Philadelphia Insurance Companies has protected museums and fine arts for decades, but recently seized an opportunity to expand its product to capture more market share. The new form rounds out coverages and provides one-stop shopping.
PRODUCT: Fine Arts Collection
COMPANY: Philadelphia Insurance Companies, a member of the Tokio Marine Group
BEST RATING: A++ (Superior)
AVAILABILITY: Coverage is available on an open-brokerage basis.
FOCUS: Philadelphia Insurance Companies (PHLY) has protected museums and fine arts for decades, but recently seized an opportunity to expand its product to capture more market share.
“Our previous fine arts form provided the needed coverages for our target market of small to midsize regional institutions,” says Darla Kelly, underwriting manager, PHLY. “We wanted to broaden our target market to include the larger museums with significant collection schedules. The new form gives us a comprehensive product with the flexibility to customize coverages to meet the unique exposures of a museum.”
The new PHLY Fine Arts Collection form rounds out coverages and provides the agent with one-stop shopping, which can increase account retention for both the agent or broker and PHLY. The coverage is written within the package policy with a shared single deductible provision. PHLY offers specialized dedicated claims adjusters and experienced fine arts underwriters, and its partnership with Tokio Marine America increases its capacity for fine arts schedules to $100 million per location.
Institutions face two unique exposures that PHLY covers: transit of high-value property and a constantly evolving definition of what constitutes fine arts. As exhibits or well-known pieces tour the country or globe, PHLY’s Fine Arts Collection form provides coverage while in transit. Exposures vary from piece to piece, especially as computer-generated and -controlled art become more mainstream.
Fine arts is often covered separately from the package, but sometimes the agent writing the package for the museum is not the controlling agent for the fine arts schedule. Kelly wants agents and brokers who are unfamiliar with selling fine arts coverage to know that a fine arts schedule should be analyzed and covered differently than other property-casualty exposures.
“We will help them identify exposures, customize coverage and assist them to sell the policy, and give them the peace of mind that the product they’re selling is providing the coverage that their client needs,” Kelly says.
UNDERWRITING: Highlights of the new form include wall-to-wall coverage, including while in transit or on loan, as well as contingent coverage while property is on loan to others and on exhibition; title defense; restoration, retouching and conservation protection; and lock and key coverage.
Capacity to write up to $100 million schedule per location. Shared single deductible when written with PHLY package policy.
MINIMUM PREMIUM: N/A.
TARGET: Art museums, cultural institutions and organizations with fine arts collections, but the coverage could also be applicable to others. “We did not file this product to be used just for our museum program,” Kelly says. “It can complement a majority of the products that Philadelphia writes.”
COVERAGE TERRITORY: All U.S. states except CA, CO, CN, IL, KY, MA, MT, NE, NH, NM, OR, TX and VT.
CONTACT: Robert Groff, assistant vice president, product manager, 610-227-1409; Darla Kelly, underwriting manager, 610-538-2570; Philadelphia Insurance Companies, 1 Bala Plaza, Bala Cynwyd, PA 19004.
Ronimarie Acord is an IA contributor.
