Jewellery isn’t just shiny diamonds we see in high-end stores. Many people don’t even notice they have some sort of jewellery on them, for example, a watch, bracelet, neckless and so much more. Obviously, that watch may not be as precious as a 24-carat ring but is still considered a jewellery asset. The more expensive the jewellery, the more jewellery businesses and owners protect it.
Jewellers design jewellery products to look great and also create memories. Therefore, they are liable for providing customers with the perfect product for the occasion. Many jewellery companies import and export their product from various countries. Additionally, jewellery transportation can include when companies travel to customer’s houses to exhibit the product.
Jewellery transportation can be 30 minutes or 24 hours journey; unfortunately, things can go wrong- no matter how safe the business is. One of the main risks when transporting jewellery is theft. This case study will explain how a jewellery business was robbed of an HKD30,000 ring and how jewellery block insurance was the savvier.
Background Of Client
Our client is a Jewellery designer and distributor in Hong Kong. The business takes pride in creating custom made jewellery for their client vision. They distribute their jewellery on-site and also visit VIP clients’ homes (due to covid safety). Jewellery transportation to VIP clients involves storing their products in a bag/case and moving them through a standard transport to avoid suspicion and unwanted attention.
When transporting the products, there are various risks, such as theft, loss, and damage. How careful a business is any jewellery transportation could be a victim to one of these risks. The company will be liable for the loss or damage. Therefore, they will have to pay the cost of repair or replacement and may even lose the client’s interest. Such risks are why most jewellery business purchases the right jewellery block insurance to cover a range of threats.
Client Problem- Jewellery Transportation Risk
The business had an appointment with a very important client who had requested to see a few engagement rings. The customer lived in Hong Kong island itself, around 40 min away from the shop.
The manager requested one of his employees to take care of the jewellery transportation and exhibit some rings to the client. The jeweller employee believed the train would be the fastest way to reach the client’s location and would reduce the chance of risks. The jewellery was stored in a regular bag. The bag consisted of three rings that the jeweller felt would be perfect for the client’s demands. Each ring cost around HKD 30,000, in a total of HKD90,000 jewellery in one bag.
As the jeweller reached the client’s home, he noticed that his bag was torn on the train and one of the three rings was missing. The missing ring was an act of theft due to the clean tear (possible knife cut).
It was an HKD 30,000 loss for the business and embarrassing its reputation.
How Jewellery Block Insurance Covers Jewellery Transportation Risks?
Jewellery transportation can be a risk for any business and is always unpredictable. Fortunately, the company had purchased jewellery block insurance. It is the perfect insurance for jewellery businesses, auction houses, antique dealers, or art galleries. The insurance will cover the loss of jewellery due to theft, damage or loss.
Additionally, the insurance covers jewellery where ever it is, for example :
- In storage
- On display
- In exhibition or show
- During jewellery transportation
Therefore, the jewellery block insurance reimbursed the total amount of the ring after a police report was provided and a proper investigation was conducted. (HKD 30,000)
There are many things that could go wrong during jewellery transportation, in-store or in an off-site exhibition. Jewellery block insurance will provide the right cover when things go wrong and provide the company with the financial funds to recover.
The insurance provides the business peace of mind when conducting activities with expensive pieces. As long as the business has done its best to protect the jewellery, the insurance will help during tragic times.
Although, it is important to understand that the insurance will not cover theft committed by a business employee or hired driver. The insurer will investigate to make sure the product was, in fact, stolen by a third party.