Article by Jewelers Mutual Group
As your jewellery business grows, having insurance is essential. But not just any insurance will do.
A one-size-fits-all policy meant for any type of business could leave you vulnerable, and a loss without proper coverage could spell the end for your business.
With jewellery business insurance from Jewelers Mutual® Group, you’ll have peace of mind knowing your business is protected by a company that has been dedicated to supporting the jewellery industry since 1913.
Plus, an agent who is an expert in both insurance and jewellery will help guide you through the entire process. Here are a few things to keep in mind before the process starts.
What Type of Coverage Do You Need?
Once you’re connected with an agent, they can advise on things like deductibles and limits, but they’ll also inquire about what type of property or liability you need coverage for.
Here are three basic, core policy types and what they are for:
1. Jewellers Block and Jewellers Standard
Provides protection for your inventory, stock on memo or consignment, goods in process and raw materials, and customers’ property entrusted to you from risks such as crime and fire.
If you’re new to jewellery business insurance, know that “jewellers block” is a catchall term for a policy that protects inventory. Unlike other insurers, we use the term “jewellers standard” to describe a product that has the same protection but for less inventory. This makes it easier and quicker to apply for the first time and renew in the future.
2. Business Owners
Provides protection for your business personal property, building, non-jewellery inventory, business income and other expenses from liability-related risks in addition to crime and fire.
Note that if you want add-on coverage such as cyber- and data-related or employment practices liability, you’ll need to have a business owners policy first.
3. Commercial Umbrella Liability
Designed to provide an extra layer of liability protection that goes beyond your liability coverage limits from a business owners policy.
Prerequisites to Getting Jewellery Business Insurance:
A Safe
If you need to get a safe or are looking to upgrade, it will seem like there are hundreds of options to choose from.
When it comes to safes, keep these things in mind:
· Size. Be sure your safe is large enough to accommodate your stock or at least the stock you want covered.
· Only the items kept in your safe will be covered in the event of a loss when closed for business. An exception may be made if you craft your policy to allow for a certain amount to be left out of the safe, but that may increase premiums due to the additional risk.
· Weight. If the safe weighs less than 500 pounds, it’s required to be bolted to the floor. This reduces the risk of burglars removing the entire safe and taking it elsewhere to crack it.
· Rating. At a minimum, the safe must have a fire rating. Depending on your business, you may want to factor in additional protection, such as the safe being tool resistant.
· Once you start working with an agent, they can also advise on safe manufacturers and dealers, as well as the type and price of safe that is appropriate for your business.
An Alarm
Alarms are essential because burglaries are a major concern for all jewellery businesses. Alarms also provide peace of mind that if a signal is sent there will be a response.
Having a monitored alarm system is recognized as a risk mitigator, which means you’ll receive a more favorable premium, assuming your other risk factors are equal.
Accurate Records and Inventory
Documenting your inventory is the key to making sure your business is adequately covered. Keep records of your collection, receipts, and all your important documents.
Basically, think of anything you would supply to your accountant. Your agent will need that to help you get insurance.
Work With an Expert
