A Guide To Choosing The Best Insurance For Your Jewellery Business
A Guide To Choosing The Best Insurance For Your Jewellery Business
For anyone starting a jewellery business, insurance is paramount as it will protect your business in case of a disaster. No one wants to spend all their savings on the company and end up getting losses due to theft, fire, and other hazards. This is where insurance comes in. What will happen when a customer lands on a glass, looking at jewellery, and the glass breaks and injures them? Also, what happens when some of your pieces are stolen, or when the assets’ value fluctuate, leaving you confused? All these scenarios are examples of situations where you need insurance. Below are the different types of coverage that one should consider for their jewellery store. Read on to find one that suits you best.
Whether your business is online or you sell at craft fairs, these, business insurance packages are vital for you. Cutting costs may be tempting, but when a disaster happens, your business will suffer, and you may not be able to get back up.
Commercial General Liability Insurance
General liability insurance is a cover that one should not miss out on. It will cover any medical payments needed, personal and advertising injuries, legal defence fees, and also property damage. Having a good CGL policy helps one in case you get sued and need to pay compensation for damages caused in the case of a liability charge.
Product Liability Insurance
There will always be a slight chance that a customer will say that your product caused them harm or an injury. Since people react differently to jewellery, it is crucial to ensure that you have considered product liability insurance for your business. If the customer decides to sue you, this coverage will pay for the cost of hiring an attorney to represent you in court, and any other legal fees incurred. If both parties decide to settle the matter outside the court, the costs will also be paid by it. This insurance comes in handy, especially in online jewellery businesses where these cases are quite common.
Employer’s Liability
If you have employees working for you, then you will need to take out this cover. It will cover you if an employee makes a claim against you and the business. Also, if any employee is injured while working, or in the business premises, and needs medical care, this policy will ensure that they are covered by paying for the hospital bills. Also, any lost wages that may be incurred by the employee due to the injury will be taken care of by this policy.
If your business property gets damaged maybe by a fire or other natural disasters, this policy will cover it. It will provide compensation for the losses incurred on the property, other than the jewellery that you have. Some of the things covered include your inventory, signage, and computers.
Business Income Insurance
Accidents happen all the time, and no one is immune to them. This is a harsh reality for businesses, and the majority of the time when disasters such as fire destroy your assets, you may not be able to open the store for a while. For this period that you will have closed shop, you will get a continuous income until when you open the business. This is what happens when you take up business income insurance. You will be able to pay salaries for your employees and cater to your monthly expenses without any problems. This will ensure smooth running since you will be able to focus on how to open the business, and not on how you will take care of your employees.
When buying insurance, you may be lost for choice on what is perfect for you. Meeting up with different insurance companies will help since you will be able to see which one fits you well. Below are some of the questions to ask the various companies to see if they are perfect for you.
How Much Will It Cost?
Knowing the amount of money that you will have to pay for your insurance is vital. However, the costs will vary due to factors such as the location of the business, the value of the jewellery being insured, and the company. Getting different quotes from the various companies will help you to know which one suits you best. Avoid choosing those that are questionably cheap since it may mean that their services are substandard. Also, it may mean that you will be protected in very few instances, as opposed to those that are a bit highly-priced. It is crucial to note that the coverage will cost around 2% of the value of the jewellery.
What Does It Cover?
It is crucial to know the nitty-gritty of what is covered in the policy that you choose. It is crucial since you may get property damage, only for the insurance company to say that it only covers it when it is caused by fire. Some will also not cover loss of jewellery from theft; thus, it is crucial to ask all these details. Also, some companies will only allow you to use their jewellers in case you need to do a repair or replacement. However, they will do it as cheap as possible so that they can save the company money. This may not be the best option for you since the work will be substandard and not up to par. It is, therefore, crucial to ask about that and know if they will allow you to work with your local jeweller or one that you trust.
Buying a jewellery insurance policy can be quite overwhelming and daunting. You will need to take time to know all the policies that are there in the market and how to choose the right one for you. With the above points, one will be able to see which one fits their business best and will protect them in the event of unforeseen disasters. As much as insurance may seem to be an expensive venture, it will be worth it in the end, and your business will thank you for it. With the above points, the process does not need to be as challenging as before; you will be able to make the right decision.
