In 2023, the jewellery industry represents a wonderfully diverse array of jewellers, from the well-known high street chains to the independent jewellery maker working from a kitchen table and selling online. Jewellery business insurance protects those in the trade, no matter how big or small their enterprise.
Whether you work with diamonds or resin, a loss of stock, the theft of your designs or a cyber attack can significantly impact your business finances. In this handy guide, we’ll teach you everything you need to know about jewellery business insurance in 2023. You’ll find out who in the industry could benefit from this type of specialist insurance and why, what is covered by this type of policy and how to curate the right cover for your business.
According to research, in 2022, the global jewellery market was valued at $340.69 billion, and it is set to expand at a compound annual growth rate of 4.6% over the next seven years. With our appetite for jewellery within all price ranges as high as ever, creative craftspeople and entrepreneurs alike are trying to carve out their own niche in this competitive but growing market.
Over the past few years, the jewellery industry has been forced to confront a great deal of change in a challengingly small timeframe. The pandemic, naturally, hit jewellers with a storefront particularly hard. But this period of lockdown served to highlight the importance of a digital presence for jewellers. This bolstered the trend for high street jewellers to also have an online store, bringing a new set of operational considerations and insurance needs for the business owner.
The pandemic wasn’t the only force behind the turbulence in the jewellery industry. Gen Z is set to change the face of the jewellery market with their demand for sustainable and ethical pieces.
As the established jewellers rally to adapt both their jewellery and business practises to accommodate the needs of the next generation who will fund them, independent jewellers have also been embracing their ability to readily sell their self-designed and created pieces online. Such independent jewellers have fared particularly well when it comes to tapping into the wants and aspirations of influential younger consumers.
Platforms like Etsy and Shopify allow jewellery designers working in all mediums to access their niche customer base with almost no need to market or advertise. Meanwhile, social media platforms such as Instagram, Facebook, Pinterest and TikTok allow small jewellery designers to create a loyal following, driving footfall to their own website or the shop apps linked to the platforms. Therefore, the need for handmade jewellery insurance has been on the rise as crafting entrepreneurs feel their presence within the jewellery industry.
If a jewellery business owner were to lose their stock through theft or damage or have their unique designs stolen without insurance cover, the impact upon their business finances could be substantial.
Those retailing or creating fine jewellery can hold an extremely valuable inventory. With the cost of replacing this stock potentially very high, jewellery business insurance is an important financial safeguard.
Because your jewellery business will either directly or indirectly involve members of the public, you need to be prepared for the risk of costly claims being made against your business.
Jewellers with bricks and mortar stores are well aware of the risk of robbery attempts against them. In 2021, 38% of UK retailers were a victim of crime, with theft topping the list. Theft may not be the only insurable risk, but it is a pressing matter for all those jewellers with premises. Large chains of jewellers, small independent jewellery shops and pawn shop owners could benefit from jewellery shop insurance, as could jewellery manufacturers who work outside their homes.
If your jewellery business is a cottage industry, run from your own property, you could still benefit from jewellery-making insurance, but you should consult with your home insurance provider to make sure they know that you’re running a business from your property. Fail to do so, and both your home and business policies could be void.
Jewellery designers may take out this type of insurance to protect them against claims made for injuries or damage attributable to a faulty design or for compensation linked to a client being unhappy with a design.
Other businesses that may benefit from jewellery business insurance include metal and precious gemstone suppliers and dealers, larger-scale jewellery and watch manufacturers and those who transport jewellery or high-value stock for producing jewellery.
The obvious occasion for needing to make a claim on your jewellery insurance policy is when your stock is stolen, vandalised or accidentally damaged. Although smash and grabs and jewellery heists are more common for jewellers with a storefront, thieves have been known to target jewellery manufacturers both large and small.
On the high street, in an industrial unit or at home, the likes of fire, water and storm damage can strike unexpectedly, damaging your jewellery business goods and leaving you in need of making a claim.
Whether you’re a jewellery shop with visiting members of the public or sending your jewellery in the post to customers, you are at risk of receiving claims for injury or property damage. Notoriously, such claims can be very expensive to defend and can result in you needing to pay out compensation. Without insurance, you would personally need to shoulder the costs.
Faulty goods are a further occasion where you might need to make a claim. Such goods could lead to claims made by members of the public that you sold faulty jewellery too, or it could lead to the loss of your inventory, as the items you have manufactured become unsuitable for sale.
If you make your own jewellery or play a significant role in running a jewellery or pawn shop, suddenly finding yourself unable to work could have a major impact on your ability to run the business successfully. You could tailor your policy to allow you to claim should an accident leave you incapacitated for a prolonged period.
By exploring the different covers that come as standard within jewellers insurance, you can gain insight into exactly what will be covered when you hold a policy.
• Public liability: this cover helps protect you should any aspect of your business lead to the injury of a member of the public or damage to their personal property. You may think this only applies if you own a jewellery shop that members of the public visit – but this simply isn’t true. If you attend craft fayres with your jewellery and an attendee rips their expensive jacket on your table or trips over a wire leading to your stall and hurts themselves, a claim could be raised.
• Product liability: if a piece of jewellery you sell – be it online or face to face – or any physical item you provide with that jewellery (such as packaging) causes injury or damages the recipient’s property, a claim could be made against you. Product liability is, therefore, essential even if you’re a jewellery business owner who doesn’t come into direct contact with members of the public.
• Employer’s liability: it is a legal requirement in the UK that any business owner who hires staff holds at least £5 million in employer’s liability cover. So, if you own a shop that sells jewellery or have employees who help manufacture the jewellery you sell, you’ll need to make sure your jewellery business insurance offers sufficient employer’s liability cover. You will call upon this cover should a member of staff make a claim against you for illness or injury caused by their time working within your jewellery business.
• Professional indemnity: this is a valuable cover for many circumstances linked to the jewellery industry. If you’re a designer, you can use this cover if a client makes a claim for unsatisfactory work. Or, if you run a jewellery-making workshop or offer jewellery-care advice, you can utilise this cover if someone claims that your advice led to physical injury or damage to their property. For example, if you told someone how to clean an item of their jewellery and that method damaged their piece, they could claim for the cost of replacing it.
• Stock cover: this can be provided through various forms of comprehensive cover, including material damage. Stock coverage ensures that should you be the victim of a robbery or lose your stock through fire or the likes of storm damage, you will be compensated.
• Personal accident: this coverage can be very useful if your presence within the business is vital to its smooth running. Taking out such cover can give you peace of mind that you’ll be financially compensated if your business needs to cease trading for a period due to your unexpected incapacitation.
• Business interruption: should you find yourself unable to run your business, for example, through any of the issues raised above, business interruption cover can help offer you financial support to keep you afloat until you’re able to get your business up and running again.
If you own premises, you may like to include your building and contents cover within your jewellery shop insurance. If you have business vehicles, you can even add fleet cover to your policy.
If you work from home crafting your own jewellery, ask your insurer about tradesmen insurance. This can be used to cover the likes of your tools, and it takes into account the risks associated with running a jewellery business from home.
Selling your jewellery online? You might appreciate cyber cover to help protect all your online activities relating to the business.
The right insurer for your jewellery business is one that will seek to create a policy that reflects your unique needs.
A good insurer will take care to provide you with sufficient cover. It’s fair to say that the cost of your insurance is significantly affected by the level of stock cover you need to take out because someone who stores hundreds of thousands of pounds worth of diamonds on their premises will pay more for their policy than someone who creates jewellery using clay beads.
A jewellery shop owner’s needs may differ from those of home-based jewellery designers selling their pieces on eBay. To find insurance that covers all the risks associated with your work and fits your budget, you may prefer to seek a specialist jewellery insurer.
The benefit of a specialist insurer is that they’ll know all the bases you need to cover, and they’ll be well placed to swiftly deal with any issues when they arise. A standard policy may leave you paying for cover you don’t need, while a bespoke approach omits those and includes ones that protect you from the specific risks your company faces.
A specialist jewellery insurer is an especially good idea if you’re selling online, be that through your own website or on a hosted platform. These insurers will be familiar with this new branch of the industry and can pre-empt the issues you may face, allowing you to make an informed decision about the policy they curate for your jewellery-making insurance.
If you’d like to give your jewellery business the specialist attention it deserves, TH March has been serving the country’s jewellers since 1887. The experts at tailoring policies for those working within the jewellery industry, TH March can offer professional and trusted advice on topics from shop security to online selling regulations. Get in touch today to learn how the industry’s favourite insurer can protect your business.