Jewelers deal with valuables daily. Whether it is valuable gems or precious metals, jewelers are surrounded by expensive items of jewelry. Jewelers also have to deal with customers that can be demanding, especially when it comes to pieces of jewelry that they hold close to their hearts. So, it is no wonder that jewelers need insurance to protect them by covering the key areas of their business. Jewelers insurance can cover a range of different aspects of the jeweler’s business but the key elements that should be included in any jeweler’s insurance policy are – stock, business, and general liability.
Essential Areas of Coverage in Jeweler’s Insurance
- Jewelers’ Coverage of stock, inventory, consignment, goods in transit, raw materials, customers’ property (jewelry) in your possession, crime, fire, and damage.
- Business owners’ Coverage of your business property (store, workshop, etc.), security system, physical aspects of your store (furniture), personal property, business inventory that is not jewelry (tools, display cabinets, jewelry boxes), business profits, and other expenses from liability-related risks.
- Commercial Umbrella Liability Coverage gives added protection for unforeseen liabilities beyond the standard business owners’ policy. Some of the points included in the umbrella liability coverage are specific to the jewelry industry.
Jeweler Insurance policies Should Include:
- Coverage for store contents – Stock insurance is one of the most important parts of a jeweler’s insurance. Your stock is the most valuable thing in your store, and without proper insurance coverage, a loss of stock could put you out of business and into debt. Jewelry stores are often the target of thieves and the insurance should cover the cost of replacing your stock in the event of theft.
- Coverage for the store building – Anything related to the physical business property.
- Coverage for money on the premises – Inside and outside business hours
- Coverage for money at the jeweler’s home – If the jeweler or his employee takes the profits home at the end of the day, the money still needs to be covered by insurance.
- Accidental damage.
- Public and product liability – As members of the public probably go in and out of your store daily, you need protection if a client has an accident while in your store. Your insurance should also cover you if one of your employees damages or loses your client’s property. For example, if an employee drops a client’s precious gem, or misplaces a small earring during his routing handling of the precious jewelry.
- Employers liability – Insurance will protect you if your employee has an accident, is injured, or falls ill as a result of working for you. The jeweler should have protection from any financial consequences resulting from employee-related lawsuits.
- Business interruption.
- Legal expenses – To cover any lawsuits brought against the jeweler or his business.
- Goods in transit.
- Appraisal liability – Protects the jeweler if an error or omission is made in the appraisal of jewelry.
- Cyber-related protection – Coverage in the event of eCommerce fraud, computer fraud, electronic fund transfers, identity fraud, and any other kind of compromised digital data.
- Unexplained loss of stock. This is similar to the clause relating to mysterious disappearance in jewelry insurance. Misplaced stock that simply cannot be explained.
- Bodily injury resulting from the use of equipment and tools used by the jeweler in his trade.
Important Points to Remember When Taking Out Jeweler Insurance
Every jeweler has varying needs for protection. When taking out an insurance policy discuss the coverage with your insurer and make sure that the basics are included. Insurance can cover your losses in unforeseen circumstances. For peace of mind make sure that your policy meets your specific needs so that a potential claim won’t damage your business. You might want to increase your insurance coverage during periods when there is more expensive or exclusive stock in the store. For example, around Valentine’s Day, and during the Christmas period. Talk to your insurance representative about increased coverage during these periods. The cost of a jeweler’s insurance varies according to the coverage included in the policy. There is a range of policy features and options that come with a price. Jewelers should also inquire about additional protection during trade shows when precious stock is taken out of the store to jewelry industry events.