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Government Indemnity Scheme

About the scheme

The scheme is available to borrowing UK museums, galleries, libraries and other bodies such as the National Trust. 

Loans for indemnity may be either from private individuals or collections within the UK and abroad or from public collections within the UK and abroad. This excludes loans from UK National institutions directly funded by Government. Annex A of the GIS Guidelines provides a list of these National institutions. 

National collections are not issued with indemnities when they lend - they bear their own risk.  Ministers have discretion on whether to compensate them in the event of damage or total loss on any ‘loans out’.

The scheme covers loans made accessible to the public in temporary exhibitions, on long-term loan or loans for study and research where the results will be published and therefore likely to contribute materially to public appreciation or understanding of the loaned object. The paramount criterion is that there must be public benefit as the underwritten risk is carried by the UK public purse. 

Borrowers are required to sign an undertaking agreeing to safeguard and care for the loaned objects in the same way as they do for objects they own; comply with environmental, security, transport, food and drink and any other conditions which might be issued by the Secretary of State (these can be found at annexes D, E and F to the Guidelines which form part of the indemnity or insurance contract and are in the ‘How to Apply’ section.)

To benefit from the scheme, borrowing organisations are subject to a thorough security risk assessment of the transport, venue and exhibition areas, as well as environmental approval for the exhibition space or research facilities.

Object values should represent a ‘fair estimate’ of the financial value that the object to be indemnified would reasonably reach if sold on the open market at the time of the loan.

A small percentage contribution is required from borrowers in the event of a claim. This is called the ‘minimum liability’ which is akin to the excess in a commercial insurance policy. In addition there is a minimum value for objects below which indemnity cannot be given.  The amounts for both these differ depending on where in the UK the borrower is based as follows: 

In England and Northern Ireland:

  • the minimum value per indemnified object is £1,001
  • the minimum liability per financial year for borrowing nationals and non-nationals with Designated collections (opted in) is £25,000
  • the minimum liability per application for borrowing non-national institutions is £300 (plus 1% for objects valued over £4,000)

In Wales: 

  • the minimum value per indemnified object is £1,001
  • the minimum liability per financial year for borrowing nationals is £15,000 
  • the minimum liability per application for borrowing non-nationals is £300 (plus 1% for objects valued over £4,000)
  • there is a guideline ceiling for long-term loans of a maximum value per indemnified object of £10 million 

In Scotland:

  • the minimum value per indemnified object is £301
  • the minimum liability per financial year for borrowing nationals is £5,000 
  • the minimum liability per application for borrowing non-nationals is £300 (plus 1% for objects valued over £4,000) 

It is a requirement that for indemnity to be given, the loan must be made in accordance with conditions approved by government. These conditions are set out in section 2 of the Guidelines ‘conditions under which a loan is made’ and clause 2 of the standard undertaking. There is extra guidance in relation to the conditions that must be included in all loan agreements where GIS is agreed in the ‘condition precedent and loan agreements’. It should be read in conjunction with the scheme Guidelines, which you can find in the ‘How to Apply’ section. 

All national borrowers are asked to sign an Irrevocable Undertaking, the form of which is at Annex B of the Guidelines for nationals, at Director level at the same time as their funding agreements. 

All non-national borrowers with Designated collections are asked to sign an Irrevocable Undertaking, the form of which is at Annex B2 of the Guidelines for non-nationals, at Director level annually. 

All other non-national borrowers are asked to sign an Irrevocable Undertaking, the form of which is at Annex B of the Guidelines for non-nationals, at Director level with every application.

Cover is ‘nail to nail’.

To find out more about the scheme, click ‘How to Apply’ and download the Guidelines for national and non-national institutions. These documents spell out the terms of the GIS and are akin to an insurance policy schedule. There are also links to the application forms.

For general or environmental advice, email the Government Idemnity Scheme team.

For security specific advice please contact the National Security team.

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How to apply

To apply, download the relevant form below and complete it, and then email it to government.indemnityscheme@artscouncil.org.uk.

Applications from nationals must be received at least 5 working days before indemnity is due to start.

Applications from non nationals must be received at least 3 months before indemnity is due to start. 

Indemnity contracts will be signed and issued electronically as pdfs.

For detailed guidance on the Scheme and how to apply see the guidelines below.

The Arts Council is working on clarifying and collating the guidelines following conversations with users of the Scheme. The current guidelines remain in place and should continue to be used by all users and prospective users of the Scheme.

Following stakeholder feedback we are piloting an new application form.  This replaces the forms for non-national organisations and those with Designated collections. The application for National organisations remains the same. 

We have included two additional questions:

  • Your accreditation number – this is intended to help us in managing multiple applications from the same organisation.
  • An indication of any actions you have taken to limit the environmental impact of the loan. This will not be considered in the assessment of your application. It will, however, help us build a basic understanding of this important issue and inform further research.

We have also incorporated information required by our security and protection advisers.

We would welcome suggestions as to how we may further improve the application form and process. Please send them to government.indemnityscheme@artscouncil.org.uk.

This table summarises the immediate changes to the Application process (Non National organisations):

 Previous processFrom 20th October 2023
Environmental readings for the same period one year prior to the display Submitted to the Arts CouncilNot required
Environmental charts week 1 of the exhibitionSubmitted to the Arts CouncilSubmitted to the Arts Council
Variations of no more than 10% RH and +/-4°C during any 24-hour period.Required

Required

Records should be maintained throughout the exhibition period. These must be available in the event of a claim.

Data loggers set to record at 30-minute intervals around the clockRequired

Required

Records should be maintained throughout the exhibition period. These must be available in the event of a claim.

40-65% RHRequired, unless an acceptable reason is provided from not maintaining these conditions.Required, unless an acceptable reason is provided from not maintaining these conditions. Pending outcome of consultation to replace the bands.
16-24°CTemporary suspension of lower limitTemporary suspension of lower limit. Pending outcome of consultation to replace the bands.
Lux200 or below; 50 or belowRequired, unless an acceptable reason is provided from not maintaining these conditions. Pending outcome of consultation to move to a ‘budget’ approach.
CouriersTemporary arrangements put in place during Covid 19 enabling a ‘Split courier’ alternative for transport where a fine art courier was not permitted or exempt from quarantine to travel with the object(s) during air or road transit (not permitted on cargo flights) Interim arrangements have been found to be satisfactory so from now on ‘Split courier’ alternative will continue to be acceptable.  
Transport by sea freightAllowed, subject to the usual transport considerations.Allowed, subject to the usual transport considerations.
GuidanceGuidance for non Nationals; supplementary information on website and application form.Simplified, clarified and consolidated Guidance published January 2024.
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Information for lenders and borrowers

Reassurance on GIS

The United Kingdom’s Government Indemnity Scheme provides a form of insurance, underwritten i.e. guaranteed by the UK Government, to owners when they lend to public exhibitions in the UK.  Whether items are on long-term loan or borrowed for the duration of a specific exhibition, Indemnity will insure the lender against any loss or damage and free the borrowing museum from having to pay commercial insurance premiums. The scheme was introduced in 1980, by an Act of Parliament known as the National Heritage Act 1980 which provides a statutory basis for the Secretary of State (the British Government) to underwrite the risk of loss of, or damage to, objects loaned for the public benefit to museums, galleries, libraries, the National Trust and other similar institutions and bodies in the UK.  UK GIS provides lenders to exhibitions in the UK with absolute assurance that, in the event of any loss or damage, the cost will be borne by the UK Government. 

The scheme is fully comprehensive and has helped to underpin best practice in transport and collection care. 

Promotional Letter

This letter is provided to help boost confidence in the scheme.  It is available in the following languages: Arabic, Chinese, English, French, German, Italian, Japanese, Korean, Russian, Spanish.

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Additional information and updates

Additional information and updates

Courier arrangements

(20 October 2023)

GIS requires a fine art courier to travel with any loan with a War risk or negligence waiver to accompany object(s) on its nail-to-nail journey. 

 Temporary arrangements were put in place during Covid 19 enabling a ‘Split courier’ alternative for transport where a fine art courier was not permitted or exempt from quarantine to travel with the object(s) during air or road transit (not permitted on cargo flights). These arrangements have been found to be satisfactory so from now on ‘Split courier’ alternative will continue to be acceptable.

Insofar as the fine art couriers are not so exempt or e.g. the objects are going on a cargo flight (couriers are not permitted on such flights) then we can agree a split courier for both air and land transports: e.g. UK courier to Dover; lorry goes onto ship where drivers cannot remain on the truck in any case; non-UK courier from lending institution from port of entry in Europe to destination; or courier goes to Heathrow; object put onto flight to US; courier from US lenders meets it. 

If the split-courier alternative is not possible then we can agree to no courier in the following circumstances: 

  • If a single object is to be shipped by land vehicle, the object is securely packed and placed in a professional shipper’s vehicle compliant with GIS Conditions; the goods area is alarmed, secured and sealed and only opened in exceptional circumstances by authorised border or customs staff; 

  • Where more than one object is to be shipped by land the objects are each packed and transported as in (a) above and the objects are all on a level platform (not stacked). 

If none of the above are possible then GIS is prepared to consider requests and assess the risk on a case- by- case basis for which it will require full details of the objects including their medium and dimensions; their values; the proposed transport and packing arrangements and routes and any risk assessments undertaken. 

If we are not able to agree to dispense with a courier in transit then we cannot agree to cover war risk and/or negligence in transit and the Borrower must take out commercial insurance to cover it if the Lender insists on such cover. 

Temporary suspension of the minimum requirement for temperature until winter 2023

(20 October 2023)  

In December 2022 we introduced a temporary suspension of the Government Indemnity Scheme minimum requirement for temperature to support museums with rising energy costs throughout the winter months. The temporary suspension has been extended until further notice. This is being looked at in conjunction with our work to review various environmental conditions which apply under the Government Indemnity Scheme. 

The standard requirement for temperature is: 16 °C–  24 °C with a maximum fluctuation of 4 °C within 24 hours.  The minimum requirement of 16 °C is temporarily suspended. 

This arrangement is not expected to produce negative impact on collections and loan items under indemnity.  This arrangement requires a planned approach of gradually acclimatising items, to create a slow and gradual change in agreement with owners/lenders.  

This temporary arrangement is supported by the Government Indemnity Scheme Environmental Adviser who will assess submitted temperature data accordingly.  

The Scheme continues to require environmental conditions to be maintained 24 hours a days, 7 days a week throughout the loan period from the time the indemnified object arrives until it departs from the loan venue, in accordance with Annex D of the GIS Guidelines for National and Non National institutions. Relative humidity, temperature, light and UV levels are to be monitored through the loan period in the space within which the indemnified object is contained.    

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Reviewing the GIS environmental conditions

Consultation on the GIS temperature and relative humidity bands and light levels

October 2023

We’re committed to ensuring the Scheme maintains its international reputation as a marker of quality. We’re introducing some operational improvements and launching a survey to hear your views on temperature and relative humidity bands and light levels.

Tell us your thoughts

Have you used the Scheme? Complete the survey to help make sure the Scheme benefits museums, balances the needs of its different stakeholders and continues to make a vital contribution to communities across the UK. The deadline for submissions is 19 November 2023.

Once the survey has closed, we’ll share our findings with you and let you know what the next steps are.

Reference group 

Arts Council is working closely with the National Museum Directors Council and a reference group of sector experts to complete this work. The group comprises:  

Amber Xavier-Rowe (Head of Collections Conservation, English Heritage) 

Christian Baars (Head of Collections Care, Liverpool Museums and Co-Chair ICOM UK) 

Eloise Stewart (Exhibitions Manager, National Portrait Gallery and Chair UKRG) 

Kirstie Hamilton (Director of Programmes, Sheffield Museums), 

Sara Crofts (Chief Executive, ICON)/Kate Frame (Chief Executive, ICON) 

Wilma Bouwmeester (Heritage Consultant, Sustainable Heritage Conservation and GIS Environmental Advisor) 

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GIS impact report 2022-23

In 2022-23, GIS covered over 29,000 items, saving borrowing organisations an estimated £100m in insurance premiums. Its enabling role is often hidden behind the amazing loans and exhibitions themselves.

We’ve put together a report which highlights  some of the incredible exhibitions that were made possible thanks to the scheme. Discover some of the facts and figures and case studies in our impact report below.

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