What happens when your business is to sell the most valuable and precious items that people dream to own all their life?
Yes! Here we talk about the Jewellery stores.
These ‘worth-a-billion’ shops are the ones that welcome frequent visitors around the year and are popular during festive and wedding seasons in our country. However, the shining adornments displayed by these stores might seem like a dream business to own for commoners, but only the owners are aware of the extent of risks they face while standing behind the counter every single day.
There have been numerous occurrences of burglary, including one that took place in the heart of the National Capital last year, in which several prominent jewelry stores in respective areas have been robbed in broad daylight.
These threats are further ignited as the precious merchandise in these shops is easily portable which makes it much simpler for criminals to make easy money.
Increased Security
In the wake of such threats, many store owners have taken multiple safety steps to prevent such unwanted incidents like:
- Installing CCTVs and video surveillance systems that give real-time images of the shops
- Locking showcases when not in use during lunchtime or night-time
- Locking up windows and doors before the last individual leaves.
- Removing all display items at the night-time
- Placing jewelry in a safe or a passcode-protected vault.
- Building a store with good-quality material that protects it from earthquakes
- Proper management of the merchandise through installing several safety vaults at safe distances from the customer or third party.
These measures help reduce untoward incidents or catch the culprits later. However, even the best security measures have proved to be ineffective at times. Therefore, there is a need for last-mile defense. A cushion or pool of money which can be used to stay unaffected by a sudden loss. Enabling the business to continue while the law does its work.
Property Insurance for Jewellery Stores
Since even the best security arrangements leave some space for a loss, it is better to have the last mile cushion to get the business going after the loss. Property insurance policy in the form of shop and content insurance is one such cushion.
Precious items and jewelry are usually excluded from insurance coverage. But, for a jeweler, these are goods in trade, and thus these can be insured. However, the policy is specially designed for jewelers and is known as the Jewellers Block Policy.
What is Covered By “Jewellers Block Policy”?
The policy safeguards the following items (properties):
- Jewelry, ornaments, plates, pearls, precious stones, cash, and currency notes (Goods in trade)
- Loss of Business
- Office Furniture & Fixtures
Jewelry or other precious items can also be covered while in transit or in the custody of the insured or a representative of the insured.
This cover can also be availed by those businesspersons who deal in jewelry or items made from precious metals which are often not considered “jewelry stores” per se in the common language.
Which Cost is Covered?
Depending on what is insured the following method is used:
- For goods in trade, transit, or custody: Cost of purchase of the goods (jewelry, pearls, ornaments,)
- For Building and furniture: Cost of replacement or market value.
Apart from protecting the precious inventory of the store, the cover will reimburse one for any damage to the decor, the safety vaults, or the display places of these items in case of a burglary attempt.
The cost of resetting the whole business once again at the same level can prove to be almost unaffordable given the rising property rates and inflation in the country.
But, with an insurance policy as a backup plan, one can remain assured of safety and security even if an unfortunate event does take place.
The cost of Insurance?
The premium you pay will depend on the value of the insured properties, but a discount is also applicable if your store has additional safety measures as mentioned at the beginning of this article.
Jewelers block insurance policy is a packaged policy and is customized property insurance for jewelry traders, including those specifically involved in the diamond trade.
How to Buy?
Buying a jeweler’s block policy has been made easy with the help of the internet. SecureNow is a corporate insurance advisor with an online presence and services. With SecureNow you can provide your details through the online portal, compare multiple insurance policies online and apply whichever suits you best.
If you need a better understanding of the terms and conditions, 24×7 customer support is also available at SecureNow to answer all your queries before and after the policy investment.
About The Author
Shivani
MBA Insurance and Risk
She has a passion for property insurance and a wealth of experience in the field, Shivani has been a valuable contributor to SecureNow for the past six years. As a seasoned writer, they specialize in crafting insightful articles and engaging blogs that educate and inform readers about the intricacies of property insurance. She brings a unique blend of expertise and practical knowledge to their writing, drawing from her extensive background in the insurance industry. Having worked in various capacities within the sector, she deeply understands the challenges and opportunities facing property owners and insurers alike.
