Program information - Canada Travelling Exhibitions Indemnification Program

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Deductible

The Canada Travelling Exhibitions Indemnification Program provides for a deductible based on the total fair market value of the exhibition. This serves to transfer the risk and cost for lower-value claims to commercial insurers, and establishes a shared responsibility and partnership between host institutions and the Government of Canada in the Canada Travelling Exhibitions Indemnification Program.

The deductible covers the entire exhibition, and is not per item or per venue. Commercial insurance equivalent to the deductible may be purchased for each exhibition, or an institution's existing in-house insurance may serve this purpose. If necessary, commercial excess insurance must be purchased to cover the value of objects and appurtenances in an exhibition in excess of the amount indemnified under the program.

The required deductible is calculated as follows:

Information about the calculation for the required deductible.
Total fair market value of the exhibition ($ CDN) Deductible ($ CDN)

$500,000 to $3,000,000

$30,000

$3,000,001 to $10,000,000

$40,000

$10,000,001 to $50,000,000

$50,000

$50,000,001 to $100,000,000

$75,000

$100,000,001 to $200,000,000

$200,000

$200,000,001 to $300,000,000

$300,000

$300,000,001 to $450,000,000

$500,000

$450,000,001 to $600,000,000

$700,000

Indemnity agreement

The indemnity agreement is a contract between the Minister of Canadian Heritage on behalf of the Government of Canada and an owner, or an owner's designated representative, respecting loss or damage to indemnified objects and appurtenances under the authority of the Canada Travelling Exhibitions Indemnification Act. It pledges that the Government of Canada will pay the agreed upon amount, subject to the specified deductible, in the event of a valid claim for loss or damage to an indemnified object or appurtenance. The indemnity agreement includes most standard fine arts policy coverage provisions with some exclusions.

Where the applicant demonstrates that a commitment to indemnity on behalf of the Government of Canada is necessary to finalize a loan or to obtain any of the information or documentation required in the application, a letter of intent may be drawn up. Where a letter of intent has been made, a formal indemnity agreement will be entered into only when all the necessary information has been submitted and accepted by the Canada Travelling Exhibitions Indemnification Program. An indemnity agreement may not be entered into if there are substantial changes to the initial information upon which the letter of intent was based.

Amendments

The indemnity agreement is prepared based on the information supplied in the application. A list of approved object(s) and/or appurtenances with its/their value is attached to the indemnity agreement. The Canada Travelling Exhibitions Indemnification Program must be informed in advance of any changes affecting the time period, venues, list of indemnified objects and appurtenances, and/or the packing, shipping, security, storage, and environmental conditions as stated in the application so that consideration may be given to amending the indemnity agreement if required.

To amend the list of indemnified objects and appurtenances

Requests for additions to the list of indemnified objects and appurtenances must be made with sufficient time allowed for review. For each object or appurtenance to be added, applicants must submit the descriptive information outlined in the application (i.e. artist, title, medium, name of owner, fair market value). Requests for additions to the list will not be approved after the time period of indemnity has begun. The Canada Travelling Exhibitions Indemnification Program must be notified of any deletions from the list so that the amount of the indemnity agreement may be reduced.

To amend the period of indemnity or places of exhibition

The maximum time period of coverage for an indemnity agreement is two years; however, this period may be extended for an additional year once the agreement is in effect should opportunities for further venues for the exhibition or delays in transit occur. The viability of an extension will depend on the availability of the indemnity limit: in other words, the balance of available risk must not have been "used up" by other travelling exhibitions during the proposed extension period.

Requests for changes in time period or in participating institutions must be made with sufficient time allowed for review. A revised application must be submitted that includes all relevant changes (i.e. revised dates of exhibition, transit arrangements, facilities report, loss record, for each new venue).

Condition reporting

Progressive condition reporting is fundamental to the operation of an indemnification program. Condition reports are crucial factors in establishing the time, place, cause, and extent of any loss or damage. It is any difference between the first condition report (when the object or appurtenance passes into the care and control of a participating Canadian institution) and subsequent condition reports that may legitimately be the subject of a possible claim.

The first condition report establishes baseline information that may be used to determine the cause and extent of damage and the amount of depreciation incurred. This report must be filed with the Canada Travelling Exhibitions Indemnification Program within 15 days after a participating institution assumes responsibility for safeguarding an indemnified object or appurtenance.

Subsequent condition reports must be prepared each time indemnified objects and appurtenances are packed and unpacked during the period in which an Indemnity Agreement is in effect. If there is loss or damage to an object or appurtenance that is subject of an indemnity agreement and a claim is filed, the claim must be accompanied by all condition reports that have been completed in respect of the object or appurtenance throughout the travelling exhibition.

Reporting damage or loss

Any instance of loss, damage, or deterioration to an indemnified object or appurtenance during the period of indemnity must be reported to the Canada Travelling Exhibitions Indemnification Program within two (2) business days of its discovery, regardless of whether the scale is sufficient to result in a claim under the program. Since the deductible covers the entire exhibition and is not per item or per venue, each incidence of damage could contribute to a situation that may ultimately result in a claim on the program, even though the individual incident may be minor enough to be within the deductible amount.

The program must also be notified of any loss or damage over $5,000 to permanent or loaned (non-indemnified) objects and appurtenances incurred at each participating institution or storage facility from the date of the application for the duration of the indemnity period. The cause of such loss or damage could have an impact on the overall conditions at the institution or facility, which may affect the care and safety of indemnified objects and appurtenances.

Claims

Where a valid claim of loss or damage to an indemnified object or appurtenance exceeds the deductible, the Government of Canada will cover the liability above the deductible. The owner, or the owner's designated representative, must notify the Canada Travelling Exhibitions Indemnification Program within two (2) business days of discovery of the loss or damage. A claim must then be filed in writing as set out in section 11 of the Canada Travelling Exhibitions Indemnification Regulations.

For a valid claim, payments will be made through the Minister of Canadian Heritage on behalf of the Government of Canada to the owner, as set out in section 12 of the regulations. The procedure for resolving disagreements between the parties on the validity of a claim or on the amount by which the fair market value of an object or appurtenance has been reduced is set out in sections 13 and 14 of the regulations.

No conservation work is to be undertaken on an indemnified object or appurtenance without the consent of the Canada Travelling Exhibitions Indemnification Program unless the case is one of extreme emergency. In such cases, only such conservation work as is necessary to stabilize the object or appurtenance to prevent further damage or deterioration should be undertaken.

Acknowledgment

Exhibitions for which indemnification is granted must acknowledge the role of the Government of Canada in supporting and facilitating the exhibition of indemnified objects and appurtenances. Unless it is agreed otherwise, the following acknowledgment must appear in all published material and announcements regarding an exhibition that includes indemnified objects and appurtenances:

"Supported by the Government of Canada / Avec l'appui du gouvernement du Canada"
Échantillon du mot-symbole Canada avec le fond blanc.

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