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Specialist jewellery insurance: do you need it?

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So far, 2016 has proved to be a challenging year for Australian jewellers, particularly those in New South Wales and Victoria. Last week an Elsternwick store was the target of a terrifying heist – the third such incident since August. This comes just two months after thieves stole $70,000 worth of gold and silver from a Frankston jewellery store (causing an additional $30,000 in damage) and weeks after a specialist jeweller in Reservoir was robbed in broad daylight.

While no one has been injured in any of these incidents, the damage to these local business and specialist jewellers has been significant.

One size doesn’t fit all: signs you need specialist jewellery insurancespecialist jewellery insurance

Specialist jewellers, like pearlers or artisan jewellers, regularly handle unique items and rare or valuable materials. This raises the amount of risk they’re exposed to as a business. Why? Because:

  • Some products – like gold - can easily be melted down, making them difficult to trace if stolen (and impossible to retrieve!)
  • Specialist products tend to be of a higher value
  • Precious stones and diamonds may not have a proper unique GIA inscription, meaning they’re hard to trace and authenticate

Even if you’re not a specialist jeweller, certain types of products can raise your overall risk exposure. You may want to consider specialist jewellery insurance if you create, handle or sell any of the following:

  • Antique and estate jewellery
  • Bead jewellery
  • Bridal jewellery, especially high value or custom-made jewellery
  • Personalised or custom jewellery
  • Gold jewellery, especially high karat gold jewellery

Protect your business with industry best practices

In addition to having the right specialist jewellery insurance solution, you need to follow best practices for inventory record keeping. Having accurate and up-to-date records of your inventory will help you make and settle a claim if you experience a covered loss, but it will also help you keep track of merchandise, deter internal theft and develop a better idea of stock turnover.

Every business is different, so there isn’t ‘one’ way to manage your inventory record system. Find a system that suits you; just make sure you track every item and keep important records such as:  

  • Purchase invoices and sales receipts, to show the history of an item
  • An inventory of items that are temporarily on loan (in exhibitions or events, for example)
  • Unique inventory numbers or stock keeping units (SKUs)

If you need guidance or advice on how to implement these best practices, you should reach out to the Jewellers Association of Australia and check out this how-to guide from JCK Magazine. You can also reach out to your insurance broker who can help you better understand your responsibilities and obligations when it comes to recordkeeping.

We know our carats from our karats

We’ve been building bespoke products for businesses in the jewellery and fine arts industries for the past 20 years. As the endorsed broker for the Jewellers Association of Australia (JAA), we can find you a competitive specialist jewellery insurance policy that suits your needs.

Our exclusive offer to JAA members includes some for the following signature benefits:

  • Free cover within pre-specified limits for glass, wearing & exhibition, landlord’s fixtures and others. Please call for more information
  • Cost effective, market leading cover back with 100% Lloyds of London security
  • Sendings and carrying cover - local, Australia-wide and world-wide
  • Accidental damage cover up to full sum insured
  • Cover for stock entrusted, being worked upon and while at your home
  • Valuer's professional indemnity cover and employee dishonesty cover

Our specialist jewellers’ insurance team would be delighted to speak with you.  

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