup

• Fine Arts insurance broker for:• CSU• UC• Many museums, cities, airports and civic art

collections around the country


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Notre Dame Cathedral


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist


Saved

Rose Window Crown of Thorns True Cross The Great Organ 16 Copper Statues of Saints on spire

Lost

Roof, known as “The Forest” Spire Statues of St Denis & Ste. Genevieve Gargoyles


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist


Lessons Learned

Construction/renovation riskmitigation plan

Insurance Requirements inconstruction contract

Clear disaster evacuationplan for each and everyartifact

Prearranged off-site storage

Purchased insurance on thecollection


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Leonardo’s “Salvator Mundi”

Purchased for $1,000 by Art Dealerin 2005 at auction in New Orleanswithout certainty of authenticity

Conservator performing restorationconfirms piece as authentic daVinci. Only one of about 20 originalpaintings.

Sold to Dmitry Rybolovlev in 2011for $127.5M


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist


Record-breaking $450M atChristie’s Auction in November2017

Purchased by PrinceMohammed bin Salman(“MBS”)

Supposed to have made debutin 2018 at Louvre Abu Dhabi,whereabouts currentlyunknown


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist


QUESTION:

Who do you think made out the best from this transaction?

A. The sellerB. The buyerC. Christie’s


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Overview

1.Common Causes of Damage to Artworks

2.Claims Examples – What Can Go Wrong?

3.Physical Risk Control

4.Risk Financing and Transfer

5.What to Do When a Loss Does Occur


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Most Common Causes of Damage

1. Transit

2. Accidental Damage

3. Natural Perils

4. Theft

5. Fire

6. Water Damage

Source: AXA XL


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Claim Examples


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Superstorm Sandy

~$400M in Fine Artlosses

Largest loss eventever to hit Fine Artinsurance market

Galleries, StorageFacilities


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Momart Warehouse Fire

Art storage facility in EastLondon

$33M loss Houses artworks for Tate

Modern, Tate Britain, NationalGallery and BuckinghamPalace

Saatchi Collection sustainedthe most damage, more than100 artworks. Works byDamien Hirst and Tracey Emin


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Steve Wynn’s Picasso

Picasso’s “Le Reve”, 1932 Wynn acquired it for $48M, and

agreed to sell for $139M Prior to the sale closing, Wynn

accidently puts elbow throughpainting

$40M claim – one of largestclaims ever on a single piece ofart

Ultimately still sold the artwork, tothe same buyer, for $155M


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Brazil’s National Museum Fire

Cause of fire air conditioninginstallation

Luzia Fossil, 11,500 year oldskull

Mummies from Egypt and SouthAmerica

5 million specimens from insectcollection

Historical and sociologicalarchives

Building itself held historicalsignificance as palace for itsemperors until 1889


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Banky’s “Girl with a Balloon”

Sold at Sotheby’s inOctober 2018 for £1M


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Banky’s “Girl with Balloon”

VIDEO


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Banky’s “Girl with Balloon”

Love is in the BinGirl with a Balloon


PROGRAM&



PROGRAM&

QUESTIONS?

PhysicalRisk Control


PROGRAM&


Physical Risk Control

• Involved in creating the “Domestic Indemnity”program

• Expanded exhibition coverage

• Worked with museums to change federal law

• The payoff• $5 billion in new capacity• Freedom to “think creatively”• Increased exhibition activity• Furthering your mission

• Structural Integrity & Engineering• Security – CCTV, Alarm, 24-Hr Crew• Environmental Controls – humidity, light,

temperature• Concentration of Values• Storage – underground, off-site, access• Quality and Capability of Staff• Educate all staff• Geographic Location• Public Access


PROGRAM&


Physical Risk Control





Ceramics & Glass

• Lift objects with both hands, and not byhandles or spouts

• Careful when stacking, use cushionsbetween each piece

• Use weight bags/pillows to help buttressitems in storage

• When cleaning with clothes careful not tosnag on rough surfaces or decoration

Bronze Sculptures

• Clean with light soap, water and soft cloth

• Wipe clean, dry with soft rag and air drycompletely

Works on Canvas, Paper & Photography

• Proper spacing between the work, frameand glass

• Avoid direct sunlight

• Never spray cleaning agent directly onglass

• Handle with gloved hands

• Avoid air fresheners, furniture sprays


PROGRAM&


Artworks in Transit





• Like all types of property, whenart moves, chances of lossincreases

• Condition Check and Reporting• Who is handling the transport• Mode of transportation• Some destinations riskier than

others• If a loan, have a loan agreement


PROGRAM&



PROGRAM&

QUESTIONS?

FinancialRisk Control


PROGRAM&


Financial Risk Transfer ThroughInsurance

• Insurance Policy can be purchased for owned andborrowed artworks

• May be contractually required• Via loan agreement• Via acquisition process

• Review policy for what IS and is NOT covered• Earthquakes/Flood• Restoration process• Transit• Worldwide• Definition of “art”

• Know your obligations as an insured• Schedule of Artworks• Claims reporting


PROGRAM&


Establishing Values

Establishing Values

• Appraisal

• Absent an Appraisal, “Market Value”

• Recent Acquisitions should haveappraisal


PROGRAM&


Selecting Policy Limits

Selecting Limits• Insure Total Value of Artworks• Total Values at any one location or

space (Probable Maximum Loss)• Risk Tolerance• Affordability or Availability of

Insurance Capacity• Contractual Requirements / Loan

Agreements


PROGRAM&


Property – Manuscript Policy Form• High sublimits

• $25M Builders Risk ($50M u/wapproval)

• $100M business interruption• $50M extra expense• $25M automatic acquisitions• $50M increased cost of construction• $5M upgrade to green

• Valuation• Replacement cost• Historical buildings (cost to rebuild

at kind and quality)• Full terrorism• Cyber liability included• Pollution liability included

Insuring Loans (Incoming & Outgoing)

• Agreed Value between LENDER andBORROWER

• Utilization of inward/outward loansublimit in existing policy, or

• Dedicated Exhibition Policy

• Loan Agreement


PROGRAM&


Property – Manuscript Policy Form• High sublimits

• $25M Builders Risk ($50M u/wapproval)

• $100M business interruption• $50M extra expense• $25M automatic acquisitions• $50M increased cost of construction• $5M upgrade to green

• Valuation• Replacement cost• Historical buildings (cost to rebuild

at kind and quality)• Full terrorism• Cyber liability included• Pollution liability included

Loan Agreements

Top 5 Rules of Loan Agreements

1. Have One!2. Establish Agreed Value3. Duration of Loan4. Insurance Buying Responsibility5. Packing/Shipping Requirements &

Any Other Special Requirements


PROGRAM&


TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

TITLE OF PAINTING

Description

Artist

Loan Agreements

A handy checklist, butnot exhaustive


PROGRAM&


Sonoma State – Fire Damage





• October 2017 wildfires• Several artworks out on loan to SSU

President’s residence• Home destroyed in fire, along with all

artworks• Formal loan agreement in place• This pre-loss effort made for relatively

quick reimbursement of the loss frominsurance


PROGRAM&



PROGRAM&

QUESTIONS?

When a LossOccurs


PROGRAM&


When a Loss Occurs





• Tell someone, ultimately Risk Management• Secure the area• Preserve the artworks• File police report• Involve restoration services as needed• Report to Insurance carriers, even if you don’t

think it’s a reimbursable claim• Take measures to prevent similar loss from

happening again• Learn from it


PROGRAM&



PROGRAM&

QUESTIONS?THANK YOU

QUESTIONS?

P.J. Skarlanic, CPCU, ARMVice PresidentAlliant Insurance [email protected] / 415-403-1455

Sources: AXA Art, XL Catlin, Lloyd’s of London, AICPCU

Documents

Safeguarding MUSEUM State Campus... · 2019. 12. 16. · MUSEUM FINE ARTS INSURANCE PROGRAM & “Protecting the people and artifacts that define our past and inform our future”