Jewelers – Equipment – Retail

Equipment Breakdown Coverage for Retail Jewelers

Retail Jewelers design, decorate and create rings, earrings, watches, pendants, bracelets, broaches and necklaces using precious metals and stones. Jewelry pieces can be purchased from a distributor or can be custom-made 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, 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.

Retail Jewelers have several insurable equipment exposures, such as air conditioning units, boilers, motors, compressors and other types of HVAC equipment. They use all types of business systems including computers, scanners, telephone systems and security equipment.

Many of the boilers and pressure vessels require jurisdictional inspections, which are performed by the equipment breakdown reinsurer at no additional cost. Electrical breakdown, followed by mechanical breakdown are the most prevalent causes of loss in retail jewelers. Boiler and pressure vessel failures account for the lowest frequency of loss.

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. Due to the extent of damage and availability of replacement sections, the boiler required replacement.

Property Damage: $11,000


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

Mechanical Equipment: Exhaust/Ventilation Fans, Vacuum Casting Machine, Melting Furnace, Polishers, Tumblers, Oven/Kiln, Grinders/Deburring Stations, Air Conditioning Compressors, Air Compressors

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!