Probably the last thing you want to think about in the run-up to the festive season is your insurance cover. Your profits for the year depend substantially on getting it right in the peak sales periods, having the right stock, getting in new products to meet unexpected demand and providing your customers with what they want.
But the fact is that most retail and wholesale jewellers’ stock levels rise significantly at this time of year to meet the increased demand. And as a result, extra insurance is often required. Or, put another way, many jewellers can risk finding themselves under-insured for several critical weeks.
A flexible and responsive insurance policy can meet these ‘peak and trough’ demands. Flexibility is the name of the game. Your fluctuating risks must be catered for at the outset by a policy that complements the seasonality of your business. Ad hoc additional coverage can also be built in for known events such as exhibiting at a big retail fair. In some cases when stock limits increase or you have goods in transit, there will be a need for risk management advice to consider extra protection, such as CCTV, alarms and safes. Training for employees on best practice during these busy periods can also pay big dividends.
Jewellery isn’t just for Christmas, of course. All public holidays can create peaks and over the course of the year you are also likely to take advantage of many other opportunities to showcase your products, such as perhaps the Oscars or a fashion show or a royal event.
That’s why I, as a broker, always put the biggest emphasis on getting to know all the objectives and activities of our clients. Once we have discussed the fluctuating risks that require specific protection it’s much easier – and usually cheaper – to design flexible protection that responds to all your specific needs including tailor-made coverage for specific exposures. If your broker knows your business, you will be able to sleep at night when your stock levels reach their peak.
For further information, please contact Paul Carr, Partner, Fine Art, Jewellery and Specie on +44 (0)20 7466 6284