Fine Arts

Eight Questions for 2017 Power Broker Mary Pontillo

2017 Power Broker Mary Pontillo talks to R&I about her love of the Fine Arts business.
By: | February 22, 2017 • 8 min read

Intrigued by the unique world of risk she handles, Risk & Insurance® asked (Risk Strategies Company subsidiary) DeWitt Stern Vice President and 2017 Power Broker® winner Mary Pontillo to tell us more about her love for fine art and why helping to cover risk in the art world means so much to her.

R&I:  Mary we know you’ve got a background in art history. It must be very fulfilling then for you to work in the business of insuring art. Tell us more about your connection with art and artists and what it means to you.

MP: The only way I would be happy in the insurance industry is by doing what I’m doing; insuring artwork. It’s often the case that people in the art world don’t come from a business background. I feel I can help art-oriented people understand something both very esoteric and important. I speak their language and essentially become a translator of insurance jargon into something an art-oriented person can understand.

For instance, when I sat down for the first time with a well-known artist to discuss what he wanted out of an insurance payment, it was deeply gratifying.  He had never really thought about how he’d use his insurance or what he expected from a claim. Being able to counsel one of the most famous living artists on something like this was quite special for me.

R&I: Who are some of your favorite artists, past and present?

MP: I dedicated a great deal of time to studying early 20th Century American art so I love artists like Marsden Hartley and Guy Pene du Bois.

Janine Antoni’s work always makes me think. Her “Lick and Lather” work consisting of self-portrait busts – half made of chocolate and half made of soap, the soap lathered and chocolate licked — always makes me think in a circular way. What if she licked the soap? I love artwork that gives me a visceral response like hers.

Gerard Richter’s technical abilities stop me in my tracks.

I own a Ghada Amer screen print and dream of the day I will own one of her prints with vellum and embroidery.

R&I: Tell us about a devastating art loss and how you helped the insured to recover.

MP: Nothing compares to the days, weeks and months after Superstorm Sandy. Beginning at midnight, when Sandy hit NYC, claims reports poured in. The first was from a museum client via text as I was trying to get a few hours of sleep during the intense storm. A colleague and I both lived in Queens and the few days following Sandy we were the only people on our team with electricity. We were able to log on and set everyone’s out of office messages to forward to our cell phones and email addresses.

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Clients that I’ve known for years — some of the most stoic people — were facing the worst situations their businesses had ever seen. I’ll never forget one of the most well respected dealers in the industry calling me and saying: “I am not exaggerating when I say that this is absolute devastation.”

Knowing that I was the voice of calm and direction made me feel like all of the policies I’ve sold and serviced over the years came to life. We walked clients through triage steps over the phone and connected them with claims adjusters. Those first 72 hours were some of the most intense and stressful while helping claims adjusters, my colleagues on the ground in Chelsea and Brooklyn, and my clients through the recovery process.

I would speak to a frantic client on day one after Sandy, try to calm them down and tell them when to expect the claims adjuster. I’d then speak to them on day two after they met with the claims adjuster — the best thing was to hear: “After meeting with my claims adjuster this morning, I felt so much better.”

Clients that I’ve known for years — some of the most stoic people — were facing the worst situations their businesses had ever seen. I’ll never forget one of the most well respected dealers in the industry calling me and saying: “I am not exaggerating when I say that this is absolute devastation.”

R&I: From what we gather, the shipping of art and art collections is one of the thornier risk management and risk transfer challenges.  What “tales of the road” can you tell us about art shipment risk management challenges you have faced and overcome?

MP: I handle many art warehouses, packers and shippers, as well as dealers, collectors, museums, foundations, etc. so I understand both sides of these transactions very well. Some of the most common issues that come up involve the documentation shippers require which severely limits their liability. It’s important to understand these technicalities of the shipping process in order to give art clients proper advice.

One of the most interesting situations I’ve found myself in was a client moving into an upper floor in a building in Manhattan. Due to the size of many of the artworks, they had to have the works rigged via crane through a window in the apartment. We had to get the insurance company on board, approving each and every work that was going to be rigged. The job was delayed a number of times due to high winds. On the final day permits were available from the city, the insurance company and I were there and watched the whole process. Little did we know, an earthquake struck NYC at the same time the works were suspended 30 floors in the air. We felt nothing on the ground but the workers in the apartment felt it. Luckily it had no effect on the artwork, but it’s a good story!

R&I: “Event Cancellation Expense” coverage has got to be an area of interest for art exhibitors these days, given the interruptions we have due to terrorist acts and instances of political upheaval. Can you give us your take on this coverage and the appetite for it given the state of the world today?

MP: There have been two instances that had some broad effect on the art world: the volcanic activity in Iceland back in 2010 which canceled flights around the same time as the London Print Show and the Paris Photo show closing early due to the Paris terror attacks.

Directly after the Paris incident, we went to our London broker to develop a program for Event Cancellation coverage. We were able to set up a policy that would cover lost business due to artworks or key employees not arriving (as in the case of air traffic affected by the Volcano) due to things outside of their control as well as part of the event being cancelled. We can add this onto a Lloyd’s Dealer policy or issue as a stand-alone policy. As time passes from these events, people feel less inclined to purchase these kinds of coverage. In 2017 this is a product we are re-emphasizing as it is unique, pragmatic and reasonably priced.

R&I: High net worth insurance is a sector the carriers are devoting a lot of resources to.  Without naming names tell us what you can about some of the private collections you insured and the challenges you faced?

MP: We have some private collectors whose collections are relatively stable with few loans and the occasional purchase but on the flip side, we have private collectors who loan, buy, sell, consign, and collateralize artwork with great frequency. There are some collectors who send us updates every single day about such transactions.

A few of the more challenging, but also very interesting, aspects of these transactions are negotiating complex loans and ensuring proper insurance is in place for loans using the art collection as collateral.  When lending their artwork, different collectors have different requirements for museums and galleries. Sometimes these requirements are quite rigorous and require a good deal of negotiation before the loan terms are agreed upon. These transactions require a nuanced approach — understanding the attitude of the collector toward the loan and ensuring we adequately protect the client while ensuring insurance is not the reason the loan negotiations stall.

R&I: What are some current, pressing risk management issues for museums? We’d imagine cyber threats such as spear-phishing have got to be among them.

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MP: Museums, dealers, and foundations are all being affected by social-engineering threats, wire funds transfer fraud and the like. Almost every week we get notification from a client of a hacking attempt or, unfortunately, a few successful wire transfer frauds where clients have lost money. The Art Dealers Association of America warned their member-dealers of these problems a few times. We have also been emphasizing these attacks with our clients and highlighting the coverages that can help protect them from such attacks (cyber, crime including social engineering, etc.). Unfortunately, while the coverage begins at a very reasonable premium, very few policies have been purchased.

R&I: Do you know how many times you’ve won the Power Broker® designation as a Fine Arts broker, or is it a case of “who’s counting?”

MP:  I honestly don’t know. I took a year off when I had a baby and encouraged my entire team to apply especially since they were the ones who took such great care of my clients while I was on maternity leave. Being in a field dominated by female Power Brokers is very satisfying. As a manager of a team of seven women, I love seeing them grow (some from beginning as our departmental assistants) and receive these kinds of awards. Advocating for the women around me and seeing them succeed is the most rewarding aspect of my job.

For the record, Mary’s Power Broker® win in 2017 was her sixth.-eds

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Workers' Comp

Keeping Workers on Their Feet

Slip and fall prevention programs must interweave all of the factors contributing to the risk.
By: | July 6, 2017 • 11 min read

If you peruse the last decade’s worth of literature from the CDC, NIOSH, or numerous other agencies or organizations, you’re bound to come across the “good news” that slips, trips and falls are largely preventable.

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So it’s frustrating, then, that slip, trip and fall injuries consistently account for more than a quarter of all nonfatal occupational injuries, and at least 65 percent of those injuries happen on same-level walking surfaces. And those figures just don’t budge all that much from year to year.

According to the “2016 Liberty Mutual Workplace Safety Index,” falls on same level currently rank as the second highest cause of disabling injuries in the U.S., with direct costs of $10.17 billion, accounting for 16.4 percent of the total national injury burden.

“Not only are they still happening often, but they tend to be very significant injuries,” said Mike Lampl, director of research at the Ohio Bureau of Workers’ Compensation.

“We’ve seen these trends grow over the years,” said Wayne Maynard, product director, risk control, with Liberty Mutual. “Bottom line is, it’s a real, real big problem.”

So why are preventable falls so hard to prevent? This stubborn status quo, say experts, is that the causes of slips and trips are typically far more complex than they seem. There are nearly always multiple factors in play, from footwear and flooring and the interplay of both, to cleaning procedures, lighting, housekeeping, weather, and workers’ mental or physical conditions as well as overall awareness.

And all of these factors are being exacerbated by the fact that incidents often go unreported.

“Slips, falls — people get up, move on, they don’t report it,” said Maynard.

“When somebody’s injured and files a claim — in the workers’ arena, how many are behind the scenes that may have happened that are not reportable? …. The unreported number is considerable in my opinion.”

The key to making any headway in reducing slips and falls on the same surface, say experts, is to have a comprehensive fall prevention plan that addresses all possible factors. No small task.

Engineering Solutions

Flooring conditions are often the most obvious starting point. Ideally, said Maynard, all the right choices are made at the planning and design stage. But sometimes mistakes are made, and in other cases, a business may be inheriting an older space with floor chosen for a different purpose.

Patricia Showerman, senior loss control consultant, Arthur J. Gallagher & Co.

So even flooring in good condition may be the wrong type of material and may not have the necessary coefficient of friction (slip resistance) needed for the work being done.

If companies want to drill down into all the details of the surfaces in their facilities, a friction coefficient study is always an option, said Patricia Showerman, senior loss control consultant at Arthur J. Gallagher & Co.

But if a company doesn’t want to take that step, she said, it may be a simpler matter of saying, “Let’s look at what you’ve got. Let’s look at your floor surfaces and how you’re maintaining them.”

A lot of people want that “shiny grocery store glam look,” she said. “And if you can do it properly, and maintain it properly and keep that coefficient of friction and have the shiny look, that’s great. That’s what everybody wants but how do they get there?”

Certain surfaces may start out with an adequate coefficient of friction when they’re clean and dry. But add even an invisible layer of dust or debris, “and it’s like microscopic little BBs that you slide across,” said Showerman. “So if you have dust on your floor, you are dramatically reducing your slip coefficient.”

For companies that do have flooring surfaces in need of improvement, ripping up the floor and replacing it isn’t typically a feasible option. Fortunately there are more budget-friendly ways to get the maximum slip resistance from existing flooring, such as coatings and etchings.

A coating adds a microscopic layer on top of the flooring that creates a grip surface while maintaining the shine. Showerman likened the effect to the way that Velcro fasteners work.

“You want that hook effect … sharp points are going to microscopically stick into the soles of your shoes, rather than rolling off the top.”

Etching can work in a similar way, chemically altering the existing surface to make it imperceptibly gritty. Etching can also be used to create pores in an existing surface, which is useful for areas such as machine shops, she said.

Be Smart With Surfactants

While keeping floor surfaces clean is one of the best ways to remove slip and fall hazards, cleaning them the wrong way can actually do more harm than good.

Failure to follow appropriate cleaning procedures can severely diminish a surface’s coefficient of friction.

Experts suggest that companies engage with their chemical suppliers, and discuss their flooring as well as the types of dirt or grease removal and disinfectant needs. Detergents – which can contain different types of surfactants — aren’t a one size fits all solution.

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Sometimes purchasers might be inclined to try to cover all their bases by buying the strongest product on the market, but that might mean adding unnecessary surfactants that make surfaces less slip resistant.

“Clearly identify the types of surfaces you’re using it for, the type of oil or dirt or debris you have, and whether or not you need a sanitizing step,” said Showerman.

“You’ve got to find the right balance.”

But that’s only half the battle. A significant problem experts see time and time again is that companies don’t understand how their flooring is being maintained on a day-to-day basis by front-line employees. Failure to follow appropriate cleaning procedures can severely diminish a surface’s coefficient of friction.

“This is where you’re seeing someone with a mop and bucket and they are just re-smearing that grease from one place to another. They put the dirty mop in the dirty bucket, the mop gets full of that emulsified grease and you’re smearing it across the room. In high grease areas, you have to replace with clean water consistently.”

In other cases, a worker without the proper training may grab the first detergent he finds, even if it’s meant for the equipment rather than the floor. Or perhaps he mixes equal parts detergent and water when he was supposed to only use 8 oz. of detergent for every five gallons of water.
Sometimes people will even over-concentrate the detergent on purpose, she added.

Peter Koch, safety management specialist, The MEMIC Group

“I see that in the food industry frequently,” said Showerman. “They find that the more detergent they leave on the floor, the easier it is to clean up next time … but then everyone’s slipping and falling like in a cartoon.”

A company could invest a significant amount in flooring improvements, only to have the benefits undone by improper detergent use or failure to follow recommended rinsing procedures.

It’s incumbent upon safety managers to reinforce that maintaining floor surfaces isn’t just a matter of housekeeping, but a key part of the company’s workplace safety program.

The Human Factor

When you’ve done everything possible to address hazards in the physical work environment, workers themselves remain the wildcard. Most employers routinely include slip and fall hazards in their safety awareness training or toolbox talk programs. But that training should go well beyond a general “watch where you walk” message, say experts.

“One of the most overlooked parts for employee safety is actually employee training,” said Peter Koch, safety management specialist at  The MEMIC Group.

“How do you train an employee to not slip and fall? I think many times that is wrapped in a “you have to be more careful” message, which is valid but nebulous and not very helpful — it means something different to everyone based on your risk tolerance as an individual.”

Koch’s employee training regimen revolves around four elements: surfaces, awareness, footwear and environment (SAFE).

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The first goal of the surface portion is just to get employees to start thinking about the different types of surfaces they walk on and how it can change throughout the work day. Koch said he likes to ask: “How many different types of surfaces did you have to walk on the get to this training room?”

The footwear piece of it is the most straightforward. Are your shoes designed for the work that you’re doing and the surfaces you’re walking on? Are they in good condition? Are the soles worn out?

There is no ASTM standard for measuring the performance of slip-resistant footwear, added Gallagher’s Showerman. So workers should be reminded that wearing the right shoe isn’t a guarantee — it’s just one piece of the solution.

Awareness, said Koch, may be the most challenging piece of the puzzle — helping people to think about their gait, what they’re carrying, what they’re doing, and simply where their heads are at any given moment.

“If you’re thinking about 15 things you have to get done by the end of the day, or you have a particularly challenging employee interaction coming up that day, or you had a fight with your girlfriend last night— or whatever it is — you’re not focused. Then you take that step through the icy patch, and now it relies completely on your athletic ability and luck to stay upright.”

Workers may not necessarily make the connection between personal factors and fall risk. Someone who has an ear infection or is taking certain medications, for example, may not even be aware that their balance might be compromised, putting them at higher risk for a fall.

Employees also should be reminded of how even normal daily stressors can contribute to risk. Everyone is under pressure to deliver more in less time. Everyone is rushing, everyone is stretched to their limits. Add the ever-present cellphone beeping and buzzing and demanding our attention and perhaps it’s a wonder slips and falls don’t happen even more often than they already do.

We’re so conditioned to react when the vibration goes off or the tone chimes in our pockets that we just grab it without thinking, Koch said.

“If you knowingly put yourself at risk by knowingly going quickly through an area with slip and fall exposures, it’s just Russian roulette – at some point you’re going to get broken.” — Peter Koch, safety management specialist, The MEMIC Group.

“Even that, in certain conditions, is going to be enough to put you on the ground.”

Awareness of environmental factors should also be part of the training, Koch said, especially in terms of what workers can’t control, like inclement weather.  He said the main thing he tries to impress upon people is to slow down in a high-risk environment.

“If you knowingly put yourself at risk by knowingly going quickly through an area with slip and fall exposures, it’s just Russian roulette – at some point you’re going to get broken.”

Koch says that getting people to put all of these facets of awareness together is where the training can really click.

The goal is that when they approach an area with a higher-risk surface, employees are thinking “for those few seconds or minutes that I’m going to be walking through it, I need to have a greater sense of awareness, I need to put away the mental [distractions] and focus on what I’m doing – don’t answer your phone, don’t answer your texts.”

Some employers are looking to address the human piece of the slip and fall puzzle by using training that goes far beyond hazard awareness. Active slip-prevention training focuses on body mechanics and teaches workers how to respond when they feel themselves begin to slip.

One such program revolves around the Slip Simulator, technology born of a research partnership between Virginia Tech researchers and UPS. The simulator that creates slippery and hazardous conditions in a controlled environment while participants walk in a harness so they can slip safely. An instructor offers real-time guidance on how to alter their movements to avoid falling.

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After mastering the initial technique, trainees face additional challenges related to their specific work environments, such as walking up ramps or turning wheels. A New Mexico security team practiced drawing firearms while standing on the simulator, which led to a change in how they wear their weapons. Workers at an Ohio refinery practiced stepping over pipes and turning large valves.

Clients of the program are reporting 60 to 80 percent reductions in accident rates.

The Road Ahead

A comprehensive slip and fall prevention plan is a must for employers, experts agreed, with clear, consistent procedures that empower employees to be a part of the solution.

“Employees play a very critical role,” said Liberty Mutual’s Maynard. “If they see a slip risk or a slipperiness issue, they need to be able to report it and they need to be able to get that corrected immediately. They have an important role in maintaining a safe facility and reducing risk themselves — be proactive, don’t walk by, clean it up.

“Any time you can involve the employee in solutions …. the likelihood of success of that intervention is higher.”

Maynard added that the best prevention plans will also be forward-looking.

“Understand where current safety performance is. Then make a roadmap to get better,” he said. “Emphasize where you’re doing well,” then identify opportunities to effect improvement, now and over the next three, four or five years.

“Prevention is too often reactive,” Maynard said. “We’ve got an issue and now what do we do? The goal is for companies to be proactive.” &

Michelle Kerr is associate editor of Risk & Insurance. She can be reached at [email protected]