World’s priceless exhibitions get clear cover from Lloyd’s
30 November 2007
Some of the most famous exhibitions in the world are being covered in the Lloyd’s market with the focus on ensuring the policyholders know exactly what is covered.
In what may be a first for a Lloyd’s syndicate, Novae has been adopting a proactive approach with the exhibitors to provide a clear understanding of when a claim will be paid if disaster strikes.
The underwriting group lead a policy for a display of 116 of the world famous terracotta warriors, which are on display in Kunsthalle Leoben, Austria, and are part of the insurance market which is covering the display of artefacts from the tomb of boy pharaoh Tutankhamen, and are set to cover a display of three ancient sacrifice victims which have been found frozen high up in the Andes mountains.
Jonathan Cripps, Unit Head for Fine Art and Specie at Novae, said the three risks have offered three different challenges.
“The Terracotta warriors are one of a group of five which have been found in China,” he explains. “They have been loaned for exhibition in Austria from the Xuzhou museum and as you would expect having been buried for a considerable number of years they have not escaped without some wear and tear and damage.”
Novae took a proactive approach to the risk sending a specialist loss adjuster out to China to photograph each of the warriors to highlight their condition before transport.
“We wanted a clear idea regarding the condition of the pieces and to discuss at the outset with the client what constitutes a valid claim. Many of the pieces have been repaired previously and we explained that if, for example, one of the repaired seams came loose in transit then this would not be the trigger for claims payment for depreciation in value. This may be a new approach, but we wanted the client to have a clear understanding of when insurers would make a payment should a claim be made.”
The artefacts which are on display in London from the tomb of Tutankhamen could be regarded by many as priceless.
“They are unique and as such insurers have agreed with the policyholder a value which reflects their worth and cultural significance,” adds Cripps. “Initially we were concerned at the site of the exhibition as there was a high profile attempt at a robbery at the O2 arena some years ago. However we liaised with security experts and visited the site and have to say the organisers have done a tremendous job. We are part of a market which will insure the risks around what is a fascinating exhibition – one of the most famous figures in Egyptian history.”
The insurer is also in discussion over the insurance for the three child victims of ancient sacrifice which were found 21,000 feet up in the Andes and are set to go on display in a specially made museum in Argentina.
“The three children were preserved because of the fact they were frozen,” says Cripps. “It means that the museum they have constructed to house the three bodies is designed to keep them at a specific temperature, replicating the conditions at high altitude.
“Should there be a power failure and the temperature rise then there will be some danger of the condition of the bodies deteriorating.
“We have spoken to the museum and discussed the issues and reached a point where they understand the level of deterioration necessary for the insurance cover to pay a claim for depreciation in value. Again we have been very proactive in terms of ensuring that the policyholders are quite clear of the circumstances of a claim.”
He continues: “The approach is not one we have heard of before but we were keen to ensure that there could be no ambiguity as to how and when a claim could be made. It is part of what we believe we have to do to avoid disputes over coverage at a later date. We believe that the proactive approach is the best way to bring clarity to the client, to the policy, and the coverage given.”
Last updated on 30 Nov 2007
