From providing jewelry cleaning, repair and resetting services to offering a wide range of rings, necklaces, earrings and other fine accessories that make lovely gifts, jewelry stores are a staple of American commerce. If you own a jewelry store, you will want to be sure to protect your valuable inventory as well as the investment you have made in your business by purchasing a suitable business insurance package. An independent agent can help you build a jewelry store insurance portfolio that can protect your business from its various exposures.
2014 Jewelry Store Industry Facts From IBISWorld
- There are approximately 61,200 jewelry stores operating in the United States.
- These stores employ more than 177,000 people.
- The jewelry store industry generates about $34 billion in revenue each year.
Jewelry Stores Need Specialized Coverage
Because they deal with highly valuable and easily portable merchandise, jewelers face increased risk of theft and loss. Most standard business insurance policies specifically exclude coverage for jewelry, which makes obtaining coverage solely through regular commercial insurance channels a challenge, if not impossible. This is why some insurance companies offer what is referred to as jewelers block insurance, which provides jewelry store owners with the specific coverage needed by those in their industry.
Given the high risks inherent in this industry, most jewelry store insurance providers are likely to require that you follow strict risk management guidelines. Failure to follow basic safety and anti-theft protocols may result in your insurance company's canceling your policy. Your independent insurance agent can review the requirements of various insurance companies that offer jewelers block insurance coverage.
What Can a Standard Commercial Insurance Policy Cover?
Part of the commercial insurance coverage a jewelry store owner will need is a standard business insurance policy. This includes the following types of coverage:
- Property insurance: This provides compensation for loss or damage to the business property you keep in your store, other than the jewelry itself. Covered property includes such things as décor, display cases, signage, machinery, cash registers and computers.
- Commercial general liability insurance (CGL): This provides coverage for court costs, legal defense fees and financial damages if your jewelry store is sued for a liability charge. Covered under the CGL are such things as:
- Premises liability insurance: This provides coverage for property damage or injuries suffered by third-parties while they are in your jewelry store.
- Product liability insurance: This provides coverage if a faulty product you sold causes injuries or illness to another and they sue your business for damages.
- Libel, slander and copyright infringement insurance: This provides coverage if a third-party accuses someone representing your jewelry store of damaging their reputation through libel or slander, or theft of their creative work – charges that can result in a long, drawn-out and financially draining lawsuit.
- Business income insurance: This coverage provides your jewelry store with a continuation of income in the event that a covered disaster forces you to close shop for an extended period. This enables you to continue paying employee salaries and monthly expenses while your store is closed for repairs. Coverage typically lasts up to 12 months.
- Equipment breakdown insurance: Many jewelry shops have a lot of expensive machinery used for such things as creating jewelry, cleaning jewelry and engraving. This insurance provides coverage for necessary repairs if your machinery breaks down.
What Is Jewelers Block Insurance?
Jewelers block insurance, also referred to as jewelers standard insurance, is a policy package designed specifically for jewelry store owners. It can supplement your commercial insurance policy by providing the necessary coverage that traditional policies will not. Your independent insurance agent can help you find insurance companies that offer jewelers block insurance and can review the various policy offerings with you. These may include such things as:
- coverage for merchandise:
- kept inside your safe.
- left outside your safe after business hours.
- in your show window.
- while in transit to your place of business.
- kept inside a bank vault.
- while in your jewelry store.
- while being taken to the bank for deposit.
- trade show coverage.
Once you have secured a commercial insurance package and a jewelers block policy, your independent insurance agent can help you identify any remaining exposures you may have so that you may supplement your portfolio with the appropriate insurance.
What Other Insurance Coverage Might Jewelry Store Owners Need?
In addition to the property and liability coverage mentioned above, there are other insurance coverage types that you may want to discuss with your independent agent. These include:
- Workers’ compensation insurance: This insurance is required of employers in most states. It protects your business from liability lawsuits stemming from employee injuries by providing compensation for medical treatments and paid time off if necessitated by the injury.
- Employment practices liability insurance: This provides your jewelry store with coverage in the event that one of your employees sues your business for a perceived illegal business practice, such as breach of contract, wrongful termination or discriminatory practices.
- Employee dishonesty insurance: This coverage, which may be included in your jewelry block package, is particularly important in the jewelry industry. A dishonest employee may be able to embezzle large amounts of money or inventory from your store. They might also engage in illegal practices, such as undervaluing gold or gemstones being sold to your business in exchange for cash, or overcharging customers and pocketing the balance. This is insurance protects your business from financial losses in these cases.
Get Help Finding the Right Jewelry Store Insurance Coverage
Purchasing commercial insurance can be a complex endeavor, particularly when you own a business that requires specialized coverage, such as a jewelry store. Fortunately, when you work with an independent agent in the Trusted Choice® network, the process becomes much simpler. These agents can explain your many coverage options and can help you find competitively priced policies that can provide the coverage you need. Find a Trusted Choice agent near you to learn more about building a suitable insurance portfolio for your jewelry store.