Jewelry business is a risky business. A jewelry business needs high amount of investment. There is a high risk involved in this business than other businesses. A jewelry shop sells many precious jewelry items, such as diamond, gem stones, platinum, gold and titanium metals and silver, bronze and other less expensive jewelry.
There is a need for any business, to protect the business from all possible losses such as earthquake, floods and fire losses, theft and burglary losses, lawsuit losses, etc. There is a maximum chance of theft for jewelry shops, because the shops holds lakhs of worth of property. A jewelry shop needs few general business insurance policies to protect the business against losses.
Here are few points that clearly define the importance of insurance for jewelry shops.
- Jewelry shops need building insurance to protect the shop building against natural disaster losses, such as earthquake, wind storm, tsunami, and flood losses. When these type of losses occur, the jewelry shop gets huge loss, because there is less chance to retain jewelry items.
- Jewelry shop needs property insurance for stock of the business. There is high chance for theft from customer, employees, and other persons. In jewelry shop a small item can cost billion of dollars. So every jewelry shop needs property insurance to secure the business stock. However, sometimes property insurance covers the fire losses.
- Business interruption insurance secure the jewelry shops against loss of earnings, if they are forced to close their shop for a period of time. The reason beyond this is that, the surrounding area of the shop has effected by the fire accident, but not the shop. If a jeweler was forced to close for a period of time, business interruption insurance coverage would allow them to claim the net profit plus continuing operating expenses during that time. This insurance will also allow the financial compensation for the time the store was closed. It allows the jewelers to keep paying valuable members of the staff. There is also a higher chance to get too many profits and too many losses in a jewelry shop. Such as, when the prices of precious metals rise suddenly, the business can get more profits, because they can sell the existing stock at higher price. On other hand, when they fall down, the jewelry shop can record high losses. To protect jewelry business from such losses the shops need business interruption insurance.
Due to all the above reasons, a jewelery shop owner should take suitable insurance, which can cover any kinds of losses to the business.