Jewelry Store Insurance Policy Information
Jewelry Store Insurance. Jewelry stores can offer either high-value precious jewelry or low-value costume jewelry. Operations that sell precious and semi-precious jewelry often offer additional services such as jewelry and/or watch repair, jewelry manufacturing, resettings, and sizing, as well as custom designed jewelry. The store may be independent or part of a regional or national chain.
From jewelry cleaning, resetting and repair services, to selling a wide range of earrings, necklaces and rings, jewelry stores are an important part of our economy. The industry generates approximately $34billion in revenue. A jewelry store can be a very profitable venture, with proper running and management. Therefore, if you own a jewelry store, you need to put the right measures in place, to protect your business.
Apart from protecting your business, you also need to secure jewelry store insurance, to provide coverage to your business, in case of accidents, thefts and property damage.
Jewelry store insurance protects your shop from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked jewelers insurance questions:
- What Is Jewelry Store Insurance?
- How Much Does Jewelry Store Insurance Cost?
- Why Do Jewelers Need Insurance?
- What Is Jewelers Block Insurance?
- What Does A Business Owners Policy For Jewelry Stores Cover?
- What Are Jewelers Risks & Exposures?
- What Does Jewelry Store Insurance Cover & Pay For?
What Is Jewelry Store Insurance?
Jewelry store insurance is a type of insurance designed specifically for jewelry stores to protect their business against risks associated with operating a jewelry store.
This type of insurance typically covers a wide range of risks such as theft, damage to jewelry, loss of income, liability claims, and more. It provides financial protection for the store and its owners in the event of a loss, allowing them to continue to operate their business without incurring significant financial losses.
Additionally, jewelry store insurance often includes coverage for the jewelry itself, such as protecting against loss or damage to individual pieces of jewelry.
How Much Does Jewelry Store Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small jewelry stores ranges from $37 to $59 per month based on location, alarm and security systems, payroll, sales and experience.
Why Do Jewelers Need Insurance?
Jewelry stores deal with easily portable and highly valuable merchandise. Due to the nature of their inventory, they face increased risk of loss and theft. Most business insurance policies and companies, tend to shy away from jewelry store coverage.
This makes it a challenge when you try to obtain jewelry store insurance coverage for your jewelry store, through regular commercial insurance channels.
Due to such considerations, some insurance companies offer something known as jewelers block insurance. This form of insurance provides jewelers with a specialized form of coverage. With the high risks in this industry, most companies that provide insurance to jewelry store owners require them to adhere to strict risk management guidelines.
If you fail to follow basic anti-theft and safety protocols, the insurance company might cancel your policy. It is always advisable to work with an agent, who will assess the requirements of insurance companies that cover jewelry stores.
What Is Jewelers Block Insurance?
Also known as jewelers standard insurance, jewelers block insurance is a policy program specifically designed for jewelry store owners.
This policy package supplements your commercial insurance policy as it provides the required coverage that conventional policies will not. You should work with an insurance agent, who will help you find the right provider.
Jewelers block insurance provides coverage for various items including coverage for your merchandise, cash and trade show coverage.
What Does A Business Owners Policy For Jewelry Stores Cover?
If you operate a jewelry store, then you definitely have to buy commercial general liability insurance coverage. You will also require standard business insurance policy. A standard business insurance policy comes with the following coverages:
- Property Insurance: This one provides compensation during damage or loss to the business property housed in your store, apart from the jewelry products. Some of the covered properties include display cases, decor, machinery, signage, computers and cash registers.
- Commercial General Liability Insurance: This provides coverage for legal defense fees, court costs, as well as financial damages, in a situation where your store is named in a liability lawsuit. Some of the aspects covered under this liability insurance includes coverage for injuries or property damage suffered by 3rd parties, when they are in your premises (like slip and fall), optional coverage in case of a faulty product sold to a customer, which causes illness or injuries. It also provides coverage in case of libel or slander. If a 3rd party accuses an employee or someone representing your store for slander or libel, then you might face a financially draining lawsuit.
- Business Income Insurance: This provides you with a continued source of income, in a situation where your shop incurs heavy damages from a disaster, forcing you to close it for a long period. With income obtained from this insurance, you can manage to pay all salaries owed to your employees as well as monthly expenses incurred when the store is under repair. This coverage can last for a period of up to 12 months.
- Equipment Breakdown Insurance: Most jewelry shops have lots of expensive machinery, which are used for various activities like cleaning jewelry, engraving as well as creating jewelry. With this coverage, you will get the necessary dollars needed to undertake repairs, when your equipment breaks down.
Other Forms of Jewelry Store Insurance
Apart from the above listed jewelry store insurance packages, there are other types available for jewelry store operators. These include workers compensation insurance, employment practices liability insurance, and employee dishonesty insurance, among others.
What Are Jewelers Risks & Exposures?
Premises liability exposure comes from slips and falls due to public access to the premises. Floor covering must be in good condition with no frayed or worn spots on carpet and no cracks or holes in flooring. Steps and uneven floor surfaces should be prominently marked. Sufficient exits must be provided and be well marked, with backup lighting systems in case of power failure.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the business is open after dark, adequate lighting and appropriate security for the area must be present.
Personal injury exposures are from apprehending and detaining shoplifters. Shoplifting procedures must be fully understood and utilized by all employees.
Products liability exposure for this type of operation is normally low.
Workers compensation exposure is from lifting, which can cause back injury, hernias, sprains, and strains and from slips and falls. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting. Additional exposures are from cuts and burns in the manufacturing or repair operations. There may be chemical exposure with the potential for eye, skin, or lung injuries. In any retail business, hold-ups can occur. Employees should be trained to respond in a prescribed manner.
Property exposures can be high if the operation is involved in repair, manufacturing, or resetting. Hazards result from the heating or soldering of metals, and metal forming or setting. Electrical wiring should be maintained and meet current codes for the occupancy.
While the values on hand may be substantial, the inventory is excluded from coverage under the property form. Instead, it is covered under a jewelers block form as inland marine. Furnishings, gift items and stock other than jewelry may be included in either the jewelers block policy or on the property coverage form.
Business interruption is a concern because sales may peak at particular times during the year. Equipment and stock may be difficult to replace quickly.
Crime exposures are from employee dishonesty and theft of money and securities either from holdup or safe burglary. Background checks should be conducted on all employees handling money. There must be separation of duties between persons handling deposits and disbursements and handling bank statements. Receipting, inventory monitoring, and regular auditing are important.
Money should be regularly collected from cash drawers and moved away from the collection area, preferably to a safe on premises. Bank drops should be made throughout the day to prevent a buildup of cash on the premises. Any travel with expensive items should be tightly controlled.
Inland marine exposure comes from accounts receivable if the store offers credit, computers to transact sales and monitor inventory, jewelry, and valuable papers and records due to customers' and vendors' records. Backup copies of all records, including computer records, should be made and stored off premises. Some jewelers will have fine arts such as paintings or sculptures.
A jewelers block policy is specifically designed to protect the jewelry, precious metals, and precious or semi-precious gems owned by the jeweler and customers' jewelry that is being cleaned, repaired, reset, or redesigned. Security measures are a must because of the high theft potential. Vault security is critical along with accurate tracking of customers' items.
Other considerations are the number, type and size of safes or vaults. If there are any window displays, there must be adequate theft or crime controls. There should be 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.
Business auto exposure is generally limited to hired and non-owned for employees running errands. If the store provides pickup or delivery services, anyone who drives an insured vehicle must have a valid license and acceptable MVR. Vehicles must be regularly maintained with records kept.
What Does Jewelry Store Insurance Cover & Pay For?
Jewelry stores can be sued for a variety of reasons, including:
Slip and Fall Accidents: A customer may slip and fall on the store's premises due to a wet or slippery surface, uneven flooring, or debris on the ground. The store may be held liable for any injuries sustained by the customer.
Insurance coverage: General Liability insurance can help cover the costs of medical bills, legal fees, and settlements or judgments in slip and fall cases.:
Theft or Burglary: A jewelry store may be the victim of theft or burglary, resulting in loss of inventory, damage to the property, or even physical harm to employees or customers.
Insurance coverage: Property insurance can help cover the costs of stolen or damaged inventory, as well as repairs to the store. Business Interruption insurance can help cover the loss of income if the store must close temporarily due to the theft or burglary.
Product Liability: A jewelry store may sell a product that is defective or dangerous, causing harm or injury to a customer. Insurance coverage: Product Liability insurance can help cover the costs of legal fees and settlements or judgments in product liability cases.
Employee Accidents or Injuries: An employee may be injured while working at the jewelry store, whether from a slip and fall, a machinery accident, or a physical altercation with a customer.
Insurance coverage: Workers' Compensation insurance can help cover the costs of medical bills, lost wages, and other expenses related to an employee's workplace injury or illness.
Misrepresentation or Fraud: A jewelry store may be sued for misrepresenting the quality or value of a product or engaging in fraudulent business practices.
Insurance coverage: Professional Liability insurance (also known as Errors and Omissions insurance) can help cover the costs of legal fees and settlements or judgments in cases of misrepresentation or fraud.
In general, insurance can protect jewelry stores by providing coverage for the costs of lawsuits, settlements, and other legal expenses. By having the right insurance policies in place, jewelry stores can mitigate their financial risk and protect themselves against unexpected events that could lead to lawsuits or other legal disputes.
Commercial Insurance And Business Industry Classification
- SIC CODE: 5944 Jewelry Stores - Except Costume
- NAICS CODE: 448310 Jewelry Stores, 448150 Clothing Accessories Store
- Suggested Workers Compensation Code(s): 8013 Store - Jewelry
5944: Jewelry Stores - Except Costume
Division G: Retail Trade | Major Group 59: Miscellaneous Retail | Industry Group 594: Miscellaneous Shopping Goods Stores
5944 Jewelry Stores - Except Costume: Establishments primarily engaged in the retail sale of any combination of the lines of jewelry, such as diamonds and other precious stones mounted in precious metals as rings, bracelets, and broaches; sterling and plated silverware; and watches and clocks. Stores primarily engaged in watch and jewelry repair are classified in Services, Industry 7631. Establishments primarily engaged in selling costume jewelry are classified in Industry 5632.
- Clocks, including custom made-retail
- Jewelry, precious stones and precious metals: including custom
- Watches, including custom made-retail
Jewelry Store Insurance - The Bottom Line
Purchasing jewelry store insurance can be a complex process, especially when you factor in the specialized nature of this business. The good news is that you just have to work with a professional insurance broker that will take you through the various coverage options and help you find competitively priced policies, for all the coverages you need.
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
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- Gift Store
- Greeting Card Stores
- Hardware Store
- Harness & Saddle Shops
- Home Improvement Store
- Infant, Baby & Children's Clothing Stores
- Jewelry Store
- Lamp Stores
- Lingerie Store
- Luggage Store
- Meat Market & Butcher Shop
- Men's Clothing Stores
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- Paint & Wallpaper Store
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- Stationary Store
- Thrift Store
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The retail industry is a vital sector of the economy, providing goods and services to consumers across the globe. It is also a sector that is constantly evolving, with new technologies and trends emerging on a regular basis.
Despite its importance, the retail industry is not without its risks. Retail businesses face a variety of threats, including theft, damage to property, and liability issues. These risks can have significant financial consequences for retail businesses, which is why commercial insurance is so important.
Insurance can provide retailers with protection against financial loss resulting from unforeseen events. For example, if a retail store is damaged by a natural disaster, insurance can help cover the cost of repairs and help the business get back on its feet. Similarly, if a retail employee is injured on the job, insurance can help cover their medical expenses and any lost wages.
In addition to protecting against financial loss, commercial insurance can also help retail businesses protect their reputation. If a retail business is sued or faces other legal challenges, insurance can provide financial support and legal representation. This can help to protect the business's reputation and maintain customer trust.
Overall, insurance is an essential component of a successful retail business. It helps to safeguard against financial loss and protect against potential legal challenges, which can be especially important for smaller businesses that may not have the resources to absorb these types of losses.
By investing in business insurance, retail businesses can ensure that they are well-equipped to handle the many challenges that come with operating in this dynamic industry.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.