On Valentine’s Day, a couple walked into a jewelry store in Monterey, California and walked out with $20,000 worth of merchandise – that they stole.
As a jeweler, you face unique challenges. Selling and dealing in valuable merchandise puts you and your business at high risk for significant loss in the event of robbery, fire, employee theft and more.
That’s where jewelers block insurance comes in. Let’s take a look at what jewelers block insurance is, why it’s essential and how it offers protection and financial benefits for your business.
What is jewelers block insurance?
Jewelers block insurance is specialized insurance coverage designed to meet your unique needs. It specifically protects high-value items like diamonds, gemstones, watches and other luxury goods. Coverage generally extends to transit as well as items that are in your store as well as inventory at off-site locations.
General business insurance policies may offer robust coverage but it’s usually not enough to insure the total value of your property. Having insurance policies tailored to your jewelry business helps you recover quickly from unexpected losses.
Why jewelers need specialized insurance
In some ways, owning a jewelry business may seem similar to owning any other kind of business. You have a retail space, you have inventory, you have employees and so on. However, this industry is not like a regular retail business and the stakes are incredibly high.
High-value inventory
Even if you have the same number of items as a clothing retailer or bookstore, the value of your inventory is significantly higher. A single piece of merchandise can be worth tens of thousands of dollars. This makes every item a prime target for theft.
Frequent and easy targets
Because jewelry is small, portable and valuable, it is a tempting target for thieves. The more your inventory is moved – like to your store, to a show, shipped to a customer, etc. – the more chances there are for criminals to steal it.
Vulnerable to accidents
Jewelry, gemstones, watches and other pieces are delicate which makes them more prone to accidental damage. Mistakes happen but given the high-value nature of the merchandise, those mistakes can cost thousands of dollars in losses.
What jewelers block insurance covers
Each policy is different, so be sure to fully read and understand the coverages and exclusions in your policy. But in general, policies cover the following:
Theft and burglary
Your inventory is a tempting target for thieves. Whether a smash-and-grab, employee theft, organized crime rings or shoplifting, your policy should cover losses from criminal activity.
Unintentional damage
If stock is damaged while you’re repairing or resizing a piece or is otherwise accidentally broken or ruined, jewelers block insurance should protect you. This type of insurance policy also covers loss due to damage to your building, fire damage specifically. Natural disaster coverage is typically not included so be sure to ask your broker about exclusions related to environmental disasters like wildfires.
Transit protection
Merchandise moves and you need to protect it along the way. You’ll want coverage for inventory transit in and out of your store including coverage for items coming in from a wholesaler or dealer as well as items you may be shipping to customers.
Off-site events
You want to protect your jewelry whether it’s in your store or at other locations. When you take items to trade shows or exhibitions, you introduce an entirely new set of risks. But with jewelers block insurance, you’re shielded from losses.
Final thoughts
Jewelers block insurance is an essential tool for any jewelry retailer. Offering comprehensive protection that covers everything from in-store inventory to transit and accidental damage provides the financial security and peace of mind necessary for you to thrive in this high-risk industry.
Click here to find the coverage that best suits your needs, and speak to one of our experts today.
