Jewelry Store Business Insurance (2025)

Jewelry store insurance helps protect you and your business when unexpected issues arise. For example, if a customer slips in your store or a theft occurs, your insurance can help cover the costs.

It also protects you from other risks, like property damage, lawsuits, or claims related to employee actions. With the right coverage, your jewelry store can continue operating smoothly, even when the unexpected happens.

Why Do Jewelry Stores Need Insurance?

Jewelers need business insurance to protect against many things, the most important of which is theft. Without the right insurance, a jewelry business can be on the hook for significant losses if someone breaks in and steals their products. No insurance means a jewelry business can go out of business because of those losses.

Then you add the risk of simple liability like slip and fall accidents for employees and customers alike. General liability insurance can provide protection for a jewelry business against claims of property damage, bodily injury, or even lawsuits.

It also adds credibility. Many clients require proof of insurance before buying or selling to/from a jeweler. Whether you’re an entrepreneur or you have a large jewelry business with multiple locations, having the right insurance helps you operate confidently, knowing you’re covered if something goes wrong.

What Insurance Do Jewelry Stores Need?

Running a jewelry business means protecting significant and valuable inventory against things like damage and loss from theft, Shipping problems, fire, natural disasters, and other potential problems.

Standard commercial property insurance might have limitations on theft coverage especially for high value jewelry which can necessitate additional coverage for jewelers. To protect yourself and your business, here’s a breakdown of the most important insurance policies to consider.

Jewelers Block Insurance

What it is: This can help recover finances from damages or theft as a specialized insurance product for the jewelry industry.

What it covers: If there is any damage to your property like theft or fire as well as damage during transit, or theft to a customer’s property if it is in your care, or items that are displayed at trade shows, this insurance can help you recover those losses.

Example: A client leaves their engagement ring with you for resizing during which time it becomes damaged. This insurance policy would cover that damage.

The average cost of jewelers block insurance is between 1%-2% of your inventory on average. So for someone with $50,000 worth of inventory you might expect to pay around $500 to $1,000 per year.

General Liability Insurance

What it is: This is the foundational insurance policy for most small businesses. It protects you from third-party claims of bodily injury, property damage, and personal injury.

What it covers: If someone gets hurt at your store, general liability pays for legal fees, repairs, or medical bills.

Example: A client is accidentally injured when they slip and fall at your store. General liability insurance can cover the cost of any damages and any legal fees if a lawsuit follows.

Workers’ Compensation Insurance

What it is: This policy covers your employees if they get injured or become ill as a result of their job.

What it covers: Medical bills, lost wages, rehabilitation, and even death benefits. It’s also required by law in most states if you have employees.

Example: One of your employees is injured during the course of their duties. Workers’ comp pays for their ER visit and covers time off while they recover.

Workers’ compensation insurance is required for jewelers’ businesses with employees in almost every state.

Commercial Auto Insurance

What it is: If you or your employees drive for business purposes, personal auto insurance likely won’t cover accidents. Commercial auto fills that gap.

What it covers: Vehicle damage, injuries, and liability if you’re involved in an accident while driving for work.

Example: One of your employees rear-ends a car while driving to a client’s home in the company van to conduct on-site ring cleaning services. Commercial auto covers the damages and medical costs.

Jewelers businesses pay an average of $171 per month, or $2,054 per year, for commercial auto insurance.

Business Owner’s Policy (BOP)

What it is: A BOP bundles general liability and commercial property insurance into one policy, often at a lower cost than buying them separately.

What it covers: Property damage to your business location or equipment, along with liability protection.

Example: A fire in your store office damages supplies and business records. A BOP helps you recover both the physical and financial losses.

Commercial Property Insurance

What it is: If you own or lease space for your jewelry business, this policy covers the physical building and the contents inside.

What it covers: Fire, vandalism, theft, weather damage, and more—anything that could physically impact your business premises or equipment stored there.

Example: A storm causes water damage to your storefront, ruining thousands of dollars’ worth of jewelry. Commercial property insurance helps you recover.

Business Personal Property (BPP) Insurance

What it is: BPP is a type of property insurance specifically for movable items like the display cases, tools, computers, and office furniture used in your business.

What it covers: Repair or replacement of these items if they are damaged or destroyed due to fire, theft, or other covered events.

Example: A fire in your office destroys laptops, cases, and supplies. BPP helps cover the cost to replace those essential business items.

Hired And Non-Owned Auto (HNOA) Insurance

What it is: This policy covers liability if you or your employees use personal or rented vehicles for business purposes.

What it covers: If an employee causes an accident while using their personal car for a work errand, HNOA provides liability coverage where personal auto insurance might fall short.

Example: You send an employee to pick up extra office supplies in their own car, and they cause a fender bender. HNOA helps with the liability claim.

Umbrella Insurance

What it is: Umbrella coverage provides extra protection beyond the limits of your existing policies, like general liability and commercial auto.

What it covers: Once a claim exceeds the limits of your underlying policy, umbrella insurance kicks in to cover the remaining amount.

Example: You’re sued for $1 million after a client claims the ring cleaners you used caused physical health products. Your general liability policy caps at $500,000. Umbrella insurance can cover the remaining $500,000.

Cyber Liability Insurance

What it is: This covers losses related to cyberattacks, data breaches, and other digital risks, particularly important if you store client info online.

What it covers: Legal costs, notification expenses, and credit monitoring for affected clients.

Example: Your bookkeeping software is hacked, and client addresses and payment details are leaked. Cyber liability helps manage the fallout.

Together, these policies form a comprehensive insurance plan for jewelry businesses. While not every business needs all of them, understanding your risks and matching them with the right coverage ensures your operation stays protected, whether you’re a solo jeweler or manage a growing team.

Jewelry Store Business Insurance Requirements

Jewelry businesses are generally not mandated by federal law to carry specific insurance policies. However, certain types of insurance may be required depending on state laws, local regulations, and the nature of your business operations.

Workers’ Compensation Insurance: In most states, if you have employees, you’re required to carry workers’ compensation insurance to cover medical expenses and lost wages for work-related injuries or illnesses. However, Texas does not mandate this coverage for private employers, though it’s still highly recommended to protect both your employees and your business.

Commercial Auto Insurance: If your jewelry business owns vehicles used for work purposes, or you are an independent jeweler using a vehicle for work like valuation services or ring cleaning, most states require commercial auto insurance to cover liabilities arising from accidents. In Texas, commercial auto insurance is mandatory for business-owned vehicles.

General Liability Insurance: While not legally required, general liability insurance is often necessary to secure contracts and is highly recommended to protect against claims of property damage or bodily injury. Some clients or landlords may require proof of this coverage before doing business with you.

It’s important to check with your local city or county government to understand specific licensing and insurance requirements applicable to your area.

How Much Does Jeweler Business Insurance Cost?

Jewelry store business insurance typically costs around $38 per month depending on many factors, particularly your location. Areas with higher rates of crime will automatically result in higher premiums because of the higher risk though there are measures you can implement to try and reduce these costs.

The type of coverage as well plays a big role like jewelers block insurance compared to the cost of general liability insurance. Your coverage limits generally result in higher premiums so if you have $50,000 worth of inventory you will pay a smaller premium compared to a jewelry business with $500,000 worth of inventory.

Several factors influence the cost of business insurance coverage, including your business location, the number of employees, the types of services you offer, the records you keep, your claims history, and whether you transport expensive inventory.

Insurers also consider the amount of coverage you choose and whether you package policies together. While it may be tempting to go with the cheapest option, it’s important to choose a plan that truly protects your business from its most likely risks.

How Is Your Jeweler Business Insurance Cost Calculated?

Insurance underwriters calculate your jeweler business insurance premium based on several key risk factors unique to your business. As mentioned, one of the biggest considerations for an insurance underwriter is your location. If you are opening a jewelry store in an area with a lot of crime, particularly theft, you will pay more compared to a jewelry store in a low crime area with strong security measures in place.

Underwriters also look at your claims history—if you’ve filed previous insurance claims, you could be seen as a higher risk. The value of your inventory, whether you own or lease business vehicles, and the type and amount of coverage you choose all factor into the cost as well. Even your business structure (LLC vs. sole proprietor) can affect how your policy is priced.

Tips To Lower Your Jewelry Store Business Insurance Costs

Insurance costs can add up quickly for physical therapy businesses, but there are practical ways to keep your premiums manageable without skimping on coverage. The key is to understand which factors you can control and take proactive steps to minimize risk.

• Invest in security. The best tip for lowering your business insurance costs is to invest in security measures like safes, alarms and security systems.
• Bundle your policies. Combine general liability, property insurance, and other coverages into a Business Owner’s Policy (BOP) to qualify for a multi-policy discount.
• Consider Hired and Non-Owned Auto (HNOA) coverage. If you or your employees use personal vehicles for work, HNOA can be more cost-effective than a full commercial auto policy.
• Keep a clean claims history. Avoiding claims through proper training and safety procedures can lower your risk profile and lead to reduced premiums over time.
• Invest in workplace safety. Implementing safety protocols and training for employees helps reduce the chances of injury claims and can lower workers’ compensation costs.
• Raise your deductible. Opting for a higher deductible can lower your monthly premium, but be sure your business can absorb the extra out-of-pocket cost in case of a claim.
• Review your coverage annually. Adjust your policies as your business evolves to avoid paying for coverage you no longer need.
• Compare quotes from multiple insurers. Rates vary widely, so shopping through Insuranceopedia can help you find the best deal for your current needs.

Taking a strategic approach to your insurance planning can make a real difference in your bottom line. With a little research and regular review, you can stay protected and cost-efficient at the same time.

Following these steps helps ensure you’re properly insured and set up to handle risks confidently and professionally.