Specific Features of Artwork Loans

The lender (creditor) usually requires that the borrower (debtor) take out an insurance policy. The agreement on taking out an insurance policy sometimes forms a part of the loan agreement, but it is not a rule. The insurance conditions are laid down by the owner of the artwork, e.g. the lender (creditor), who also determines the insured value of the artwork, the transport company and often also the insurance company. Most museums have long-term contracts with particular insurance companies, so it is possible to obtain a discount from them.

In the case of cross-border loans, artworks must be usually insured against all risks and “nail to nail”, which means that the insurance policy covers the transport of the insured artworks from the lender (creditor) to the borrower (debtor), their stay with the borrower (debtor), and their transport from the borrower (debtor) back to the lender (creditor), as well as all natural hazards and climate influences at the agreed insured values, the transport of the artworks between  individual venues of the exhibition and the stay of the artworks at the individual venues. A special insurance policy is sometimes taken out for transportation that is most likely to damage the artworks. State guarantees do not apply to the transport. Each artwork is accompanied by a condition report which describes the condition of the exhibit in detail and documents it by photographs. When handing over the consignment to the transport company, the lender (creditor) has to check the condition of the artwork and confirm it by signing the document. The same is done by the borrower (debtor) upon accepting the exhibit. All this is repeated when the artwork returns to the collection.

An annotated template of an artwork loan agreement can be found here.