Museum insurance

For more on this part of the insurance industry: 

1. visit our Entertainment Insurance page for a look at all products in this sector 
2. or focus in on all of the museum insurance products available on IB Markets! 

What is museum insurance? 

Museum insurance protects institutions that collect, preserve, and display cultural, artistic, historical, or scientific artefacts for public learning and enjoyment. It covers risks such as: 

• natural disasters: fires, floods, and storms can damage buildings and collections 
• theft and vandalism: artefacts may be stolen or defaced 
• accidental damage: exhibits can be harmed during handling or transport 
• public liability: visitor injuries may lead to legal claims 
• business interruption: sudden closures can cause economic problems 

The UK has over 2,500 museums, from historic sites to modern digital galleries. Museum insurance secures these facilities from financial loss due to covered incidents. 

The importance of museum insurance in the UK 

In 2023, the British Library suffered a cyberattack that shut down its online services and internal systems. Hackers stole sensitive data and forced the library to take systems offline for weeks. This disruption led to:  

• lost revenue 
• delayed research access 
• costly recovery efforts 

The incident shows the need for strong museum insurance to cover cyber threats, data breaches, and business interruptions. Without it, institutions risk severe financial and reputational damage. 

Museum insurance: industry trends and emerging risks 

More museums now offer virtual tours and online exhibits which increase the need for cyber insurance. Travelling exhibitions are surging and requires cover for artefacts in transit.  

Growing private donations also mean museums must update insurance valuations to reflect new assets and acquisitions. Alongside these trends, museum insurance brokers must focus on issues like: 

• cyber threats: AI-driven phishing and ransomware attacks put museum data in danger 
• artwork valuation disputes: damage claims can lead to legal battles over costs 
• digital skill gaps: staff errors in online operations may cause monetary losses 

Activist protests and vandalism put museum collections and visitors at risk. This strengthens the need for strong liability and property insurance.  

Managing large amounts of visitor data also raises privacy concerns. Brokers should guide museums in securing comprehensive cover to shield against these threats. 

Museum insurance FAQs 

How much does PI insurance cost for museums? 

Basic cover for professional indemnity (PI) insurance starts at around £321 per year for £1 million, but higher-risk museums pay more. Museums should get quotes from insurers to find the right cover.  

How much does museum art insurance cost? 

Art insurance for museums costs vary based on collection value, security, and location. Specialist insurers assess risks to set prices which ensures the best cover. 

Who needs museum insurance coverage? 

Various stakeholders need this coverage to safeguard their collections, staff, and visitors. Those who benefit from museum insurance include: 

• national museums 
• local authority museums 
• university museums 
• independent museums 
• exhibition organisers 
• private collectors 

This coverage helps preserve cultural heritage and supports the continued operation of these institutions. 

What are museum policies?  

Museum policies are rules that guide how museums operate and care for their collections. Key components of museum policies are:  

1. collections management: sets standards for caring for, documenting, and handling artefacts 
2. acquisitions and deaccessions: guides how items are added or removed from collections 
3. loans and exhibitions: covers lending artefacts and organising exhibitions safely 
4. security and risk management: prevents theft, vandalism, and other threats 

While these policies help reduce hazards, museums insurance provides financial support when things go wrong. Both are essential for protecting a museum’s future. 

How can we protect museums? 

Museums can stay safe by using strong security, disaster plans, and proper care for artefacts. They require multiple safety measures: 

1. security systems: alarms and cameras help prevent theft and vandalism 

2. environmental controls: proper temperature and humidity keep artefacts from deteriorating 

3. disaster preparedness: emergency plans help museums respond to fires, floods, and other risks 

4. staff training: employees learn security and emergency procedures to handle threats 

5. museum insurance coverage: policies protect museums from financial setbacks due to damage or theft 

These steps allow museums to safeguard their cultural heritage and keep their visitors safe. 

What is the most secure museum in the world? 

The Arctic World Archive in Norway is one of the safest, storing digital artefacts deep in a former coal mine. It is designed to survive natural disasters and human threats.  

It relies on museum insurance to cover hazards that security alone cannot prevent. 

Does the UK government fund museums? 

The UK government funds national museums through the Department for Culture, Media and Sport (DCMS). It supports regional museums through Arts Council England. 

Government funding does not cover museum insurance for collections, property, or liability risks. Museums still need coverage to protect against theft, damage, and legal claims.