Regardless of whether you work in the makeup or fashion industry, making people look good is a wonderful business to be in. It’s hard not to get a smile on your face when you see that you’ve made a client feel better about themselves and ensured that other people can see that glow within them.
The jewellery industry is in many ways the same, since you’re selling people accessories that they will treasure for a long time, which they may even hand down to their children. In this guide, we’re going to cover the things that you need to know about getting insured as a jewelry store owner.
After talking about the particulars of jewellery business insurance, we’ll take a look at the top three companies that you can get jewelry store insurance from to make it easier for you to find the right carrier for your needs.
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Jewelry are luxury items. And so, most customers save money for many months or loan to get the piece they want.
One of the things that keep jewelry store owners awake at night is meeting the standards of customers and what can possibly happen if they don’t meet expectations. Losing customer trust is the least troublesome thing that jewelry stores have to face. However, if luck isn’t on their side, trouble can develop into a full blown lawsuit. Common causes of lawsuits against jewelry stores are:
Slip and fall accidents
Product defects
Allergic reaction to jewelry containing lead
Negligence
In the United States about 1 million people are hospitalized because of slipping and falling. In connection, it’s estimated that 9 out of 10 slip and fall accidents in retail businesses such as jewelry shops, delis , and liquor stores can result in the owner facing liability. Injuries customers commonly experience after slipping or falling in jewelry shops are:
Back injuries
Cuts and lacerations
Bruises
Paralysis
Head injuries
Pelvic damage
Arm,elbow, or leg fracture
Customers can file a personal injury claim against the jewelry store after experiencing a slip and fall accident. Settlement and legal fees are costly as personal injury lawsuits usually take a year to conclude. If the defense fails, a jewelry store might have to pay the plaintiff an amount based on the severity of injuries. The table below outlines the estimated cost:
| Injuries Sustained | Settlement a Jewelry Store Might Pay |
|---|---|
| Back injuries | $373,678 |
| Cuts and Lacerations | $5,431 |
| Bruises | $1,834 |
| Paralysis | $1,587,214 |
| Head Injuries | $253,752 |
| Pelvic Damage | $285,348 |
| Arm, Elbow, and Leg Fractures | $176,386 |
As shown by the table above, the settlement for injuries is no joke. And so, jewelry shop owners who are cautious enough to foresee the impact of personal injury lawsuits opt to get jewelry store insurance with a basic general liability coverage.
A basic general liability coverage provides $1 million up to $2 million to the policyholder. That being said, it gives enough funds to pay for attorney fees and settlement to the plaintiff. Aside from personal injury lawsuits, general liability will also protect jewelry stores against property damage lawsuits by reimbursing the plaintiff equal to the cost of the property destroyed.
Some people develop allergic reactions to substances present in jewelry like nickel and gold as they grow older. And so, it’s possible for jewelry stores to sell products a customer is unaware they’re allergic to.
Those running jewelry stores have to be careful when buying jewelry that uses nickel for adults. Even more so if the jewelry is to be worn by a child because 1.1 million kids in the USA exhibit nickel sensitivity according to the AAP (American Association of Pediatrics).
Nickel can cause dermatitis to those allergic to it. Dermatitis can cause swelling, itchiness, and oozy or scaly skin. And if caused by a product from a jewelry store, a customer can file a personal injury lawsuit or product liability lawsuit.
Aside from allergic reactions caused by a product, product liability insurance will also cover product defects. In the case of jewelry stores, complaints for product defects can be quite problematic especially if the item bought is something expensive like a diamond wedding ring. If the matter goes to court, settlement can amount to more than $500,000.
General liability, professional liability, and products liability insurance are the liability policies that jewelry shops need to get. Having these three provides a comprehensive protection for many risks.
Jewellery business insurance fully protects a jewellery shop against many risks. A lot of owners opt to get a BOP (business owners policy) for their stores because it makes getting insurance simpler. The coverages BOP offers differ depending which company the policyholder works with. The table below shows the jewelry business insurance of different carriers.
| Carrier | Business Owners Policy Coverages |
|---|---|
| Thimble | General liability+products liability coverage with equipment coverage as an option |
| Coverwallet | General liability+commercial property+workers compensation with no other coverages as options |
| AmTrust Financial | General liability+cyber liability with workers compensation as an option |
| Hiscox | General liability+professional liability |
| Jewelers Mutual | General liability+business interruption+professional liability+commercial property |
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Owners have some connection to their jewelry. It might be because the piece was given by someone as a gratutory gift, romantic gift, congratulatory gift, or as a keepsake. So aside from monetary value, jewelry also has sentimental value for their owners. And so, many opt to get restoration service when their jewelry becomes damaged or noticeably old.
To make more money, jewelry shops employ jewelry craftsmen and offer restoration service to customers. Restoration service can range from putting a new gem to a jewelry, replating it, or removing any imperfections.
However, due to mistakes at work, craftsmen might end up scrapping a piece instead of restoring it. And when this happens, clients can file a lawsuit to demand money from the jewelry store.
Products and completed operations in jewelry store insurance is the coverage that will take care of lawsuits resulting from failed restoration. With this insurance, it’s easy to pay if the aggrieved clients ask for reimbursement equal to the value of the damaged jewelry. In addition, products and completed operations will also provide for any additional damages and their cost.
The event of selling fake jewelry or being accused of selling fakes is rare among jewelry stores. When this happens, jewelers can use their general liability insurance. However, this is only possible if the aggrieved client files a complaint by reason of false advertising.
If using general liability isn’t the option, a jewelry store can turn to fraud coverage as an alternative. This is a specialized policy that only AON offers.
In the case the accusation of fraud resulted from an honest mistake, then professional liability coverage can help. A good example of this is when a jewelry store sells a ring with lab grown diamond to a client and forgets to disclose that it is so.
Aside from legal issues, jewelry store owners also have to think about the social risks associated with their business. Jewelry is a “hot” item. It still sells expensively at high prices even when bought as a stolen item. And unlike cars, most pieces of jewelry don’t have serial numbers which makes tracking impossible. Burglary, robbery, or theft can end everything for a jewelry store, especially if it's new. These examples provide this point:
Long Boat Jewelry in San Francisco loses 250,000 after a successful burglary
Stephen’s Jewellers in Titusville, Florida loses an estimated $8,000 - $12,000 after thieves stole several pounds of sterling silver jewelry
A jewelry store in Falls Church loses $300,000 after armed men ransacked its products
Nuggets and Carats, a family owned jewelry store running in Orange County for 3 decades, lost all of its stocks amounting to several million dollars in a burglary heist
Finding a jewellery shop insurance policy offering coverage for theft, burglary, and robbery is very important. The number of jewelry store crimes increased from 1,438 in 2018 to 1,718 in 2020 , and 89 out of 1,000 jewelry stores may experience them. So, it’s important to ask, “ what coverage will provide support for jewelry stores after a robbery, burglary, or theft successfully happens ?”
Jewelers block consists of compulsory and optional protection to the policyholder. Majority of carriers make it compulsory for their jewelers block coverage to take effect when fire, explosion, lightning, riot, strike, malicious acts, burglary, housebreaking, theft, robbery, or hold-up causes damage or loss of jewelry inside the jewelry shop. Note that jewelers block won’t provide coverage for all stocks. It only accounts for the destruction or theft of:
Jewellery
Gold and silver ornaments or plates
Precious stones
Cash and currency notes
If the policyholder decides to for it, jewelers block will also cover for the damage or loss that happen when the above mentioned objects are:
In transit
Being distributed outside of the premises of the jewellery shop
Damaged or lost due the infidelity of an employee
The policyholder can also decide for their jewelers block policy to cover the jewelry store building, it’s fixtures, and other associated property. A policyholder will enjoy the protection of the jewelers block for 12 months and may renew it upon the carrier’s decision.
If you’ve never looked for jewelry store insurance, then you may be wondering how much it’s going to cost you. Unfortunately, it can often be difficult to get an idea of how much your insurance will cost because of different factors.
For example, your jewelry store’s size will play a huge role in determining the cost of your coverage. A larger jewelry store will automatically be more expensive to insure because you’re more likely to see more clients over the course of a month, meaning that there’s a higher risk of needing to make a claim.
Speaking of making claims, if you have a history of making several then expect to have higher insurance premiums. This is because insurers don’t quite trust that you won’t be filing any more claims in the future.
We’ve gathered the following numbers from some of the top carriers of jewelry business insurance. To get the numbers, we’ve used a medium-sized jewelry store that has no history of making prior claims.
| Company | Cost per month | Cost per year | Best for |
|---|---|---|---|
| Hiscox | $51 | $612 | Jewelers who own shops locally and abroad |
| AmTrust | $56 | $672 | Startup jewelry store owners |
| Progressive | $55 | $660 | Jewelry stores selling products through websites only |
| Average Cost | $69.66 | $835.92 |
As you can see, the average cost of jewelry store insurance tends to hover around $69.66 per month, coming out to an average total of about $835.92 per year for general liability coverage.
But we know that you’re not here just to know the cost of general liability, and so here are other jewelry store insurance cost of the coverages we mentioned:
The cost of jewelers block insurance is $84 a month or $1,008 a year on average for starting and continuing jewellery shops
The cost of professional liability insurance for jewelers is $62 a month or $744 a year
If you run a smaller jewelry store and you’re wondering how much you can expect to pay for your coverage, you can expect to pay less on your insurance policy.
One thing to remember is that jewelry businesses (even small ones) are considered high-risk for insurance companies. And so, it’s best for starting jewelry stores to work with carriers that specialize in insurance for small jewelry businesses.
Looking around for the right jewelry business insurance company may seem like a bit of a challenge if you’ve never done so before. You need to do your research to find the right companies that are going to provide you with good rates and the claims responsiveness that your business needs.
In this part of our guide, we’ve gathered together some of the top insurance companies in the industry. We’ll go over what you need to know about them, including a bit of background about them, what you should know about their policies, and what you can expect to pay for their $1 million general liability coverage.
Hiscox was founded in the early 1900s as an underwriter for Lloyd’s of London, and they originally focused on marine insurance. Since then, the company has started to deal with niche insurance policies that most other carriers won’t get involved in, and that involves jeweler’s insurance.
Hiscox’s insurance policies for jewelers are mainly centered around providing general liability insurance coverage. The company offers worldwide coverage as well as quick responses to any claims that you have to make. They aren’t too specific about the details of their coverage, instead insisting that potential customers come to them for a quote.
Average cost : $51
Best for : Jewelers who own shops locally and abroad
Our rating : 5/5
AmTrust specializes in both property and casualty insurance, and the company is based in New York. Their main area of specialty is small business insurance, making them an excellent choice for jewelers who run smaller stores and want to pay reasonable rates for their coverage instead of getting rolled into a more commercially-oriented policy.
AmTrust offers a range of policies that are tailored specifically for jewelry store owners, including workers’ comp policies, general liability insurance, and cyber liability coverage. The company is used to working with high-risk clients like those in the jewelry industry.
Average cost : $56
Best for : Startup jewelry store owners
Our Rating : 5/5
Progressive got started in 1937 as an auto insurance company and the company has always been known for being on the technological forefront when it comes to insurance coverage. For example, Progressive is one of the first companies to start selling insurance over the internet.
Progressive doesn’t necessarily offer a specific policy that applies to jewelry shops, but they do cover jewelers and their stores under their retail insurance policy. They offer a range of different forms of coverage, including general liability insurance, BOPs, and workers’ comp. They also offer commercial auto as an add-on
Average cost: $55
Best for: Jewelry stores selling products through websites only
Our rating: 5/5
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1 / 5
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
1 / 5
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
1 / 5
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
5 / 5
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
5 / 5
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
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