Jewelry Manufacturers Insurance Policy Information
Jewelry Manufacturers Insurance. Rings, bracelets, earrings, necklaces, cuff links, brooches, and hair pins are just some examples of the kinds of jewelry people use to enhance their looks or status.
Jewelry manufacturers produce items for personal adornment, including bracelets, brooches, earrings, necklaces, nose rings, other rings, and similar wares. Higher-value items may be made of gold, silver, or platinum, with or without precious or semiprecious stones.
Costume jewelry materials include ordinary metals, bone, gemstones, glass, plastic, and wood.
Metals can be cast into forms, crafted by hand, drawn as wire, electroplated, heat treated, pressed, cut from stock, or stamped.
Due to the variety of materials used, prices of finished jewelry can run from a few dollars to hundreds of thousands of dollars each.
These personal decorations may be crafted using an extremely broad range of materials, including precious metals like gold, silver, and rhodium, gemstones of diverse types, stainless steel, bronze, plastic, leather, and even glass.
Companies that craft or manufacture jewelry exist in all sizes, from boutique workshops catering to luxury or craft-loving markets to large factories that mass-produce jewelry for budget-savvy buyers. In the face of this enormous level of diversity, each company that makes jewelry can truly be said to be unique.
All manufacturers in this field hold one thing in common, and that is that their business is exposed to risk every day.
What types of jewelry manufacturers insurance are essential for companies that need a rock-solid risk mitigation plan? Read on to discover more about how to protect your business.
Jewelry manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked jewelry manufacturing insurance questions:
- How Much Does Jewelry Manufacturers Insurance Cost?
- Why Do Jewelry Manufacturers Need Insurance?
- What Type Of Insurance Do Jewelry Manufacturers Need?
How Much Does Jewelry Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small jewelry manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Jewelry Manufacturers Need Insurance?
All commercial ventures have to confront the very real possibility that unforeseen circumstances may lead to significant financial losses. Without the correct insurance coverage, a company would be responsible for the full costs that result.
In some cases, this may be no more than a minor hurdle - but in others, the company would never be able to recover on their own.
Examples of threats common to nearly all businesses would be theft, vandalism, and acts of nature such as fires, hurricanes, and earthquakes. Smaller jewelry makers are likely to lose valuable raw materials, while the mass production of budget jewelry means the presence of expensive manufacturing machines, the loss of which would be equally catastrophic.
If your company relies on specialized tools, these may break down and require repair or replacement. Raw materials you ordered may not meet your quality standards, leading to the production of substandard jewelry products.
You further have to consider the possibility that either an employee or a third party becomes injured on your premises, holding you liable in the process.
These and many other perils can strike at virtually any time. They cannot always be prevented, but with a comprehensive jewelry manufacturers insurance insurance plan, you can indeed protect yourself against them.
That, in turn, allows your company to recover so that it can thrive in the future.
What Type Of Insurance Do Jewelry Manufacturers Need?
There is no simple answer, as your jewelry manufacturers insurance needs depend on factors that include the value of the raw materials you use in the crafting of jewelry, your number of employees, the type of equipment you use to make your product, and the location of your facility.
To design an individualized insurance plan, consult an agent specializing in commercial insurance and catering to the size of your business.
The following insurance types, meanwhile, are going to be required for nearly any jewelry manufacturer:
- Commercial Property: This type of insurance covers your building and the physical assets inside in the event that perils like theft, vandalism, or acts of nature cause loss or damage. It will help you fund repair and replacement costs as well as revenue lost due to the damage you suffered.
- General Liability: Covering costs relating to third party bodily injury and property damage claims, this type of jewelry manufacturers insurance essentially protects you in cases where someone files a lawsuit against you. It helps you pay for legal costs and any settlement fees.
- Product Liability: This type of insurance protects your company if a third party were to become injured by a product you made, or if their property were to be damaged by one of your products. It would cover scenarios such as a serious allergic reaction on the part of a buyer despite you advertising your jewelry as hypoallergenic.
- Workers Compensation: Should an employee sustain workplace injuries or occupational illness due to exposure to chemicals used to process metals you work with, this kind of insurance covers the medical costs the worker incurs. It also pays for wages the employee loses out on if they are not able to return to work for a time.
These forms of jewelry manufacturers insurance protect against against many of the hazards that firms in this industry are vulnerable to.
Your company may, however, have additional insurance needs. To discover how to best shield your business from financial loss, talk to a skilled commercial insurance agent.
Jewelry Manufacturing's Risks & Exposures
Premises liability exposure is normally low as access by visitors is limited. If the manufacturer has a showroom or offers tours, visitors may be injured by slips, trips, or falls. Fumes, dust, and noise from metalwork or gem polishing could pose a nuisance hazard to neighbors. Off-premises retail locations or showrooms may be used to meet with customers.
Products liability exposure is generally low. Some metals produce allergic reactions when worn. Labeling of components as nonallergenic or hypoallergenic should be supported by quality control. If children's jewelry is made, lead paint and cadmium are a particular concern, as well as choking hazards from small components such as beads.
Environmental impairment exposure can be moderate to high depending on the materials and processes used and the types of waste that are produced. Plastics and fiberglass may be toxic and are flammable, the catalysts may be caustic, and the final product is usually not biodegradable.
Contaminants from chemicals, paints, and solvents used in metalworking processes can pollute the air, surface or ground water, or soil. Disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposure can be very high. Injuries from production machinery are common, as are burns, cuts, slips, trips, falls, and foreign objects in the eye, hearing loss from machinery noise, repetitive motion injuries, and back injuries from lifting.
There should be safety training, protective equipment, and guarding of machines. Workstations should be ergonomically designed. Dust generated by metalwork or grinding of stones and gems requires respiratory protection devices, as well as eye protection and eye wash stations.
Work with plastics, flammable liquids and chemicals can cause skin irritation, eye irritation, and possible long-term occupational disease. Drivers of forklifts and vehicles may be injured in accidents. Sales representatives carrying precious gems or metals may be injured or killed in holdups.
Property exposures consist of office, plant or shop and warehouse for raw materials and finished goods. Ignition sources can include electrical wiring, heating and cooling equipment, production machinery, and dust explosions. Metalworking hazards can include brazing, grinding, heat-treating, and welding.
Plastic can catch on fire and explode, producing a heavy black smoke that impedes firefighting efforts. Flammable liquids may be used for finishing and polishing. These should be properly labeled and stored away from combustibles.
Due to the theft limitations on jewelry in standard property policies, most manufacturers should purchase jewelers block policies to obtain adequate limits. As fires are often used to cover up a theft, controlling the theft exposure also reduces the exposure to fire.
Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. Breakdown and loss of use of the production machinery could result in a significant loss, both direct and indirect, especially, time element.
Crime exposure from employee dishonesty and theft is very high if the manufacturer works with precious or semiprecious metals or gemstones due to their high street value. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock.
Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements.
Inland marine exposure includes accounts receivable if the manufacturer offers credit, bailees customers, computers (which may include computer-run production equipment), exhibitions, goods in transit, jewelers block, and valuable papers and records for customers' and suppliers' information.
While the primary hazard is theft, the items are also susceptible to other causes of loss, including breakage and transit exposures. There is a significant bailee exposure for sizing, cleaning, engraving, and repairing items for customers. Safes or vaults should be burglar- and fire-resistant.
Business auto exposure may be high if the manufacturer transports raw materials or finished products. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.
Each driver should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location. Because of the high market value of jewelry, vehicles should be locked, fitted with alarms, and not left unattended once loaded or during transport.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3911 Jewelry, Precious Metal, 3915 Jewelers' Findings And Materials, And Lapidary Work, 3961 Costume Jewelry And Costume Novelties, Except Precious Metal
- NAICS CODE: 339910 Jewelry and Silverware Manufacturing
- Suggested ISO General Liability Code(s): 55802, 54012, 59923
- Suggested Workers Compensation Code(s): 3383, 3385
Description for 3911: Jewelry, Precious Metal
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 391: Jewelry, Silverware, And Plated Ware
3911 Jewelry, Precious Metal: Establishments primarily engaged in manufacturing jewelry and other articles worn on or carried about the person, made of precious metals (including base metals clad or rolled with precious metals), with or without stones. Products of this industry include cigarette cases and lighters, vanity cases and compacts; trimmings for umbrellas and canes; and jewel settings and mountings. Establishments primarily engaged in manufacturing costume jewelry from nonprecious metals and other materials are classified in Industry 3961.
- Cases: cigar, cigarette, and vanity-precious metal
- Cigar lighters, precious metal or based metal clad with precious metal
- Cigarette lighters, precious metal
- Collar buttons, precious metal and precious or semiprecious stones
- Compacts, precious metal
- Cuff buttons, precious metal and precious or semiprecious stones
- Handbags, precious metal
- Handles, umbrella and parasol: gold and silver
- Jewel settings and mountings, precious metal
- Jewelry, made of precious metal or precious or semiprecious stones
- Jewelry, natural or cultured pearls
- Medals of precious or semiprecious metals
- Mountings, gold and silver: for pens, leather goods, and umbrellas
- Pins, precious metal
- Rings, precious metal
- Rosaries and other small religious articles, precious metal
- Shirt studs, precious metal and precious or semiprecious stones
- Trimmings, precious metal: e.g., for canes, umbrellas
- Watchbands, precious metal
Description for 3915: Jewelers' Findings And Materials, And Lapidary Work
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 391: Jewelry, Silverware, And Plated Ware
3915 Jewelers' Findings And Materials, And Lapidary Work: Establishments primarily engaged in manufacturing unassembled jewelry parts and stock shop products, such as sheet, wire, and tubing; and establishments of lapidaries primarily engaged in cutting, slabbing, tumbling, carving, engraving, polishing or faceting stones from natural or manmade precious or semiprecious gem raw materials, either for sale or on a contract basis for the trade; in recutting, repolishing, and setting gem stones; or in cutting, drilling, and otherwise preparing jewels for instruments, dies, watches, chronometers, and other industrial uses. This industry includes the drilling, sawing, and peeling of real or cultured pearls. Establishments primarily engaged in manufacturing synthetic stones for gem stones and industrial use are classified in Industry 3299, and those manufacturing artificial pearls are classified in Industry 3961.
- Diamond cutting and polishing
- Diamond points for phonograph needles
- Jewel bearings, synthetic
- Jewel cutting, drilling, polishing, recutting, or setting
- Jewel preparing: for instruments, tools, watches, and jewelry
- Jewelers' findings and materials
- Jewelry parts, unassembled
- Jewelry polishing for the trade
- Jewelry soldering for the trade
- Lapidary work, contract and other
- Machine chain, platinum or karat gold
- Pearls: drilling, sawing or peeling of
- Pin stems (jewelry findings)
- Soldering for the jewelry trade
- Stones: preparation of real and imitation gems for settings
Description for 3961: Costume Jewelry And Costume Novelties, Except Precious Metal
Division D: Manufacturing | Major Group 39: Miscellaneous Manufacturing Industries | Industry Group 396: Costume Jewelry, Costume Novelties, Buttons, And Miscellaneous Notions, Except Precious Metal
3961 Costume Jewelry And Costume Novelties, Except Precious Metal: Establishments primarily engaged in manufacturing costume jewelry, costume novelties, and ornaments made of all materials, except precious metal, precious or semiprecious stones, and rolled goldplate and gold- filled materials. Establishments primarily engaged in manufacturing jewelry of precious and semiprecious metal are classified in 3911; those manufacturing leather compacts and vanity cases are classified in Industry 3172; and those manufacturing synthetic stones for gem stone and industrial use are classified in Industry 3299.
- Compacts, except precious metal and solid leather
- Costume jewelry, except precious metal and precious or semi-precious
- Cuff-links and studs, except precious metal and gems
- Novelties, costume: except precious metal and gems
- Ornaments, costume: except precious metal and gems
- Pearls, artificial
- Rings, finger: gold-plated wire
- Rosaries and other small religious articles, except precious metal
- Vanity cases, except precious metal and leather
- Watchbands, base metal
Jewelry Manufacturers Insurance - The Bottom Line
Not every jewelry manufacturers insurance policies is the same - in fact - they can be very different in both premiums and coverages. Learn if your jewelry manufacturing operation has the best fit insurance policies - by speaking with an experienced business insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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 Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- Audio & Video Equipment
- Auto Parts
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.