From Gallery to Gaming Floor: Risk Transference in Fine Art Loans for Casinos

Andrew Gristina, Divisional Assistant Vice President, Great American Insurance Group - Fidelity / Crime

In the hospitality and entertainment industry, it is common to borrow valuable objects for public display. These items may include jewelry, couture, memorabilia, and fine art. Such objects enhance customer experience and create emotional connections.

To manage these loans effectively, it is crucial to:

•   Establish a clear and concise loan agreement.
•   Define the responsibilities of each party, especially regarding insurance.
•   Document the condition of items before and after the loan.

Insurance and Risk Management for Loaned Items

When borrowing valuable items, it is essential to have appropriate insurance coverage. This ensures that any damage or loss is adequately compensated. The loan agreement should specify who is responsible for insuring the items and the insured value.

Proper documentation is vital for managing loaned items. This includes detailed descriptions, photographs, and condition reports. Regular inspections should be conducted to ensure the items remain in good condition throughout the loan period.

The Importance of Clear Agreements

Loan agreements are essential for managing the risks associated with borrowing valuable items. By establishing clear terms, defining responsibilities, and ensuring proper documentation, businesses can protect themselves and the items they borrow.

While this may seem like a great deal of work, the old saying holds true: an ounce of prevention is worth a pound of cure. If a loss occurs and there is no clear agreement on which party’s insurance is responsible, or if coverage is insufficient, unresponsive, or not in force, resolving the issue can take months or even years, potentially ending in costly litigation.

Professional Support Tailored Solutions from Fidelity / Crime

The good news is that professionals are available to help. Consult your insurance broker to assist with drafting the loan agreement and verifying appropriate coverage. Engage a professional fine art logistics firm to manage transportation, installation, and condition reporting. While these services may be more expensive than using a standard carrier, they offer the expertise and infrastructure necessary to ensure proper chain of custody and care for valuable property.

Just like the objects themselves, no two fine art or valuable property loans are exactly alike. Securing the right resources and planning ahead are essential to a successful and secure loan process.

Great American’s Fidelity / Crime Division offers limits of up to $50 million for Fine Art insurance, with tailor-made solutions to fit the needs of insureds. From antique furniture and contemporary art to rare books and wine, each collection is unique. Fine Art insurance helps ensure these valuable pieces are safeguarded against loss, theft, or damage. Discover how our team of experts, with their specialized knowledge and passion for the arts, can help provide robust coverage tailored to your unique needs.

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Since 1995 we’ve been insuring clients from crime related losses. We have a depth of experience in both underwriting and claims that is unmatched in the marketplace. Discover how our specialization and expertise provide the advantage to address your unique needs.

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