Introduction

In some organisations insurance is mandatory, while in others there is a choice of what to insure and when. Insurance can give a feeling of security and there may be concerns that anything less than full cover could be disastrous should anything go wrong. Even if the collection is not insured in situ, full cover is generally thought to be essential when an object is on the move.

However, this is not necessarily the case. Just as home or travel insurance are matters of choice, insurance for your cultural collection can take many forms and may even be dispensed with under certain circumstances. Don't presume that you need insurance, or at least that you need full-value, nailto- nail insurance, at all times and under all circumstances. There is often little guidance on what to insure or whether to insure and without direction, museums often choose maximum cover, if they can. There is often a reluctance to seek alternatives to full market value and all-risks cover.

Insurance companies may count on the anxieties of their customers when promoting their products. By warning of the consequences of being underinsured, they could be seen to be encouraging clients to take out more insurance than they may actually need. But it may not make financial sense for a homeowner to take out flood protection if there are no rivers in the vicinity. In the same way, the need for insurance for cultural items should be considered carefully.

Government Indemnity

The best alternative to commercial insurance in the UK is Government Indemnity (GI). Objects covered by GI are insured, as the Government bears the risk for any loss or damage. It is applicable to objects in exhibitions open to the public and to eligible organisations. All transactions must meet the highest standards in order to keep risks to a minimum and there are terms and conditions.

If you are organising an exhibition, borrowing objects or taking them into your premises for a short period of time, you may be expected to provide insurance or indemnity for the period when the objects are in your care. If the value is low, it might be simpler to insure the items commercially. The items may also be below the threshold for GI cover.