 Today, Susan Berger from the foundation of the American Institute for Conservation of Historic and Artistic Works. Artistic Works, sorry. Susan, please go ahead and begin whenever you're ready. Hi, everyone. We're going to have now a much asked for webinar on insurance. I'm really pleased that we're able to do this partially with the sponsorship of Huntington T Block, which is a division of AON. And just to give you the, we have two webinars this month. The next one is on marking and labeling collections. And then next month, we're having one on deaccessioning. So you can go to the website and sign up for them now. And we look forward to seeing you done. If you have any questions about your collections, you can ask them in the online forum. And there are some people there ready to answer them. And so feel free to do that. You need to be a registered member of the community, but that's free, and it takes a few minutes. So this is our community website and our Facebook page. And you can follow us on Twitter. And you can always contact me at this email address. And so when we've put up this evaluation thing again. So without further ado, I want to introduce Debbie Peake, who's a senior vice president at Huntington Block. And she and her team will be doing the webinar. So Mike, where are the slides? Good afternoon, everyone. This is Debbie Peake, senior vice president at Four Huntington C Block Insurance. And with me is Samina Merchant. She's our commercial lines expert and Molly Slattery, our town executive who manages our small museum program. And we're going to give you an overview of the types of insurance for museums and institutions and what we offer, just an overview of what it covers. And we'll start with Samina, who's going to go through the property insurance. Good afternoon, everyone. So we'll start out with the basic types of coverage. So the division that I work in is what I would call property and casualty insurance. So under property insurance, there are three main types of insurances that we handle. First is the building and contents, which building contents kind of self-explanatory. The building four walls, the actual building could be the museum, could be a historic home, could be an art gallery. And the actual contents, which is also referred to as business personal property. And when I refer to contents or business personal property anytime during this discussion, it will always be non-fine art related. Because my counterparts here, Debbie and Molly, they deal specifically and only in fine art. And I deal in contents or business personal property, which would mean anything within the building or those four walls, which would be tables, desks, chairs, computer equipment. Other item within the property could be the boiler and machinery. Items needed to run items within the building. So that could be the heating, HDA system, the heating ventilation, air conditioning. And then the third item there, which is the business income and extra expense, which we'll discuss a little bit more further in detail later on. The second aspect, which a lot of museums deal with are liability insurance coverages, which would be the premises liability and even off-premises liability, workers' compensation, auto liability, directors and officers, host liquor, and liquor liability, and then professional liability, which is always going to be insured in a separate policy. Because under a standard general liability policy, professional liability is always excluded. So I will now turn it over to Molly, who will discuss a little bit about the fine art insurance coverages. This is actually just a steady key. Oh, sorry. That's OK. And our fine arts policy, we cover museum collections. So the own collection owned by the museum or the institution and the loans. And those loans can consist of long-term loans. We usually define six months or more, but we know that museums have loans that they remove year after year and temporary loans for lesser amount of time. And usually that's for the exhibition. And our museum policy, it ensures all types of collections, not just the fine art. So we work with science museums. We work with natural history museums. So please note that we can ensure not only the traditional fine art. Good afternoon, everyone. Why a specialty fine art policy? Here's a basic outline of what makes up a fine art policy. And now we'll discuss each aspect in further detail, including property covers, hails covered, loose covers, exclusion, valuation, incoming and outgoing loans, additional interest, including lenders and exhibition institutions. Yeah, when we say why a specialty fine art policy, we realize that some institutions may ensure the fine art under a property policy, a commercial property policy. But the specialty fine art policy is much more tailored to a collection. And really, the claim service that you'll get, again, is more tailored to fine art. So that's why this is something you want to consider. So as I mentioned before, traditional fine art is covered, paintings, etchings, drawings, any frames or glass over the frame, anything that makes part of that painting that's covered and teaked. We usually define 100-year-old sculpture, and that can include outdoor sculpture, video artwork, which can include videos, films, media, any kind of a performance exhibition. And the technical equipment, like computers or lighting, laptops, that would go along to make up that artwork. And then other works of art, if they're rare or have historic value or artistic merit, and that could be rare books. That could be historical documents. On my part, like for commercial property, as I stated in the beginning, it's not just the four walls and then the contents, non-fine art related. But if you happen to be a tenant in that building, we can also ensure what we call tenants improvements and betterment. And that is anything that you may have done within those four walls to make it more specifically tailored to your organization or to your business or even for the museum. Now, but that would only be if you are, let's say, leasing that space or, like I said, if you're a tenant. So apart from us just ensuring the actual building, we can actually also ensure you if you are a tenant in that space and also the improvements and betterments that you make. And those improvements and betterments do get to be costly, apart from just being regular contents, like I said, of your cable desk chairs. Because if you're, let's say, making drastic betterment changes, you're adding bookshelves, you're adding track lighting, a lot of those things given the space and the size of the space, those things can be quite expensive and costly. So you would definitely want to ensure those items. And as Debbie had mentioned, we do ensure not just museums but historic homes, art galleries, and also historic societies as well. The fine art policy, it's a property policy. So it covers property, which happens to be fine art and other collection items. But it ensures for physical risks of loss or damage from an external cause. And so really, it's designed to cover sudden and accidental loss stemming from a sudden event. And that could be breakage. That could be a catastrophe or a weather event that occurs. So just note that the fine art policy, it is a property policy. Now we'll jump back here. When it says promises liability and off-premises liability, I get questions almost on a daily basis where museums are calling me for certificates of insurance because they're either participating in some type of event where they may need to produce that certificate to another vendor or they're actually having someone come to their museum and they need to get a certificate from somebody else. That somebody else is what we call a third party. So always remember that general liability is a third party coverage. And that also means that you cannot benefit personally from that policy. I mean, you do, but you cannot claim money off of that from that policy. So let me give you an example. I always find examples to be a really good way to illustrate these type of policies. Let's say someone comes into your museum. It's a patron. They flip, trip, or fall due to your negligence. You've either left out bucket of water. I don't know something. They flip and they fall. They have a few bumps, bruises, whatnot, but you need to pay out the medical things for them because they have to be taken to the hospital. That patron is the one who is going to be able to benefit from your general liability policy. If it was one of your employees who happened to flip, trip, or fall, they cannot claim benefits from that general liability policy. They would actually have to claim benefits under a worker's compensation policy because they are your employee. They are not considered to be a third party in that example. Same thing if you are participating in an art fair. That venue where you are going guaranteed that venue is going to ask you for a certificate of insurance. They always have a whole list of things that they want. They want a certain amount of limits. They want to be named as an additional insured. And the reason why they always want to be named as an additional insured is because when they get named as an additional insured on your policy, you basically are giving them defense costs under your policy because you are saying that if you do anything that is negligent and if they get brought into a lawsuit, that your insurance policy will cover their defense costs because most likely if you get sued, they're going to get brought into that same lawsuit. And you are now providing them with defense costs. I know it's a lot to take in. I'm sure you'll have questions. Our names will be presented at the end of this presentation, so feel free to call me at the end. But we're just trying to give you a brief overview of what these policies are all about. So we'll move on. So whose property is covered under the policy? And there needs to be a legal and financial interest in the property and the fine art property. And that's usually the names insured to be the museum or so-and-so historical society, so-and-so science museum. But the policy covers the collections, the property, the collections that are owned by the institution. And it ensures it at current market value, property of others. It ensures property of others either on long term or short term loan to the museum, to the institution. And it will also ensure property of others that are offered as gifts. And even if you have it while it's awaiting approval from your trustees or your museum board, it'll cover a residuary gift, which really means will. So if there's a collector that is going to donate works of art, especially after their death, that type of property is covered. And the policy will ensure to the museum's interest, so there really should be some kind of an agreement that states the museum owns maybe 50%. The donor owns the other 50%. And that's how the policy will ensure it. The policy can ensure the donor's interest up to that percentage, and that would usually be considered a loan. And then it does cover property of others, again, whether it's on a short term or a long term basis. So under the property and casualty policies, whose property is covered and who has the legal and financial interest in the property? Well, once again, the landlord has a financial interest in the building property, obviously, on a very smaller note. If you're renting a copier or a fax machine, what not, the people who you're renting it from or leasing it from, they have a financial interest as well, because in case, God forbid, if the building goes up in flames, well, guess what? You lease that copier or fax machine. They have a financial interest in that equipment. So there's just two very extreme organizations or entities who do have financial interest. One, you have a landlord or a building owner who has financial interest, legal financial interest, actually. And then secondly, someone as minor as someone who you're leasing equipment from. Or even if it's nowadays, you can even lease desks, tables, chairs, office equipment, everything. So all of these people will request certificates of insurance from you, proof that you actually have insurance to cover them. And they will ask that you name them as an additional insured. Once again, everyone will ask you at some given point in time for a certificate of insurance. All I can tell you is I can't stress it enough to get very familiar with that term, certificate of insurance. I deal with that term every day. I live and die by it. COI, that's what it's called, short acronym, certificate of insurance. Yeah, I see a question about universities. And we do ensure universities. We do ensure university galleries, museums. We ensure artwork that's in a dean's office or in certain departments. A lot of times, our locations will show the university and any locations that are owned or leased. So yep, we do include universities in that. And we would ensure accession to art when it becomes the university's property. There are three standard policy exclusions on a fine art policy. The first being wear and tear, which is basically damage that occurs from everyday use. The second, gradual deterioration, which is damage occurring over time. And hair advice, which includes damage sustained based on the material that the artwork is made up of, such as photograph staining. Laws are damaged, sustained due to a resulting from any repairing, luxuration, or retouching process. War, nuclear reaction, parasets. And then terrorism coverage is available for an additional premium under the fine art policy. In catastrophic areas, such as Florida and California, earthquake or flood may be purchased for an additional premium. And there may be a deductible applied as well. We see another question up there about, I guess it's from Miami Beach, Florida, that the museum might change over from contracting its security company to guard the exhibits using part-time visitor services associates. Do you need liability insurance added to their museum exhibit, exhibition insurance? Not my expertise on fine art, but I do know that, at least for Huntington P Block on their fine art, they do require that you have a central station monitoring company to monitor for fine art. And I'm not sure how they feel about having guards, I don't know, versus, I guess I'm not quite sure what a volunteer association or service associates are versus guard exhibits. We're going to get into the protection in a few. I do see a question about applying for federal indemnity, and all size institutions can apply for federal indemnity, whether the exhibition is coming from abroad or domestic. But note that the application process is very extensive. Pat Patricia Loico, if you go to their website, she's an expert, and she actually used to work for the Museum of Fine Art in Boston, but also understands that the requirement, if you do receive indemnity, you're quite extensive, and that means things must be shipped by professional shippers. They'll get the security, and there are certain types of artwork that they won't accept under indemnity. I'm just going to pick up Ramali left off as far as exclusions under the standard policies, under the property and casualty exclusions, standard policy exclusions, unlike under the fine art policies, standard property casualty policies. Automatically, there is a flood exclusion. There's an earthquake exclusion, war, nuclear terrorism. Terrorism coverage can be purchased. There's a pollution exclusion, and there is an exclusion for professional liability. And that professional liability would include for art conservation. That includes art conservation. So for any museums who have an art conservation lab in-house, please note that there is no coverage for professional liability. Now, I do know that under our Huntington T Block conservators policy, there is a certain amount of sublimit provided for that kind of coverage. But if for some reason, and we've seen a little bit more and more over the years, more and more folks have been requesting of their conservators higher limits or just wanting ENO coverage. Just know that we are able to get higher limits, but it is a little bit pricey, but it is available. Of course, there is scrutinizing underwriting guidelines that everyone has to meet, but it is available. And we are able to place it if need be. I think there was a question up there about, does wear and tear include handling while digitizing work? I wasn't sure if either of you wanted to look at that one. You have to remember the process clause. So if there's damage during a particular process, it's possible that it could be excluded. If you are handling a work of art and you tear it or you drop it while handling it, that would probably be covered. And just know that each claim, it's taken on its own merit. So sometimes your general questions are difficult to answer. But yeah, the fine art policy covers sudden accidental loss, whereas the wear and tear is something that happens over time, something from regular use, which as a general rule, fine art doesn't receive regular use or regular handling. There are two more questions that just popped up about professional liability, and I'll try to answer them both together. One, as far as professional liability coverage for non-museum collection staff who are not art conservators, right now, no, there is no professional liability coverage for them. The art conservation policy that we get is what we call a miscellaneous professional E&O coverage, and it's really meant just for art conservators. And that policy, what it covers, is in the event during the art conservation process, the art conservator uses the wrong procedure, a wrong process, a wrong solution, and somehow damages the artwork, or it changes the artwork in some way, shape, form, nature. That is when that E&O policy would come into play. As far as what I said, when scrutinizing guidelines, for example, guess maybe I shouldn't have used the word scrutinizing, but under the underwriting guidelines, what they look at is they will look at annual revenues. How much art conservation revenue does your organization generate? Exactly what type of art conservation work do you do? Are you doing painting-type conservation work? Are you doing paper? Are you doing outdoor sculptures? Just what type of process or techniques are you using? So those are the kind of things that they're looking at. And please do realize that when they issue an E&O policy for you, they are not just going to hone in on one particular job. They look at the work that you do throughout the year. So when they underwrite the policy and when they come up with a premium, it is for the entire year. So if you're working on just one particular job, let's say this month, they will not issue you a policy based on that one job because they know that throughout the year you're going to be working on other jobs. So it's E&O for all your jobs throughout the year for everything. So it's not a one job specific issued policy. I hope that answered that question. Part of the policy is what we call the valuation section. And that defines how a claim, how a loss would be paid. So inventory, your own collection, it's at the current market value at the time of loss. And that's for owned objects. Value of short-term and long-term loans are at agreed value. So you really need to have some kind of a written loan agreement or contract stating what that value is. Donations, again, it would be the insurers or the institution's interest at the agreed value. The value of agreed between you and the donor. And I can't emphasize enough how important it is to have written agreement. It's a clean, practical, so much smoother if something like that is in place. And I can tell you that the insurance company loss adjuster is going to ask for it. Under property and casualty, there's typically three types of valuations. There's replacement cost, actual cash value, and agreed value. I think they're pretty self-explanatory. Replacement cost, whatever value is, that is what you get through replacement cost. They will provide you with the actual value that it is. Actual cash is just that, the value of it minus the depreciation. And agreed value is when you've arrived on a value for that particular building, content, whatever it is. The policy, and also the fine art policy, ensures an art reference library. So the library that you use in your day-to-day reference research, that's insured at replacement cost. So if you were to lose a book, for example, whatever it would cost to replace that book. The fine art insurance policy covers the museum property and property of others as agreed on a wall-to-wall basis, while in transit. So from the point of departure to from the lender to the museum, and again returning back to the lender, it covers the property while on exhibit, while at any other location, and worldwide. Under the Huntington T Block policy, the deductible doesn't apply to temporary loan artwork, only collection items. So the fine art policy, it has a separate limit to transit. And you can, this is for transit that you're sending out, or transit that's coming in. And the thing for any other location, there's a sub-limit for any other location, for those instances that are shown on the slide. But also, if you are participating in a traveling exhibition, it will cover while there, under that any other location limit. There are questions we see popping up there as far as valuation and how detailed they should be, or who should be making these determinations. I guess we will address those a little bit later on. But a lot of those should be made by appraisers. Obviously, you, as the museum, are in charge, basically, of making these determinations and setting the limits. How often these should be made? That, again, it's up to you. There's also a question up there. We see that should the following term be avoided in place of actual value, value to be determined at fair market value upon incident? I think that wording really comes into play when, I've really seen that wording if it's a vacant building and if you decide not to rebuild, or if it's like a complete total loss. I've seen that language being used, so I don't necessarily think that that wording should be replaced or used in place of. But again, sometimes carriers use different languages. It really depends on when you read the policy and how they're using it. You really need to determine exactly what their intent is and what your intent is as well. How do you determine a limit to ensure under the fine art policy? And we get asked this question all the time. And what you want to take into consideration is your collection and what's the collection that you have and maybe stored? What's the total of that? And what's the total value of all the short and long term loans that you have on the premises? And hopefully you have current loan agreements. That will give you those values. What's the value of your outdoor sculpture and value of gifted items that may be awaiting approval that are on your premises? So these are all the different types of property that you want to look at and see what the values are. There are other means that some of our insurers use to decide on an insurance value. Where is the highest concentration of value? Is there more than one location? Is one location maybe a higher value than the others? It could be a storage location, maybe a secondary. Exhibition or gallery location, because this is a blanket policy. So it'll cover all the locations that you need to ensure under that one blanket limit. And the concentration of value, it could be a gallery. It could be maybe a particular display. Do you have an off-site storage site? And what's the probable maximum loss There were a catastrophic weather event, as you just had in South Carolina, and your building was flooded. What's the maximum probability that could all be lost? And what's the total value there? And how much are you going to need to replace maybe some key items or the collection if there is such a catastrophic loss? And that's how insurance people think. We think the worst case scenario. So those are just some means, some methods that you can use to determine a value. And we'll be glad to help you with that, of course. When there aren't any values? Yeah, I mean, there's got to be a means to determine a value, whether it's auction prices. Maybe you've had an appraisal 10 years ago. Did you buy something maybe from a gallery that maybe you can go back there and ask them for a more current value. But we realize that appraisals are difficult and they are expensive. If you see a question up there from, I believe it's Dan Richardson, that you're saying that you operate a house museum that is destroyed, building and contents cannot be replaced as all are very unique. When you say building and contents, I'm going to go ahead on a limb here and assume. When you say contents, it could be the contents I'm assuming you're talking fine arts. I'm going to address at least the building parts and maybe the contents could be even some, at least, what I say sometimes, non-fine art related. But let's just say we're talking both, non-fine art and fine art related. At least on the building side, there are some insurance carriers who will provide what we call historical replacement costs. It costs a little bit more, but let's say the building is on, let's say, a historical registry. And even if it's not, what they will do is they will replace it with like-kind quality. So let's say in your building, you have Italian marble tile that came from Italy. It was like some shade of exotic blue turquoise, and it came directly from Italy and whatnot. And let's say it cost $30 or $40 a tile. They will actually replace it with that exact same They will come as close as possible to finding you that exact same kind of tile. They will not go to Home Depot and get you a $3 square tile of blue turquoise kind of color and replace that tile. They will get you as close as possible to what you had to replicate your building. Now, I'm not saying that it will go back to being interesting and the original, but they will try to bring it back to what it was. As far as the content, again, if they are completely destroyed, then it becomes up to the museum as to what they want to do. They will pay you the historical replacement cost, whatever you have agreed to on the policy. What they will pay you is basically if you're going to replace it, meaning rebuild. If you choose not to, there will be a clause in there that will state, if you decide not to rebuild, then this is what we will pay you in lieu of. Now, as far as the fine arts, the fine arts, yeah, we understand that some objects are unique and they're irreplaceable. But wouldn't you rather have some kind of a settlement, the funds to start your collection again, or if maybe not replace that exact item, something similar to really complete your mission as a collecting institution. So that's why we think insurance is important. And it's really part of a risk management tool to help you continue your mission and the museum. Yeah, so I think Debbie just answered Dan's second question and Dee's question as well. At least I hope we answered them. And we have a lot of material to get into, so... There are three essential elements of lending artwork, including loan agreements, certificates of insurance, and condition reporting. Loan agreement is a legal contract that you need to professionally borrow and lend artwork without interruption. The loan agreement defines responsibility of who is insuring the artwork, whether it's during round trip transit, during a single transit or not at all, and then both on while on exhibit. Certificates of insurance is proof of insurance for the lender. A lot of times, the lender will not release the artwork unless they have that certificate of insurance in hand. Condition reports help to pinpoint where damage occurred. You want to make sure they're completed. They will help definitely to, in the event of a loss, define where the artwork damage occurred and if there was preexisting damage. On the P&C side, I've already said certificates of insurance are very important or they will ask for additional insured status. And once again, these are always going to be requested by either landlords, vendors, and venues where you may be participating or you may be requesting them of the vendors that you're going to be dealing with. Okay, loan agreements should include the following information, the purpose of the loan, effective dates, lender contact information and requirements, whole description of the objects, including the statement of the condition. Insurance values, ideally the value should be established by an appraisal. And insurance covers responsibilities. Whose responsibility is it to ensure the artwork while it's on loan, whether incoming and outgoing transit. We would also be able to provide the service of reviewing contracts and loan agreements when needed. Inventory and backup of records. Many institutions do experience incidents with missing objects or mysterious disappearance where there's no evidence of forced entry or theft. Having an inventory on file should be done on a continuous basis and it may take several years to complete for large collections with a large number of objects but it's worth it to have in the event of a loss, you want to make sure that you have it. A copy of the inventory should be maintained both on and off site. In the event of damage to the property such as a storm, earthquake or floods, local officials may not allow staff to return to the facility until it's deemed safe and this can take weeks or months. I will just echo what Molly just said as far as on the property and casualty side. Same thing. Nowadays with computers being as efficient and so highly technical that they are, everyone has laptops and what not and servers. Nowadays everyone has almost like a server room dedicated for everything. Please back up all your information, all your data, keep all those records off site because if you ever were to have any kind of damage, any kind of fire, any kind of natural event that happened within your museum, you always want to have all that data stored off site so that you can get back to business as soon as possible. Another key thing that we always suggest not only to our commercial clients but even to personal lines clients is to make a video of each and every gallery room that you have within your museum and on a personal side even of your own home. Take a video of each and every room that way. God forbid if there is ever a loss, you will know exactly what was in your room to present for a claim. In your family room if you had a flat screen or if you had a certain table, what not, it's easier to remember. Gone are the days of photographs and photographic memories, guys. It's all high tech now. Make a video and keep it off site. Take it to your mom's house. Keep it there. Donations, wants it or unwanted. Museums mostly wants a donation. What you need to do beforehand is have a plan and a procedure in place to deal with donations. Where will you store them? Will they be on display? Some qualifications of a donation is that it is on display. And you know, profit credit given to the donor. Make sure you have a custody agreement in place and ready to go. It should be dated and signed by the donor and with the value, especially when donations are only going to be partially owned for a while. And understand your policies coverage when it comes to donations, bills, and requests. And just know that without some kind of electronic record, when there's a claim you need to be able to prove that you actually had something and what it was worth. That just makes the claim process go all that's needed. Well, prevention best practices, fire and burglar alarm systems. It's very important to have Central Station fire and Central Station burglar alarms. You want to prevent the spread of fire if at all possible considering that how quickly the artwork is destroyed and how quickly the damage occurs. You definitely want to seek and maintain relationships with your local authorities. You can ask if they will come take a look at your building, make any suggestions. We even thought, even maybe as a goodwill gesture to your local fire police departments, maybe you guys could even offer a couple of passes to them to come visit your museum. At least that way they know exactly where your museum is located. So if there is ever an event at your museum, they know exactly where you are located. It makes it easier for them to find you. Everyone just assumes of all, they can put it in GPS and they'll know where we are. Not always the case. Sometimes even the fire department, people get lost on their way to a fire. Relationships with law enforcement or fire departments, maybe that's a little simpler for smaller towns, but we are from museums that this is what they like to do, have them come in, take a look around, maybe see if there's any gaps in coverage, maybe something that could be improved as far as something that is stored that could cause a fire. So just something to think about, keep in mind. So as prevention planning, make sure to evaluate all your fire protection and burglar protection measures if they are in place. If you can't have the central station alarm system installed just due to the cost or for whatever other reason, make sure that you have alternative measures in place, including a 24-hour surveillance system. Make sure that you have proper professional packing measures in place and that when exhibiting artwork that you have barriers to protect the artwork from the public and especially for fragile pieces that you have them in cases and to have proper storage for flammable. Continuing with best practices for law prevention and managing visitors, having artwork in locked cases to prevent touching of objects, having, again, having lock barriers to keep the public away from the art, security cameras, which could document any theft, having guards or dopes in place to keep an eye on people as they come in and out of this gallery space, putting do not touch on furniture. Those all help to prevent lockers. On the property and casualty side, same kind of things. If there's ever, you know, there's been a spill or whatnot, make sure you put up a little yellow marker sign to say, you know, wet floor or whatnot just so that you can minimize someone from slipping and falling and causing injury or harm to them, to themselves. Make sure that there are guard grills wherever they need to be, especially around stairs. If you have any kind of areas where you see that there could be a potential for anyone falling or whatnot, just make sure that they're clearly marked. Your current insurance carriers are a really good resource. They do lost control visits. Sometimes when they do come out, they can make recommendations. Again, where there's room for improvement, you can always call on them. You know, sometimes I think some of these things are a lot based on common sense that we don't think about, but like I said, carriers, they're lost control departments. They are a good resource. And as Debbie mentioned, even the law enforcement fire departments, they're a very good resource as well. Okay, light exposure for artwork collection. Keep items away from any harmful light that especially sunlight that can impact and cause the piece. That's probably where one of our exclusions comes into play. If the object is sensitive to light and especially pay special attention to light exposure for works on paper and photographs. I mean, just know what light levels you need for any particular work of art or type of collection. Temperature and humidity control. Each object has really its own ideal temperature and humidity level. So adjust the temperature units, check them, and just make sure that they're at the proper level through a periodic check to prevent any kind of damage. There's no exclusion under the policies for temperature changes, humidity, temperature control, but still the point art policy is more about prevention and you just want to make sure that those settings are correct. Common sense air filters should be used to reduce pollution and just catch any of those harmful particles that could cause damage to the artwork. Good housekeeping and landscaping. Basically, you want to have common sense decisions about the areas in and around your museum to make sure that the areas are clean, some trash, and stills. If you have construction going on around the museum, you want to make sure that the construction materials are away from the museum entrance. We had an instance in which a rock was thrown into a window and someone broke in and stole a pretty valued piece of artwork and we can't stress enough the importance of making sure that you don't have that type of exposure near your entrance. Keep paint and chemicals away from heat sources, such as coffee pots and appliances to prevent fires. Keep small and fragile objects protected in lost cases and especially in lower levels where flooding can occur. You want to make sure that the artwork was at least 12 inches off the floor. Yeah, you want to prevent any type of water damage, if at all possible. On the PNC side, again, as far as loss prevention, again, common sense, we actually had a loss where someone, I think it's not mistaken, I think it was an art gallery, someone had kept their laptop right on the front ledge of there in full view of the entrance and I think the receptionist or whoever it was had stepped away and someone just came in, swept the laptop and out they went and it just took a few seconds and off went the laptop. Again, don't keep things that are very attractive to people to just kind of take away. Same thing, again, if you have any kind of petty cash, what not, keep those kind of items kind of away, not out in full view. Again, these things, like I said, common sense, obviously I know in museums you guys have offices, so these kind of things are kind of out of people's view, but if you happen to be in larger cities and space I know is of prime value, so orders may be a little bit more cramped and these things may happen a little bit more often. Again, your relationship when it comes to protecting your collection, have that contact information readily available, I mean, more than just 911, I think you'll get a quicker response. I'm sure you have your insurance agent phone number contact information in case you need some help with a claim or we have a weather event and you need our help. So make sure you have that on file. Conduct regular security checks and again, see if you can get your fire department or your police department to help. As far as the frequency, I have a question about videos and how frequently. Really, if there are any changes that you want to document, but what's a good role of some, you know your collection better than anyone, maybe every three months, every six months, and you want to make sure you do this for your long-term loans. If you have a long-term loan that may not be on display and you've had it for several years, you want to make sure that that object is still intact, there's no damage, it hasn't been dropped, there's, if it's in a crate, and you haven't opened it for a while. So you're accountable to the owner of that long-term loan, so you want to check those on a periodic basis. And again, just talk to your fire and your law protection services and see if they can help you minimize or prevent that kind of damage. And the law enforcement, if you have a relationship with them, or even check their websites online, they may have a lot of climates periodically or if there's been a rash of steps in the area, you just want to keep a prize of that, keep yourself aware of that. And if you have the relationship, they may just go ahead and contact you themselves. Disaster planning, and one of our handouts is a document that we worked with the AIC on, especially when you need conservation help, but you need to have a disaster emergency plan in place before the disaster strikes. So whatever your particular region is prone to, whether that's tornadoes, hurricanes, earthquakes, have that plan in place prior to, then when that's in place, train your staff to understand the procedures and then some of the practice drills. I know in our office here, we have fire drills all the time. We know exactly where to go. We know to get away from the building. We know we can't use the elevators. So that's important, especially if you're open to the public. Don't store, as we mentioned before, items in the sub-basement or basement level. We're talking about mold and water damage, and you want to keep those objects across the floor. You want to have a plan in place where you can get that collection off-site, or if that's not an option, if you don't maybe have a separate storage facility lined up, get it into an interior room where if there's a particularly nasty storm, you're not going to be subject to glass breakage or objects getting blown around. If possible, in an alternate location, storing some of the major hurricanes, like Katrina, I know some of the larger museums did take in some artwork from collectors and private public to help them out before the storm is over. Just as we try to wrap it up here, I know we're maybe a couple of minutes, I think we're already a minute over, but we're trying to wrap it up here a little bit quickly. We weren't anticipating as many questions as we had during the beginning of our presentation, but on the PNC side, as far as disaster planning, on property and casualty, there's a component called business income and extra expense. Business income becomes very important because if there is a covered cause of loss, let's say there's a fire, and you have to close down your museum or just your business has to shut down, you can collect or you can get business interruption monies for any loss of income during your shutdown. But in order to collect that, one, there has to be a covered cause of loss, and you have to show that you have receipts or whatever. If you were anticipating having so many patrons come through your museum, you have to show, let's say, last year at this time, you had 3,000 people come through your museum. You have to be able to substantiate the loss or the loss of income. If you were expecting to put on a huge exhibit during that particular month, once again, you have to be able to substantiate that loss of income or revenue. So there is that coverage. There is a way to cover business income loss. The extra expense component is while you are out of that space because of the fire or whatnot, they will pay you to set up alternative, let's say office space for you to continue your business, your business operations until your space is back up and running until they're able to fix it and whatnot. Again, to do all of that, again, keep your payrolls. And this goes back to someone asked, how often should we update or back up our data? If you're able to do it every day, every week, I would say the more, the better. You just never know nowadays with the way systems go, systems crash, whatnot, more is better. Back it up as often as you can. Because if there is a loss, you will need to have that kind of data at your fingertips in order to get your business back up and running. So loss prevention and claims, and at the end of the day, that's an insurance policy for, is to pay claims. It's designed to put you whole or where you were as best as possible before the loss of the damage occurred. And note that when you're reporting a claim, the burden of proof is on the name in short. It's on you, again, to show that the object was there and what the value is. And we find that the majority of claim disputes are due to no values or values that aren't agreed, especially if you have a third-party lender involved and they didn't give you a value, but it's damaged and all of a sudden, it's worth a lot more than it was before. So just keep that in mind and why we keep stressing the importance of an agreement with values. And we have seen lenders, if a particular artist is sold at auction and the price goes up, he can actually request or he should request that the value be amended, maybe upgraded, but then you're going to want proof from him as to why he wants to do that. So the loan agreement isn't necessarily written in stone, the value, it can be changed and you may want to get approval from your insurance company. Now, when it comes to... we find that the majority of our claims, probably 60% of our claims are in transit. So anytime you move a work of art, an object from one place to another, potential for damage is a lot greater. So if at all possible, use professional packages and shippers. Now, our policy doesn't require that, it says confidence. So if you have someone at your institution that's good at it, go ahead and let them take care of that. Companies do prefer professional shippers, but we understand from a price standpoint that that's not always possible. So if you do use an overnight company, like Federal Express, UTS, and there's no exclusions to using them on the policy, just make sure that it's properly packed to withstand the moving and handling and that it's tracked. You want to know where it is. We've had claims where things don't show up, things are misdressed, they're delivered to a wrong location. So proper packing and tracking are the key. And remember that those overnight companies are going to handle a work of art just like they are any other type of property. And then when it comes to being responsible to transport your lender's artwork, make sure that you understand what their requirements may be if they want to use a professional or a particular transporter. Just take a look at that and make sure. Claims, you know, the policy covers breakage. You know, you're handling a painting, you dropped it. That's a sudden accidental loss that's covered. You know, we've had a rash of claims where a glass scene was sticking to the oil on canvas and had to be restored. Most claims are not total losses. They're partial losses. So the policy's going to pay for that conservation work. It's going to pay for transport to and from the conservator and it will give you a loss in value. So what was the work valued before the loss and what's it valued now after conservation? You know, just common sense, best practices of loss prevention is really common sense. Don't keep things near open windows. And as I mentioned before, the disputes are usually overvalued. And what's that loss in value? And as your owner's going to agree to that, worth-pay scenario are just destroyed and deemed a total loss. Or if it's stolen and the policy will pay you a total loss if that work of art is recovered eventually, then the policy will pay to recover that work of art and you can buy it back from them. Just in closing on my end, I'm just going to look at the last couple of questions here. With items on consignment, if it was in a store, would those count? If they're an art dealer, then yes, we can write policies. If they're art dealers, it could be written on a fine art policy. But if they are not art dealers, if it's in a museum, for instance, then I believe those items would be written under my policy and those items would be considered contents, the consignment items. And then just lastly on mine, as far as loss prevention, it's so much loss prevention, but I also always stress risk transfer. At the end of the day, on the property and casualty side, please always remember risk transfer. If you can push off as much of the risk to somebody else to insure, that is what you should do. One prime example is liquor liability. I can't tell you how many calls I get where a museum says, hey, we're having a gala. We're going to be serving alcohol. What should we do? My number one thing is, are you hiring a caterer? They say yes. I'm like, great. Get the caterer to get you a certificate of insurance. Make sure they have liquor liability insurance. Make sure they list the museum as an additional insured. Please do not be serving alcohol yourself. Last thing you guys want is to have somebody get drunk, leave your museum from that event, get into an accident, and when they get pulled over or whatnot, they ask them, where were you? And they'll say, oh, we were at museum such and such. Well, guess what? You're going to get named in a lawsuit, and that's it. You're on the hook. But if that same situation happens, they say yes, we were at museum such and such. They come to you, you produce that certificate of insurance, and guess what? That risk has been transferred to that caterer who had the liquor liability, and because they named you as additional insured. Remember what I said first and foremost? As soon as they named you as additional insured, you have defense costs, because it was that caterer or whoever was tending bar, it was their responsibility to cut that patron off. They should have seen the signs that that patron was getting drunk, if they were getting tipsy, or let's say that patron was even underage. It was not your responsibility. Risk transfer. On property and casualty, risk transfer on general liability. And with that, questions and answers. Let me address the archaeological question. Yeah, values are hard on those, although we found that there's a market for everything. If there's an object that we have a historic museum down south and they were putting up a new building, they were excavating, they were pulling old things out of the earth, and we arranged to do sort of a separate blanket limit for those objects so they could be valuable. But we realized that you're not going to see what that... We're not going to know what the value is until they're cleaned, researched, and it's determined exactly what it is. I think you've answered all the questions, except for the very first one, which is what policy covers archival material. Archival material. Yeah. I mean, like in an archives, I'm assuming. We do ensure archives, we do ensure special collections. What you have to remember is the definition under the policy is rare, historic, one-of-a-kind, antique. So we wouldn't cover, say, regular books, but we have covered archives. We can really ensure just about anything. We've done rare books, we've done, like, catalogs. Special collections, yes. We can ensure catalogs, and we have done so as part of an exhibition. So whether the fine art picks it up or the one-of-a-kind policy picks it up is just going to depend on what it is. We definitely try to work together here as a team to try and find a home for all types of coverages or all types of items. So if we can't find a home for it within the fine art, we definitely then try to find a home for it within the property and casualty department and vice versa. Under the fine art policies, when we ensure special collections, we find that universities label and treat their special collections differently. It is labeled as a special collection. It's kept away from students in the university. It may be in a special room. You may have to have an appointment to review that, and it's not taking off site. So we do, we can ensure special collections as part of a university fine art policy. Okay. And we have a question about, are volunteers considered employees under our museum insurance policy? It depends. A lot of small museums are run by volunteers. Yeah, it depends on how the policy is, their definition. Typically under the GL policy, they do get included under the definition of employees. And if not, there's always a broadening form endorsement that can be put on. I would definitely, I guess it becomes more critical under the workers' compensation policy on how they get covered or not covered. The same thing goes under a workers' compensation policy. There is what we call a broadening form endorsement, which will include volunteers under work comp policy as well. The only carrier I know that will not include what we call this broadening form endorsement is the New York State Work Comp Fund. So if anybody out there is in New York State, and if they have their workers' compensation coverage with the New York State Work Comp Fund, they will not ensure volunteers. So in that case, is it a good idea to have your volunteers covered under one of your other insurance policies? Well, they should definitely seek coverage. Well, it depends on how many volunteers they have, or if their volunteers are signing waivers and saying that they, you know, are going to basically just cover themselves under their own personal health plans. Or if the museums truly do want to cover them, or we can even get them what we have, like there's like an accidental death benefit type of coverage. It doesn't cost too much, but we can also offer that kind of coverage. But the better way to go is to really find coverage for them under, you know, having them with a carrier can offer that broadening endorsement. Right. Okay. So it says... There's a question that says, is this why some museums require volunteers to sign in and keep track of their hours? Would this also make them covered as employees? Under the general liability, it's not so critical because as long as they are following the direction and doing whatever they are asked to be done at the discretion of the museum, they are covered for general liability. So for instance, if the registrar is instructing one of the volunteers to move a piece of artwork or to do something, and they basically do some negligence or whatnot, they cause someone to slip and fall. I always use slip and fall. It's the easiest thing, and I think everyone kind of can understand that one. And some patron gets hurt. They would get covered. They are covered then. That loss under general liability would be covered because the volunteer is following instructions. Okay. It's within the scope of their job or within the scope of whatever they're being asked to do for the museum. But workers' compensation is something completely different because let's say that volunteer actually gets injured while on the job. That's where it kind of gets where, you know, you kind of... It kind of gets a little murky because if they are a true employee and if they get hurt on the job, they would be covered under workers' compensation benefits. But because they are an employee or because they are a volunteer, they are not entitled to workers' compensation benefits. The only way they would be entitled to workers' compensation benefits would be, is one, if under the work comp policy, there's that endorsement that I mentioned, that broadening form endorsement. It's now including volunteers to be considered employees. Two, the volunteer has waived anything that says that, hey, if I get injured while I'm working here at the museum, I'm not going to file a claim. I'm not going to sue. I'm not going to do anything. And if that's the case, I would highly recommend that you consult your legal folks to draw up that waiver to have those volunteers sign it, consult your legal staff. Or three, we can try to find you that coverage. That coverage, like I said, there's another way of getting that coverage. It doesn't cost very much, but then you can cover your volunteers. Okay. And we have one question that's really for conservation insurance, but we'll... And we have a question that's along the volunteers. Are interns covered by the same rules as volunteers? Correct. Does it matter if they're paid or not? Yeah, no. Volunteers, interns, apprentices, I guess they're all under the same bucket. Okay. And the quick question, and I think this is the last, will be from Anzanika. If my client wants to have their own insurance cover their painting while in my lab for conservation, do I need to have one certificate of their insurance or two to be put on as an additional insured? If a conservator has a client that wants to keep their own insurance, then you should... The conservators should have a ready-made form asking that question, will you maintain your own insurance, date it, and have them sign it? And yes, it doesn't hurt to have that client ask their insurance company for a certificate of insurance that shows they will ensure the work of art right while at the conservator's studio. The conservator is not responsible. Now, keep in mind there's what we call the process exclusion under all fine art policies. So there's no coverage if the conservator damages that work of art while they're working on it. So if they use the wrong process or wrong chemical and it damages the piece, there's normally no coverage for that under a fine art policy, you probably want to ask for what we call a wave of segregation so that that clause wouldn't apply and your owner's insurance company wouldn't come back and see you if that kind of damage occurred. Okay, so we have the conservator's program that addresses that, yeah. Yeah, we have one more question and then I want to remind people, please do the survey, they're really important. I look at them very carefully. I've spent the last week looking at evaluations, so please do that. It's up in the upper left-hand corner and I'll move it down here. But this final question is if I send a collection work to a conservator off-site, who should ensure? The rule of thumb is if it's out of your care, custody, and control, you should have the person that actually has that work is working on it, ensure it. Now, some conservators have made the decision that they will not buy insurance. They don't have an insurance policy and they won't take that work on unless you agree to insure it. The rule of thumb is if it's out of your care, custody, and control, then you should have the other party insured. Okay. So, be assured that the webinar recording will be posted soon. We'll also post the PowerPoint slides and some worksheets and sample applications for insurance and also I've collected a few bits of websites that were posted in the chat box and I'll post those too. So, thank you all and we hope to see people at the end of the month for labeling and marking objects. So, and thank you very much to Debbie and everyone. You're welcome. Thank you. And I think we're out. So, thanks. Bye-bye. Okay. Bye.