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Insurance for Jewelry Businesses: What It Is and How to Get It

By Jewelers Mutual® Group

As a jewelry business owner, it’s important to be aware of serious risks like theft, burglary, cybercrime, and security breaches that could render your business financially unstable or force you to close your doors permanently.

Your best bet is to protect your business from unexpected disasters with a dedicated insurance policy specifically tailored to meet the risk mitigation needs of the jewelry industry.

Jewelers Mutual Group was founded in 1913 by jewelers for jewelers, so our experts understand how important it is to find insurance solutions that safeguard your inventory and property and provide protection from liability-related risks.

To get started on building a customized insurance portfolio for your jewelry business, find a Jewelers Mutual agent near you.

Three Core Insurance Policies Available to Jewelers

There are three basic insurance policies that provide coverage for the jewelry industry:

1. Jewelers Block and Jewelers Standard Policy

“Jewelers block” is a catch-all term for a policy that protects 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 disasters

Many of these 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.

*Unlike other insurers, we use the term “jewelers standard” to describe a product that has the same protection but for less inventory. This makes it easier and quicker to apply for the first time and renew in the future.

2. Businessowners Policy (BOP)

A BOP typically protects a jewelry business’s assets that are not jewelry merchandise. This may include:

  • Showcases
  • Tools
  • Equipment
  • Computers
  • Furniture
  • Alarm systems
  • Building fixtures
  • Decorations
  • Your building

These policies can also include loss-of-income coverage for a period while the jewelry business can get back on its feet following a covered loss that 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.

*Note that if you want add-on coverages like cyber and data-related or employment practices liability, you’ll need to have a businessowner’s policy first.

3. Commercial Umbrella Liability Policy

An umbrella policy is designed to provide an extra layer of liability protection that goes beyond your liability coverage limits from a businessowners policy.

Add-On Coverages

With Jewelers Mutual, you can get extra peace of mind with add-on coverages that go beyond core policies, like:

Appraisal Liability: Covers errors or omissions in performing written jewelry appraisals.

Employment Practices Liability: Protection from the financial consequences associated with a variety of employment-related lawsuits.

Workers’ Compensation: This insurance provides wage replacement and medical benefits to employees injured in the course of employment.

Data Breach & Cyber Related Protection: Coverage for data compromise, e-commerce, computer fraud/funds transfer fraud, and identity fraud expense.

Trade Shows: Additional protection provided while attending jewelry industry events.

Hired & Non-Owned Auto Liability: Covers bodily injury or property damage arising out of the use of an auto in a variety of business situations.

Stock Disappearance: Covers unexplained losses other than those discovered taking inventory or from packages received in good condition.

Workmanship: Covers loss or damage to property belonging to others not in the jewelry trade that is being worked on.

Warranty: A 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, monitored alarm system, or to follow certain security procedures when closing the shop each night.

The right insurance policy ensures the personal safety of you, your family, your associates, and even your customers. Feeling confident about your business insurance empowers you to continue expanding your business even in the face of unexpected disasters.

‘Don’t have an insurance agent yet, or looking for someone new? We’ll be happy to connect you with a professional near you. Tell us about your business here, and we’ll have an agent contact you.