Buy Jewelers Block Insurance

Jewelers Block Insurance is a type of insurance that specifically covers the risks associated with the jewelry industry. This type of insurance typically includes coverage for theft, loss, damage, and liability.

It may also include coverage for specific types of jewelry, such as diamonds or precious stones, and may include coverage for both physical jewelry and jewelry-related assets, such as inventory and equipment.

Jewelers Block Insurance is often purchased by jewelry retailers, manufacturers, and wholesalers, as well as other businesses that handle or sell jewelry.

The average price of a standard jewelers block policy for small jewelers ranges from $27 to $59 per month based on location, value of inventory, claims history and more.

PROPERTY COVERED

Stock In Trade

The jewelers block insurance coverage form insures the insured's stock in trade, consisting of jewelry, precious and semiprecious stones, precious metals and alloys, and other stock used in the business. It also covers similar property sold but not yet delivered.

These values include an estimate of average daily values for property of others in the insured's care, custody, or control. The jewelers block coverage form does not extend coverage to newly acquired locations.

This is different than most other inland marine coverage forms and policies. New or newly acquired locations must be reported to the insurance company immediately and specific coverage must be arranged.

Property Of Others Not In The Jewelry Trade

Property of customers and others not in the jewelry trade similar to the insured's property is covered while it is in the insured's care, custody, and control.

Property Of Others In The Jewelry Trade

Property of others in the jewelry trade similar to the insured's property is covered while it is in the insured's care, custody, and control. Coverage applies only to the extent of the money that the insured advanced for it or for the insured's legal liability for the property.

COVERAGE EXTENSIONS

Theft Damage to Buildings

The insured may own the building or be legally liable for damage to it. In that case, the jewelers block insurance coverage form pays for damage to it caused by or that results from theft or attempted theft, as well as for loss or damage to equipment used to service the building.

Coverage does not apply to loss or damage that fire causes to glass and any lettering or ornamentation on the glass.

COVERAGE OPTIONS

Show Windows

Theft from store windows is excluded under more jewelers block coverage form. However, the insured has the option to buy back this coverage.

It may be subject to a separate sublimit that is subject to the limit of insurance for all property at that location.

Money

The basic policy does not cover money, but coverage is available as an option. When money is insured, coverage applies to loss of money from locked safes or vaults inside the premises caused by theft when robbers or burglars break into them.

Other Property Coverages

The jewelers block insurance coverage form has an endorsement available to add coverage for other types of property that jewelry risks usually have, as follows:

• Furniture, fixtures, and office supplies
• Machinery, tools, and fittings
• Patterns, dies, molds, and models
• Improvements and betterments

PROPERTY NOT COVERED

Property sold under a Deferred Payment Plan

Jewelers block insurance coverage does not apply to property sold under a deferred sales agreement that is no longer on the insured's premises.

Note: Coverage does apply to property sold under a layaway plan where the insured keeps the property until all payments are made.

Exhibitions

There is no coverage for property at exhibitions that a public authority or a trade association promotes or helps financially.

Showcases

Property in showcases or show windows away from the premises or at other locations is not covered.

Property While Being Worn

Coverage does not apply to property when worn by any of a number of different parties. These include any officer, director, employee, agent, member or messenger of the insured or of any organization in the jewelry trade.

Others include any family members, relatives, or friends of any of these individuals, or in the care, custody, or control of the insured or any of these parties for the purpose of being worn. An exception to this exclusion is for watches worn only to adjust them.

Property In Transit

Jewelers block insurance coverage does not apply to property in transit by any of the following means of transportation, except as noted:

• Mail: Property sent by mail other than by United States Postal Service Registered Mail is excluded.
• Railroad, Waterborne, Or Air Carriers: There is no coverage for covered property that railroads, water carriers, and air carriers transport. However, coverage does apply to shipments by the following:
  • Express carriers
  • Passenger parcel transportation receipts or baggage service receipts issued by railroads, water carriers, and air carriers
  • Air carriers' passenger baggage service is subject to air freight tariffs with delivery to the passenger at the destination. This is treated as accompanied baggage and is subject to the limit of insurance on the declarations for Property Away from Your Premises and Not Included Above.
• Motor Carriers: Shipments by motor carriers are excluded. This exclusion has three exceptions. Shipments by express companies or other carriers that operate as parcel delivery services, armored car services, or passenger transportation, or baggage services of passenger bus services are covered.

Contraband

This includes legal property in the course of illegal transportation or trade.

HAZARDS COVERED

The jewelers block insurance coverage form insures against direct physical loss or damage to covered property except for causes of loss or perils specifically excluded.

HAZARDS NOT COVERED

Common Exclusions

Jewelers block insurance coverage does not apply to loss caused by or that results from the following exclusion that are common to most inland marine forms:

• Acts or decisions
• Collapse
• Gradual deterioration, latent or hidden defect, or any aspect of the property that causes it to destroy or damage it
• Loss of market, loss of use, delay, or any other consequential loss apply. As do voluntary parting, neglect
• Rodents, vermin, and insects
• Rust, corrosion, heat, cold, or dampness
• The standard property exclusions of earthquake, governmental action, nuclear hazard, war and military action, water
• Theft by persons entrusted with property
• Wear, tear, and depreciation
• Weather conditions

Coverage Specific Exclusions

In addition there are exclusions that are particular to jewelers block insurance coverage:

• Theft From Vehicles - There is no coverage unless the insured, an employee or another person whose only duty is to attend the vehicle is actually in or on the vehicle at the time of the theft. This exclusion has an exception. Coverage applies to shipments of property in the custody of the United States Postal Service or other carriers.
• Unexplained Disappearance
• Shortage Based On The Results Of An Inventory
• Shortages In Shipped Property - This is shortage of property supposedly shipped when the consignee receives the package in apparent good condition with no broken seals.
• Dishonest Or Criminal Acts Including Theft
• Theft Or Attempted Theft From Show Windows - This applies to property at the insured's premises when the loss is due to the cutting or smashing of such windows. This exclusion does not apply if the insured purchased optional coverage for show windows.
• Processing Or Work On The Property - Coverage does not apply to loss or damage to property being worked on that results directly from the work being done.
• Insufficient Packing - There is no coverage for loss or damage to covered property due to insufficient or defective packing.
• Breakage Of Fragile Articles - This cause of loss/peril is excluded. This exclusion has an exception. Coverage applies to such loss or damage that fire, lightning, explosion, windstorm, vandalism, aircraft, rioters, strikers, theft, attempted theft, or accident by a transporting conveyance causes. This is only if the coverage form covers these causes of loss/perils.

Changes to Premises

The jewelers block insurance policy does not cover property where the risk of loss is materially increased by changes in the insured premises or to property located in any expansion of the insured premises, unless the insurance company endorses the policy or agrees to the change in writing.

The jewelry business is different than most other businesses in several ways. The physical size of the property or merchandise is normally small, but it usually has extremely high values.

This makes it especially susceptible to loss from many different causes. In addition, the average jeweler engages in more than just one activity. It usually has a retail business where it sells merchandise to the public.

It may also have one or more outside salespersons who travel on behalf of the jeweler's retail business. In many cases, the jeweler also accepts jewelry and watches from individuals for service, repair, renovation, or remodeling.

In addition, the jeweler often has property of other jewelers or dealers for which it is responsible and legally liable. In this capacity, the jeweler may act as a bailee. Finally, the jeweler may loan or give out property on consignment to other jewelers, dealers, and individuals.

Jewelers have a special insurance coverage form available to them. The jewelers block insurance coverage form is one of the broadest inland marine coverage forms available. It covers nearly all forms of property at risk against most loss or damage and contains a number of unique features.

The jewelers block coverage form requires submitting a complete, detailed proposal form that becomes part of the policy. This is unique and different from almost every other commercial insurance coverage form or policy. Separate limits of insurance apply to the different classes of property the proposal lists and describes. Below are some other important jewelers block insurance considerations:

HOW DOES JEWELERS BLOCK INSURANCE VALUE PROPERTY?

Covered property is valued at the lowest of the following at the time of loss or damage:

• The property's actual cash value
• The reasonable costs to restore the property to the condition it was in just before the loss occurred
• The cost to replace the property with similar property
• The lowest value the insured had on the property in its stock books, stock papers, inventories, or lists at the time of loss or damage

Covered property's value does not include any historical or antique value.

HOW MUCH DOES JEWELERS BLOCK INSURANCE COVER?

The limit of insurance on the declarations for the coverage involved is the most paid for loss or damage in a single occurrence.

The declarations has spaces to enter limits of insurance for the coverages the jewelers block insurance coverage form provides as follows:

• Property at the named insured's premises
• Property in safe deposit vaults of banks, trust companies, or safe deposit companies
• Property at premises of dealers, processors, or similar bailees in the jewelry business
• Property in transit. Separate limits of insurance can be entered for the following:
  • Registered mail
  • Armored Car
  • Express carriers or parcel delivery services
  • Railroads, airborne carriers, waterborne carriers, or passenger bus lines
  • Other, as this coverage form insures
• Show windows at the insured's premises
  • When the premises is open for business
  • When the premises is closed to business
• Money
• Additionally covered property:
  • Furniture, fixtures, and office supplies
  • Machinery, tools, and fittings
  • Patterns, dies, molds, and models
  • Improvements and betterments

Deductible

The deductible amount on the declarations is deducted from the amount of the adjusted loss or damage.

INSURED'S DUTIES

Protective Safeguards

This duty is very important. The protective safeguards that are described in the proposal must be in activated as agreed upon. The deactivation of the safeguards for any reason will void coverage.

RECORDS AND INVENTORY

The insured must keep accurate records of the business and retain them for at least three years after the policy expires. The records it must retain include itemized inventories of all stock in trade, records of all purchases and sales (whether cash or credit), and records of property of others in the insured's care, custody, or control. This requirement also includes detailed listings of travelers' stock and records of all other property away from the premises. The insured must also conduct a physical inventory of all stock in trade at least annually.

PROPOSAL

The jewelers block insurance coverage form is issued with a required elaborate proposal form the insured submits at the time it applies for coverage. It is the equivalent of applications used with other coverage forms and policies but requires different information than those other applications.

In addition, a separate proposal is required for each location. The insured completes each proposal and retains a copy. The original is attached to and becomes part of the policy.

The proposal is very detailed. It requires complete information about the members of the firm or officers of the corporation, the number of locations to be insured, including details about the number open to the public and those that are not, and whether the insured shares the premises with others.

It also requires information about the insured's employees, loss information for the three most recent previous years (whether insured or not), and information about the bookkeeping systems used. Itemized limits must be provided for the following:

• Stock, including property of others
• Stock in transit by registered mail
• Stock in transit by armored vehicles
• Stock in transit by merchant parcel delivery services
• Stock in transit by all other forms of transportation that the coverage form insures

Most proposals specify that the limits selected must be at least 80% of the average inventory values at each location.

The next section of the proposal applies to optional jewelers block insurance coverages that can be included. The limits selected must reflect 100% of the insurable value for the first two items listed below:

• In safe, locked against burglary
• Furniture, fixtures, and office supplies
• Improvements and betterments
• Machinery, tools, and fittings
• Patterns, dies, molds, and models
• Flood
• Earthquake

The proposal also requests information about the following additional coverages and exposures:

• Detailed inventories at all locations
• Property on display in show windows, showcases, and show window displays away from the insured's premises
• Property in transit and with messengers
• Shipments
• Burglary protection of premises, safes, vaults, or stockrooms
• Watchpersons and other protective safeguards such as stock enclosures.

All information requested must be provided and should include as much detail as possible.

Jewelers Block Insurance is a specialized insurance policy designed to protect jewelers from a wide range of risks, including theft, loss, damage, and liability. Here are some examples of Jewelers Block Insurance claims:

• Theft: A jeweler may experience a break-in and theft of valuable jewelry from their store. With Jewelers Block Insurance, the jeweler can file a claim for the stolen items and receive reimbursement for the loss.
• Fire or water damage: A fire or water damage may occur in a jeweler's store, resulting in damage to their inventory. Jewelers Block Insurance can help cover the costs of repairing or replacing the damaged items.
• Shipping loss: A jeweler may ship valuable jewelry to a customer, and the package may be lost or stolen during transit. Jewelers Block Insurance can help cover the loss.
• Manufacturing defects: If a piece of jewelry is found to have a manufacturing defect, the jeweler may be held liable for any damages or losses incurred by the customer. Jewelers Block Insurance can help cover the costs of any claims related to manufacturing defects.

In all of these examples, Jewelers Block Insurance can help pay for the costs associated with the claim, including any legal fees or settlements. It's important for jewelers to have this specialized insurance coverage to protect themselves and their businesses from unexpected events.