Property Question - Jewelry Repair Shop

[rcenters]

Assuming a sufficient limit of BPP is chosen, is a normal BPP policy using the ISO Building and Personal Property coverage form sufficient for a jewelry repair shop? For example, if he has a $10,000 watch in his care, custody and control.

I see that the form specifically shows that Covered Property includes "Personal Property of Others" that is "in your care, custody and control" (and located at your scheduled premises too of course).

I am not that much of a Property expert(deal with GL/Auto mostly), but I expected to see at least a sublimit for Jewelry under the Property form, but to the best I can see, there isn't an exclusion, nor a sublimit.


Any thoughts?

[briand]

Josh,
there are limitations in the property policy regarding jewelry and other precious items. The best way to cover the jewelry in your clients possesion would be on a jewelrs block policy. You could cover the generall BPP under the BOP and use the block policy to cover the jewelry.

[ForumReader1]

The jewelry limitation you are looking for is in the Cause of Loss form or section - if it is an ISO form or a carrier's form based on ISO. While property of others can be covered if designated on the dec page, it's only for the perils in the cause of loss form. Broader coverage for property upon which you are performing repairs/work is usually obtained under some type of Bailee (customer's goods) coverage form. For a jewelry store, that can be under a jewelers block as stated in the previous post.

[rcenters]

I actually found the limitation I was expecting to find, but it was under the Special Causes of Loss form that must also be attached to a Property policy, it was not under the Building and Personal Property Coverage form.

Anyway, it is apparently only a "theft" limitation for jewelry, limiting coverage to $2500. Best I can tell, that's the only limitation.

With that said, I have heard of but am not familiar with Jeweler's Block. What does that do that standard BPP does not?

[rcenters]

Whoops forum reader, LOL I was typing that last post for a while.

With that said - I'm assuming use of the Special causes of loss form - special causes of loss will still apply to customer's jewelry goods, won't it? Except for the theft limitation; of course.

[InsMgmt]

Have a separate subject of insurance added to the policy for the Personal Property of Others with a limit of coverage adequate to satisfy the coinsurance clause (or have the underwriter waive the coinsurance), or,

Have an inland marine bailees coverage form issued.

Jewelers Block provides "all risk" coverage for the special risks involved in the high values which are common to Jewelers, including theft at the premises, elsewhere or in transit, and jewelry items of others for which your insured is legally liable, that have been left for repair or on consignment for sale.

[ForumReader1]

Only theft will be limited...but what Cause of Loss are they most subject to? (Same goes for your owner's property.) A jewelry store should never be on a BOP or Bldg & Contents form unless the owner doesn't care about having theft coverage, never sends/receives jewelry by registered mail, etc etc.

[crossins]

We do a ton of these with Jewelers Mutual. They insure jewelers on a BOP type package policy with separate coverage for the Jewelers Block included in the package. Beware, applications for the Jewelers Block can be a real bear for the uneducated, and it will require a lot of information from your prospect, and probably a little more time than he/she may be used to spending with an insurance agent. Just my 2 cents.

[kevinraz]

Does your current carrier even know they are insuring a jewelry store? Many will not write property on these due to the increased risk of theft related damage. Try Jewelers Mutual or someone else for the right coverage.

If they have a claim - highly likely in this type of account - you'd better have your ducks lined up or get ready to visit your attorney a lot.