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Handbook of Business Procedures

Date published: 
Last revised: 
Issued by: 

March 18, 2011
March 18, 2011
Risk Management

 

Part 19. Risk Management - Table of Contents


19.1.4. FINE ARTS INSURANCE

A. General Information

The University of Texas at Austin has its own fine arts policy, which provides coverage for paintings, etchings, drawings, photographs (including their frames, glass, and shadow boxes), rare books and manuscripts, numismatic objects (i.e., money, coins, etc.), rugs, tapestries, antiques, sculptures, statuaries, ceramics, potteries, porcelain, memorabilia, natural history objects or historical artifacts, archeological objects, video artwork, and other bona fide works of art, rarity, historic value, or artistic merit.

1. Loaned Art

Loaned art must have a loan agreement with the lending institution that assigns responsibility for insuring fine arts that are loaned, including art in transit. Loans may be incoming or outgoing. The university is usually expected to provide insurance for fine arts items loaned to it by an outside institution. When the university loans fine arts items to an outside institution, the borrower provides the insurance. To obtain coverage for loaned art, send an email to the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu. Include a copy of the loan agreement, which should contain a detailed list of the loaned items, along with the description and value of each item.

2. Packing Materials and Other Media

Fine arts items also include nonartistic objects such as packing crates, installation and reinstallation material, and technical equipment including video monitors, projectors, Electronic Data Processing (EDP) hardware and software of a nonartistic value used in association with or as part of an exhibit used in direct association with an installation or exhibition.

3. Exclusions

The following items or situations are not covered by the fine arts policy:

  • Objects that are going through a conservation process.
  • Wear and tear, gradual deterioration, moths, vermin, inherent vice, or loss or damage sustained due to or resulting from any repairing, restoration, or retouching process. Note: This exclusion does not apply when the insurers and/or their representatives have directed repairing, restoration, retouching, or other processes following a loss.
  • War or hostile acts, except with respect to insured property in overseas transit.
  • Intentional or unintentional damage due to nuclear contamination.

Please email the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu for specific questions or further information about exclusions.

B. Transporting Fine Arts Items with a Value of more than $50 Million

Unless an exception is requested in advance for additional insurance coverage, the fine arts insurance policy purchased by The University of Texas at Austin provides up to $50 million coverage for transit on university-owned fine arts on any one conveyance, worldwide. If fine arts are borrowed by the university from an outside institution, the loan agreement should assign responsibility for insuring the items during transit.

Departments must request additional insurance coverage at least five business days prior to transporting fine arts items that have a combined value in excess of $50 million per conveyance (i.e., single vehicle or single bill of lading). This includes incoming items on loan from other institutions.To request additional insurance coverage, send an email to the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu. Risk Management will notify the department when the additional insurance coverage has been obtained. Departments should not ship or receive shipments valued at more than $50 million per conveyance prior to receiving the written approval from the Office of Accounting Risk Management.

Note: If the value of a group of conveyances exceeds $50 million, it is important that the conveyances not travel in a convoy. Instead, each conveyance should be dispatched at a different time, preferably on different days, and the value of each conveyance should not exceed $50 million.

Include the following information in your email request:

  • the statement, "MOVING MORE THAN $50 MILLION IN FINE ART VALUE" (in the subject and the body of the message)
  • name of shipping company (a specialty fine arts shipper is required)
  • dates of shipment
  • total value per conveyance
  • type of vehicle used (e.g., car, truck, train, plane, ship)
  • exhibit name, if applicable
  • description and value of each item being transported
  • beginning location (building or address, city, state)
  • ending location (building or address, city, state)
  • indication of whether the shipment is an inbound loan or an outbound loan
  • how items are packed
  • owners of the items
  • indication of whether the items are intended for storage or exhibition
  • department, contact person, and phone number

C. Fine Arts Acquisitions of $1 Million or More

Within 30 days of acquiring fine arts items totaling $1 million or more in value, send an email to the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu. Include the following information in your message:

  • the statement "ACQUISITION OF $1 MILLION OR MORE OF FINE ART"
  • total value acquired
  • inventory number, value, and description of each item
  • date(s) item(s) received
  • location where item(s) are housed (building or address, city, state)
  • department contact
  • department phone number

D. Fire Protection and other Warning Systems

When fire protection systems, fire alarms, or other security warning systems in the facility will be placed out of service for a period of more than 12 hours, send an email to the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu. Send the notification as soon as possible or five business days before the system will be placed out of service, if the outage is planned. Include the following information in your message:

  • the statement "FIRE PROTECTION AND OTHER WARNING SYSTEMS"
  • description of system disabled
  • date(s) out of service
  • location (building or address, city, state)
  • department contact
  • department phone number

E. Inventory Records and Valuation

Each department is responsible for maintaining adequate inventory records and support documentation, which include the following information:

  • a description of each item
  • pictures if possible
  • date of acquisition
  • location
  • replacement valuation

For replacement valuation, support documentation may include such items as appraisals or recent sales. Support documentation should be maintained off site and separate from the fine arts items.

F. Claims

Immediately upon discovery of a loss, send an email to the Office of Accounting Risk Management at oa.riskmgt@austin.utexas.edu. A police report should be filed, if appropriate.

G. Resources

 

 

Part 19. Risk Management - Table of Contents