Planning to parlay those five golden rings from your true love into a neighborhood jewelry store? With the price of gold and other precious metals pushing into record territory, we applaud your entrepreneurial spirit. We also suggest that you get Jewelers Block insurance ASAP.
As the economy continues to languish, the bad guys are becoming more desperate and bolder. Your little storefront operation could be the victim of the growing number of smash and grab artists. Jewelry stores are attractive targets. For example, it only took three thieves a few seconds to break the display cases at a Santa Ana jewelry kiosk with a hammer and make off with more than $30,000 in jewelry on Sunday afternoon. Police believe the thefts were tied to a string of recent jewelry store robberies that have plagued Southern California shopping malls in recent months. Statistics show that more than 70% of smash and grab thefts involve forced entry through the weakest link – a glass door or storefront window.
Jewelers Block insurance is a special type of coverage for precious gold, silver and platinum jewelry, loose and set precious and semiprecious gemstones, pearls, fine watches and similar items typically sold by jewelers. The property insured can be store inventory, but it can also be something your customer has left in your care – on consignment or for repair, for instance. It is appropriate coverage for jewelry retailers and wholesalers, jewelry manufacturers, pawnshops and watch dealers.
Jewelers block policies are usually all-risk and provide coverage for loss or damage from robbery, burglary, fire, theft, employee dishonesty and terrorism, up to the maximum limit of the policy. Inventory, furniture and fixtures are generally included in coverage. Coverage generally extends to items in transit or shipment (under appropriate conditions), and may also cover jewelry lent out, say to a celebrity for a special appearance. However, as always , read the fine print. Policies frequently have specific named-peril exclusions. Typical exclusions are loss or damage from wear and tear, flood, earthquake, employee theft, mysterious disappearance, shipments not sent via registered first-class. Coverage may also exclude loss or damage that happens while you or your representatives are wearing the jewelry or damage or destruction to the jewelry after it leaves your shop on an installment contract.
Some jewelers block policies will also offer enhancements such as the cost to hire security while your alarm system is being repaired or the cost to pay for an accountant if your insurance company requires proof of property loss for a claim.
You can get quotes for jewelers block insurance, but most insurers will want to do a physical inspection of your store and your security system, and run background checks on you and your employees before they issue a policy.