Jewelers Block Insurance: Complete Guide to Coverage, Costs, and Why Jewelers Need It

Jewelers Block Insurance is the most comprehensive and specialized insurance policy available for jewelry businesses. Whether you operate a retail jewelry store, wholesale diamonds, design custom pieces, or travel with inventory, jewelers block coverage protects your most valuable assets against theft, loss, and damage.

In this guide, we’ll explain what Jewelers Block Insurance is, what it covers, how much it costs, and why it’s essential for jewelers in today’s high-risk environment.

What Is Jewelers Block Insurance?

Jewelers Block Insurance (also called Jewelry Block Insurance or Jewelers Block Policy) is a specialized commercial insurance policy designed specifically for businesses in the jewelry industry.

Unlike standard business insurance, jewelers block coverage protects:

• High-value jewelry inventory
• Diamonds, gemstones, and precious metals
• Finished and unfinished pieces
• Stock on premises and in transit

Because jewelry carries unique risks—such as armed robbery, mysterious disappearance, and transit loss—standard property insurance is often inadequate.

Who Needs Jewelers Block Insurance?

Jewelers Block Insurance is essential for:

• Retail jewelry stores
• Wholesale jewelers and diamond dealers
• Jewelry manufacturers and designers
• Pawn shops with jewelry inventory
• Custom jewelers
• Jewelers who attend trade shows or travel with inventory
• Online jewelry sellers with physical stock

If your business owns, handles, or transports jewelry inventory, Jewelers Block Insurance is not optional—it’s critical.

What Does Jewelers Block Insurance Cover?

1. Jewelry Inventory Coverage

Protects diamonds, gemstones, watches, gold, silver, and platinum against:

• Theft
• Burglary
• Robbery
• Fire
• Water damage
• Natural disasters

Coverage applies to inventory located:

• Inside your store
• In safes or vaults
• At off-site storage locations

2. Mysterious Disappearance

One of the most important features of Jewelers Block Insurance.

This covers losses where inventory disappears without clear evidence of theft—something standard policies usually exclude.

3. Transit and Shipping Coverage

Covers jewelry while it’s being:

• Shipped via armored car or courier
• Sent through approved shipping services
• Transported between locations
• Carried by employees

This is crucial for wholesalers, designers, and trade-show exhibitors.

4. Robbery and Burglary Protection

Includes protection against:

• Armed robbery
• Smash-and-grab incidents
• After-hours burglary
• Forced entry losses

5. Damage to Jewelry

Covers accidental damage to jewelry pieces, including:

• Stone breakage
• Setting damage
• Fire or smoke damage

What Jewelers Block Insurance Does NOT Cover

While comprehensive, jewelers block policies typically exclude:

• Employee dishonesty (covered separately with fidelity insurance)
• Wear and tear
• Poor recordkeeping
• Unapproved shipping methods
• Unsecured inventory

Understanding policy exclusions is critical to avoid denied claims.

How Much Does Jewelers Block Insurance Cost?

The cost of Jewelers Block Insurance depends on several factors:

• Total inventory value
• Business location
• Security systems (alarms, safes, cameras)
• Annual sales volume
• Shipping methods
• Claims history

Average Cost Range

Most jewelers pay between $0.50 and $2.00 per $100 of insured inventory value annually.

Example:

• $500,000 inventory → $2,500–$10,000 per year

Investing in strong security measures can significantly lower premiums.

Why Standard Business Insurance Is Not Enough

Many jewelers mistakenly believe a standard commercial property policy is sufficient. It isn’t.

Standard policies often:

• Cap coverage far below inventory value
• Exclude mysterious disappearance
• Exclude transit losses
• Exclude high-value items

Jewelers Block Insurance is purpose-built for jewelry risks.

How to Qualify for Jewelers Block Insurance

Insurers require strict underwriting standards, including:

• Central station burglar alarms
• Safes or vaults rated for jewelry storage
• Video surveillance
• Inventory records and appraisals
• Secure shipping procedures

Meeting these requirements improves coverage terms and pricing.

How to Get Jewelers Block Insurance

To obtain Jewelers Block Insurance:

1. Work with an insurance broker experienced in jewelry insurance
2. Prepare detailed inventory valuations
3. Document security measures
4. Choose appropriate coverage limits
5. Review exclusions carefully

Not all insurance carriers offer jewelers block coverage—specialty markets are required.

Common Names for Jewelers Block Insurance

You may also see it called:

• Jewelry Block Insurance
• Jewelers Block Policy
• Jewelers Inventory Insurance
• Jewelry Store Insurance (specialty form)

Despite the different names, the coverage structure is largely the same.

Final Thoughts: Is Jewelers Block Insurance Worth It?

Absolutely.

Jewelry businesses face some of the highest theft and loss risks of any industry. A single incident can wipe out years of inventory and profits.

Jewelers Block Insurance provides the financial protection needed to survive major losses, meet lender requirements, and operate with confidence.

If your business handles jewelry inventory, this coverage is not a luxury—it’s a necessity.