Jewellery and watchmaking
In the jewellery and watch trade, a large share of a company's assets is concentrated in a few square metres, and its value does not stand still: it rises with the price of gold and silver, shifts with the cost of replacing precious stones and moves with the stock, from the shop window to the safe, the workshop, the trade fair and the sample case. So the risk is not only a robbery or a theft, but discovering on the day of the claim that the sum insured no longer reflects the real value of the stock.
Robbery and ram-raid, sample cases in transit and sums insured outpaced by metal prices
In jewellery, the settlement turns on two checks: the sum insured and the security measures
After a claim, the insurer compares the sum insured with the real value of the stock, using the inventory, purchase invoices and valuations of one-off pieces, and checks that the agreed security measures —safe, monitored alarm, shop windows emptied at closing— were in place that day. With the rise in gold and silver prices, a jeweller that was properly insured two or three years ago may be underinsured today without knowing it, and a shop that changed its safe, alarm company or opening hours without telling the insurer has a policy that no longer describes its risk. That is why a regular review of sums insured and conditions is one of the most useful protection tools for business continuity.
Robbery during opening hours and ram-raid at closing
These are the two claims that define this class of business in Spain. A robbery happens with customers inside and is covered on a first loss basis up to the showcase limit; a ram-raid comes through the shop window in the early hours and finds whatever was left outside the safe, which is covered by a much lower sub-limit. How stock is split between showcases and safe at closing is a policy clause, not a habit, and the shop window's security glass and shutter are conditions proven by the installation invoice.
Stock that leaves the premises: sample cases, shipments and trade fairs
A wholesaler moves its sample cases with its travellers; a shop sends a piece to a customer by courier or takes stock to a trade fair. Each leg has its own limit and security measures, which the insurer sets according to the sum insured and the areas travelled. Two clauses decide almost every claim: the vehicle clause, which sets what protection the car must have and when it may be left unattended, and the overnight custody clause at trade fairs, which sets where the pieces must spend the night once the stand closes.
Pieces that are not yours and pieces that are not on the premises
The repair a customer leaves at the counter, the watch waiting for servicing, goods a supplier has left on consignment and gold in the hands of an outside caster or stone setter are value you are responsible for that does not appear in your purchase inventory. That value is declared separately, with its own limit, and liability for goods entrusted to you must be named in the policy, either in the stock policy or in the liability policy.
The rise in gold and silver prices, and the underinsurance it leaves behind
The rise in gold and silver prices has pushed up the value of stock in workshops, warehouses and shops without the policy changing. A jeweller that insured €500,000 of stock a few years ago may now hold €700,000 or €800,000 at replacement value; a manufacturer working in 18-carat gold replaces its production at a much higher cost, and a wholesaler can easily exceed the limits it took out for the safe or for transit. Precious stones are not traded on a public market, but their replacement cost has also moved. On a first loss basis average does not apply, but the settlement never exceeds the sum insured, and anything not recorded in the inventory, invoices or valuations is not paid.
The covers that support a company in this sector
Each one is designed based on the company's real exposure. None are contracted the same in two companies in the same sector.
- Jewellery InsuranceThe stock, at all times and wherever it is
- Premises insuranceThe everyday risks of the premises
- Cyber risk insuranceDigital risks to the business
- D&O insurance for directorsThe personal assets of the person running the company
- Collective agreement accident insuranceWorkers' workplace accidents, as the collective agreement requires
- Civil liability insuranceThird-party claims against the company
Common questions in the jewellery sector
Do we need one policy for the premises and another to insure the stock?
Yes, it is advisable. The premises policy protects the building and its fixtures; the stock policy protects the stock, which in jewellery usually accounts for most of the business's assets. With two policies, each risk has sums insured and cover suited to its nature, and shortfalls in cover are avoided in the event of a claim. It is best to design them together, so that there are no gaps or overlaps between them.
What does insurance for a jeweller's premises cover?
Policies for jewellery premises cover a wide range of everyday risks that, if they occur, can seriously disrupt the business: damage from water leaks, electrical incidents, accidental breakage, fire, weather events and flooding. On top of this comes a block of liability cover that includes the premises' own liability, liability arising from the business's operations (public liability), tenant's liability, particularly relevant when the premises are rented, and employer's liability. It may also include business interruption, which covers fixed costs while the business is closed after a claim.
We are wholesalers and our sales representative travels with a sample case. What exactly is covered?
For jewellery sample cases, cover for robbery, burglary and theft is included in the policy we design at JORI, with a limit per traveller and per trip. Given the nature of this risk, the insurer also requires very specific security measures, and private security regulations must be taken into account, in particular Order INT/317/2011 of 1 February on private security measures. Above certain amounts, these protections are a condition of the contract and depend on the sums insured and the geographical areas the sample case travels through, whatever the country or continent, whether attending a trade fair or exhibition or out on sales work.
What protection does a private vehicle carrying jewellery sample cases need?
Security measures for carrying sample cases are regulated and may vary depending on the make and features of the vehicle. In a standard car, the most common and recommended protections reinforce its security system with an additional alarm, a lock on the rear seats and parcel shelf that prevents access to the boot from the cabin, and double locking on doors and boot. It is also advisable to carry trackers inside the cases and to take extra precautions on the road to reduce the risk of theft or loss.
What security measures does a jewellery shop need to get insurance?
Those set by private security regulations, which are the starting point for any insurer: as a general rule, a grade 3 security system connected to an alarm receiving centre and a grade IV safe with a time delay, plus protection on shop windows, doors and access points, and CCTV with recording. On top of this minimum, the policy sets its own conditions according to the sum insured and the location of the premises, such as emptying the shop windows at closing. What is declared must match what is installed, because it is checked after the claim, not before.
What we have published about these risks
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