Jewelers – Equipment – Manufacturing

Equipment Breakdown Coverage for Jewelry Manufacturing

Jewelry manufacturers design, decorate, and create rings, earrings, watches, pendants, bracelets, broaches and necklaces using precious metals such as platinum or gold and stones such as diamonds, emeralds, and sapphires. Jewelry pieces can be custom-made or mass produced and are displayed for customers to view and shop.

Additional value-added activities include consultation, adjustment and repair, value appraisals of gems and jewelry, melting and refining of precious metals, model making and casting, electroplating, surface finishing, welding/soldering, and the sale of heirloom, novelty, or gift items such as dinnerware, flatware, home decorations, stemware, table linens, figurines and clocks.

Jewelry manufacturers have multiple insurable equipment exposures. Most jewelers use air compressors, boilers, motors, compressors and all types of different electronic equipment. Many of the boilers and pressure vessels require jurisdictional inspections, which are performed by the equipment breakdown insurer at no additional cost.

Electrical breakdown, followed by mechanical breakdown are the most prevalent loss causes in jewelry manufacturing operations. Boiler and pressure vessel failures account for the lowest frequency of loss. Breakdown of equipment can lead to an interruption of business operations resulting in a loss of business income. These types of losses would be covered by equipment breakdown coverage.

Typical Losses

Several pieces of electronic equipment including a security DVR, and carat scale were damaged by an outside power surge from the utility company and required replacement.

Property Damage: $5,900

The low water fuel cut off was inoperable on a cast iron steam boiler, which caused the boiler to overheat and crack. As a result, the boiler had to be replaced with a different boiler manufacturer of like, kind, and quality due to its age.

Property Damage: $4,000


Boilers and Pressure Vessels: Sanitary Hot Water Supply Boilers, Comfort Heating Boilers, Compressed Air Storage Tanks, Heat Exchangers

Mechanical Equipment: Exhaust/Ventilation Fans, Dewaxing Machine, Vacuum Casting Machine, Melting Furnace, Polishers, Tumblers, Etchers/Blasters, Acid Picklers, Ultrasonic Cleaning Baths, Oven/Kiln, Centrifuge, Hydraulic Jewelry Press, Grinders/Deburring Stations, Welding Machines (Laser, Arc), Air Conditioning Compressors, Air Compressors, Ventilation/Filtering Station, Electroplating Systems, Oxygen Generator, Air Pollution Control System

Electrical Equipment: Motors, Rectifiers, Fan/Blower, Transformers, Electrical Service Panel, Desktop PC and Servers, Inventory Security System

Time Element: Business Interruption, Extra Expense, Service Interruption

Be proactive! Develop a plan and execute!