how to select jewellers block insurance policy
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EBM Insurance Brokers team not only provide the right policies to protects your jewellers but to obtain them at the best price.TRANSCRIPT
Jewellery trade fairs showcase the need for jewellers block insurance
The glamorous world of international gems is the stuff myths and movies are made of and the
23rd International Jewellery Fair, in Sydney earlier this year (Aug/Sept), was no exception.
The annual event is one of a series of trade shows held around the globe – from San Paulo to
Jaipur , Johannesburg to Atlanta, UEA to Hong Kong, Tokyo to Quebec – showcasing the
latest stones and international trends in design.
The glittering industry event not only showed off the best in local design but also reminded
jewellers of the challenges they face in protecting their business.
Jewellers are exposed to a number of unique risks and jewellers block insurance can provide
cover for a range of eventualities – from theft to transit mishaps, exhibitions to loans.
The origin of this form of insurance dates to the 1880s when a diamond merchant‟s clerk,
Thomas March, was concerned that his employer couldn‟t get insurance for theft. Together
with his friend, a leading Lloyd‟s of London underwriter, they devised the first jewellers
block policy.
How “block” became part of the title is unknown, but it is likely to stem from the term “en
bloc”, (literally in a block or as a whole) as the policies offer “all risk” coverage. This means
the insurer must specify what is not covered.
Since then, the scope of insurance has grown to take into account the risks and unique
exposures specific to this industry.
When considering cover, a jeweller needs to look at all the risks involved in dealing in
precious metals and gems – both on their premises and when their merchandise is off-site.
Some jewellers may loan out pieces, others may have sales reps that travel with samples,
others may transport gems internationally, while others may have stalls at trade shows or
enter works into competitions. So it‟s definitely not a case of one-size-fits-all when it comes
to finding the right cover.
Even if a jeweller doesn‟t undertake any activities outside of their own retail premises, they
still need to protect their business from the most common threat to the industry – theft.
While elaborately planned jewellery heists are the stuff of fiction, the reality is often more a
case of opportunistic crime – from ram raiding „smash and grabs‟ to individuals distracting a
staff member and pocketing a piece.
According to the Jewelers‟ Security Alliance, in the US, there are a number of common
mistakes jewellers make that can leave their stock vulnerable, including:
• Leaving showcases open during sales presentations
• showing more than one item at a time
• leaving merchandise in showcases overnight or simply covering display cases with cloth
• using display cases made of regular glass instead of high security laminated glass
• having an inadequate security alarm system (e.g. one that is not monitored; or does not
cover roof, sidewalls, restrooms and all other areas of the premises; and poorly positioned
CCTV cameras)
• having safes which can be easily cracked.
Employing efficient anti-theft measures is one way a jeweller can protect merchandise on
their premises. Another is by ensuring the business is adequately covered for risks, both on
and off-premises.
To make sure their business has the best cover, jewellers can approach insurers directly or use
an independent insurance broker to source the most appropriate jewellers block insurance
policy to fit their specific needs.
To find out more about Jeweller‟s Block insurance visit our website or contact us.
The above advice is general advice and has not taken into account your personal
circumstances, be sure to read the appropriate Product Disclosure Statement to ensure the
policy meets your individual circumstances.