As a jewelry store owner, protecting your valuable inventory and business operations is crucial. However, navigating the complexities of insurance can be challenging. Here are five common insurance pitfalls to avoid this year to ensure your business remains secure.
Underinsuring Your Inventory
One of the most significant mistakes jewelry store owners make is underinsuring their inventory. The value of jewelry can fluctuate, and it’s essential to regularly update your inventory and your policy to reflect current market values. Failing to do so can leave you with insufficient coverage in the event of a loss.
Ignoring Specialized Coverage Needs
Standard business insurance policies often don’t cover the unique risks associated with jewelry stores. Ensure you have specialized coverage, such as jewelers block insurance, which protects against theft, damage, and other specific risks. Without this, you might find yourself inadequately protected.
Overlooking Employee Theft Coverage
Employee theft is a significant risk in the jewelry industry. Many standard policies do not cover losses due to employee dishonesty. Make sure your policy includes coverage for employee theft to safeguard against internal risks.
Not Reviewing Policy Exclusions
Insurance policies often contain exclusions that could expose you to unexpected risks. It’s essential to thoroughly review your policy to identify what is and isn’t covered. Common exclusions might be related to natural disasters, security requirements, or off-premises coverage.
Failing to Update Coverage with Business Changes
As your business grows and evolves, so do your insurance needs. Whether you’re expanding your inventory, opening a new location, or investing in new security systems, it’s crucial to update your insurance policy accordingly. Talk with your agent regularly to review and adjust your coverage to match your current business situation.
By avoiding these common pitfalls, you can ensure that your jewelry store is well-protected and prepared for any unexpected events. If you need personalized advice or a policy review, feel free to reach out to our team at Clockwork Insurance for expert guidance tailored to your needs.
