Information for lenders
Loans from external lenders to the Natural History Museum are vital to the development of the museum’s exhibitions programme. They complement items from the Museum’s own collections helping us to fulfil our mission to create advocates for the planet: individuals who feel sufficiently informed, confident, and motivated to make wise decisions, to get involved, and to use their influence and actions to make a positive difference to the global future. This guidance is written to answer frequently asked questions and to explain the Museum’s approach to incoming exhibition loans.
Due diligence and confirmation of ownership
The Natural History Museum will not borrow any item for exhibition unless due diligence checks have been satisfactorily completed. Due diligence checking involves ensuring that an item has been legally exported from its country of origin, that its provenance is known and in the case of species listed in the appendices to the Convention on the Illicit Trade of Endangered Species (CITES) that all the documentation is in place to show legal acquisition by the lender. We also ask lenders to confirm they are the owner of the item and they have the authority to lend without encumbrances. The Museum applies the same standards to incoming loans as it would to new acquisitions to the collection.
Understanding the provenance of incoming loans is important for three main reasons.
- It ensures the Museum does not unwittingly participate in the illicit trade of cultural property and that it follows Department of Culture Media and Sport (DCMS) guidance.
- The application form for the Government Indemnity Scheme includes confirming information on provenance has been received and approved.
- If Immunity from Seizure is requested in accordance with Part 6 of the Tribunals, Courts and Enforcement Act 2007 (for items emanating from outside the UK only) the details of the lender or those of their authorised agent must be published on the Natural History Museum website alongside full details and an image of the item(s) for immunity to be granted.
The Museum gathers the information it needs regarding provenance through the Natural History MuseumProvenance Questionnaire which all lenders are asked to complete.
UK government indemnity scheme
The National Heritage Act 1980 was passed to encourage the loan of items for public display. One of the Act’s provisions was the Government Indemnity Scheme (GIS); a non-commercial insurance programme to enable Museums and Galleries to mount major exhibitions without incurring the cost of commercial insurance.
Under the scheme, national museums like the Natural History Museum can obtain indemnity from the UK government for items that are loaned for exhibition. It is very unlikely that the Natural History Museum would be able to afford private insurance for high-value items.
What is covered?
Under GIS, the UK Government bears the risk of damage or loss to objects valued at £1001 or more on loan to national museums, and provision is made for compensation in such cases. The valuation of the item(s) must be approved by the Natural History Museum and agreed by the indemnifier (Arts Council England - who administer the scheme on behalf of DCMS) as reasonable. The indemnity is not a guarantee of automatic compensation: like commercial insurance, the indemnifier decides in each individual case as to the appropriateness of repairing or replacing the item(s).
Indemnity covers transit to and from the owners’ premises ('nail to nail') or to and from another exhibition venue, provided that the general transport conditions as defined in the Government Indemnity Scheme Guidelines for National Institutions are met.
While UK indemnity does not cover against war risks, indemnity is regarded as covering losses from civil commotion, hijacking, piracy, or other similar acts of terrorism, as these are considered not to be part of declared war, hostilities, or warlike operations.
GIS does not cover loss or damage to the item(s) arising or flowing from the negligence or other wrongful act of the owner, his servants, or agents; from a pre-existing flaw of the item(s) at the time of its loan; or from a third-party claim to entitlement to the item(s).
Indemnity is granted to the owner of the item(s) provided guidelines on security, transport, environmental monitoring, and control are met. These guidelines are mandatory and are incorporated into the Natural History Museum incoming loan agreement; they are used as the Natural History Museum standard regardless of whether a loan is covered by GIS or not.
Applying for indemnity
The Natural History Museum will apply for UK government indemnity for loans to the Museum. The application will need to include details of the purpose of the loan, a full description of the item(s) to be covered, the owner’s identity, a valuation agreed by the Natural History Museum and the owner (including exchange rates if valued in foreign currency), dates during which the loan is to be displayed, and dates indicating the period during which the cover will apply. Once indemnity is given, owners will be provided with a copy of the GIS Certificate; the original certificate must be held by the Natural History Museum.
Claims
In the event of a claim, the Natural History Museum handles the claim to the DCMS via Arts Council England. The Secretary of State will decide on the eligibility of the claim based on the evidence provided.
Further information on the Government Indemnity Scheme can be found in Government Indemnity Scheme, Guidelines for National Institutions or by contacting the Head of Registry at the Natural History Museum Registrar@nhm.ac.uk.
Condition reporting
A condition check should be completed and documented by the lender in the form of a condition report prior to the item being transported, and the condition of the item is then confirmed once on site. In some circumstances a condition report will be carried out once the object arrives at the Natural History Museum and in these instances the museum will not accept liability for changes in the item during transport.
The condition report is a detailed description of the item including any areas of weakness or damage, e.g., scratches or cracking, the position of labels and identifying marks. It is effectively a statement on the state of the item and is agreed by the Natural History Museum and the lender.
The report is used to record any changes in condition (including any damages) during transport, installation or display and has a vital role to play in the assessment of claims under GIS.
Incoming loan agreement
If the lender does not have a standard loan agreement the Natural History Museum will provide an agreement for signature. The loan agreement sets out what has been arranged between the lender and the Natural History Museum and it includes:
- The title, duration, and main aims of the loan
- Contact information for both borrower and lender managing the project
- The level of care that will be given to the borrowed items including security, transport, and environmental monitoring
- Specific display information, including case spec, mounting, or framing requirements
- The value of items and indemnity provision
- Imaging rights and agreements
- Fees and costs
- A detailed schedule of items that the T&C’s cover
- Any additional terms and conditions agreed with the lender.
The loan agreement needs to be signed off by both parties before the loan can take place. If the Natural History Museum wishes to extend the loan a variation to contract will be issued, including the revised dates, upon approval of the extension.
If you have any questions regarding incoming exhibition loans, please contact the Head of Registry: Registrar@nhm.ac.uk or telephone 020 7942 5712.