Recently a New York auction house damaged a $70 million Picasso, "Le Marin," while preparing it for auction. The painting is owned by media mogul Steve Wynn and isn't the first Wynn-owned Picasso damaged just prior to sale. In 2006 Wynn put his elbow through "Le Reve" while showing it off just prior to selling it. Maybe Wynn shouldn't own Picassos or at least not try to sell them. "Le Reve" was restored and eventually sold in 2013 without mishap. Hopefully "Le Marin" can be restored as well.

One of the hazards of owning expensive pieces of art or other collections is the possibility of damage including catastrophic loss, such as from flood or fire. Even if restored, the overall value is usually diminished. In the case of a fire, the water used to extinguish it can ruin many items, especially paintings. There are non-damaging fire suppression systems but they only operate in controlled environments. Besides clumsy or careless owners, other hazards include damage in transit, mold/mildew, theft, improper storage, or someone damaging it intentionally.

Most museums can afford state-of-the-art protection which now includes specialized LED lights to not only protect paintings from light damage but to actually make them prettier. The Getty is designed to withstand earthquakes and wildfires such as the one that came close in December.

Fortunately AIG offers the private collector comprehensive coverage and pioneering loss prevention solutions through their Art Collection Management as part of the Private Client Group of services. In addition to robust insurance coverage, AIG's in-house art collection management specialists offer a comprehensive array of services designed to help your clients preserve the value of their collection, including:

• Coverage reviews - Maintaining adequate coverage is vital. AIG can assess how your existing coverage compares to current market value. They provide ballpark overviews by category as well as supporting sale examples. Following a schedule review, they can organize valuation solutions using professional appraisers.
• Vulnerability assessments - To help prevent unnecessary losses, AIGs site assessments identify potential "threats" including transit, storage and home exposures (fire, theft, water damage). They also advise on curatorial management (traffic patterns, climate, installation methods), documentation and tracking, insurance appraisals and catastrophe planning. Following their visit, they prepare a report highlighting all exposures and include specific recommendations to reduce the likelihood of incidents that could damage the collection.
• Emergency planning - Customized, pre-event mitigation plans can significantly reduce the severity of losses due to house fires, brush fires, hurricanes, earthquakes or other catastrophic events. They address a variety of topics, such as forming an emergency response team, minimizing post-event damage, compiling a priority removal list, and acquiring proper handling materials and instructions.
• Referral services - To ensure the highest level of service, they maintain a panel of carefully vetted appraisers, conservators, art-handlers, storage facilities, shipping specialists and inventory companies who are leaders in their fields. They can oversee the entire conservation, transportation, appraisal or inventory creation process.
• Superior claims service - How many claims adjusters can distinguish a Cy Twombly abstract from a Wassily Kandinsky expressionist painting? All of them-when they're part of AIG Private Client Group, a division of the member companies of American International Group, Inc. (AIG). Their collection specialists work closely with their claims staff to provide conservator referrals, locate appraisers, review treatment proposals, and oversee packing and shipping arrangements. If an item is lost or stolen, they make every effort to recover it.

• Jewelry, fine art, collections, as part of a package acct.
• Yachts as part of a package account. Monoline yachts with a hull value of $300,000 and higher in non-CAT areas are also considered ($1M value in CAT areas)
• High symbol, high performance vehicles with acceptable driving records as part of a package acct.
• Collector car accounts as part of a package acct.
• Condo or Renters with at least $250,000 in contents

• Guaranteed replacement cost - Included in most states
• Back-up of sewers and drains - Included; up to dwelling value
• Business property - Up to $25,000
• Deductible options - Up to $100,000 available
• Primary flood - Available
• Equipment breakdown - Available
• Identity fraud restoration expenses, ATM robbery, and financial fraud, embezzlement or forgery - Available
• Traumatic threat or event recovery - Available
• Green rebuilding expenses - Available
• Waiver of deductible on losses over $50,000 - Available
• Replacement cost cash out option - Included
• Lock replacement - Included; no deductible
• Food spoilage - Included
• Loss prevention devices following a claim - Included; up to $2,500 available