What Are the Main Risks for Small Jewellery Businesses? - Business Media Group
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What Are the Main Risks for Small Jewellery Businesses?

 

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As the jewellery industry is inherently involved with the exchange and production of expensive goods, jewellers often become a target for physical and financial harm. As such, appropriate protection must be put in place to ensure the safety of valuable assets. So, what are the risks to small jewellery businesses that merit stringent protective measures?

Customer Satisfaction

Due to the personal nature of the jewellery trade, there is the risk of customer dissatisfaction. A jeweller needs to be highly skilled in designing jewellery like necklaces, earrings, rings, ornaments, and broaches by choosing the appropriate methods and materials for the task. Jewellers must know how to repair, restore, and transform various pieces that a customer entrusts to them. Not only this, but they must understand how to process their customer’s requests according to budget and style. If a customer isn’t satisfied, this runs the risk of derailing business processes, costing time, money and materials to rectify any shortcomings.

Physical Hazards 

The process of making jewellery requires the use of sharp tools such as needle files, shears, and machines for stretching, rolling, cutting, drilling, stamping and polishing. Using these tools in such close contact significantly increases the risk of injuries and cuts, highlighting the need for appropriate insurance.

Burglary Risks 

Due to the value of goods that are kept in jewellers, attempted robberies, assaults, and vandalism are sadly very common. Working with precious stones, valuable metals and people’s prized possessions can carry serious consequences if the items are damaged or misplaced.

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Professional Risks 

As a jeweller, your customers trust you to look after their orders. Your customers will expect you to get their order ready on time and finish it to the standard promised. If the product you make doesn’t live up to customer expectations, you run the risk of being professionally liable and facing financial consequences.

The Risk of Claims 

A natural disaster is an unavoidable risk to jewellers. If there is a fire, water damage or structural damage in your shop, it could destroy your equipment and stock. So, protecting your assets against unpredictable events is essential for peace of mind in the long term.

What Insurance Is Best for Jewellers? 

To mitigate as many of these risks as possible, taking out dedicated jewellers’ insurance policies will ensure the continuity of your small business. Some types of cover to consider:

  • Buildings and contents: Insure the structure housing your business and some of its contents to help rebuild and maintain trade if you suffer damage at your premises.
  • Stock insurance: Vital cover for replacing stock in the event of theft or damage, especially given the high value goods involved in the jewellery industry.
  • Public/employers’ liability insurance: This protects you if a member of the public or employee is injured or becomes ill and it is directly connected to your premises.
  • Product liability: If your business involves in-house designs, bespoke products or valuations, this type of insurance protects against liability in the event that these items cause injury.
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