Jewellers insurance gargashs glimpse

01 Jun, 2020

Jeweller's Block insurance provides comprehensive coverage tailored to a variety of business needs, from traditional jewellery shops to pawn brokers.

UAE is a repository of gold items and other jewels where you can witness machines spewing out gold coins, gold souk of narrow passage glittering with gold articles, gold dust coffee, Gold leaf facials and much more. It is no wonder that this part of the Middle East has Aladdin’s Lamp hidden inside its golden sands.

Jewellery shops go extremely common, and jewelers tend to display jewels in every nook and corner of their shop. More traditional and mass produced designs are continuously showcased. Exclusive designs are exhibited in expensive displays at designer malls. All of these seem to create a huge attraction value for the customers and the sellers in the UAE respectively. Having portrayed UAE’s jewel wealth, there is really a concern for protection of this wealth against unforeseen circumstances like theft, damage due to fire and other causes of loss.

Are the Jeweler’s prepared to face such huge risks?

Would it be satisfactory to hear that these risks can be transferred to an insurer, who will pay out the loss at the time of claim? It might interest you to read a few more lines of this blog to get in detail with the covers offered by the insurers in this market.

Jeweller's Block insurance is important to a retailer, manufacturer or distributor handling high value items such as jewellery or fine arts including gold, diamond and other precious metals like silver platinum, gems and stones (like sapphire, emerald, diamond, ruby) and other antique items. When in the business of high value goods, whether its jewellery, cash or Fine arts, a single incident such as a fire or a robbery, can have a striking impact on the overall business performance of a firm that is not adequately protected.

Jeweller's Block insurance provides comprehensive coverage tailored to a variety of business needs, from traditional jewellery shops to pawn brokers.

What Coverage is provided?

The Jeweller’s Block Policy is an "All Risks" coverage, which means that the insurer will specify what is specifically excluded. If a risk is not mentioned in the list of exclusions, it is covered. The policy generally covers unforeseen events like:

Theft, Burglary, Shoplifting, Grab & Run, sleight of hand
Accidental damage
Fire, explosion
Riot or strike, malicious damage and much more

There are few benefits which can be availed from the insurer on request, but with an additional premium:

Third Party Stock held in trust or care, custody and control
Loss of profits/Business Interruption
Cover for Contents, Fixtures, fittings and decorations
Dishonesty of the Employees
Terrorism
Goods on memorandum
Money Cover
Coverage to Jewellery whilst outside the premises

What other important covers are required for jewelers who need more cover for the unique risks in your business? You may want to consider additional cover if you are:

Trading more during festive or busy season:

If you hold additional stock to cover you over busy trading periods, like Eid, Christmas and Valentine’s Day, etc., then your Jewellers Block insurance will allow for an automatic increase in stock for these times. This can be easily organized at low additional cost. You wouldn’t have the need to notify your insurer of any increases in stock during this period.

Repairing, restoring or cleaning Jewellery:

Jeweller’s Block policy wording can be extended to cover items for any damage resulting directly from your work while you are actually repairing, restoring or cleaning them. If you execute any work on items of jewellery, you should talk to your broker to see if your stock is covered whilst it is being worked on.

Showcasing items at exhibitions or trade fairs:

Jeweller’s Block policy covers property that’s on display in exhibitions, trade fair or other event, including travel to and from the venue. There may be a limit imposed by the insurer on this, but can be increased according to your needs.

Valuation Liabilities:

If you’re carrying out your own valuations, you should have professional indemnity insurance included in your Jeweller’s Block policy. A valuation is your or your employees professional opinion of an item’s worth in the market, so you are legally liable for it. If a customer feels you have undervalued or overvalued an item, given the wrong advice or made some other mistake, you’ll have to defend yourself against that claim and that can cost very high.

Whom to approach for this specialized field of Insurance?

An insurance broker will be able to assess your risks, answer your questions and negotiate with insurers to get you the best deal. You don’t have to use a broker, but using one means that you are:

not paying for irrelevant cover
not paying for any overlaps across policies; and
covered for all your risks and exposures

Why choose Gargash Insurance Services for your Insurance needs?

We are the only CII, London accredited Chartered Insurance Brokers in the UAE
We do professional review of your current insurances
We assign dedicated Account Executive dealing particularly for your business
We have access to a range of well known insurers in the market
We negotiate on prices at the same time obtain tailor made coverage from the insurer
We provide Technical Support in the event of a claim

Tips to manage your risk yourself and help insurer assess your risk easily:

1.You must have 24/7 personally manned security guards.

2.Install a burglary resistant safe/vault according to the value of stock.

3.Burglar alarm connected by a direct line to the alarm company's monitoring station.

4.CCTV with a monitor is mandatory as most insurers except. Digital recorders have now become a standard.

5.Security outside business hours is mandatory and generally not more than 5-10% of Jewellery and other articles may be left out of safe outside business hours.

6.Physical inventory must be taken at least once a year and records maintained of all sales and purchases.