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How to Protect Your Jewelry Business When the Power Goes Out

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How to protect your jewelry store when the power goes out

There are many reasons the power could go out at your jewelry business that don’t involve crime. High winds from a storm, a traffic accident, a planned outage or simply the handy work of a critter chewing on power lines can all cause power outages and have the potential to disrupt your business.  

While power outages are a common occurrence, they are, for the most part, unexpected and can be very costly – especially if you don’t have business insurance. 

Here are a few steps you can take before, during and after a power outage to protect your jewelry business. 

Before an Outage

  • Create a business continuity plan and include power outages as a potential disruption. Share the plan with your employees and update it annually. 

  • Invest in backup power like a generator or battery. This is a worthwhile expense to keep your jewelry business up and running during an outage.  

  • Prepare an emergency kit that includes flashlights, batteries, first aid supplies and other necessities. Keep it in a central location and make employees aware of its location.   

  • Inspect your electrical box on a regular basis and place a secure lock on the outside. If you suspect any tampering, report it to police and the Jewelers Security Alliance, even if the power is not cut off and no burglary occurred. Keep in mind that fire regulations vary in different jurisdictions regarding placement of locks. If you need more guidance, contact your local fire department. 

  • Back up and encrypt your data to an external hard drive or the cloud. Keep copies of your records at an off-site location. 

  • Confirm that your burglar alarm system has operational line security to protect your business if the power goes out or is cut intentionally. 

  • Update your call list so the alarm system notification can be responded to promptly by employees who will be available, including during vacations, weekend and holiday nights. 

  • Protect your jewelry business with a business insurance policy.  

During an Outage

  • Lock your doors and move as much of your inventory as possible into a locked safe or vault. 

  • Do not leave items in plain sight or simply cover your showcases as this signals that something valuable is being hidden. 

  • Arrange for Malca-Amit to transport your inventory to a safe storage location or transport your stock to the nearest bank safe if it’s safe to do. If you are a Jewelers Mutual Group policyholder, we will cover the transport fees for Malca-Amit.  

  • Call your utility company and report the outage. If you feel there is an immediate danger to you, your customers or employees, call 911.  

  • Turn off and disconnect business equipment and small appliances. If electronic equipment remains powered up when the power goes out, it could cause a power surge when power is restored, putting you right back in the dark.  

After an Outage

  • Test the power first by turning on a light before fully restoring all equipment and appliances. Then, only power up after 15 minutes of confirming that power has been restored.  

  • Turn off your generator and safely store it.  

  • Determine your losses, if any, and follow the correct procedures to file a claim with your insurance company.  

Make sure your business has adequate insurance coverage. Don’t assume you’ll be covered for any peril that threatens your business just because you have insurance. Ask yourself these questions:  

  • Are my inventory figures up to date? 

  • Is my building and business personal property valued correctly? 

  • Could I be liable for damage to a neighbor's property, too? 

  • Will I be covered for any amount of lost earnings during the time when my business is closed due to the disruption? 

The best way to make sure you’re properly covered is to work with a Jewelers Mutual agent — an expert in jewelers block insurance.

Want to learn more on how you can keep your jewelry store safe 24/7? Read our comprehensive Jeweler Security Guide by clicking the button below.

 

Read the 24/7 Jeweler Security Guide

 

For more resources and services available to keep your jewelry business secure, visit JM™ Risk Services. JM Risk Services is a division of Jewelers Mutual Group dedicated to providing loss prevention education and solutions to the entire jewelry industry.

 

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About Jewelers Mutual Group

Jewelers Mutual was founded in 1913 by a group of Wisconsin jewelers to meet their unique insurance needs. Later, consumers began putting their trust in Jewelers Mutual to protect their jewelry and the special memories each piece holds. Today, Jewelers Mutual continues to support and move the industry forward by listening to jewelers and consumers and offering products and services to meet their evolving needs. Beyond insurance, Jewelers Mutual’s powerful suite of innovative solutions and digital technology offerings help jewelers strengthen and grow their businesses, mitigate risk, and bring them closer to their customers. The Group insurers’ strong financial position is reflected in their 38 consecutive “A+ Superior” ratings from AM Best Company, as of November 2024. Policyholders of the Group insurers are members of Jewelers Mutual Holding Company. Jewelers Mutual is headquartered in Neenah, Wisconsin, with other Group offices in Dallas, Texas and Miami, Florida. To learn more, visit JewelersMutual.com.