To identify the territory of regulation and tax of a fine art, specie or exhibition risk, consider:
1. The nature of the cover provided;
2. The location of the insured property; and
3. The location of the insured’s residence(s) or business establishment(s).

Fine art and specie
Exhibitions
Public liability and exhibit cancellation

Fine art and specie

Fine art and specie insurance covers physical damage to fine art, specie and similar types of moveable property when it is not in transit.

In most territories, the risk location is where the moveable property is normally situated.

The main exception to this rule is in the EEA where the regulatory risk location for moveable property is the territory where the insured is resident but the tax risk location remains the location of the moveable property. 

If the contract covers moveable property situated in more than one territory there may be multiple risk locations.

Where the moveable property’s location is uncertain or variable, the risk location is the territory in which the insured’s residence or business establishment is located.

Please note: In some territories, e.g. Canada and the US, the location of the insured’s residence or business establishment creates a risk location irrespective of the physical location of the insured property. Consequently, if the insured property is in a different territory from the insured’s residence or business establishment, there are two territories for regulation and tax.  

To determine the risk location for fine art and specie when in transit by land, air or sea or in storage, please see goods in transit, aviation cargomarine cargo and standalone storage.

Exhibitions

Exhibition insurance covers the physical damage to moveable property while it is being exhibited. It may also include public liability and exhibit cancellation. The insured may be the owner of the items or the museum/gallery holding the exhibition.

  • Moveable property

    In most territories, the risk location is where the moveable property is normally situated.

    The main exception to this rule is in the EEA where the regulatory risk location for moveable property is the territory where the insured is resident but the tax risk location remains the location of the moveable property. 

    If the contract covers moveable property situated in more than one territory there may be multiple risk locations.

    Where the moveable property’s location is uncertain or variable, the risk location is the territory in which the insured’s residence or business establishment is located.

    Please note: In some territories, e.g. Canada and the US, the location of the insured’s residence or business establishment creates a risk location irrespective of the physical location of the insured property. Consequently, if the insured property is in a different territory from the insured’s residence or business establishment, there are two territories for regulation and tax.  

Public liability and exhibit cancellation

Exhibition insurance may also cover public liability or exhibit cancellation.

The risk location is the territory in which the insured is resident or its business is established.

If the contract covers more than one individual insured or business establishment and the individual insureds are resident, or the business establishments are situated, in more than one territory, each resident or establishment location will create a separate risk location.


Definition of 'business establishment'

European Union (EU) legislation defines the term ‘establishment’. Outside the EU the term is not so well defined, so in the absence of any contradictory guidance, it is appropriate to follow the EU approach.

Examples of business establishments:

  • subsidiary companies 
  • branches of companies 
  • representative offices 
  • offices managed by businesses’ own staff 
  • tied selling agents 
  • factories and workshops 
  • mines and quarries 
  • oil and gas wells 
  • drilling platforms fixed to sea bed

 

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Risk locator tool

Risk Locator | Establish the location of your risk

Frequently asked questions 

Introduction to Risk Location

What is risk location and why is it important ?

Introduction to risk location

Establishing the risk location

To help establish risk location please consider the questions provided via the link below

How to establish the risk location

Class of business guidance

To help you establish the risk location please consider the class of business

Class of business guidance 

Risk Location Examples

The interaction of different territorial rules can make a given scenario complex. Applying the principles set out will assist market participants in establishing the risk location.

Risk location examples

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