Jewelers Block Insurance

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Jewelers Block Insurance Policy Information

Jewelers Block Insurance

Jewelers Block Insurance. 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.

Separate limits apply for covered stock at each store, property in vaults, property entrusted to others, such as processors and other dealers, property in transit, and property off-premises for other reasons. These coverages and limits are discussed below.

Jewelers block insurance protects your inventory including precious stones, jewels, jewelry & precious metals from theft, damage or loss with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked jewelers block insurance questions:


How Much Does Jewelers Block Insurance Cost?

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.

What Property Does Jewelers Block Insurance Cover?

Jeweler With Diamonds
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

What Property Does Jewelers Block Insurance Exclude?

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.

What Hazards Does Jewelers Block Insurance Cover?

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.

What Hazards Does Jewelers Block Insurance Exclude?

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.

What Are Jewelers Block Insurance Considerations?

Couple In Jewelery Store

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 - The Bottom Line

Jewelers block insurance coverage protects against physical loss or damage to precious and semi-precious stones, jewels, jewelry, precious metals and other related property in the jewelry trade. There are many exclusions and speaking to an experienced broker can help jewelers find the best fit policy.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Commercial Property Insurance

Read up on small business commercial property insurance, including how business property insurance protects your company's building's and/or their contents from damage, destruction, theft and vandalism.


Commercial Real Estate Insurance

Rental property owners, real estate developers and property managers should keep an accurate survey of each property they own or that is in their care. This survey should include inventories of furnishings and equipment at those properties. These documents establish the extent of their insurable interest, facilitate the arrangement and placement of insurance and minimize controversy and confusion if a loss occurs.

Insurance coverage on property, general liability and professional or errors and omissions liability should be arranged and placed for every real estate and rental property risk.

The main goal of any commercial property insurance program is to protect the insured's real and business personal property. Buildings and their contents property usually represents a significant portion of its total assets, regardless of the size of the business. A commercial property program can provide the coverage you need if a loss should occur.

The ISO Commercial Property Building and Personal Property Coverage Form is an insurance industry standard that provides this needed coverage. As a result, it should always be reviewed and used as a benchmark for comparison when evaluating any commercial property coverage form.

This policy treats business personal property as more than just the contents of a building. When there is a limit of insurance on the declarations, property can be covered if inside the building or structure or within 100 feet of the building or premises and either in the open, or even in or on a vehicle.

There are many endorsements available to tailor the ISO Commercial Property Coverage Forms. Some are mandatory for all policies while others are mandatory for specific classifications and types of business. Others are optional and permit a standard form to be customized to meet a specific risk's coverage needs. Endorsements broaden, restrict, delete, modify, or add coverage.

These policies can provide the following additional coverages for small specific limits of insurance: debris removal, preservation of property, fire department service charge, pollutant clean up and removal, increased cost of construction and electronic data.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Signs, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Contractors' Equipment, Fine Arts, Cyber Liability, Employment-related Practices, Automobile Liability and Physical Damage, and Stop Gap Liability.


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