What Jeweller's Block Insurance Covers: The Complete Guide for Malaysian Jewellers

You've heard the term "Jeweller's Block" but aren't sure what it actually covers. Your broker mentioned it. Other jewellers have it. But nobody's explained what makes it different from the fire and burglary policies you already have.

This guide breaks down exactly what Jeweller's Block insurance covers, what it excludes, and how to know if your jewellery business needs it.

This article covers:

• What Jeweller's Block actually is
• The coverage categories explained
• What's typically excluded
• How it differs from standard policies
• Who needs it and who doesn't
• How to evaluate your coverage needs

What Jeweller's Block Insurance Actually Is

Jeweller's Block is an "all-risk" insurance policy designed specifically for businesses that deal in jewellery, watches, precious metals, and gemstones. The name comes from the historical practice of insuring an entire "block" of a jeweller's stock under one policy.

Feature	Standard Policies	Jeweller's Block
Coverage approach	Named perils only	All-risk (everything except exclusions)
Designed for	General retail	Jewellery trade specifically
Customer property	Usually not covered	Included
Consignment stock	Usually not covered	Included
Transit	Usually not covered	Usually included
Multiple locations	Requires endorsements	Often included

"All-risk" means the policy covers any loss or damage unless it's specifically excluded. This is the opposite of standard policies that only cover named perils like fire or forced-entry theft.

What Jeweller's Block Covers

Your Own Stock

The core coverage is your business inventory.

Stock Type	Typically Covered
Finished jewellery pieces	Yes
Loose diamonds and gemstones	Yes
Gold, silver, platinum (raw and worked)	Yes
Watches	Yes
Findings, settings, components	Yes
Work in progress	Yes

Coverage applies whether the stock is on display, in your safe, or in storage at your premises.

Customer Property in Your Care

When customers leave items with you, you're legally responsible for them. Jeweller's Block covers this exposure.

Customer Property Scenario	Covered
Ring left for resizing	Yes
Necklace left for repair	Yes
Piece left for valuation	Yes
Watch left for service	Yes
Heirloom left for redesign	Yes

This coverage protects you from liability when customer items are lost, stolen, or damaged while in your possession. Without it, you'd have to pay out of pocket or face legal action.

Consignment Stock

Whether you're receiving consignment stock from suppliers or placing your stock with other retailers, Jeweller's Block typically covers both directions.

Consignment Direction	What's Covered
Stock you hold for others	Protected while in your possession
Your stock at other locations	Protected at consignment locations

For more on consignment risks, see our guide on consignment risk for jewellers.

Premises Perils

Jeweller's Block covers the standard premises risks, but under an all-risk basis rather than named perils.

Premises Risk	Covered
Fire and smoke damage	Yes
Burglary with forced entry	Yes
Armed robbery	Usually yes
Water damage from burst pipes	Usually yes
Electrical damage	Usually yes
Accidental damage	Often yes

The key difference from standard burglary policies: Jeweller's Block often covers robbery during business hours, which many standard policies exclude or limit.

Transit Coverage

Moving jewellery creates risk. Jeweller's Block typically includes transit coverage for goods being moved.

Transit Type	Typically Covered
You hand-carrying goods	Yes
Your employee carrying	Yes
Armoured carrier	Yes
Between your locations	Yes

Important limitation: Courier and postal shipments are often excluded or limited. For more on this, see our transit risk guide.

Exhibition and Trade Show Coverage

Taking stock to exhibitions, trade fairs, or trunk shows is common in the jewellery trade. Jeweller's Block typically covers this with conditions.

Exhibition Coverage	Requirements
Stock at trade shows	Covered with security conditions
Trunk shows at hotels	Covered with security conditions
Display at other venues	Covered with security conditions

Security conditions typically include minimum staffing, locked displays, and overnight safe storage. Check your policy for specific requirements.

What Jeweller's Block Excludes

No insurance covers everything. Understanding exclusions is as important as understanding coverage.

Standard Market Exclusions

These exclusions are universal across Jeweller's Block policies.

Exclusion	Reason
War and terrorism	Uninsurable at commercial rates
Nuclear events	Uninsurable
Government seizure	Political risk, not commercial
Wear and tear	Not sudden loss
Gradual deterioration	Not sudden loss
Inherent defect	Manufacturing issue

Jewellery-Specific Exclusions

These exclusions relate specifically to how jewellery businesses operate.

Exclusion	What It Means
Mysterious disappearance	Stock missing at stocktaking with no evidence of how
Shortage discovered only at stocktake	Must have evidence of actual loss event
Postal/courier losses	Third-party custody, often excluded
Damage during actual repair work	Workmanship error, not insurable event
Unattended vehicle	Goods left in parked car

The mysterious disappearance exclusion is the most significant. If stock is simply gone and you can't demonstrate how it disappeared (theft, fire, damage), the loss may not be covered. This is why inventory controls and documentation matter.

Conditional Exclusions

Some coverage applies only if you meet certain conditions.

Condition	If Not Met
Safe requirements	Overnight losses may be excluded
Alarm requirements	Burglary may be excluded
Security standards	Claims may be denied
Notification requirements	Late-reported losses may be excluded

Your policy will specify security requirements. Meet them or risk having claims denied.

How Jeweller's Block Differs from Standard Policies

Fire Insurance

Aspect	Fire Policy	Jeweller's Block
Fire damage	Covered	Covered
Theft	Not covered	Covered
Customer property	Not covered	Covered
Consignment stock	Not covered	Covered
Transit	Not covered	Usually covered

Fire insurance protects against fire. That's it. Jeweller's Block protects against almost everything.

Burglary Insurance

Aspect	Burglary Policy	Jeweller's Block
Forced entry theft	Covered	Covered
Armed robbery	Often excluded	Usually covered
Employee theft	Not covered	Often covered
Customer property	Usually not covered	Covered
Consignment stock	Usually not covered	Covered
Transit	Not covered	Usually covered

Standard burglary policies have narrow coverage. They require evidence of forced entry and typically exclude robbery during business hours.

Combined Fire and Burglary

Even if you have both fire and burglary policies, you still have gaps.

Gap	Combined F&B	Jeweller's Block
Customer property	Gap	Covered
Consignment stock	Gap	Covered
Transit	Gap	Usually covered
Multiple locations	Gap	Often covered
Accidental damage	Gap	Often covered

The gaps in combined fire and burglary policies are exactly what Jeweller's Block was designed to fill.

Security Requirements

Jeweller's Block coverage comes with security obligations. These vary by insurer and by the value of stock you hold.

Safe Requirements

Stock Value Range	Typical Safe Requirement
Up to RM100,000	Approved safe, minimum weight
RM100,000-500,000	EN 1143-1 Grade I or higher
RM500,000-1,000,000	EN 1143-1 Grade III or higher
Above RM1,000,000	Custom requirements, vault may be required

Safe grades refer to European standards (EN 1143-1) that rate safes by their resistance to attack. Your insurer will specify the minimum grade required.

Alarm Requirements

Alarm Type	What It Means
Local alarm	Sounds on premises only
Monitored alarm	Signals sent to security company
Dual signalling	Two communication paths (phone + cellular)
Police-linked	Direct connection to PDRM

Higher stock values typically require monitored alarms with dual signalling. Local-only alarms may be insufficient for adequate coverage.

CCTV Requirements

CCTV Standard	What's Required
Coverage areas	Entrances, display areas, safe area
Recording	Continuous during business hours
Retention	Minimum 30 days typically
Quality	Clear enough for identification

CCTV is both a deterrent and evidence. Good footage can make or break a claim.

Overnight Procedures

Procedure	Purpose
Clear all displays	Nothing left in windows or open displays
Safe all stock	Everything in approved safe
Set alarm	Before last person leaves
Lock procedures	Multiple locks, documented closing

Insurers may require documented closing procedures. If a loss occurs and you didn't follow procedures, your claim may be affected.

Who Needs Jeweller's Block

You Probably Need It If

Business Type	Why
Retail jeweller with significant stock	Concentrated value needs proper protection
Jeweller holding customer property	Legal liability for items in your care
Jeweller doing consignment	Stock at multiple locations, both directions
Manufacturing jeweller	Work in progress, customer materials
Mobile jeweller	Transit exposure is constant

You Might Not Need It If

Business Type	Why
Very small operation, minimal stock	Standard policies might suffice
Never hold customer property	One less coverage need
Never do consignment	One less coverage need
Home-based with minimal inventory	May be covered under home policy with endorsement

Even small operators should carefully evaluate their exposure. The cost of Jeweller's Block is often surprisingly affordable relative to the value protected.

How to Evaluate Your Coverage Needs

Step 1: Calculate Total Exposure

Exposure Category	Your Value
Maximum own stock at any time	RM_______
Average customer property held	RM_______
Consignment stock you hold	RM_______
Your stock at consignment locations	RM_______
Maximum transit value at any time	RM_______
Exhibition/show stock value	RM_______
Total Maximum Exposure	RM_______

Your coverage limit should meet or exceed your total maximum exposure.

Step 2: Assess Current Coverage

Question	Yes/No
Does your current policy cover all locations?
Does it cover customer property?
Does it cover consignment stock?
Does it cover transit?
Does it cover robbery during business hours?
Are limits adequate for total exposure?

Any "No" answer is a potential gap.

Step 3: Identify Security Status

Security Element	Current Status
Safe grade
Alarm type
Alarm monitoring
CCTV coverage
Documented procedures

Your security status affects both eligibility and premium. Better security typically means lower premiums.

Cost Factors

Jeweller's Block premiums are calculated based on multiple factors.

Factor	Impact on Premium
Total insured value	Higher value = higher premium
Security standards	Better security = lower premium
Location	High-crime area = higher premium
Claims history	Previous claims = higher premium
Business type	Retail vs wholesale affects risk profile
Safe grade	Higher grade = lower premium
Alarm monitoring	Monitored = lower premium

Rough guidance: Jeweller's Block typically costs 0.3% to 1% of insured value annually. A jeweller with RM500,000 stock might pay RM1,500 to RM5,000 per year. This varies significantly based on your specific situation.

The Claims Process

Understanding how claims work helps you prepare.

What Happens When You Claim

Step	What's Required
Immediate notification	Contact insurer within 24-48 hours
Police report	Required for theft, robbery, burglary
Documentation	Inventory records, photos, valuations
Claim form	Detailed statement of loss
Investigation	Insurer may send loss adjuster
Settlement	Payment based on policy terms

What Helps Your Claim

Good Practice	Why It Matters
Detailed inventory records	Proves what was lost
Photos of stock	Visual evidence
Regular valuations	Supports value claimed
CCTV footage	Evidence of incident
Compliance with security requirements	Removes grounds for denial

What Hurts Your Claim

Problem	Impact
Poor documentation	Can't prove what was lost
Security non-compliance	Grounds for denial
Late notification	May void claim
Inconsistent statements	Raises red flags
Previous unreported losses	Credibility issues

FAQ

What's the difference between Jeweller's Block and Jewellers Floater?

These terms are sometimes used interchangeably, but traditionally, Jeweller's Block is a more comprehensive all-risk policy while a floater covers goods in transit. In the Malaysian market, most comprehensive policies are called Jeweller's Block. Ask your broker what's actually covered rather than relying on the policy name.

Does Jeweller's Block cover my stock if my shop floods?

Usually yes. Flood damage is typically covered under all-risk policies unless specifically excluded. Check your policy for flood exclusions, especially if you're in a flood-prone area. Some policies may require a separate flood endorsement.

Can I get Jeweller's Block for a home-based business?

Possibly, but it depends on the insurer. Some offer policies for home-based operations, others require commercial premises. Your home insurance definitely won't cover business stock adequately. Discuss your specific situation with a broker.

What happens if my employee steals stock?

Many Jeweller's Block policies include employee theft coverage, but it may require you to prosecute the employee. Some policies have sub-limits for employee theft. Check your specific policy wording and discuss with your broker.

Does Jeweller's Block cover online sales and deliveries?

The policy covers your stock. Selling online is fine. The issue is transit: courier and postal shipments are often excluded or limited. You may need additional marine cargo coverage for regular shipping activity.

If I'm underinsured, will the insurer still pay partial claims?

Possibly, but likely reduced. Most policies have an "average clause" where if you're insured for 50% of actual value, you receive 50% of any claim. Accurate valuation is essential. Underinsurance can devastate you when you need the coverage most.

How long does a Jeweller's Block claim take to settle?

Simple, well-documented claims can settle in weeks. Complex or disputed claims take months. The quality of your documentation significantly affects speed. Good records, photos, and immediate reporting all help.

Do I need separate insurance for trade shows, or is it included?

Most Jeweller's Block policies include exhibition coverage but with conditions. You typically need to notify the insurer, follow specific security requirements, and may face sub-limits. Large exhibitions may require additional coverage or endorsement.

What security upgrades give the best premium discounts?

Upgrading to a monitored alarm with dual signalling and installing a higher-grade safe typically give the best returns. CCTV helps but usually has less premium impact than alarm monitoring. Discuss with your insurer which upgrades would most reduce your premium.

Can I cover multiple locations under one policy?

Yes. Jeweller's Block policies can cover multiple premises, but each location needs to meet security requirements. You'll need to declare all locations and their stock values. The policy will specify which locations are covered.

MINT Conclusion

Jeweller's Block insurance exists because standard commercial policies don't work for jewellery businesses. The combination of concentrated value, customer property liability, consignment exposure, and transit risk creates gaps that only a specialised policy can fill.

Understanding what's covered and what's excluded is the first step. The second step is ensuring your security standards and documentation practices support your coverage.

MINT provides Jeweller's Block coverage designed for Malaysian jewellers, with terms that reflect how fine jewellery is actually stored, displayed, and moved.

Speak with MINT about coverage