What Kind of Insurance Do Jewelers Need?

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Owning a jewelry store, or being a jeweler who works with other people’s valuable jewelry every day is a lot of responsibility and opens you up to liability if anything is stolen, lost, or broken. Ring Insurance can relieve you of some of the pressure by protecting you from the risks of dealing with valuable items in a high-traffic environment. Jewelers and jewelry store owners have to deal with staff, customers, and the precious stones and metals used in the jewelry trade. Only the right insurance can protect you from things like customer claims, lawsuits, in-store injuries, employee negligence, property damage, stock theft, merchandise damage, and more.

Insurance For Jewelers and Jewelry Stores 

Business Owner’s Insurance Policy 

A business owner’s policy (BOP) is also called Jewelers Block Insurance, or Jeweler’s Standard Insurance. It is insurance created specifically for jewelry store owners. Jewelry store owners need coverage for things that other commercial businesses don’t need. For example, the valuable inventory, consignments, raw materials, and customer’s property that they have trusted into the hands of the jeweler. A Jewelers Block Policy will also protect against risks of crime, fire, damage, or theft of merchandise that is stored in a safe or bank vault; a show window; a display cabinet, or in transit. It also covers cash lost or stolen in transit to be deposited in the bank or cash in the store. Unlike most commercial stores jewelers often have large amounts of cash in the store. 

Commercial Umbrella Liability Policy

This umbrella insurance covers extraordinary liabilities that may be beyond the scope of regular business owners’ liability policies. Among other things, it includes protection from liability for risks like bodily or personal injury.

Commercial Property Insurance

This type of insurance for jewelers covers the loss or damage to the physical property of the jewelry store or workshop – the building. Whether the jeweler is renting or owns the building, commercial property insurance may also cover the contents of the property.

Insurance Add-ons for Jewelers

The insurance policies described above are the must-haves for jewelers, but if they would like extra coverage there are several other policies that they could get. 

  • Appraisal Liability-If the jeweler wrongly appraises a piece of jewelry and values it at a higher or lower price than it is actually worth, an Appraisal Liability Policy will cover any repercussions. An Appraisal Liability Policy is basically a professional liability policy to cover any errors or omissions in evaluating jewelry.
  • Employment Practices Liability-If the jeweler or store manager is accused of sexual harassment, discrimination, or wrongful termination the Employment Practices Liability Insurance (EPLI) will cover the cost of any employment-related lawsuit or compensation paid to the injured party.
  • Data Breach and Cyber Liability Protection-These days jewelers have websites, and in-store computer systems that hold all the business details and the private information of the jeweler’s clients. If the jeweler’s computers are hacked, personal or financial data compromised, or if a cyber-criminal makes a fraudulent transfer of funds through the jeweler’s system, Cyber Liability Protection will cover the cost.
  • Stock Disappearance-When there is an unexplained loss or disappearance of stock this type of insurance can offer compensation.
  • Trade Show Protection-If the jeweler is taking valuable merchandise to a trade show or other industry event, they will need additional coverage.
  • Workmanship-If a client brings in a ring to adjust the size, tighten the setting, or change the stone, and in the course of the work on the ring it is damaged or lost, this policy will cover any resulting liability.
  • Workers Compensation Insurance-This insurance covers the cost of medical care for the store owner and employees if they are injured, become ill, or hurt on the jeweler’s property. It also covers loss of wages due to a workplace incident and lawsuits resulting from employee work-related injuries.

To Sum Up:

Business Owner’s Policy for

  • Customer injury         
  • Customer property damage
  • Jewelry theft

Commercial Umbrella Insurance 

  • Customer property damage lawsuits
  • Customer physical injury lawsuits
  • Employee injury lawsuits

Commercial Property Insurance

  • Damage to the brick and mortar property

Appraisal Insurance

  • Errors made in jewelry appraisal
  • Omissions made in jewelry appraisal

Employment Practices Liability

  • Wrongful employment practices
  • Sexual harassment lawsuits
  • Wrongful termination lawsuits
  • Discrimination lawsuits

Cyber Liability Insurance

  • Online fraud
  • Fraud monitoring services
  • Cyber Extortion
  • Cyber identification theft
  • Customer notification expenses

General Liability Insurance for

  • Accidents in the workplace
  • Product liability 
  • Damaged customer property

Workers’ Compensation Insurance for

  • Employee injuries
  • Partial missed wages
  • Employee medical expenses