LOAN TRANSACTIONS & INSURANCE: HOW DOCUMENTS …

1 Keep On TruckinAll Risk Fine Art Coverage for Transit is the coveragethat applies to artwork once packed for shipmentbut still at the museum prior to if there is negligence on the part of the trucker,a Released Value Bill of Lading relieves liability, butonly if the document is signed by the Waiver of Subrogation, or Hold Harmless Agreementissued by the insurance company, reduces the abilityof an insurance company from suing the shipper, pack-er, warehouse or auction house even if they are negli-gent in damaging or causing a loss to a work of weather on the open sea to save the voyage & vessel is the condition where some propertyon a vessel is saved but other cargo is jettisoned.

2 When a General Average loss settlement is used allcargo owners on that voyage share in the the event of an accident at the port the ExtraExpense provision of an Ocean Marine insurancepolicy pays for up-righting of the truck and trailer,putting the sculpture back on the flat bed and anyport costs/penalties that are Break It Who Buys It?All Risk of Physical Loss or Damage, is the coveragethat pays when artwork simply falls off its plinth andbreaks into Pairs and Sets clause is an insurance loss settle-ment provision that will cover a pair of Ming vases,antique earrings, or other art part of a pair or set, tak-ing into consideration the full value of the pair or Valuation in the Event of Loss Clause is animportant clause in every insurance policy.

3 It tellsyou what your payment will be based artwork is damaged you would rather have Current Market Value or Agreed Value , which evervaluation is greater. This will ensure you get top dol-lar for your claim settlement. This helps in a fluctu-ating collectors who are lending their art mayrequire an Any loss is a total loss Clause to guar-antee they don t get back a restored piece, howeverthis is notusually offered by Complete is Your Loan Form?Insurers turn to the Loan Agreement or ConsignmentAgreement, when there is a fine art loss betweentwo parties. This document should be the road mapthat spells out who is responsible for various aspectsof the loan such as, packing, transport, display/exhi-bition, reproduction rights, Jointly Owned Property Clause, partially insuresartwork if jointly owned with others.

4 A Loan orConsignment Agreement should determine who isLOAN TRANSACTIONS & INSURANCE: HOW DOCUMENTS CAN HELP OR HINDER A CLAIMINSURANCE JEOPARDYAAM Presentation, May 1, 2012 Steven Pincus, Dewitt Stern - Smith, Berkley Asset Protection - Quinn, AXA Art - Cahill, Lynn & Cahill LLP - Morrow, The Art Institute of Chicago - regardless of ownership percentage, sothe insurance policy of the person/institution whohas possession will respond to a claim using the fullvalue of the loss adjustment process that is longer than neces-sary can arise when there is no agreement in forcebetween the lender and borrower, which may causeundue Other Insurance Clause in an insurance policycomes into play when two insurance companiesinsure the same artwork.

5 This can cause a delay inhow the claim will be insurance needs to be asked for specifi-cally post 9/11. TRIPRA vs. Full TerrorismSee You in CourtFew Fine Art dealers buy Media Liability to providecoverage for copyright suits because they don t createartwork. Their artists should think about this coverage,as well as the dealer since there have been lawsuitsrelated to copyright involving dealers and Object Condition Report is a good document tohave completed both prior to packing and afterunpacking once delivered. This will help determinethe condition at a point in under VARA (Visual Artists Rights Act), coversinstances where a work of art is damaged and theartist rejects the work, rendering the work a total dealer or museum can be held liable for copy-right infringement in a Media Liability E&O claim ifthere is a suit alleging unfair Released Value Bill of Lading which is protected bythe Geneva Convention allows a warehouse or truckerto limit its liability to $.

6 60 per pound. The Bill ofLading must be signed by the Gave Away the FarmIf the Loan Agreement states a value and the muse-um agrees, the institution is responsible and has tobe sure there is insurance in place to cover theagreed amount. An independent appraisal couldhelp substantiate this value in the event of Co-insurance Clause requires the policy owner toinsure for the full replacement value of the propertybeing insured. In some cases the full value can bereduced to 80 or 90%. Most museum Fine Art poli-cies do not have this stipulation. A request that pays the owner of the artwork, not the museum/borrower is covered by the Loss Auction House insurance policy has special provisions for value depending on the specifics ofthe that requires special attention may need WorkersCompensation insurance, General Liability insuranceand adequate permitting by local Kid Could Do ThatCommercial General Liability insurance would providecoverage if artwork in a show falls on a person, andthey suffer multiple injuries and sue the Art Title insurance transfers the financial risk oftitle disputes, actual or alleged.

7 To an an auction house/museum or dealer damagesa work prior to sale the Consignment Agreement isused to determine value as per need for third party appraisal arises when theopinion of the loss adjuster for an insurance companydiffers from the museum s opinion on , Aspen Specialty, AXA, Berkley, Chubb, Hiscox,Lloyds, Travelers and XL are insurers that provide AllRisk Fine Art Museum & Exhibition JeopardyWhat is the statute of limitations on filing suit against an insurer? This is a state-by-state issue and is different for Property and Liability.