FINE ARTS - PAPER - The Fine Art of Insuring Fine Art

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  • UR

    MIA

    The Fine Art of Insuring Fine Art: How to Create a Fine Art Insurance Program that is a Masterpiece

    2012 URMIA Journal Reprint

    University Risk Management and Insurance Association

    Anne RappaHuntington T. Block Insurance Agency

    Jeff MinettHuntington T. Block Insurance Agency

    Adrienne ReidHuntington T. Block Insurance Agency

    Linda SandellHuntington T. Block Insurance Agency

    Lynn MarcinHuntington T. Block Insurance Agency

    Sarah BarrHuntington T. Block Insurance Agency

    Charles HarrisonHuntington T. Block Insurance Agency

    Deborah Peak Huntington T. Block Insurance Agency

    Simon HornbyCrozier Fine Art Services

  • The beauty one can fi nd in art is one of the pitifully few real

    and lasting products of human endeavor.

    J. PAUL GETTY PASCAL (18921976),

    INDUSTRIALIST AND COLLECTOR OF ART AND ANTIQUITIES

  • 93URMIA Journal 2012

    Abstract: While many campuses house valuable ne art collections in more obvious locations, such as art muse-ums, galleries, and libraries, other important ne art pieces may exist across campus in o ces, departments, and even embedded into the buildings architecture. Having a clear understanding of where ne art items are housed on campus is the rst step for risk managers to verify that these valuable pieces are insured adequately. Th is article de nes seven steps any college or university risk manager can take to identify artwork on campus, assess the value of those pieces, provide guidance to campus leadership on risk management best practices, and procure the appropriate level and type of insurance for the institu-tions artwork.

    Introduction On your way to a meeting on campus, you notice with some satisfaction the steel sculpture on loan from an impor-tant donor has been installed. Beside the sidewalk is a colorful poster announc-ing the opening of a collection of rare Audubon prints that will be appearing in the librarys exhibit space. Th en as you turn the corner, you notice a Ti any stained glass window on the engineer-ing building appears to be cracked. As you walk up the steps to the meeting hall, a distressed colleague calls your mobile to inform you that a pipe broke in the museum gallery, and there may be water damage to the universitys works of art stored in the basement.

    You pause. From an insurance perspective, everything is in good hands. Isnt it?

    Th is article will help provide what all insurance seeks to impart: peace of mind. Using a step-by-step process, you will be able to better identify the art work on cam-pus and where it is located, assess its value, and provide recommendations to ensure that the proper risk manage-ment and insurance protections are in place so you know everything is in good hands.

    Step #1: Identify the Property to Be InsuredWhat art and objects are and arent covered? Under a ne art insurance policy, the Property Insured section is quite broad. It provides coverage for works of art and extends coverage to collections of a rare and historic nature, such as natural history collections, scienti c objects, and historical/archaeological artifacts, along with the techni-cal equipment needed to run an exhibition, such as video

    monitors and projectors. Registration papers and records are typically included, as well.

    Step #2: Identify Where Your Fine Art Collections Are LocatedTh e next step is locating all of the vari-ous works of art on campus. While some

    pieces are fairly obvious, such as those located in the art museum, exhibition spaces, and special collections in the library, pay careful attention during the discovery process to less obvious departments that may have collections of which you are unaware.

    Th ere is an expectation by insurance companies that the insured maintains adequate records of its collections. Underwriters will not require the college or university to provide a complete inventory of every object it owns or has on loan. Typically, underwriters require a review of the highest valued works from collection records located in primary campus locations. To protect the institution from risk of loss, these collections should be periodically inventoried and the records updated for accuracy.

    To better understand the extent of your current expo-sure, it is recommended that risk management, in concert

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    Anne Rappa, Jeff Minett, Adrienne Reid, Linda Sandell, Lynn Marcin, Sarah Barr, Charles Harrison, and Deborah Peak, Huntington T. Block Insurance Agency, and Simon Hornby, Crozier Fine Art Services

    The Fine Art of Insuring Fine Art:How to Create a Fine Art Insurance Program that is a Masterpiece

    FIGURE 1: SAMPLE PROPERTY INSURED LANGUAGE

    Fine Art means paintings, etchings, drawings, photographs (including their frames, glasses and shadow boxes), rare books and manuscripts, and other bona fi de works of art, or rarity, historic value.

  • 94 URMIA Journal 2012

    with the college or universitys insurance broker, conduct a campus-wide survey asking each department head to identify and provide values for any ne arts for which they are responsible.

    Department Fine Art SurveyA ne art insurance policy does not typically contain a co-insurance provision. It is important that there be an intelli-gent exercise conducted to determine an appropriate limit of insurance. Underwriters typically request approximate collection value and the value of the top items associated with the collections. College or university risk managers should know where their institutions exposures are and what the approximate total values are of individual pieces or collections at each location to appropriately document a loss in the event of a claim.

    Th e institutions known collections, such as those in the campus museum, are obvious. Begin by reaching out to the departments housing other collections to get more detailed information about their ne art exposures and protection e orts. Each department housing artwork should maintain an updated artwork inventory, facility report, and art handling procedures on le. Th e risk man-agement department can work to identify the top locations that have reported signi cant artwork values so you can work with your insurance broker to ensure that the proper coverage limit and protections are in place.

    Your survey should seek to answer the following questions:

    Does the department have any ne arts, historic, rare, or unique collections?

    Does the department borrow any works of art from others for purposes of exhibition or academic research?

    What are the speci cs of each piece of art, sculp-ture, artifact, etc.? Descriptions should include such details as the name of the artist, its title, the year it was produced, the medium, dimensions, and, if possible, a photo.

    Where is each piece of ne art located? Provide the building, its address, the department head, and his or her contact information.

    What is the total value of the collection? If the respondent is unsure of the collections value, disclose this and encourage best guess estimates to

    give risk management a rst step in the informa-tion gathering process.

    How is the collection protected from damage occurring from re, water, extreme temperatures, and theft?

    Where is warehousing located, and how is the property protected?

    Periodic UpdatesAfter conducting the preliminary survey, the risk manage-ment department should maintain periodic communica-tion with all departments that have a ne art exposure to ensure that the information is current. Many college and university risk management o ces require an an-nual update from each location approximately 90 to 120 days before the ne art insurance policy renewal. Th ese updates should revalidate the total values of the objects and include each locations re, security, and protection de-tails. Th ese periodic updates can help remind department heads of the importance of maintaining updated collection inventories and give them the opportunity to inform risk management of any major changes, such as acquiring new collections or deaccession of valuable objects.

    Communication is critical when buildings are under-going construction or major renovations that cause objects to be moved, whether to another campus location or o -site. It is important to inform your broker and underwriter of any construction project that may have a direct impact on any particular collection or valuable object.

    Your all-encompassing survey and periodic updates will help you become better informed of campus-wide collections in known and other locations and changes to collection values so you can update your coverage with your insurance broker. Th ese simple recommendations put you in the position of taking a proactive approach to risk management so that you will not have to worry should a claim occur.

    Special CollectionsCommonly located in campus libraries, special collec-tions are usually kept in closed stacks which are physi-cally segregated from the general circulation materials. Th e objects in special collections do not circulate and are usually stored in areas where temperature, humidity, and light levels are carefully controlled and monitored. Th e

  • 95URMIA Journal 2012

    rarest, most valuable, and most fragile books, manuscripts, and archival materials are often housed in separate vaults within the secure special collections area. Most often there is special security in the form of upgraded alarm systems, cameras, and closed circuit television to protect them from unauthorized access, theft, and vandalism.

    Campus libraries strive to nd a balance between accessibility and preservation of these special collections. As a result, access to these materials is usually well-controlled and monitored. Typical security standards restrict access to special collections to quali ed students and faculty for research who must estab-lish borrowing privileges by presenting identi cation, letters of reference, or oth-er criteria in order to gain access. Materi-als are usually requested in advance from special collections librarians. Objects are usually viewed in special reading rooms monitored closely by special collections sta . In addition, purses, backpacks, and coats are checked or left outside of the reading area as a preventative security measure. Often the use of gloves is re-quired while handling the objects and the use of photography and writing imple-ments is generally prohibited.

    Special collections typically fall into the following categories.

    Rare BooksTh is special designation is used for books that require special handling and/or security due to age, historical importance, physical features, or sensitivity. Rare books may have special bindings, illustrations, maps, or ownership history. Th ey may be too fragile to circulate. Designation as a rare book does not necessarily indicate that it is old or mon-etarily valuable, but rather it may be a book with research or intellectual value that would be di cult or impossible to replace. First editions and limited editions may also be designated as rare books.

    ManuscriptsEarly manuscripts are original letters and documents written by hand, often on papyrus or other materials that are no longer in general use. Modern manuscripts may be created using more recent tools, such as e-mail, word processors, or other electronic tools. Manuscripts may also contain material in other format such as posters, photo-graphs, recordings, and videos.

    Historic ArchivesArchived o cial records of a govern-ment, organization, or institution may contain letters, memos, reports, printed publications, statistical data, photo-graphs, videos, audio recordings, and physical artifacts. Modern archives may include more formats, including word processed documents, e-mail, digital im-ages, and databases.

    Th e ne art insurance policy can also extend to:

    Commemorative Donor Plaques, Alumni Walls, and Stained Glass WindowsUsually, stained glass windows will be inventoried on the ne art form and may have a higher deductible for loss or damage.

    Gems, Jewelry, Natural History Objects, and Scientifi c CollectionsEven though a ne art policy provides protection for works of art, or objects

    that are unique, rare, or have historic value, the policy can also extend to insure other valuable objects if certain security and/or underwriting standards are met.

    Artist in Residence Programs Many universities and colleges host an artist in residence program. Th e policy can be endorsed to speci cally cover the visiting artists supplies and their commissioned and non-commissioned works in progress and when com-pleted.

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  • 96 URMIA Journal 2012

    Student, Alumni, and Faculty Art Many artists have not established themselves as market-able and, therefore, it is di cult to con rm the artworks value since nothing of comparable value exists. Because of this, many institutions do not provide insurance coverage for student created artwork. If a college or university is hosting an exhibition of artwork, it is best to have a loan agreement between the institution and the student artist that explicitly states that the institution is not liable for any loss or damage or alternative language clearly express-ing a clear dollar value assignment. In the absence of a market value that can be supported by sales history or commercial records, dollar value attribution could represent the cost of materials and labor.

    Step #3: Assess the Institutions Contractual Responsibility to Insure Property of Others If your institution borrows objects for exhibitions, research, or study on a long- or short-term basis, a loan agreement should be in place for each individual loan. On a typical stand-alone ne art insurance policy, the basis of valuation of the artwork is the amount agreed to via the contract.

    It is imperative that long-term loans that have been at the institution for many years be periodically updated by the lender and the college or university to assure that the stated agreed value is current and to avoid any disagreements in the event of loss or damage to the art. Written or elec-tronic records should be accessible to authorized parties, and it is highly recommended that a copy of the inventory is kept o -site.

    In the past decade, loan agreements between a bor-rower and a lender have become more complex and, at times, more di cult to implement. Th e loan agreements importance has become heightened as the values of art and collections have signi cantly appreciated, as has the pros-pect of potential liabilities being assumed during the loan transaction between parties. Speci c detail in relationship to this subject can be found as Appendix A of this article.

    Step #4: Assess the Value of the Universitys Fine ArtsSome members of the arts community, such as curators and academicians in museums and universities, may deem that it is not their role to assign monetary values on works of art. Th is is understandable as their primary mission is to assess the importance of works of art in terms of cul-tural, social, historic, scholarly, and aesthetic signi cance. However, the ne and decorative arts, the rare books and manuscripts, and all other collectibles that belong to a college or university (or are on loan) represent signi cant

    nancial assets and liabilities. As such, it is vital that a college or university has specialized ne arts/collections insurance in force, which will provide not only ac-curate nancial protection but also added value services for the ultimate preserva-tion of the object.

    Appraisals require time, attention, and funding. Due to the sheer volume of individual items that are held as part of individual collections, few museums are able to understand the total current market value of their collections. Th ere-fore, few institutions insure their ne arts and special collections to the total value of their collection. However, having a proper appraisal conducted is very useful in determining appropriate insurance limits. Instead, the goal is to determine the worst possible scenario if a particular gallery, collection, storage area, or o -site facility was completely destroyed. One

    part of this study is to arrive at the value exposed. Obtain-ing appraisals as part of this study is prudent.

    If a college or university is unable to a ord a complete appraisal, they may have access to some funding. Many institutions have researched and have found resources available that will provide nancial support for speci c appraisal and conservation programs. Th ese funds are granted to show the importance of the collections, both nancial and as a part of the educational experience. Th e showcasing of these collections can attract additional gifts and funding.

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  • 97URMIA Journal 2012

    Colleges and universities may seek the assistance of a quali ed appraiser to determine:

    Retail replacement value for insurance Retail replacement value when loaning art to

    another institution Current market value subsequent to a claim Fair market value for estimate revenue for deacces-

    sioning purposes Fair market value of an art donation to a charitable

    institution

    Selecting an AppraiserAs with any nancial investment, it is recommended that three sources are consulted. Th e appraisal process is a working relationship; proper quali cations and experience are imperative. Compatibility with scheduling and project management style should also be taken into account.

    De ning the project will determine what type of specialist is needed. If you require old master paintings valued, you would need a highly trained specialist in that area. If the project is more for inventory purposes, then a generalist may be suitable. Hiring the most appropri-ate appraiser reduces the amount of time required to research the items and the current market so that even if the appraiser charges a higher hourly rate, it could be less expensive in the long run.

    FIGURE 2: FINDING A CERTIFIED APPRAISEREach of the following professional organizations has a

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    ORGANIZATION WEBSITE

    Appraisers Association of

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    Considerations When Choosing an AppraiserQualifi cationsCareful consideration should be used for getting the most quali ed person in their area of expertise. For a large appraisal project, a rm with many experts in di erent specialties is recommended. Appraisers should comply with USPAP, a 15-hour continuing education course and test which they complete every two years. Appraisers should not have any nancial interest in the property for which they may appraise.

    Fee Schedule Is the fee based on an hourly basis or per item basis? Th e fee should not be based on a percentage of the outcome of the nal value as this poses a serious con ict of interest.

    Additional ServicesOnce the appraisal has been delivered, it is preferable to work with an appraiser willing to provide updated values at your request. You want a professional who will notify you if there is a dramatic shift in the marketplace which requires updated values for the items contained in the appraisal report. Likewise, you want an appraiser who will make conservation treatment recommendations, provide conservation referrals, and seek authentication from the appropriate artists estate or seller/expert.

    Appraisal Report1

    Th ere should be a clear statement of value, not a range, and the valuation method used must be identi- ed. Th e description of the items should be speci c enough that the items can be identi ed by the end user. Any condition issues need to be disclosed. Th e appraisal can be delivered as a hardcopy, digital CD, or searchable/updatable database. Items can be grouped by location, type of property, or values. You may be provided with a preliminary report prior to the nal document and given an opportunity to discuss the ndings.

    Additional Report OptionsPhotographs or images may be included. Th e cost of frames and mounts may be included or broken out from the replacement value.

  • 98 URMIA Journal 2012

    Preparing for an Appraisal Adequately preparing for an appraisal assures a productive discussion of the process and nal report. By providing the appraiser with all relevant documentation, one is more likely to receive accurate valuations and save additional research time which can reduce the appraisal costs.

    Prior to an appraisal, compile the following information:

    Disclosure of ownership Bills of sale/invoices Inventory with acquisition date,

    source, and cost Insurance schedules Photographs/images Provenance and loan history Previous appraisals Authentication documents Condition reports/conservation

    reports Location of items Contact person who will show

    items Permission to remove property

    from cases or from walls so that items can be inspected

    Appropriate Valuations Th ere are three approaches to valuation: income, cost, and comparative market data. For ne arts and collections, use the comparative market data approach to determine the price one would have to pay for another by the same artist, dates, media, size, and quality. Once suitable comparable sales data is evaluated, the appraiser describes why these examples are relevant.

    Step #5: Assess Probable Maximum Loss or Consider Employment of a Loss Prevention ConsultantProbable maximum loss (PML) is based on the concept of the largest possible monetary loss resulting from a catas-trophe, whether natural or man-made, on the assumption that passive protection features function, such as rewalls, automatic re doors, and a response from the local re de-partment, together with the proper functioning of most, if

    not all, active suppression systems such as sprinklers. Th is loss estimate is normally less than the maximum foresee-able loss, which assumes all systems fail. It is also known as the maximum credible event. For example, the event could be a natural disaster, such as a hurricane, tornado, ood, or other extreme weather, or a disaster resulting from an explosion, re, chemical release, burglary, theft, or a terrorist attack.

    PML is usually calculated as a percentage of the total value when exposed to a maximum cred-ible event. Th e PML would be expected to be lower than the total exposed value because it is assumed that a total loss would be extremely unlikely since not all protective features of a facility would fail at the same time or the collection would be spread between di erent buildings, galleries, or discrete areas of activity.

    When a quali ed loss prevention consultant assesses the PML, he or she should consider the possibility of a re spreading from one gallery to another or from one connected building to another. For example, the consultant should consider the level of re resistance of the walls to prevent the spread of a re, whether doors between galleries auto-matically close when the smoke detection system activates, and whether a sprinkler system exists and what type of system it is.

    Step #6: Put Risk Control Measures in Place

    Considering your PML can help you evaluate a wide range of risk control and risk transfer measures to determine:

    1. What is within your control and can therefore be managed by appropriate procedures or investment in equipment

    2. What is outside your control and requires you to accommodate those exposures and have both proactive and reactive measures in place

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  • 99URMIA Journal 2012

    Devise a checklist to include:Location Local hazards: oil re nery, airports, military instal-lations, power plant, oil recovery depot, within a 100-year ood plain, below dam in river, beside levee, earthquake zone, brush res, tornados, hurricanes, etc.

    Staff Recruitment procedures, background checks, training, supervision, etc.

    Facility Construction/structure, re rating, adjacent build-ings (linked or standalone), shared, re breaks/zones, roo ines, water pipes, waste pipes, electrical panels, etc.

    SecurityPhysical protection (doors and windows), locks, bur-glar alarm system, CCTV system, access control, key controls, security and police response times, manned security, etc.

    FireSmoke detection, automatic sprinkler and/or spe-cial protection systems, hand held extinguishers, re department response times, etc.

    EnvironmentHVAC design and redundancy, monitoring and alarms, response times, spare parts, etc.

    Information Technology (IT)O -site backup, rewalls, password controls, inven-tory management updates, automatic aggregation by value, etc.

    CollectionType of art, locations, o -site storage, loans, installation hardware, type of plinths for sculptures, external/internal, installation anchors, combustibility, values by location, etc.

    PlanningEmergency response, business continuity, local and federal resources, local authority liaison (police, re, emergency management), restoration experts, etc.

    At the end of this exercise, which should be conducted annually, your institution should have a far greater insight into the overall risk pro le and available risk transfer and loss prevention strategies. Th is should enable you to devise risk scenarios that provide for both the least destructive and most likely events and the most extreme and the least likely catastrophic incidents. Computing the probability of each event can be based on a combination of publicly available data, experience, expertise, and common sense.

    Step #7: Procure the Proper Fine Art InsuranceFine art insurance is underwritten by a few select insur-ance companies. To receive a ne art insurance quote, you will need to provide:

    An approximate total value of the college or uni-versitys ne art collection

    A copy of the museum/gallery/special collections General Facility Report (GFR), which is a docu-ment available through the American Association of Museums (www.aam-us.org)

    Th e top 10 to 30 highest valued objects in the col-lege or universitys collection

    Th e construction, occupancy, protection, and value information per location with major exposure on and o campus

    Th e college or universitys ne arts loss history over the past ve years

    A list of outdoor sculptures with values and pro-tective measures that are in place

    Con rmation of security and access protocol for access to rare books, manuscripts, and materials

    Deciding Between Fine Art Policy FormsIn the simplest sense, there are two ways to secure ne arts insurance. One is a rider attached to the college or universitys property insurance. Th e other way to cover ne arts is through a separate standalone policy not tied to the institutions other coverage.

    Which is better? Traditionally, a standalone policy o ers broader protection, has less exclusions and coverage limitations, and has more coverage options. Th e typical standalone policy o ers a much lower deductible. Another reason to opt for the standalone policy is, if your college or university has a museum associated with it, it typically has an obligation to represent all claims led against its

  • 100 URMIA Journal 2012

    insurance policy as part of a standard facilities report that is exchanged in loan requests.

    A general commercial property and casualty insur-ance policy available in the market place is not designed to address the uniqueness of works of art. By comparison, a specialized ne arts insurance policy will greatly enhance coverage as follows:

    All Risk Blanket coverage (including accidental damage) over all college or university premises, subject to standard policy terms and conditions and very few exclusions

    O -site, o -campus storage facilities, or any other venues included in the blanket coverage at no ad-ditional charge (subject to security information)

    Broad policy language (in the college or universi-tys favor) without restrictive terms and conditions

    No co-insurance clause under specialized ne arts coverage Some standard property insurance policies require a co-insurance clause that states that, at the time of loss/damage, any property that is not insured for an amount close to its actual cash value or replacement cost will be paid at an amount less than the full cost of the loss)

    Automatic reinstatement of policy limit following loss/damage

    Highly competitive rating (subject to loss history and museum standard security in force)

    Usually a $1,000 deductible on owned property; zero deductible on property in transit; zero de-ductible on unowned/loaned works of art

    Supportive valuation clauses at the time of loss/damage:

    Current Market Value on owned property, gifts, property to be acquired, or jointly owned property

    Agreed Insurance Value on loans/unowned art property

    May not require detailed reporting of values, which would be a costly and highly time-consum-ing exercise for a college or university. Instead, specialized ne arts underwriters require that the university submit a list of the top 10 to 30 objects in the collection and that they maintain accurate and current inventory records and loan agreements to be available at the time of loss/damage.

    In the event of partial damage, claim settlement based on cost of restoration/conservation plus any applicable depreciation in value

    Loss buy back provision if a stolen item is later recovered

    Automatic coverage on newly acquired items Automatic Waivers of Subrogation to bailees

    hired by the institution, such as professional ship-pers and packers

    Underwriters acceptance of an independent and specialized ne arts loss adjuster to provide a re-port and comment on value following loss/damage

    To achieve the specialized coverage features above, as well as many other client services, it is highly recom-mended that a college or university contact a ne arts insurance broker or agent with an established reputation in institutional collections risk management. Th is agent will be a resource to the college or university because of their experience in insurance policy review for outgoing loans, incoming loan agreement contracts that can come with a host of varied insurance requirements, personalized claims handling, and assistance in matters such as training, advice, and education for sta and faculty around these issues.

    Your safest betthe one that gives the college or uni-versity the most protectionis to purchase a standalone ne arts policy.

    What Your Fine Art Insurance Policy Should IncludeIdeally you want to work with an insurance broker that specializes in ne art coverage. Working closely with your sta , their specialists can design an insurance plan that responds to your institutions speci c requirements and procedures.

    Policy features should include: All Risk Coverage All possible risks of loss are

    covered, except for what the policy speci cally excludes. Typical exclusions include wear and tear, inherent vice, war, nuclear disaster, and loss sus-tained during the repair, restoration, or retouch-ing process. Th is means that losses such as water damage due to a ood, breakage, damage during shipping, and mysterious disappearance are all covered.

  • 101URMIA Journal 2012

    Property Insured It should provide the broadest coverage available and include permanent col-lections and temporary loans. It may include the items listed under the Sample Property Insured Policy Language listed in Step #1.

    Schedules and Blankets You have two options for the amounts of coverage you place on the col-lege or universitys re arts. One option is to schedule items, which means you can insure them each individually on a schedule that becomes a part of the policy. Th e schedule lists each item, gives a brief description, and provides a separate insurance amount for each. Th e other option is to use a blanket approach that places an insurance limit on all of the items at a particular location.

    Worldwide Territory Th e poli-cy should pay for loss or damage to ne art or objects which reside at your permanent collection, are on loan to others, on loan to you, in storage, in transit, or on tour worldwide.

    ConclusionAs you hurry o to your meeting on campus, you tell your distressed colleague on the phone not to worry. Surveying the various campus departments was a bit of work, and going through the appraisal process, putting risk management con-trols in place, and procuring a standalone ne arts insurance policy took time. However, at moments like this, you realize it was all worth it. Th e cracked Tif-fany stained glass window in the engineering building will be repaired, and whatever water damage exists in the base-ment will be covered. Risk analysis and specialized ne art insurance are ways to ease your peace of mind.

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  • 102 URMIA Journal 2012

    About the AuthorsSarah Barr, CIPS, CIPM, assistant vice president, San Francisco, joined Huntington T. Block in 2004 as man-ager of the San Francisco o ce. She works with artists, collectors, galleries, and museums and has participated on several panels related to art, insurance, and legal issues. Ms. Barrs job history includes management, underwrit-ing, claims, and loss prevention experience at AXA Art Insurance and as a manager at Art Chicago. Ms. Barr received her MA in contemporary art at Sothebys Insti-tute and continues coursework in art authentication and conservation issues at New York University as a student a liate with the Appraisers Association of America. Ms. Barr is also a member of the International Foundation for Cultural Property Protection.

    Charles Harrison, senior vice president, New York, has dedicated himself to a career in ne art insurance. For over 25 years, Mr. Harrison has been providing the worldwide arts community with underwriting and broker risk man-agement expertise. His clients include museums, private and corporate art collectors, universities, artists, traveling exhibitions, commercial art dealers, and art transporters. Mr. Harrison is currently working out of Huntington T. Blocks Texas o ce but is moving back to New York City, an o ce he helped found. Mr. Harrison received his BA from Georgetown University and also attended Sothebys Works of Art course in London.

    While the other contributing authors are all employees of Huntington T. Block, Simon Hornby is the president of Crozier Fine Arts, the industry leader in ne arts storage, transportation, and art collection management. Before joining Crozier, Mr. Hornby was senior vice president and executive director of Global Risk Partners, an internation-al risk control and loss prevention rm specializing in ne art and valuables. He is a recognized expert in developing risk assessment programs and mitigation strategies and has spoken at a variety of international and regional con-ferences. Raised in England, Mr. Crozier has worked in London, Hong Kong, Bangkok, Miami, and New York.

    Lynn Marcin, senior vice president, Baltimore, brings to Huntington T. Block a wide range of art and insurance expertise. For the past 19 years, Ms. Marcin has been in the ne art insurance business specializing in large mu-seums, universities, and exhibitions. Customer service is among her top priorities at HTB, along with marketing to new and existing clients. Previously, Ms. Marcin spent 12 years working for two commercial galleries in Baltimore as registrar and director. Ms. Marcin holds a BA in ne arts with a major in photography from the Maryland Institute College of Art. Ms. Marcin won the Risk & Insurance Magazine Power Broker Award in 2009, 2011, and 2012.

    Je Minett, senior vice president, New York, began working at Huntington T. Block 11 years ago, where he manages ne art insurance for museums, universities, commercial galleries, corporate collections, and public entities. Mr. Minett has spoken on insurance panels for the Smithsonian Institution, Mid Atlantic Association of Museums Speakers Series, Association of Midwest Mu-seums, Appraisers Society of America, and the Heritage Emergency Response Alliance. He has also worked on behalf of the National Trust for Historic Preservation and the American Association of Museums. Mr. Minett has his BS in urban planning from Virginia Tech. He won the Power Broker Award in 2010 and an Honorable Mention in 2011 from Risk & Insurance Magazine.

    Deborah Peak, senior vice president, Washington DC, has been a ne art insurance broker for more than 30 years, with experience as an underwriter, claims manager, instructor, and account manager. At Huntington T. Block, Ms. Peak works with museum clients and is the under-writer for the small museum and conservator program. She also trains and acts as a resource for employees, as well as backs up the claims department. Ms. Peak assisted and contributed to the Risk Management chapter of the American Association of Museum Press publication, Museum Registration Methods, by Rebecca Buck and Jean Gilmore.

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    Anne Rappa, senior vice president, New York, has more than 15 years of experience providing ne art insurance to some of the largest museums, auction houses, art deal-ers, and private collectors in the United States. She has worked with Huntington T. Block for the past eight years, where she arranges and negotiates favorable insurance products and pricing for large museums, art dealers, and corporate and private collections. Ms. Rappa also man-ages HTBs relationship with professional associations, such as the University Risk Management and Insurance Association (URMIA) and the New Art Dealers Alli-ance. Prior to coming to HTB, Ms. Rappa was the senior ne art insurance specialist for Marshs US operations and the manager of Fine Arts Risk Managements New York operations. Ms. Rappa holds a BA from New York University in art history and English literature. Adrienne Reid, CIC, assistant vice president, Houston, provides tailored ne art Insurance coverage and respon-sive service to a number of Huntington T. Blocks clients, including universities, museums, state entities, private collectors, galleries, and artists. In 2008, Ms. Reid opened the Houston o ce, where HTB services its clients in the central part of the United States. In 2010 and 2011, Ms. Reid won the Power Broker Award in the Fine Art category from Risk & Insurance Magazine. Ms. Reid has her BA in art history and political philosophy from the University of Dallas and recently received her MBA from Tulane University.

    Linda Sandell, CPCU, AMIM, senior vice president, Washington DC, has over 35 years of experience in the insurance industry, covering all phases of underwrit-ing and account management. She has an extensive background in all lines of insurance and has earned the designations of Chartered Property and Casualty Under-writer and Associate in Marine Insurance Management from the Insurance Institute of America. Since 1992, Ms. Sandell has specialized in ne art insurance. She currently serves as HTBs chief underwriting o cer. As part of the underwriting team at HTB, Ms. Sandell brings with her a wealth of experience and a special commitment to service to her clients.

    Endnotes1 Elements of a Correctly Prepared Appraisal, Appraisers Association of

    America, http://www.appraisersassoc.org/index.cfm?fuseaction=page.

    viewPage&pageID=679&nodeID=1.

  • Art is a step from what is obvious and well-known toward

    what is arcane and concealed.

    KHALIL GIBRAN (18831931),

    LEBANESE-AMERICAN ARTIST, POET, AND WRITER

  • The URMIA Journal is published annually by the University Risk Management and Insurance Association (URMIA), PO Box 1027, Bloomington, IN 47402-1027. URMIA is an incorporated non-pro t professional organization.The 2012 URMIA Journal was edited by Christie Wahlert, URMIA, Blooming-ton, Indiana; the covers were designed by Ellen Rising Morris of Eighth Day Creations, Wheaton, Illinois; and the URMIA Journal was printed at Indiana University Printing Services, Bloomington, Indiana.There is no charge to members for this publication. It is a privilege of mem-bership, or it may be distributed free of charge to other interested parties. Membership and subscription inquiries should be directed to the National Of ce at the address above. LEGAL NOTICE AND COPYRIGHT: The material herein is copyright July 2012 URMIA; all rights reserved. Except as otherwise provided, URMIA grants permission for material in this publication to be copied for use by non-pro t educational institutions for scholarly or instructional purposes only, provided that (1) copies are distributed at or below cost, (2) the author and URMIA are identi ed, (3) all text must be copied without modi cation and all pages must be included; and (4) proper notice of the copyright appears on each copy. If the author retains the copyright, permission to copy must be obtained from the author.

    Unless otherwise expressly stated, the views expressed herein are attributed to the author and not to this publication or URMIA. The materials appear-ing in this publication are for information purposes only and should not be considered legal or nancial advice or used as such. For a speci c legal or nancial opinion, readers should confer with their own legal or nancial counsel.

  • URMIA National Of ceP.O. Box 1027Bloomington, Indiana 47402www.urmia.org

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