While it may be rewarding to sell something as beautiful as jewelry, there are very serious risks involved in owning and running a jewelry business. In addition to being a target for theft and burglary, any damage to your inventory can have major financial consequences. Make sure your jewelry store is prepared for these and other disasters with a wide range of business insurance. 

What insurance coverage do I need for my jewelry store? 

Although there are several types of insurance coverages to consider, the following policies are particularly relevant for jewelry businesses:

Jewelers Block Insurance 

Jewelers block insurance is a specific form of inland marine insurance that provides financial coverage for physical loss or damage to your jewelry. This coverage includes: 

• The jewelry pieces for sale in your store or in your inventory, including raw materials
• Damage to the property of others that is entrusted to you, such as a ring left in your care for resizing
• Damage to jewelry even when it is off the business premises, such as jewelry lent out for a fashion shoot
• Travel losses during shipment

Jewelers block insurance is typically offered as an all-risk policy, meaning you’re covered in all instances unless your policy specifically lists an exclusion. Theft exposure is incredibly high for jewelers, but under a standard commercial property insurance policy, jewelry is excluded from theft coverage. The addition of jewelers block insurance is vital as it can provide the necessary funds to repair or replace any damaged or stolen jewelry.

Example:

• A shipment of your jewelry is stolen while en route to its destination. Your jewelers block insurance would cover the contents of this stolen shipment.

Commercial Property Insurance

Damage or destruction of your store’s property can be a serious risk for jewelry businesses. Commercial property insurance can protect the value of your business property, including buildings and their contents. If your property is damaged by covered perils such as fire, storm, vandalism, explosion, and water damage, your commercial property insurance policy can provide funds to repair or replace the damaged property.

Example:

• A fire breaks out in your jewelry store and causes significant structural damage to your building, as well as damage to your display cases, furniture, and computer equipment. Your commercial property policy would cover repairs to your building and replacing damaged business property.

Commercial Crime Insurance

Because of the high value of the product you sell, crime is a considerable risk for your business. Commercial crime insurance can financially protect your business against financial losses caused by theft, robbery, burglary, fraud, and forgery. It is important to note that this coverage protects your business against third-party crime as well as employee dishonesty. 

While thorough background checks on employees, up-to-date security systems, and robust inventory management can help reduce your risks of crime, no system is foolproof. With commercial crime insurance, you can make sure that your business is financially protected against crimes perpetrated by both external and internal actors.

Example: 

• After making a sale, one of your employees pockets some of the customer’s cash payment. Your commercial crime insurance would cover this financial loss.

General Liability Insurance

General liability insurance covers accidental third-party bodily injury, property damage, personal injury, and advertising injury. Accidents are impossible to completely avoid. In the event that a customer is hurt while shopping inside of your jewelry store or your employee accidentally causes damage to customer property, your general liability insurance can cover legal fees, damages, and medical payments. 

In addition to these types of risks, general liability insurance can protect your business from lawsuits based on non-physical personal injuries. For instance, if you are accused of copyright infringement in advertising, invasion of privacy, or false arrest, general liability insurance provides financial protection against these claims.

Examples: 

• Bodily injury: While on your business premises, a customer slips on your freshly-mopped floor and injures her hip during the fall. Your general liability insurance will cover medical costs and any legal fees if she sues.
• Personal injury: A group of teenagers comes into your jewelry store, and you suspect a few of them have shoplifted some of your merchandise. You accuse the teens of shoplifting and hold them in your back office while you review security footage. After reviewing the video, you realize you’ve made a mistake and nothing was stolen. The shoppers sue your business for false detention. General liability insurance would provide coverage.

Workers’ Compensation Insurance

Workers’ compensation insurance provides medical and financial benefits for employees who suffer occupational injuries or diseases. Benefits can include rehabilitation costs, a portion of lost wages, and medical expenses. Additionally, workers’ compensation insurance provides death benefits for surviving dependents in the case of an employee death. 

Employees can be injured in the workplace for a variety of reasons. From slip-and-fall accidents to injuries sustained during a robbery, your employees could be put in harm’s way. Workers’ compensation insurance can provide assurance that your employees would be covered in the case of a workplace injury. Moreover, in almost every state, workers’ comp is required coverage for businesses that employ others.

Example:

• Your employee suffers through a violent robbery at your jewelry store and is left severely traumatized by the experience. She files a claim for a psychiatric injury. Your insurer will provide funds for her counseling and medical expenses. 

Additional Coverages

• If your business sells high-value jewelry online, cyber liability insurance should be obtained to protect your business from various technology-related risks, such as damages resulting from hacks, data breaches, denial of service attacks, and viruses. In the event of a data breach, this coverage financially protects your business if you are sued by customers, employees, or other third parties for failing to protect their data. 
• If your jewelry business includes a delivery service or often uses company vehicles to run business errands, commercial auto insurance is important to obtain. This policy covers third-party bodily injury and property damage if you or an employee are at fault in an accident involving a company vehicle. This policy also covers the value of your company vehicle if it is damaged by a collision or another covered peril such as theft or vandalism. 
• Business income insurance (also known as business interruption insurance) provides funds for loss of income and operating expenses if your business must temporarily close to recover from physical loss, damage, or destruction. This coverage includes your business’s net profits and normal operating expenses such as rent, employee salaries, and taxes. In order to qualify, the damage to your property must be the direct result of a covered peril.

Pricing and Quotes

Pricing for business insurance will vary based on the type of insurance coverage and the risk profile of your business. Insurers consider factors such as:

• Business size
• Industry
• Location
• Number of employees
• Claims history

Businesses with higher risks will have higher premiums than those deemed lower risk. For example, a jewelry shop with a history of frequent claims will face higher premiums. Premiums also rise as you increase the limits of insurance. Different insurance companies have different models for rating risks, so it is worth comparing pricing across different insurers.

In order to get an accurate estimate on pricing, it’s best to get a quote from a reputable insurance company. Below we’ve highlighted a few of our trusted partners who offer coverage for jewelry businesses:

Provider	General Liability	Professional Liability	Business Owner's Policy
Embroker	??	??	??
CoverageSmith	??	??	??
CoverWallet	??	??	??
Hiscox	??	??	??
Thimble	??	??	??

Final Word 

Purchasing adequate insurance for any business can be challenging, but it is essential to prepare yourself for the various risks your jewelry store could face. Although you can keep safety at the forefront and try to mitigate your risk, it is impossible to completely eliminate disasters and crimes from occurring. Instead, obtaining a wide range of insurance coverage will ensure that if a catastrophe occurs, your business will be financially protected.