A spike in thefts, including a brazen daytime heist of eight historic jewelry pieces from the Louvre in Paris, has highlighted the targeting of objects for their commodity value and should prompt museums to reassess their security measures.
The stolen items, estimated to be worth 88 million euros ($102 million), were not privately insured by the Louvre but were self-insured by the government, according to news reports.
Experts say museums in historic buildings, especially those originally used as private residences, might be more vulnerable to theft because of limited budgets for security upgrades and challenges in installing modern systems.
High-value objects made of gold, precious metals and gemstones have become targets for theft because of their intrinsic value, said Olivia Whitting, London-based head of cultural heritage and client manager at the Art Loss Register, which runs a global database of stolen art.
“That means that they retain a certain value, even if they’re broken up, whereas a Picasso, for example, is only worth what it’s worth when it’s recognizably a Picasso,” Ms. Whitting said.
Notable thefts include a 3,000-year-old gold bracelet stolen in September from the Egyptian Museum in Cairo that was later sold and melted down, according to news reports. In January, an ancient golden helmet on loan from Romania was stolen from the Drents Museum in the Netherlands. Maurizio Cattelan’s sculpture “America,” an 18-karat gold toilet, was stolen in 2019 from Blenheim Palace, the birthplace of Winston Churchill.
Gold and silver are reaching record highs amid ongoing political instability, which is driving up commodity values, Ms. Whitting said.
In early November, gold was selling for $3,993 an ounce and silver for $48 an ounce, according to Money Metals Exchange.
Items of intrinsic value, such as gold, are being targeted because commodity prices have increased, said Simon Codrington, a New York-based managing director at Risk Strategies, part of Brown & Brown.
“If you look at the security that a lot of gold professionals deploy vs. museums, the museum becomes a rather easier target than the jewelry store or the bullion dealer,” Mr. Codrington said.
Museum and gallery security measures are reviewed during the underwriting process, but experts say insurers will scrutinize those more closely in the wake of the Louvre theft.
Fine art coverage is generally broad but can be more costly depending on the security measures in place, said Cheryl Karim, New York-based area senior vice president in Arthur J. Gallagher & Co.’s fine arts practice.
Several factors can influence the value of the piece, including the artist and its history, Ms. Karim said.
“If we’re looking at components like gold and jewels and gemstones, that really does change how the piece has to be treated from a security perspective, because it will have a higher value,” she said.
The Louvre heist serves as a wake-up call for institutions around the world to strengthen their security, said Christiane Fischer, Sarasota, Florida-based president of Tokio Marine Highland’s fine art and collectibles division.
“The best defense is to make sure you have no weaknesses in your protections and your systems,” Ms. Fischer said.
Cultural institutions are likely reviewing their security measures to ensure they are adequate and that they have accurately represented the scope of that security to insurers, said Noel Paul, a Chicago-based partner at law firm Honigman.
“If incidents of loss, including theft and burglary, increase for these types of institutions, I wouldn’t be surprised if we see a growth of policy exclusions, similar to the cyber insurance arena,” Mr. Paul said.
Cyber policies may exclude coverage when policyholders have not updated their software and internal security to current best practices, he said.
Museums’ insurance coverage will receive increased attention, sources say.
Major museums usually rely on donations and government grants and often cannot afford enough insurance to cover their entire collection, said Patrick Drummond, Columbus, Ohio-based president of fine art and collectibles at Distinguished Programs.
A museum with a billion-dollar art collection may buy between $300 million and $500 million in coverage because that’s what it can afford, Mr. Drummond said.
Museum policies tend to have broad property insurance definitions because their collections include historical items such as jewelry and gemstones, musical instruments, weapons and dinosaur bones in addition to art, said Kristina Marcigliano, fine art, jewelry and specie specialist at Willis Towers Watson.
“If you’re a gallery and you’re going to work with an interesting new artist who is incorporating elements of gold and silver, diamonds into their artwork, you’ve got to make sure that your property insured is broad enough to cover those elements,” Ms. Marcigliano said.
Museums should reevaluate display methods for high-value items and review insurance policy conditions, sources say.
Fine art policies typically cover theft but also include conditions regarding security and alarm maintenance, said Mary Pontillo, New York-based senior vice president and national fine art product leader at Risk Strategies, part of Brown & Brown.
“Typically, the alarm maintenance clause on any fine art policy will say something to the effect of ‘If your alarm is not working and you weren’t aware of it and your security system wasn’t working and you weren’t aware of it, then the loss would be contemplated,’” Ms. Pontillo said.
“However, if you were aware of it and you didn’t fix it, then the loss could potentially not be covered,” she said.
Insurance submissions typically include a museum’s facility report, a detailed document that includes everything from climate control and humidity tracking to alarms, cameras, smoke and heat detection and whether systems are connected to a central monitoring company, Ms. Pontillo said.
Security protocols should be regularly reviewed, especially before major events or influxes of visitors, said Christiane Fischer, Sarasota, Florida-based president of Tokio Marine Highland’s fine art and collectibles division.
“If you save on security and protection, you pay for it dearly,” Ms. Fischer said.
Best practices in security traditionally have included a central monitoring system, burglar alarms and CCTV, said Cheryl Karim, New York-based area senior vice president in Arthur J. Gallagher & Co.’s fine arts practice.
Recent technology advances, such as biometric scanning and live external monitoring by third-party security firms, are increasingly being integrated into these systems, Ms. Karim said.
