Why is insurance a must for jewelry stores?
A fire or burglary could devastate a jewelry store. Having the right insurance provides protection for jewelers who sell unique, one-of-a-kind pieces, antique jewelry, or high-value gemstones. Find coverage to properly safeguard your business from lawsuits, accidents, and theft.
Find coverage that matches your risks
6 insurance policies every jeweler should consider
Business insurance can help stores recover quickly from common risks in the retail industry.
Business owner's policy
A business owner's policy, or BOP, combines general liability coverage and commercial property insurance at a discount. Small jewelry shops are often eligible for this bundle.
- Slip-and-fall injuries
- Damage to a customer's property
- Business property damage and theft
General liability insurance
A general liability insurance policy defends against third-party lawsuits, such as a customer who stumbles into a jewelry display and suffers an injury. It's often required for a commercial lease.
- Customer bodily injuries
- Accidental damage to a customer's property
- Advertising injuries and copyright lawsuits
Workers' comp insurance
Workers' compensation insurance protects retail stores and sole proprietors from work-related medical bills that health insurance won't cover. Most states require this coverage for your employees.
- Medical expenses from workplace accidents
- Disability benefits for injured workers
- Legal costs from work injuries
Cyber insurance
This liability policy covers the cost of cyberattacks and data breaches that expose customer information. It's also called cyber liability insurance or cybersecurity insurance.
- Data breach investigations
- Customer notification costs
- Fraud monitoring services
Commercial umbrella insurance
This policy covers the most costly lawsuits that exceed the limits on your general liability, commercial auto, or employer's liability insurance. It activates when the underlying policy reaches its limit.
- Customer injuries
- Auto accidents
- Employee injuries
Commercial auto insurance
Almost every state requires commercial auto insurance for business-owned vehicles. It covers costs in the event of an accident involving a delivery truck or other company vehicle.
- Legal fees from an auto accident
- Vehicle vandalism
- Vehicle theft
Jewelry store insurance costs
From our customer data, here's a quick look at average jewelry store insurance costs:
General liability: $38 per month
Business owner's policy: $75 per month
Workers' compensation: $41 per month
Factors that can influence your retail business premiums include:
- Type of business, such as e-commerce or brick and mortar
- Number of employees
- Types of jewelry sold, such as engagement rings, necklaces, custom pieces, etc.
- Value of your business property
- Types of insurance purchased
- Deductibles, exclusions, and coverage limits
- Claims history
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Common questions about business insurance for jewelry stores
Review answers to frequently asked questions (FAQs) about jewelry insurance policies and more.
Will jeweler insurance cover my jewelry store if it's forced to close temporarily?
Yes, business interruption insurance, often included in many commercial property policies and business owner's policies, will cover temporary closures. This type of coverage is sometimes called business income insurance.
Should your business be forced to close due to a covered peril, such as a fire or storm, business interruption insurance can help temporarily pay:
- Employee wages
- Lost income
- Day-to-day operating expenses
- Relocation expenses
You can also buy extra expense insurance to cover additional costs. For example, you might need to lease a piece of equipment or hire interim employees.
If your property insurance doesn't already include business interruption insurance, it can usually be added as an endorsement. The money you lose while your store is closed could end up costing even more than the damage itself, which is why this coverage is so important.
Are jewelry stores required to have product liability insurance?
While not required, product liability insurance is a crucial policy to carry for any type of store, including jewelry shops.
Your store could be held liable should a customer file a lawsuit due to a reaction to metal plating on a jewelry piece or the cleaner used during the polishing process.
They can also sue over a product your store sold – even if you didn't manufacture it. That means you could end up paying legal defense costs for a product defect or labeling error that wasn't your fault.
Even though this coverage is usually included in most general liability and business owner's policies, you can also buy product liability insurance as standalone coverage if it's not included.
Additionally, you should also consider product recall insurance to cover the cost of recalling a potentially harmful product.
Does jewelers insurance cover theft?
Yes, theft and burglaries are insured by commercial property coverage, which is also included in a BOP. However, your policy only protects against crimes committed by people outside your business. Jewelry store owners should also consider employee dishonesty coverage, such as:
- Commercial crime insurance protects your business in the event of employee theft, such as a salesperson who steals from the cash register. You can usually add it to your property insurance.
- Fidelity bonds protect your customers from the acts of dishonest employees, such as identity theft or embezzlement.
What other insurance coverage do jewelers need?
Small business owners should consider the following types of coverage to protect against other risks that could potentially cause devastating damage to a jewelry store business:
- Equipment breakdown coverage covers specialized equipment that suffers a failure due to uncontrollable circumstances, such as a recently purchased POS system that stops working suddenly.
- Electronic data processing (EDP) insurance handles any related financial losses when a power surge or other event destroys the data in your computer systems.
- Hired and non-owned auto (HNOA) insurance protects jewelers who drive personal, rented, or leased vehicles for business purposes. This coverage is key as a personal auto policy won't cover accidents that happen while you're driving for work.
- Jewelers block coverage, a type of inland marine insurance, helps safeguard your jewelry business from lost or damaged inventory while kept in storage, en route to tradeshows, or as stock.
