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The Basic Guide to Insurance for Jewelers: 6 Terms to Know


Jewelers’ Security Alliance (JSA) in the U.S. and Jewellers Vigilance Canada (JVC), two of the leading providers of security advice and services to the jewelry industry, regularly underscore their shared assertion that a jewelry business’s need to have appropriate types and adequate limits of insurance coverage underlies all of their loss-prevention and security recommendations.

The Basic Guide to Insurance for Jewelers: 6 Terms to Know

It is important to work with a competent insurance agent or broker who understands the jewelry industry and your jewelry business’s needs. When discussing insurance, it helps to have a basic understanding of some these key insurance coverages and conditions:

Jewelers block insurance 

This term to refers to the coverage that protects the jewelry business’s merchandise for sale, often called the jewelry “stock” or “inventory.” Jewelers block policies typically protect against damage or loss due to theft, robbery, shipping problems, travel-related incidents, breakage, fire, natural disaster, etc.

Many jewelers block policies also provide protection in the event of a loss of another party’s jewelry that is in the insured jeweler’s possession. This may include goods in on memorandum (“memo goods”) and customers’ jewelry that the jeweler may have in his possession for repair, cleaning, appraisal, etc.

RELATED: Learn more about jewelers block insurance from Jewelers Mutual

Businessowners policy (BOP) 

A BOP typically protects the jewelry business’s assets that are not jewelry merchandise. These assets may include showcases, tools, equipment, computers, furniture, alarm systems, building fixtures, decorations, and, in some cases, the building itself.

These policies can include loss-of-income coverage for a period until the jewelry business can get back on its feet following a covered loss that had shut down or impeded operations. BOPs usually provide some basic liability protection, which can be expanded to include liability protection for an incorrect appraisal, for piercings that go wrong, and for a legal challenge to an employment practice such as hiring or firing, etc.

RELATED: Learn more about a businessowners policy from Jewelers Mutual

Umbrella insurance policy 

This is additional liability insurance used to protect your business from liability exposures that could exceed the liability coverage limits specified in the BOP insurance policy.

RELATED: Learn more about umbrella insurance from Jewelers Mutual

Commercial auto insurance 

Commercial auto insurance protects a business’s vehicles and drivers.

Worker’s compensation 

This insurance provides wage-replacement and medical benefits to employees injured in the course of employment.


A warranty in an insurance policy is a promise by the insured party that statements affecting the validity of the insurance contract are true. The warranty defines the set of requirements that the policyholder must satisfy as a condition of the insurance coverage.

For example, a jewelers block policy might require the jeweler to promise to have a certain type of safe or vault, or to follow certain security procedures when closing the shop each night.

Want to know more about safes? Click here!

Wante to know more about vaults? Click here!

These broad terms and definitions should help you get started in your talk with a qualified jewelry-business insurance representative. Remember, the terms, conditions, and definitions may vary among insurance carriers and individual policies. Let a trusted professional guide you.

You may find that the peace of mind that comes from having the right kind and limits of insurance coverage will give you a “cool head” in the face of danger. Your insurance policy could be one of your best tools to ensure the personal safety of you, your family, your associates, and even your customers!

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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 37 consecutive “A+ Superior” ratings from AM Best Company, as of November 2023. 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