When your high net worth personal lines customers need to transport valuable possessions, such as collector cars and fine art, special care is a must. In arranging such moves, experts recommend dealing with specialty packers because general movers often do not have the equipment, materials and properly-trained professionals to handle the job.

Recommend that your clients choose a transportation company that is reputable and experienced in handling and transporting high-value goods. A qualified carrier will use suitable equipment, follow good security practices and procedures and maintain an excellent loss record. They also ensure that any intermediaries being used maintain the same high standards.

Transporting collector cars

Individuals transport collector cars for various reasons. Some head south for the winter and want to enjoy their vehicles while there. Many car collectors actively purchase at auctions and need to transport their new acquisitions to their residence or a storage facility.

Intercity Lines Inc., a Massachusetts-based transportation company, has been moving classic cars for more than 30 years and is the official transporter of the Gooding & Co. and Barrett-Jackson auto auctions.

Intercity President Dave Wilson said that shipping risks for collector cars are even greater than for modern luxury autos. "For collector cars, it may be the only one like it. A scratch is far more serious than if an everyday vehicle is scratched," he said.

Wilson said it is important to have the proper equipment and an experienced staff to safely move a collector vehicle. Intercity provides door-to-door service, and the company's transporters are fitted with hydraulic lift gates to ensure maximum safety when loading. In addition, Intercity uses fully enclosed transporters that carry a maximum of six cars, as opposed to open-air transporters that often load 10 to 14 cars.

"Enclosed transporters protect the vehicles from the elements as well as keep them out of the eyes of potential onlookers when the drivers need to make a stop," Wilson said. "Collector cars often attract attention, and if it's in an enclosed truck, then nobody knows what is being transported."

The risk of theft while transporting goods and merchandise is real. According to Insurance Services Office, a firm specializing in data analysis for commercial and personal lines of insurance, cargo theft drains billions from the U.S. economy each year. A high percentage of thieves target tractor trailers at truck stops where there is limited physical security.

Enclosed trucks provide an additional anti-theft safety measure. "The rigs operated by our drivers are fully self-contained with showers, cooking and sleeping facilities, and, as a result, are less likely to be stopped and left unattended for any length of time," Wilson said.

Intercity's trailers also cannot be opened without operating the truck engine, which supplies hydraulic power for the trailer door and lift operations. In addition, its trucks are equipped with satellite tracking making it possible to track its travel in the event of a theft.

Transporting fine art

Art is most vulnerable during transportation, so proper packing and shipping is the best way to ensure its safety. Over the years, specialists in fine art packing and transportation have developed best practices.

The best way to find a specialty packer is through a professional referral such as conservators, museum registrars and art advisors who have prior experience with traveling exhibitions. If your client is new to collecting art, encourage him or her to ask for a shipping and packing referral. This type of request is expected, even from seasoned buyers.

Dorit Straus, fine arts manager for Chubb Personal Insurance, also stresses that clients should never pack and ship their own artwork. "We expect our clients to have professional packers and shippers and not to do the work themselves," she said.

In fact, some fine art policies even have warranties that specify that the art has to be professionally packed and shipped.

"The new owner should ask for detailed information about how the dealer plans to pack and ship the art," Straus said. "Sometimes dealers assume that collectors do not want to spend as much on getting their art packed and shipped by state-of-the-art methods. But most collectors are willing to pay the additional costs in getting their works in good condition because when a work of art is damaged, its value is reduced, and the collector loses the enjoyment of the piece as well as their financial investment."

Straus added that some gallery owners may be reluctant to recommend qualified packers. "They mistakenly believe that his or her client has already paid a lot of money, so they don't want to push them to pay extra for a specialty packer," she said.

Straus offers these additional tips for packing and moving art:

  • Avoid local household packers, as they are not experienced in packing art
  • Shippers should be expected to measure the pieces ahead of time
  • The art owner should create an inventory of the items being shipped (not including the value of the items) and share copies with the shipper and receiver
  • Art should be reviewed for its condition before packing. If a piece is damaged, photo documentation is essential in determining when damage occurred
  • On-site handlers and loaders should always wear clean gloves and remove jewelry, watches, tool belts and any other unnecessary items that might accidentally damage art
  • The art owner should verify that packages are sealed properly and securely
  • Do not advertise the contents on exterior labels (e.g., "artwork")
  • Clearly mark the packaging to indicate the face of the work and its proper orientation. Write "face" and "top," using an "up" arrow
  • Always transport hinged works in the orientation in which they are displayed
  • Be aware of the condition of the artwork prior to packing and upon its arrival.

When transporting art by truck, the truck should have a working lift gate, functioning locks, an alarm and a climate control system. Straus also recommends that trucks have air-ride suspension to help cushion the artwork when traveling on roadways and the use of transport companies that have two drivers on the truck, so that the vehicle is never left unattended.

The same technology that protects vintage cars can also help protect art. "A qualified fine art shipper will use trucks equipped with a global positioning system," Straus said. "Additionally, for security purposes, a truck carrying a valuable collection should be followed by a car. If there is any suspicious activity or an accident, the individual in the car can alert local police."

Changes to the law

A new law could add further exposed valuables to damage during shipping. On Aug. 1, the Cargo Screening Mandate went into effect. This law results from the 9/11 Commission Act, which calls for the Transportation Security Administration (TSA) to screen 100 percent of cargo shipped on U.S. air carriers.

According to the TSA website, this mandate means "all air cargo must be screened at the piece level prior to transport on a passenger aircraft originating in the United States."

Ellen Ross, an agent with Wells Fargo Insurance Services in New York City, explains that her agency is advising clients to use certified government packers to avoid the concerns of the repacking of packages at security checkpoints.

"Currently, the art world is in a state of flux. But we believe that by using certified packers, it will allow the package to go straight through to its destination without physical repacking," Ross said.

Certified packers have successfully completed the TSA certification process known as the Certified Cargo Screening Program, designed by the TSA to help them meet screening requirements. Once the program is complete, these facilities are designated as Certified Cargo Screening Facilities, which must adhere to all TSA security standards, including securing the supply chain throughout the item's shipment.

This new law does not affect international shipments originating outside the U.S.; however, the TSA is currently working with foreign governments to work toward compliance across all systems to the greatest extent possible.

By knowing what to look for in companies that transport collector cars and fine art, agents and brokers can help minimize the risk for their clients.

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