Since the first recorded art heist in 1473, when Polish pirates boarded a Florence-bound ship and stole Hans Memling's The Last Judgment, art theft has been a problem for museums and cultural institutions.

It's an expensive one, too. In 2020, thieves in the Netherlands stole Two Laughing Boys with a Mug of Beer by Frans Hals (1626), a work valued at 15 million euros ($17.7 million). Two decades earlier, thieves stole 13 paintings valued at about $500 million from the Isabella Stewart Gardner Museum - a case still, as of this writing, unsolved.

Museum exhibit insurance certainly plays a valuable role when thefts occur. However, it might surprise you to know these attention-grabbing thefts aren't the only or even the first financial risk museums face today.

Comprehensive Museum Insurance Covers Far More Than Artwork and Artifacts

Cultural institutions have a unique responsibility to protect both priceless artworks and the people who come to see them. In addition to theft, insurance for small museums - and large ones - should protect them from a variety of claims such as:

• Flood or fire damage

• Vandalism or damage during transit

• Visitor injuries from slips, falls, and other accidents

• Damage to items loaned out to other museums

Additionally, as museums emerge from the COVID-19 pandemic, they're looking for new ways to bring visitors back and reach a wider demographic. These new efforts often involve new risks their insurance must cover.

Some non-traditional, creative exhibits and events museums now offer include climbing walls, water areas, yoga practices, festivals, and more. Museums are also extending their hours to accommodate people who can't visit during weekdays.

And museums are creating "shareable" and immersive spaces and experiences. For example, the ARTECH House in New York used a laser show to create the sensation of stepping into a spaceship's engine room. An exhibit at the Whitney invited visitors to take part in an in-museum salad-making session. And the Museum of Illusions, The Immersive Van Gogh Experience, and pop-ups like Candytopia continue the immersive trend by offering activities and experiences outside the norm.

To cover risks both old and new, cultural institutions need to think differently about their protection.

Insurance for Museum Collections Must Protect Premises, Property, and People

At Philadelphia Insurance Companies (PHLY), we have more than 30 years of underwriting experience in the public services sector. We offer coverage that goes beyond art exhibition insurance. It's a comprehensive program that truly meets the expanding needs of museums and cultural institutions.

PHLY's standard Museum and Cultural Insurance Program includes:

• General Liability Coverage

  Covers claims related to third-party bodily injury due to slips and falls, as well as damaged museum property or installations.

• Fine Arts Coverage

  Covers valuable items in case they are damaged while on display, out on loan, in transit, or in storage.

• Property Coverage

  Covers buildings, business personal property, and business income against loss due to fire, weather, vandalism, and other threats that can cause costly damage to property and business operations.

• Auto Liability Coverage

  Covers accidents and injuries that happen with owned and non-owned or hired cars, and also covers liability for garages.

Additional coverages such as Liquor Liability, Directors and Officers Liability, and Cyber Liability can be written into policies, along with Special Events Coverage.

Special Events Coverage is for events and fundraising activities outside the museum's typical exposures, such as beer festivals, craft festivals, or concerts.

Special events likely require additional insurance policies that cover:

• Valet parking (Auto Liability)

• Serving alcohol (Liquor Liability)

• Events with a high volume of people (Special Events Insurance)

• Amusement type exhibits, such as tube/water slides, climbing walls, and zip lines (Possible separate General Liability policy and higher Umbrella limits)

• Exhibits that move beyond the institution's traditional boundaries (Fine Arts Coverage or Exhibition Coverage)

• Overnight and day activities for children (Sexual Abuse and Molestation Liability)

• STEM curricula (Educators Professional Insurance)

• Boats, kayaks, and other activities on lakes, rivers, and oceans (Marine/Hull Insurance)

PHLY representatives work with agents and insureds to design policies to cover their collections, buildings and business personal property, and business income.

When one carrier's policy covers the majority of exposures, museum operators can eliminate gaps in coverage, benefit from more competitive premiums, and receive all the coverage support they need in one place.

Count on PHLY's Financial Strength and Risk Protection

PHLY's flexible insurance policies are supported by our financial strength and risk management services. Our AM Best A++ rating demonstrates our financial superiority, as does our place on Ward's list of the Top 50 Property and Casualty insurance companies.

PHLY insureds can also take advantage of our industry-leading risk management solutions, which include:

• Emergency response plans

• On-site consultation to determine slip and fall risks

• Defensive driving training and PHLYTRAC vehicle telematics solution

In short, PHLY can meet all museum exhibit insurance needs, whether the institution is exhibiting million-dollar paintings or hosting a dance class for the community.

If you are a museum operator, inquire with your insurance agent about PHLY coverage.

If you're an agent, please speak directly with your PHLY representative.