The Clarity Blog

Insurance for Jewelry Businesses: What It Is And How To Get It

on Jun 22, 2020 8:40 AM

jewelry store

Have you started designing your own jewelry? Maybe you’re dabbling in e-commerce from your home or have even opened a small storefront with curated designs from local artisans.

As you grow, having insurance for your jewelry business 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 jewelry business insurance from Jewelers Mutual Group, you’ll have peace of mind knowing that your business is protected by a company founded by jewelers, for jewelers in 1913.

Plus, an agent who is an expert in both insurance and jewelry will help guide you through the entire process. However, there 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.

These are the basic, core policy types and what they are for:

1. Jewelers Block and Jewelers 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 like crime and fire.

If you’re new to jewelry business insurance, know that “jewelers block” is a catch-all term for a policy that protects inventory. Unlike other insurers, we use the term “jewelers 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. Businessowners

Provides protection for your business personal property, building, non-jewelry inventory, business income, and other expenses from liability-related risks in addition to crime and fire.

Note that if you want add-on coverages like cyber and data-related or employment practices liability, you’ll need to have a businessowners policy first.

3. Commercial Umbrella Liability

Designed to provide an extra layer of liability protection that goes beyond your liability coverage limits from a businessowners policy.

Pre-requisites to getting jewelry business insurance:

1. 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.

Don’t get too bogged down in the technical details but do 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 what’s kept in your safe will be covered in the event of a loss when closed to 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 500lbs, 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.

2. An alarm

Alarms are essential because burglaries are a major concern for all jewelry 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 likely receive a more favorable premium, assuming your other risk factors are equal.

3. 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’d supply your accountant. Your future agent will need that to help you get insurance.

Work with an expert

If you don’t have an agent yet (or are looking for someone new), we’ll be happy to connect you with a professional near you. Tell us about your business here and we'll have an agent contact you.