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 things. People may make a claim against the museum and its staff for injuries.
The first step in insuring a museum is to understand some of the basics. A policy designed for a home/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.
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, which the policy covers. Sounds good however, maintaining a schedule is a very time and labor-intensive unless the collection is small and no growth is planned.
In contrast, a loss limit policy 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 ustody of the institution for purposes other than loan, e.g. study, possible purchase, etc.
The next step in insuring your museum is to 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.
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