Choose a Comprehensive Jewellers’ Insurance Cover

Running a jewellery shop involves a wide range of risks because you deal with expensive jewellery. Therefore, it makes great sense to purchase a comprehensive insurance package to covers risks coming from all possible sources – employees, customers, vendors, damage, theft and others.

Whether your jewellery business is small or large, you need to protect your expensive jewellery stock. Choose a comprehensive cover that suits your particular trade.

Things to consider while choosing a cover
Businesses in general and jewellery shops in particular, involve great measure of risk, given the nature of the goods involved – precious metals like gold, silver, platinum, diamonds and other precious stones – widely used in jewellery. Therefore, it is better to purchase a comprehensive jewellers’ insurance policy that covers all possible risks. It is very important to consider the following.

• Coverage for goods in transit
This coverage makes sure that your expensive jewellery stock is covered for any risk of accidental damage or theft that may happen in the transit. It covers the risk when it is being transported from one place to another.

• Replacement or cash settlement
This insurance covers the damage of loss, due to theft, or damage. It covers the cost of replacement of the jewellery. You could also go for actual cash value. This value is fixed according to the price when it was lost.

• Fixtures and fittings
Fixtures and fittings include your store equipment such as computers, cash registers and other contents, which are very high in value and the loss of these contents may badly affect your business. You therefore, need to consider the risk to the fixtures and fittings and purchase an appropriate insurance cover.

• Coverage against business interruption
Business interruption coverage protects against the risk of interruption to your business. For example, natural disasters such as flood or storm may damage your business premises, resulting in temporary closure and loss of sales. Business interruption insurance compensates for the losses your business incurs during the interruption period and the damage and repair expenses that you bear.

While choosing a comprehensive insurance coverage for your jewellery shop, consult professional expert insurance brokers. They will help you choose the right type and amount of coverage to protect against all the potential risks to your business. Some also tailor the insurance policy according to your business’ requirements.

Choosing a comprehensive jewellers’ insurance cover, will therefore, protect your business against probable risks of all sorts.

What is Business Interruption Coverage?

Coverage Limitations

Insurance is designed to financially restore someone to where they would have been had the loss not occurred. Therefore, the business would be required to submit records that would provide a good indication as to what the business would have actually lost in net income. It is recommended that businesses keep a copy of at least 12 months of financial records offsite for this very reason.

Most policies include a waiting period, for example 72 hours, before coverage will begin. A maximum amount paid out each month as well as the amount paid out overall for the loss of net income is determined when the policy is purchased. The policy will also specify a maximum time the coverage will extend for. So for an example, a policy may state coverage will only apply for 120 days, include a limit of $120,000 with a monthly limitation of one fourth. This would indicate the business owner would only be entitled to a maximum payment of $30,000 each month with a $120,000 maximum paid out over the course of 120 days.

Extra Expense

Extra Expense coverage is used to provide relief from additional expenses a business incurs to keep the doors open, such as relocating to a temporary location while the primary location is being repaired. This coverage is provided in addition to Business Income coverage.

Extended Period of Indemnity

Typically, Business Income coverage will stop when business operations are resumed. Yet, just because business resumes, doesn’t mean the normal flow of income immediately resumes as well. Extended Period of Indemnity can provide coverage in the interim, from the time the business is able to re-open its’ doors to when the income resumes to normal income levels. However, there will be a time limit imposed as to how long the coverage will apply as the insurance company can not guarantee income restoration.

How to purchase Business Interruption Insurance

Business Interruption coverage is not sold individually. It can be added to a commercial property insurance policy or a business owner’s policy.