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:
- What Is Jewelry Manufacturers Insurance?
- How Much Does Jewelry Manufacturers Insurance Cost?
- Why Do Jewelry Manufacturers Need Insurance?
- What Type Of Insurance Do Jewelry Manufacturers Need?
- What Does Jewelry Manufacturers Insurance Cover & Pay For?
What Is Jewelry Manufacturers Insurance?
Jewelry manufacturers insurance is a type of insurance that provides coverage specifically for businesses that manufacture jewelry products.
This type of insurance can provide protection against a variety of potential losses, including theft, damage to jewelry during production or shipping, product liability claims, and other risks associated with the jewelry manufacturing process. The coverage may also include protection for business interruption, which can help to mitigate the financial impact of disruptions to business operations due to unforeseen events such as natural disasters or other types of emergencies.
This type of insurance is designed to help jewelry manufacturers mitigate the financial risks associated with their business and ensure that they can continue to operate and produce quality jewelry products.
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.
What Does Jewelry Manufacturers Insurance Cover & Pay For?
Jewelry manufacturers can be sued for a number of reasons. Some of these include product liability, breach of contract, patent infringement, and workplace accidents. Insurance policies can provide financial protection in these scenarios, assisting with legal fees, settlements, and more.
Product Liability: If a consumer gets injured due to a defective piece of jewelry, the manufacturer may be held liable. This could happen if a sharp edge causes a cut, or a skin reaction occurs due to the use of allergenic materials. In this case, product liability insurance can help cover the cost of legal defense, as well as any settlements or judgments awarded to the claimant. This insurance typically covers the manufacturer's financial responsibility for injuries or damages caused by their products.
Breach of Contract: If a jewelry manufacturer fails to deliver on a contract, such as not delivering the agreed-upon quantity or not meeting the quality standards, they could be sued for breach of contract. Commercial general liability insurance, or specifically contractual liability insurance, can help pay for legal defense costs and any damages awarded to the other party.
Patent Infringement: Jewelry designs can be patented, and if a manufacturer produces a piece that infringes on someone else's design patent, they could face a lawsuit. Intellectual property insurance can help protect manufacturers in such cases. This insurance can cover legal defense costs and possibly any damages or settlements if the manufacturer is found to be in the wrong.
Workplace Accidents: The jewelry manufacturing process can involve machinery and hazardous materials, which may cause accidents. If an employee gets injured on the job and sues the manufacturer, workers' compensation insurance can provide protection. This type of insurance typically covers medical expenses, rehabilitation costs, and a portion of lost wages for the injured employee. Moreover, it often includes employer's liability insurance, which can cover legal defense costs and damages if the employer is found to be at fault.
It's important to note that each insurance policy comes with its own limits and exclusions. Therefore, jewelry manufacturers should work closely with their insurance agents or brokers to understand what's covered and to ensure they have adequate protection for their specific risks.
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 Workers Compensation Code(s): 3383 Jewelry Manufacturing, 3385 Clock Manufacturing
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.
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.
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The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
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.