Jewelers block insurance is a specialized “all-risk” policy designed to protect a jewelry business’s valuable inventory from damage, theft, and loss. It is a type of inland marine insurance that covers a wide range of precious goods, both on and off the business’s premises. Standard business insurance policies do not offer sufficient coverage for high-value merchandise, making this specialized policy essential for businesses in the jewelry trade.What jewelers block insurance coversA jewelers block policy is broad and typically covers a variety of scenarios unique to the jewelry business, including:
- Inventory (Stock): Physical loss or damage to precious and semi-precious stones, precious metals, and finished jewelry owned by the business.
- Property of others: Coverage for items in your custody, such as customer-owned jewelry in for repair or appraisal, or “memo goods” from other dealers.
- In transit: Protection for inventory being shipped to and from suppliers, traveling with salespeople, or being transported via registered mail or armored car.
- On-premises: Damage or loss from perils like fire, burglary, armed robbery, and vandalism in your store or workshop.
- Off-premises: Coverage for jewelry at trade shows, exhibitions, and other off-site events.
- Specific liabilities: Some policies include coverage for employee dishonesty, workmanship, or appraisal liability.
What influences the cost and requirementsInsurers evaluate several factors to determine the cost and requirements for a jewelers block policy:
- Inventory value: The total worth of the stock on the premises, in transit, and on consignment is the most significant factor.
- Security measures: Having robust security, such as alarm systems, safes, and secure locations, can lower your premiums. Insurers often require specific security measures to provide coverage.
- Claims history: A history of frequent or high-value claims can lead to higher premiums.
- Location: A business located in a high-crime area or an unsecured building will likely face a higher premium.
- Transit and travel frequency: How often and where you transport jewelry affects the premium. International shipping or traveling with high-value items can increase costs.
Jewelers block vs. other business insuranceA jewelers block policy is a crucial supplement to other business insurance, as it provides specialized coverage that standard policies lack.
| Feature | Jewelers Block Policy | Standard Business Owner’s Policy (BOP) |
| Primary focus | Provides “all-risk” protection specifically for high-value inventory, including precious metals, stones, and jewelry. | Offers broader coverage for general liability and business property, such as the building, fixtures, and furniture. |
| Inventory limits | Designed for the unique, high-value, and portable nature of jewelry stock. Often has higher limits than a BOP. | Typically has low coverage limits for high-value items like jewelry, which would be insufficient for most jewelers. |
| Coverage scope | Covers inventory both on-premises and off-premises, including when in transit or at trade shows. | Primarily covers property at the business location. Limited or no coverage for merchandise in transit. |
| Perils covered | An “all-risk” policy covering a wide range of potential losses unless explicitly excluded. | A “named peril” policy that only covers losses specifically listed in the policy, such as fire or theft. |
