Watch shops, like other retailers and small businesses, need business insurance to protect the business and its owner from unexpected losses.
If you own a watch shop, you face risks to your business property from fire, theft, vandalism, and severe weather. In addition, you have to protect your assets from lawsuits when you damage someone else’s property, or when someone is injured as a result of coming into contact with your business.
Because your inventory is highly susceptible to theft, special consideration is needed to protect your business from burglaries, shoplifting, vandalism, and other forms of theft or fraud.
A local independent insurance agent can help you find the watch shop insurance that best suits your unique needs.
Why Do You Need Watch Shop Insurance?
Any number of adverse events can impact your watch shop and lead to devastating financial losses. The goal of your business insurance is to protect you from these financial losses and allow you to continue to operate. Without it, a small fire or even a slip-and-fall incident in your store could bankrupt you.
Like any retailer or shop owner, the possibility for property damage to your building and business property, or your customers’ property, is endless. Your shop can catch fire, damaging everything inside—including your inventory, computers, showroom fixtures, office space, and more.
What’s more, because you deal with highly valuable and easily portable merchandise, watch shops also face an increased risk of burglary and theft, and must be prepared for the resulting financial losses.
The specific watch shop insurance policies that you need depend on your unique risks. At a minimum, your watch shop insurance should address risks to:
- Your building or shop structure (if you own it)
- Your office equipment, computers, tools, and equipment
- Your inventory
- Your customers’ physical well-being on your premises
Most watch shops will need to invest in several traditional business insurance policies, which will cover things like your furniture and fixtures as well as a variety of liability risks.
You’ll also probably need to purchase jewelers block insurance, which is a package of coverage designed just for jewelers, watch shops, and the like, in order to cover items and scenarios that are specifically excluded from basic business insurance policies.
What Does Watch Shop Insurance Cover?
Watch shops need several traditional business insurance policies that cover a variety of standard property and liability risks.
- Commercial property insurance reimburses you for loss of or damage to your physical assets, including décor, display cases, signage, cash registers, artwork, office equipment, and more. But it is likely to specifically exclude coverage for your watch inventory, which in many cases may be your most valuable asset.
Additional property coverage includes:
- Business interruption coverage reimburses you for lost income and pays for certain ongoing expenses if you must temporarily close to make repairs after a covered property loss (e.g., a fire, a storm).
- Equipment breakdown coverage reimburses you when an essential piece of equipment goes down. If equipment that you need for designing, fixing, cleaning, or engraving watches breaks down, it covers the resulting property damage and lost income.
You also need broad coverage for liability claims (claims of negligence on your part):
- Commercial general liability insurance provides coverage for a wide range of liability claims. It pays for direct expenses related to the claim (e.g., medical expenses for an injured party, repair costs for damaged property) as well as your legal expenses and financial payouts if you are sued.
What Does Jewelers Block Insurance Cover?
Because you sell highly valuable and easily portable merchandise, watch shops face an increased risk of theft and loss. Most standard business insurance policies specifically exclude coverage for your valuable watch inventory, which means that obtaining coverage can be difficult.
You probably need to find coverage from insurance companies that specialize in policies for jewelers and similar businesses.
Jewelers block insurance is a policy package designed specifically for jewelry store owners, including watch shops. It supplements your other commercial insurance policies by providing the essential coverage that traditional policies will not.
Jewelers block Insurance is a type of inland marine insurance policy that is designed to provide coverage for loss of or damage to jewelry inventory (watches, in this case) belonging to retailers, wholesalers, manufacturers, and pawnbrokers.
Covered causes of loss include mysterious disappearance, store window smash-and-grab burglaries, breakage due to workmanship, and employee theft.
Jewelers block insurance also covers not only your own watch inventory, but also the property of others entrusted to you (e.g., watches taken in for repairs, watches being sold on consignment).
It also covers items that are in transit (e.g., items on loan for a fashion show or photo shoot, items being sold at trade shows or special exhibitions).
If you sell watches online, you’ll need to add special coverage for items being shipped by certain methods, such as couriers or armored cars. An independent insurance agent can walk you through all of the various coverage options, and can help you create a customized watch shop insurance program.
Given the high risks inherent in the watch shop industry, your insurance company will probably require you to follow strict security guidelines in order to avoid losses. If you fail to follow basic safety and anti-theft protocols (e.g., keeping your watch inventory in a safe at night), your insurance company could cancel your policy.
What Additional Coverage Is Needed for Your Watch Shop?
In addition to basic property and liability coverage and your jewelers block package, there are several other types of coverage that you may need to purchase to protect your watch shop. These include:
- Employee theft and crime coverage may be included in your jewelers block package. A dishonest employee could embezzle large amounts of money or inventory from your store. An employee might also engage in illegal practices like undervaluing gold being sold to your business in exchange for cash, or overcharging customers and pocketing the balance. Crime coverage protects you from instances of employee theft, fraud, or other crimes against your business.
- Workers’ compensation insurance is typically required for any business that has employees, and pays for lost income and medical expenses for employees who are injured on the job.
- Employment practices liability coverage protects you from employee lawsuits related to discrimination and other employment-related business practices.
- Cyber liability insurance is necessary if you sell watches online. It helps you protect your business and your customers' privacy by paying for investigative expenses, notification expenses (the cost to notify your customers of the breach), future credit card and fraud monitoring services for your customers, your legal defense, settlements and judgments, and even PR and other related expenses.
How Much Does Watch Shop Insurance Cost?
Watch shop insurance may be more expensive than business insurance for other retailers of a similar size. This is because of your valuable inventory and the increased risk of theft and burglary that you face.
In general, watch shop insurance costs vary depending on the size of your business, the number of employees you have, the amount and value of your inventory, the location of your business, and a variety of other variables.
An independent insurance agent can guide you though your options so you get coverage that meets your needs.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Independent insurance agents simplify the search process for finding the right watch shop insurance. They’ll walk you through some handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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