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44 www.thejewelrybook.com Jewelers Risks come in many forms Carriza J E W E L E R S U N B L O C K E D I N S U R A N C E urchasing the proper insurance coverage can be confusing. Understanding potential exposures and coverage gaps, the probability of loss and the difference between insurance offerings is a daunting exercise. To protect your business it is important to select the appropriate insurance policies that fi t the needs and risk profi le of your company. Jewelers know they require the specialized protection that's available through a jewelers block policy, which provides insurance coverage in the event of loss or damage to the jeweler's inventory while on the business premises. But inventory loss is far from the only risk a jeweler should address, and standard 'business owners policies' don't include all the liability coverage a jeweler may need. Consider the following exposures that are NOT automatically covered in standard jewelers block or business owners policies. Separate insurance coverage may be obtained to protect your business in each of these areas: • Employee dishonesty: Most business owner policies include a certain amount of coverage for fi nancial loss due to the dishonest and fraudulent acts of employees, but of signifi cant concern to jewelers is the standard exclusion for 'precious metals'—as well as the defi nition of 'employee.' Look for a stand-alone crime policy that broadly defi nes employee (to include independent contractors such as appraisers, outside sales people and those hired for bench work) and one that includes coverage for all stock, including precious metals. • Credit Risk: If a jeweler doesn't receive payment due for goods sold, the loss wouldn't be covered unless a business has obtained a separate credit risk policy. • Appraisal liability: Providing appraisals is an important service offered by jewelers, but if there is a subsequent dispute over the value indicated in an appraisal, the jeweler may be drawn into a lawsuit. For protection, jewelers should obtain an appraisal liability policy, preferably one without an annual aggregate. • Cyber liability: Jewelers accepting credit card payments should ensure they have coverage in the event of a sale made on a fraudulent card, as well as protection in the event of any breach of confi dential information they may maintain on their customers. Cyber liability policies are available to cover these risks and other cyber-related crimes including theft. By Patricia K. Low, President & CEO Jewelers unBLOCKed TM P

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