Frequently Asked Questions

1. What is the Government Indemnity Scheme?
2. Does it cost money to use the GIS?
3. Which museums are eligible?
4. If a museum is publicly funded - what is required for approval?
5. What kind of objects can be covered?
6. Will GIS only cover objects which are lent for exhibitions?
7. Does the indemnity cover transport?
8. Does the indemnity scheme specify particular standards of environmental controls?
9. Is restoration or conservation covered?
10. What are the responsibilities of the borrower?
11. How is indemnity arranged?
12. What information is required?
13. What is the value of the scheme to museums?

1. What is the Government Indemnity Scheme?

The GIS is an arrangement whereby the Government is responsible for payment of compensation in the event of loss of, or damage to, objects which are on loan to a museum, gallery or similar institution in the UK.

2. Does it cost money to use the GIS?

No. Museums, galleries and libraries do not have to pay any premiums, but the terms and conditions require the borrowers to accept a minimum liability.

3. Which museums are eligible?

All museums, galleries and libraries which are publicly funded - including local authority and university museums - are automatically eligible, as is the National Trust, but other bodies, such as independent museums, may be approved as eligible. Loans can come from a great number of sources, including private and overseas owners.

4. If a museum is publicly funded - what is required for approval?

Institutions which are not automatically eligible will only be approved in respect of specific loans or exhibitions. To obtain approval it will be necessary to supply details of funding, copies of the Trust Deed, Articles of Association or other documents which lay down the objectives of the body seeking approval.

5. What kind of objects can be covered?

All museum objects may be covered provided that the loan is for the benefit of the public or increase public understanding of the object.

6. Will GIS only cover objects which are lent for exhibitions?

No. Objects may be covered whether the loan is for the purpose of specific exhibitions or for long-term loan.

top

7. Does the indemnity cover transport?

Yes. Providing the Museums Security Adviser approves the transport arrangements, then transport to and from the borrowing institution will be covered. Certain basic conditions must be adhered to. These conditions may be varied with the prior agreement of the Museums Security Adviser.

8. Does the indemnity scheme specify particular standards of environmental controls?

Yes. Environmental controls must provide for the adequate care of the objects on loan and these must be approved by the Environmental Adviser. The lender may specify conditions which must be met.

9. Is restoration or conservation covered?

No. As a general rule, only work required to display the object is covered. For example, the borrower may frame or glaze an item, but work which effectively alters the object, such as conservation or restoration, is not covered. It may be possible in certain specified circumstances for the loan objects to be covered by the GIS while undergoing conversation or other work. We must be consulted in advance.

10. What are the responsibilities of the borrower?

Apart from the need to agree to certain basic conditions (eg transport, security, environmental controls), the borrower must agree to meet, in the event of any loss or damage, a minimum liability of £300 for each object + 1% if the object is valued at £4,000 and above.

11. How is indemnity arranged?

When arranging a loan or exhibition the borrower should consult MLA at the earliest opportunity. MLA will supply an application form which must be completed with full information and returned three months in advance of the intended start of indemnity cover, i.e. three months before collection if indemnity is required ‘nail-to-nail'.

top

12. What information is required?

The application form requires details of the exhibition (or long-term loans) including dates of transport, exhibition dates, full descriptions of objects, names and addresses of lenders, valuations of loans and good quality illustrations of objects. Other information may be required from time to time. The completion of an application form does not guarantee that indemnity cover will be provided. Expert advisers consulted by MLA must approve the lender’s valuation, likewise the transport and security arrangements must be approved by the Museums Security Adviser. For these reasons, it is essential that all applications with full information are made three months in advance of the intended start of indemnity cover.

13. What is the value of the scheme to museums?

It enables thousands of objects to be exhibited around the country and in cash terms it has real value. At a notional rate of 0.5%, a common commercial insurance premium, it saves museums around £5 million a year. Most importantly it facilitates loans and allows bigger and better exhibitions.

top