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