Customer Watch Damaged During Repair 2026: Liability, Documentation, and Resolution Guide

Every watchmaker and dealer who handles repairs dreads the moment: a customer's prized piece shows new damage that wasn't there before. Maybe it's a scratch on the case, a dented crown, or worse.

This guide covers who's liable, how to document properly, and how to resolve disputes without losing customers or paying for damage you didn't cause. The difference between a smooth resolution and a legal battle often comes down to the paperwork you created before the watch ever reached your bench.

What this article covers:

• Understanding liability for customer property
• Intake documentation that protects both parties
• Repair authorisation best practices
• What to do when damage occurs
• Resolution approaches that preserve relationships
• Coverage considerations and gaps

Understanding Liability for Customer Property

When a customer hands you their watch for repair, you become a bailee. That's the legal term for someone holding another person's property temporarily. It comes with responsibilities.

The Basic Rule

As a bailee, you're expected to take "reasonable care" of the customer's property. If damage occurs due to your negligence or the negligence of your staff, you're liable.

Situation	Typical Liability
Watch dropped during handling	You
Scratch caused by repair tool	You
Crown damaged during battery replacement	You
Dial damaged during hand fitting	You
Moisture damage from improper reassembly	You
Pre-existing issue worsens	Potentially shared
Manufacturing defect revealed during repair	Manufacturer

The Critical Gap

Here's what many dealers don't realise: most stock protection doesn't cover damage that happens during the actual repair work.

Standard dealer coverage typically includes "property entrusted to him" (customer pieces in your care), but specifically excludes "damage whilst being actually worked upon and directly resulting therefrom."

This means:

• A customer's watch stolen from your safe = typically covered
• A customer's watch scratched while you're resizing the bracelet = typically NOT covered

This gap is why documentation and careful handling matter so much. The liability sits with you personally or your business.

Intake Documentation That Protects Everyone

Good documentation serves two purposes: it proves the watch's condition when received, and it manages customer expectations about repair risks.

The Intake Checklist

Every customer piece should receive a documented intake that includes:

Field	What to Record
Customer details	Name, contact, IC/NRIC
Watch details	Brand, model, reference, serial number
Condition notes	Every existing scratch, dent, mark
Photos	Multiple angles, macro of any damage
Accessories received	Box, papers, straps, tools
Repair requested	Specific work customer wants
Estimated timeline	When to expect completion
Customer signature	Acknowledging condition and terms

Photography Protocol

Photos are your best protection. A customer can't claim you scratched their case if you have timestamped photos showing that scratch at intake.

Photo requirements:

• Minimum 6 angles: front, back, both sides, crown side, clasp
• Macro shots of any existing imperfections
• Include something showing scale (ruler or coin)
• Timestamp metadata preserved
• Stored securely with customer record

Consider video walkaround for high-value pieces (above SGD 20,000 / RM 70,000). The few minutes invested can save hours of dispute.

Condition Grading

Use consistent terminology for condition notes:

Grade	Description
Mint	No visible wear, like new
Excellent	Minor hairlines visible under loupe only
Very Good	Light wear visible to naked eye
Good	Moderate wear, visible scratches
Fair	Heavy wear, significant marks
Poor	Major damage, functionality affected

Note specific locations: "3mm scratch at 7 o'clock position on bezel" is better than "scratched bezel."

Repair Authorisation Best Practices

The repair authorisation form is your contract with the customer. It should clearly state what work will be done and what risks exist.

Essential Elements

Your repair authorisation should include:

1. Scope of Work Specific description of what you'll do. "Service movement" is vague. "Service ETA 2824-2 movement: clean, lubricate, regulate, replace gaskets" is clear. 2. Known Risks Every repair carries some risk. Be upfront:

Repair Type	Typical Risks
Battery replacement	Caseback scratches, gasket compression
Bracelet sizing	Link scratches, pin damage
Movement service	Dial damage during hand removal
Crystal replacement	Bezel marks, potential dial dust
Water resistance testing	Potential water ingress if seals fail

3. Authorisation Limits If you discover additional work needed, how should you proceed? Get permission parameters in advance: "Customer authorises additional work up to SGD/RM [amount] without further approval. Above this amount, contact customer before proceeding." 4. Liability Acknowledgment Clear statement that customer understands repair involves handling risk, and that you maintain appropriate care but cannot guarantee zero risk of incidental marks. 5. Signatures and Date Both parties sign. Customer keeps a copy.

Sample Risk Disclosure Language

"Watch repair and servicing involves close handling of your timepiece. While we exercise professional care, repair work may result in minor incidental marks that are inherent to the process. Pre-existing wear may become more visible after cleaning. We maintain appropriate coverage for customer property in our care, but damage directly resulting from repair work may not be covered. Please discuss any concerns before authorising work."

What to Do When Damage Occurs

Despite all precautions, damage happens. How you handle it determines whether you keep the customer and your reputation.

Immediate Steps

Step	Action
1	Stop work immediately
2	Document the damage (photos, notes)
3	Document what you were doing when it occurred
4	Assess severity and repair options
5	Prepare to contact customer

Assess the Damage

Determine what can be fixed:

Damage Type	Typical Resolution
Light surface scratch	Polish out (if customer approves)
Deep scratch	Part replacement or professional refinish
Dent	Part replacement
Broken component	Replacement part
Dial damage	Dial replacement or restoration
Movement damage	Component or movement replacement

Get quotes for repair before speaking with the customer.

Customer Communication

Be honest and proactive. Never try to hide damage or hope the customer won't notice.

Call, don't text or email. This is a conversation that needs your voice.

Structure the conversation: 1. State what happened clearly 2. Accept responsibility if it was your fault 3. Explain the solution you're proposing 4. Offer options if available 5. Apologise sincerely

Example: "Mr. Chen, I'm calling about your Submariner. During the bracelet sizing, one of my tools slipped and created a small scratch on the clasp. I take full responsibility. I'd like to offer you a few options: we can polish it out at no charge, I can order a new clasp at my cost, or if you prefer, I can provide you with a credit toward future service. What would work best for you?"

Resolution Approaches

Different situations call for different solutions. Match your response to the severity and the customer relationship.

Minor Damage (Surface Level)

Option	When Appropriate
Polish and restore	Customer agrees, damage is cosmetic
Service credit	Customer prefers compensation for future
Price reduction	On current repair invoice

Moderate Damage (Part Replacement Needed)

Option	When Appropriate
Replace part at your cost	Standard approach
Upgrade option	Better part at your cost
Customer choice with you covering base	Options on case finishing, etc.

Severe Damage (Major Repair or Replacement)

For significant damage, involve your business insurance and potentially legal counsel. Document everything thoroughly.

Options may include:

• Full repair to original condition at your cost
• Replacement with equivalent piece
• Fair market value compensation

When Liability Is Disputed

Sometimes damage is ambiguous. Was that scratch pre-existing? Did you cause it or did it worsen naturally?

If the customer claims damage you don't believe you caused: 1. Review your intake documentation (this is why photos matter) 2. Compare before and after images 3. If your documentation supports your position, share it professionally 4. Offer to jointly inspect with a third party if disputed 5. Consider goodwill gesture even if not at fault, to preserve relationship

Never admit liability you don't believe you have. But also don't destroy a customer relationship over small amounts.

Coverage Considerations

Understanding what's covered and what isn't helps you plan for risk.

Typical Stock Protection Coverage

Most dealer stock protection covers customer property while in your custody. This includes:

• Theft of customer pieces from your premises
• Fire, flood, or other disasters affecting customer items
• Loss during approved transit

The Repair Work Exclusion

Standard exclusion language typically reads something like: "damage to property whilst being actually worked upon and directly resulting therefrom."

This means the act of repair itself isn't covered. The logic is that repair damage is within your control through skill and care, not a random event.

What This Means Practically

Scenario	Typically Covered?
Customer watch stolen from safe	Yes
Customer watch damaged in shop fire	Yes
Customer watch scratched during strap change	No
Customer watch movement damaged during service	No
Customer watch dropped while moving to workbench	Maybe (not "being worked upon")

Managing the Gap

Since repair damage isn't typically covered by stock protection, consider:

1. Professional indemnity insurance: Some policies cover repair-related liability 2. Craftsman's liability coverage: Specifically for service-related damage 3. Pricing for risk: Include a small margin in service pricing to cover occasional incidents 4. Skill investment: Better training reduces damage frequency

FAQ

What's the difference between bailee liability and negligence?

As a bailee, you have a duty of care for customer property. If damage occurs due to negligence (failure to exercise reasonable care), you're liable. If damage occurs despite reasonable care (true accident), liability may be limited. Good documentation proves you took reasonable precautions.

Can I limit my liability with a disclaimer?

You can include disclaimers in your repair terms, but they don't eliminate liability for negligence. Courts generally don't enforce disclaimers that attempt to exclude liability for negligent acts. Disclaimers can clarify known risks and set expectations, but they won't protect you from genuine negligence claims.

Should I get the customer to sign a damage waiver?

A general waiver has limited legal value. A specific acknowledgment of known repair risks is more useful. "Customer acknowledges that bracelet sizing involves tools near the case and minor marks may occur" is more defensible than "we accept no responsibility for any damage."

What if damage occurs after I've returned the watch?

Once the customer accepts return and signs off, liability typically transfers back to them. This is why inspection at collection is important. Note the condition at return, have customer confirm, and document the handover.

How long should I keep intake documentation?

Minimum 6 years for contractual liability in most jurisdictions. Many disputes arise months or years later when issues develop. Digital storage makes long-term retention easy.

What about warranty work for brands?

If you're an authorised service centre, the brand's policies typically govern. Damage during warranty work may be covered by the brand's arrangements. Confirm your obligations and coverage with each brand you service.

Can customers claim consequential losses?

In theory, customers might claim for losses beyond the repair cost (e.g., "I couldn't wear it to an important event"). In practice, such claims are difficult to prove and rarely succeed for standard repair damage. Your terms can explicitly exclude consequential losses.

What if my staff member caused the damage?

You're typically liable for employee actions during work duties (vicarious liability). This is why training matters. Document your training procedures as evidence of reasonable precautions.

MINT Conclusion

Repair work will always carry some risk. The difference between dealers who handle incidents smoothly and those who face disputes comes down to documentation and communication.

Photograph everything at intake, get clear authorisations, and when problems occur, address them honestly and fairly.

MINT provides specialised stock protection for watch dealers and jewellers in Singapore and Malaysia, covering customer property in your care against theft and disaster, though repair-related damage requires additional consideration.

Speak with MINT about dealer coverage