How to Insure a Museum
Insurance policies for a museum are available in a wide array of dollar amount. The risks covered by insurance can broadly be divided into policies that cover people and policies that cover material items. People may make a claim against the museum and its staff for injuries. Both types of insurance are necessary as to cover all bases.
- Understand some of the basics. A policy designed for a home or business is not an adequate plan. A museum collection and fine arts policy will be the most beneficial. Fine arts policies generally cover a museums needs and are often less expensive and offer more coverage than other policies. Scheduled and Loss Limit are the two types of policies used to cover a museum’s artifacts and fine arts.
- Decide what kind of coverage your museum needs. For most museums, schedule policies are not the best choice. A scheduled policy only covers items that are listed on an inventory or schedule with a dollar amount. Maintaining a schedule is a very time and labor-intensive process, unless the collection is small and no growth is planned.
- Consider a loss limit policy as it provides coverage for any materials under the care, custody or control of institution. This covers materials owned by the institution both on and off the premises; borrowed objects and materials in the custody of the institution.
- Contact a fine arts insurance provider such as Arthur J. Gallagher, Arts Indemnity Program or AXA. These providers are all reputable sources and proven to be very knowledgeable about insuring a museum. A fine arts provider can help you choose the best policy for your museum.