Jewellery shows, jewellery fairs, and jewellery trade shows are all names of the exciting luxurious event in Hong Kong. The Hong Kong Trade Development Council- HKTDC jewellery show is the most famous and anticipated fair, inviting jewellery exhibitors and attendees worldwide. The fair begins on the 1st of March in 2023 and until the 5th.
A jewellery show is an exciting event that allows international business to promote their jewellery products. While thousands attend to either buy, partner with companies or just observe the beautiful jewels. It is a great event for businesses to create B2B relations or buyers and increase brand reputation.
However, organising, participating and executing a jewellery fair in Hong Kong comes with various risks. These risks can affect the jewellery, the event, and the attendees. Therefore, each party should have an appropriate strategy for dealing with these risks.
The various parties involved in the jewellery show need to purchase insurance to protect the assets, event, and liability. Hence the article will explain the various jewellery show risks and which insurance provides the best protection for each risk.
What Are Common Jewellery Show Risks?
The jewellery show risks can affect organising businesses like HKTDC, exhibitors, buyers, and casual attendees.
These risks include the following:
- Damage to Jewellery (during show or transportation)
- Lost Jewellery (during show or transportation)
- Stolen Jewellery (during show or transportation)
- Forced Cancellation of Event
- Attendee injuries (slips and falls)
- Damage or Lost Post Purchase
These risks can result in a significant financial loss for the hosting or exhibiting business. Fortunately, insurance can cover each risk and protect businesses during, before or even after the jewellery fair.
Main Insurances Needed to Cover Jewellery Show Risks
Art Gallery insurance
The hosting business is liable for its safety as soon as the jewellery is presented at the show premises. A hosting company must ensure all the collections are safe at the location from damage, loss, or theft. However, accidents and negligence can happen at any jewellery fair.
There are thousands of pieces at the fair, from complete sets to jewels alone. Hosting businesses such as HKTDC will be responsible for replacing or repairing if any pieces are damaged, lost or stolen. For example, in 2015, diamonds worth HK$ 20 million were stolen at a jewellery trade show in Wan Chai, Hong Kong. The business hosting was responsible for the theft and could even be sued for negligence.
Hong Kong international jewellery shows and all trade shows must purchase art gallery insurance to cover this risk. Art gallery insurance protects the jewellery (asset) while on display at the premises or at the hosting business’s storage. The insurance will cover the cost of repair or replacement if the jewellery product is damaged, lost or stolen. With insurance, the hosting businesses will be protected, just in case.
Jewellery Block Insurance
Transporting high-value jewellery is nerve-wracking, especially from one country to another. Many unfortunate situations could occur to a jewellery collection behind a plane or a truck. Unforeseen transportation accidents could result in damage, loss or theft of expensive assets.
The HKTDC jewellery show will host hundreds of jewellery businesses and their collections. Each business will be transporting its best collection from its location to the event location. Therefore, either damage or loss can result in a significant financial loss for any showcase business.
For instance, a plane lost $368 million worth cargo of gold and diamonds during take-off. The cargo dropped out around 30km away from the airport. As a result, the business suffered a significant financial loss, and such issues could happen during any type of transportation.
Fortunately, jewellery block insurance will cover the cost of resolving damage or loss during asset transportation. In addition, the insurance will provide the cost of repair or replacement of the insured collection. Therefore, the policy is perfect for businesses exhibiting at the jewellery show and the hosting company (if in charge of transportation). Transportation risks could occur at any point, no matter how short or long the journey.
Asset Insurance
During any jewellery fair in Hong Kong, there are many transactions where businesses or the public purchase high-quality jewellery. People purchase high-value assets they will undoubtedly want to keep safe and secure. The jewellery bought is either bought to wear for personal use or to turn into future profit. There may be sudden situations in the future where assets can be lost or damaged.
Loss or damage can be devastating and costly when spending thousands to millions on assets. For example, damage to a diamond ring can occur one day or even years after the jewellery fair purchase. Replacing the damaged ring could be expensive if the jewel was rare. The damage could be anything from a scratch to a cracked gem.
For these risks, everyone who has purchased from the jewellery show should also purchase asset insurance. The insurance will provide the cost of repair or replacement when the jewellery product is damaged or lost during the policy duration. Additionally, the insurance can provide worldwide coverage. Therefore, customers and businesses should buy asset insurance to protect their collections, whether big or small.
Event Insurance
Hosting an event is followed by many possible event risks that can affect the hosting business. The jewellery fair hosting business must know the potential risks of hosting and inviting many people to a location. These risks can range from sudden cancellations, slip and fall, to venue damage.
The event risks can lead to a large amount of financial loss, angry attendees and even lawsuits. For example, the 2018 Hong Kong Jewellery & Gem Fair was cancelled due to a sudden typhoon 10. In this situation, the hosting business may suffer financially and have to refund attendees and compensate exhibitors for the delay.
Organising businesses must purchase event insurance (includes public liability) while planning any jewellery fair. The insurance will cover various event risks such as cancellations, venue damage and third-party injuries. Event insurance will provide the costs related to these risks, so the business can focus on planning and running the event. These risks could happen at any point without warning, and it is always better to have jewellery show events insured.
The Impact of Insurance on Businesses Working at A Jewellery Fair
The above insurances are crucial to any jewellery show in hong kong to provide the best protection. The hosting business will have to purchase more than one of these insurance products to make sure they are fully covered from risks. For example, the HKTDC jewellery show may need an art gallery, jewellery block and event insurance to cover the 4-day event.
All these insurance provide the policyholder financial protection when things go wrong. They also offer peace of mind to hosts and businesses when dealing with high-value jewels and sets.
During a jewellery fair, things can go wrong at any time. Various famous cases prove even with high security and responsible staff, things still don’t go as planned.
To Learn More about jewellery show insurance and cover your jewellery fair in Hong Kong and Asia, contact Red Asia Insurance.
