Why Jewelry Stores Need Insurance
Jewelry stores are a unique retail shop. You don’t just sell a product; you make it possible for customers to create and buy a meaningful gift for loved ones. From engagement rings, pearl necklaces, anniversary pendants, and charm bracelets, customers can mark every occasion with a special memento. As a jewelry store owner, you know how important it is to have business insurance in place. Jewelry store insurance protects you from unforeseen events that can cost you everything.
This industry accommodates businesses that retail one or more of the following: new earrings (except gown earrings); new sterling and plated silverware; and new watches and clocks. Also included are establishments that retail new merchandise in combination with lapidary paintings and/or repair services.
Risks Jewelry Stores Could Face
It’s easy to think that jewelry stores only face one significant risk – theft. There are other risks you need protection against including:
- Theft: Handling high-value merchandise makes you a target for thieves. Even with the best security systems, today’s thieves are capable of breaking in undetected leaving you with no merchandise and a hefty expense to replace it.
- Damage to Jewelry: Many jewelers offer jewelry repair and cleaning. Customers trust you with their most prized possessions, but accidents do happen. If you damage, break or misplace their jewelry, you will need to pay to make it right.
- Dishonest Employees: Hiring honest employees should be easy, but once in awhile a bad employee is plausible. Jewelry store employees work directly with the merchandise, and over time it’s easy for them to steal or embezzle funds.
- Fire Damage: Nobody wants to think about a fire, but they do happen. When a fire destroys your building and all of its contents, the cost to rebuild and replace in addition to being without an income is enough to put them out of business indefinitely.
Types of Coverage Jewelry Stores Need
Just like any retailer, jewelry stores need general liability and commercial property insurance. If you handle precious stones or high-value items, you also need jewelers block insurance. If you have employees, you need worker’s compensation, employee dishonesty, and employment practices coverage.
- Commercial Property: Covers loss of business property by paying to replace or rebuild what is damaged in the event of a fire or other covered scenario. It is important to add business interruption insurance to this policy. It pays you lost revenue while you are unable to operate due to a property loss.
- Jewelers Block: Jewelers block is a specialty insurance and covers scenarios not found on your liability and property policies. Coverage is included for stolen merchandise, merchandise in transit, cash, and damage to customer’s jewelry.
- Employee Dishonesty: Pays costs associated with employees stealing money or merchandise from your store.
- General Liability: Protects you from claims alleging personal injury or property damage to a third party.
How Much Does Jewelry Store Insurance Cost?
There is a large variety of types of jewelry stores. Depending on your merchandise value and location, the cost of jewelry store insurance varies. Most insurance carriers ask for information on security features, the value of merchandise, and what specialty services you offer. You can get a quote today for jewelry store insurance by filling out our form online.