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Need Workers' Comp Help? University Business Services © UC Santa Cruz
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Fine Arts Summary: This page provides answers to questions about Fine Arts.
General Policy InformationMost UC Property, including fine art, is "automatically" covered by BUS-28, Property Self-Insurance Program. "Automatically" means that the property does not need to be scheduled to be self-insured. In addition to BUS-28, UC offers Fine Arts coverage through an insurance company. The coverage is described in BUS-1, Fine Arts Program. Generally speaking, BUS-1 offers more comprehensive coverage than BUS-28. For example, BUS-1 covers earthquakes and water damage. If Fine Art is scheduled under BUS-1 the it is not covered under BUS-28. Please note that as of March 2007, BUS-1 is under revision and some information contained within the policy is no longer correct. Carefully note the revision date within the bulletin; if is after March 2007, then you are looking at the revised bulletin. There are two types of Fine Art: The first type of Fine Art is the permanent collection; The Fine Art that is included in the permanent collection is artwork owned by the University. The second type of Fine Art is temporary exhibits; A temporary exhibit is artwork on loan to the University for less than six months. If a temporary exhibit is extending beyond six months then it should be scheduled as part of the permanent collection. Generally, as with all insurance programs, including both BUS-28 and BUS-1, the coverage is subject to the policy provisions. Not every item is covered and not every peril is covered and, therefore, not every loss will be covered. If you need assistance in determining whether coverage will apply under BUS-1, BUS-28 or any other insurance program, please call Jennifer Yeager at 831-459-5154.
Property Eligible to be Insured under BUS-1, Fine Arts PolicyThe fine arts policy covers paintings, etchings, drawings (including their frames, glasses and shadow boxes), rare books, manuscripts, rugs, tapestries, statuary, and other bonafide works of art, or rarity, historic value, or artistic merit. Please note that many items qualify as works of art, or rarity, historic value or artistic merit. For example, furniture, musical instruments and precious gems can qualify. If you are in doubt about whether an item qualifies for coverage under BUS-1, please contact Jennifer Yeager. The fine art must be owned by the University or on loan to the University with a Fine Arts Loan Agreement and Request for Fine Arts Insurance form filled out and on file with Risk Services. BUS-1, Fine Arts Policy ExclusionsSpecifically, BUS-1 is an all-risk policy. This means that unless a risk is specifically excluded then the risk is covered, subject to all other policy terms. Following is a list of excluded risks:
Scheduling Fine Art under BUS-1, Fine Arts Program, Permanent CollectionPermanent collection fine art can be scheduled, taken off the schedule or updated by sending an email to Jennifer Yeager at jyeager@ucsc.edu. The email should contain the following information:
When scheduling fine art as part of the permanent collection, please consider that if the fine art has a value less of than $1,000, then the only time a benefit would be received is if a loss occurred and several items were damaged and the damage totaled over $1,000. Otherwise, you would not receive a benefit for any item with a value less than $1,000, which is the amount of the deductible. Scheduling Fine Art under BUS-1, Fine Arts Program, Temporary ExhibitsAny department receiving fine art on loan should use the Fine Arts Loan Agreement and Request for Fine Arts Insurance form to enter into an agreement with the lender. Submit the form to Risk Services prior to receiving the fine art from the lender. If an exhibit extends beyond six months then the fine art will need to be scheduled as part of the permanent collection, see instructions above under Scheduling Fine Art under BUS-1, Fine Arts Program, Permanent Collection. If a temporary exhibit unexpectedly extends beyond six months, please contact Risk Services. Yearly RenewalEvery year on March 15 Risk Services forwards an updated Fine Arts Schedule to our insurance broker. In preparation for the renewal Risk Services sends the prior year’s Fine Arts Schedule and any updates received throughout the year to each department that has scheduled artwork. The departments review the Fine Arts Schedule and make updates directly to the schedule. The departments return the Fine Arts Schedule to Risk Services after reviewing and making any revisions. Risk Services then updates the master Fine Arts Schedule and submits the Fine Arts Schedule to our insurance broker. Although changes can be made throughout the year, this is an additional opportunity to check the Fine Arts Schedule and make updates. Necessary RecordkeepingIn the event of a loss, the settlement will be based upon the current market value. Therefore, any information including photographs and appraisals that support the current market value will behelpful in the event of a claim. However, the only required documentation is the Fine Arts Schedule that is submitted to Risk Services yearly. The Fine Arts Schedule contains the following information:
Premium CostsEvery year our insurance broker obtains bids for the Fine Arts Insurance. The premium for each campus, and for each department within each campus, is calculated after the insurance is purchased. Therefore, Risk Services cannot tell the department with certainty what the premium will be for the upcoming year. At this time, premium is only charged for the Fine Arts Permanent Collection and not for the Fine Arts Domestic Exhibits. Historically, the premium has
been similar from year to year. Fiscal Year 03-04 Premium: .001573 per dollarTo estimate your premium, multiply .002474 by the total dollar amount of the fine arts scheduled. DeductiblesThe deductible under BUS-1 is $1,000 per occurrence except earthquakes
(only applies to owned objects). Valuing Fine ArtsAll fine arts should be valued at the current market value. Every effort should be made to value the artwork as closely as possible to its current market value. In the event of a loss, payment would be made for the current market value of the fine art, subject to all policy provisions. ClaimsIn the event of a claim, please fill out the claim form as soon as possible and no later than 60 days after the loss. Forward the claim form to Risk Services. Risk Services will record the claim then submit the form to the insurance company for you. Any delay in submitting a claim to Risk Services could affect coverage. Contact Information for Submissions, Updates and Yearly ReportingJennifer Yeager
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