Acquiring Coverage for Fine Arts or Other Property Loaned to the University
In most cases, fine arts or other items loaned to and taken into the care, custody and control of the University departments can be provided with coverage through the University's Property Insurance Plan. Personal items belonging to others that are at the University, but where there is no written documentation of being on loan and in the care, custody, or control of the University, are not covered under the University's Property coverage.
For unusual loans, or loans of high value, it is recommended that you contact PLRM at firstname.lastname@example.org or (434) 924-3055 early in the planning process.
Written docomentation of the loan, loan period, and agreement that the University will cover the item is required for coverage, as explained in more detail in the sections below.
Fine Arts and Antiques
In most cases, fine arts and antiques being loaned to the University can be covered at their appraised or stated value by the University’s Property Insurance Plan, if there is an Art Loan and Exhibition Agreement signed by the designated University Signatory in the Controller's Office and the agreement indicates yes, the University to provide Insurance. The Controller's office will include the Office of Property & Liability Risk Management in the contract review so when the agreement is returned to you signed by the Controller's office insurance requirements will have been taken care of. The Art Loan and Exhibition Agreement template and the Art Loan Template instructions are located on the Tax Compliance & Operational Contracts page of the Controller's website.
Other Property Loaned to the University
In most cases, items other than fine arts and antiques on loan to the University can be covered at their actual cash value by the University's Property Insurance Plan.
- These loans require the documented approval of the dean or department head via written documentation between the lender and the University, which establishes there is an agreement that the item is on loan to the University and will be covered by the University's rather than the lender's insurance for a specified time period.
- For information regarding contract review and signature by a designated University signatory, please refer to University Contracts and Agreements.
- For loans where the University will be covering the item during transit when the loan involves sensitive equipment or for values of $25,000 or more, the loan must be reported to the Office of Property & Liability Risk Management prior to finalizing shipping arrangements, by providing the following information:
- The loan agreement
- Details regarding the shipping method
- How the item will be safeguarded
You may be contacted to discuss shipping and insurance issues.
Upon receipt of all items being loaned, a University representative must:
- Personally inspect the item(s)
- Document the condition
- Make the lender aware of any damage
At the end of the loan period, the process must be repeated before releasing the item(s) from the University's care. This is necessary to avoid situations where it cannot be proven whether damages occurred prior to, during or after the University's control of the item(s). These situations can result in coverage denial or the prospect of the University being held responsible for damage that did not occur while in the University's control.
Any damages occurring during the loan period must be reported to the lender immediately and to the Office of Property & Liability Risk Management by following the Report an Incident or Claim instructions. Departments are responsible for paying the deductible which is the first $1,000 per claim. The University is responsible for the next $99,000 of loss. The University's Insurance program begins to pay when a loss exceeds $100,000.
In order for items being gifted to the University to be covered, the gift must be properly recorded by the University as explained in University Policy EXT-006
Assistance is available through the Office of Property & Liability Risk Management for additional questions regarding coverage for items on loan or to discuss particular loans. Contact the main office at (434) 924-3055.