Jeweller's Block vs Standard Business Insurance: Side-by-Side Comparison

Many watch and jewellery dealers start with standard business insurance and assume they're covered. They're not. Standard fire and burglery policies were built for general retail, not for businesses where a single tray of stock can exceed the policy's total jewellery sublimit.

This comparison walks through every major coverage category so you can see exactly where standard policies fail and what jeweller's block provides instead.

This guide covers:

• Head-to-head coverage comparison across 12 risk categories
• Where standard fire insurance falls short
• Where burglary insurance leaves gaps
• What combined commercial policies still miss
• Scenarios that only jeweller's block handles
• How to decide which coverage level you need

The Core Difference in One Table

Standard business insurance works on a named-perils basis. You're only covered for risks specifically listed in the policy (fire, lightning, burglary with forced entry, etc.). Jeweller's block works on an all-risk basis. Everything is covered unless it's specifically excluded. That's a fundamentally different starting point.

Feature	Standard Business Insurance	Jeweller's Block Insurance
Coverage basis	Named perils only	All risks (unless specifically excluded)
Designed for	General retail and commercial businesses	Jewellery, watch, and precious goods trade specifically
Stock valuation	Generic; may cap jewellery items at sublimits	Covers full declared stock value at cost price
Customer property	Not covered or heavily sublimited	Covered as standard (repairs, servicing, consignment)
Transit coverage	Separate marine/transit policy needed	Built in for hand-carry and approved transit methods
Mysterious disappearance	Never covered	Available (check your specific policy wording)

The named-perils vs all-risk distinction is the single most important difference. With a standard policy, you have to prove your loss was caused by a listed peril. With jeweller's block, the insurer has to prove an exclusion applies to deny a claim. That shifts the burden of proof entirely.

Coverage-by-Coverage Comparison: 12 Risk Categories

This is the table most dealers need. It compares four common policy types across the twelve risks that matter most to watch and jewellery businesses.

Risk Category	Fire Insurance	Burglary Insurance	Combined Commercial	Jeweller's Block
Fire damage to stock	Covered	Not covered	Covered	Covered
Theft with forced entry	Not covered	Covered	Covered	Covered
Robbery during business hours	Not covered	Usually excluded	Varies by policy	Covered
Smash-and-grab (window display)	Not covered	May be covered with add-on	May be covered with add-on	Covered
Mysterious disappearance	Not covered	Not covered	Not covered	Available (policy-dependent)
Employee theft / dishonesty	Not covered	Not covered	Separate fidelity guarantee needed	Covered or available as extension
Customer property in your care	Not covered	Not covered	Not covered	Covered
Consignment stock	Not covered	Not covered	Not covered	Covered
Transit (hand-carry between locations)	Not covered	Not covered	Separate transit policy needed	Covered
Exhibition and trade show	Not covered	Not covered	Not covered	Covered (with conditions)
Accidental damage to stock	Not covered	Not covered	Rarely included	Covered (as all-risk)
Flood or water damage to stock	Add-on in some policies	Not covered	Add-on in some policies	Covered (as all-risk)

Count the red cells in the standard policy columns. That's your exposure. For a deeper look at what even jeweller's block doesn't cover, see our stock protection gaps guide.

Where Fire Insurance Fails Jewellers

Fire insurance is designed to protect buildings and contents against fire, lightning, and explosion. It was never built for high-value portable stock that faces theft, transit, and handling risks. For a jewellery business, fire insurance covers only one of your many risk categories.

Scenario	Fire Insurance Response	Jeweller's Block Response
Fire destroys your display cases and stock	Covered (building and contents up to policy limit)	Covered (stock at full declared value)
Armed robbery during business hours; RM 200,000 in watches taken	Not covered. Fire policy doesn't cover theft.	Covered
Customer's Rolex stolen from your repair workshop	Not covered. Customer property excluded.	Covered under customer property / bailee clause
Water pipe bursts above your display cases overnight	Not covered (unless specific add-on purchased)	Covered (all-risk basis)

The catch with fire insurance is that dealers often assume "contents cover" means their stock is fully protected. It doesn't. Fire insurance covers contents against fire, not against the full range of risks a jewellery business faces. And if you hold customer property, it's not your "contents" at all, so it's excluded entirely.

Where Burglary Insurance Falls Short

Burglary insurance is closer to what jewellers need, but it still has critical limitations. The biggest: most burglary policies require evidence of forced entry. If someone walks into your shop during business hours and robs you, that's not burglary in the insurance definition. It's robbery, and your burglary policy likely doesn't cover it.

Scenario	Burglary Insurance Response	Jeweller's Block Response
Break-in overnight; safe cracked, stock taken	Covered (forced entry + evidence of break-in)	Covered
Smash-and-grab on your window display during daytime	May not qualify as "burglary" (no premises entry)	Covered
Employee steals inventory over several months	Not covered (internal theft excluded)	Covered or available as extension
Stock disappears with no sign of forced entry	Not covered (no evidence of named peril)	Covered under mysterious disappearance (policy-dependent)
Consignment watches stolen from your premises	Not covered (third-party property excluded)	Covered

For more on smash-and-grab prevention strategies, see our smash-and-grab prevention guide. And for a deeper understanding of employee theft risks, our employee theft prevention guide covers detection, prevention, and insurance response.

Why Combined Commercial Policies Still Leave Gaps

Some dealers buy a combined commercial policy (sometimes called a "shop package" or "business insurance package") that bundles fire, burglary, public liability, and money insurance together. This is better than individual policies, but it still wasn't designed for the jewellery trade.

Gap	Why It Exists	Consequence for Dealer
Jewellery sublimits	Commercial policies often cap jewellery, watches, and precious metals at SGD 5,000 - 10,000 per item or per event	A single Rolex Daytona or Patek Philippe exceeds the sublimit
Customer property exclusion	Standard policies cover your property, not other people's property in your care	You're personally liable for every customer watch left for repair or servicing
Consignment exclusion	Consignment stock isn't your property, so it falls outside your contents cover	Consignors expect you to insure their goods; your policy doesn't
No transit cover	Premises-based policies don't follow goods off-site	Stock moved between branches, to customers, or to shows is uninsured
Mysterious disappearance exclusion	Standard policies require a named peril to trigger a claim	Inventory shrinkage with no identifiable cause is your problem
Workmanship damage exclusion	Damage caused by your own work on items isn't a standard peril	Scratching a customer's watch during servicing comes out of your pocket

The sublimit issue alone makes combined commercial policies unworkable for serious dealers. If your policy caps jewellery at SGD 10,000 per event and you lose SGD 200,000 in a robbery, you'll receive SGD 10,000. The rest is your loss.

Real-World Scenarios: What Pays and What Doesn't

These scenarios illustrate the practical difference. Each one represents a situation that has happened to dealers in Singapore or Malaysia.

Scenario	Standard Insurance Pays?	Jeweller's Block Pays?
You hand-carry SGD 50,000 in watches to a client's office for viewing. Your bag is snatched on the way.	No. Goods were off-premises.	Yes. Transit coverage applies.
A consignment partner sends you RM 100,000 in gold chains. They're stolen in a break-in.	No. Not your property; not covered under your contents.	Yes. Consignment stock is covered.
Your stocktake shows 3 watches missing. CCTV shows nothing. No sign of break-in.	No. No named peril triggered.	Yes, if mysterious disappearance is included in your JB policy.
Staff member pockets a diamond ring over three months without anyone noticing.	No (unless separate fidelity guarantee purchased, and prosecution may be required).	Yes, under employee dishonesty / fidelity cover.
A customer's Patek Philippe is damaged while your watchmaker is servicing it.	No. Customer property and workmanship both excluded.	Yes. Covers customer property and may cover workmanship damage.
You attend a jewellery exhibition in Singapore. A piece is stolen from your booth.	No. Off-premises, not a named peril at that location.	Yes, with prior notification and conditions met.
A burst pipe floods your ground-floor shop overnight, damaging stock.	Only if flood/water damage add-on was purchased.	Yes (all-risk basis covers water damage).

For more on how to handle a robbery if it happens, see our guides for Singapore police reporting and Malaysia PDRM reporting.

Cost Comparison: Is Jeweller's Block More Expensive?

Yes, jeweller's block costs more than a basic fire or burglary policy. But the comparison isn't straightforward. To get equivalent coverage from standard policies, you'd need to stack multiple products, and you'd still have gaps.

Approach	Policies Required	Coverage Gaps Remaining
Fire only	1 policy	Theft, robbery, customer property, consignment, transit, mysterious disappearance
Fire + Burglary	2 policies	Robbery during hours, customer property, consignment, transit, mysterious disappearance
Fire + Burglary + Transit + Fidelity	4 policies	Customer property, consignment, mysterious disappearance, exhibition, sublimits on jewellery
Jeweller's Block	1 policy	Minimal (wear and tear, postal losses, war perils)

Managing four separate policies also means four renewal dates, four claims processes, and potential disputes about which policy covers a loss that falls between them. A single jeweller's block policy simplifies administration and eliminates coverage overlap arguments. For a full breakdown of pricing factors, see our jeweller's block cost and pricing guide.

Which Dealers Need Jeweller's Block vs Standard Insurance?

Not every business dealing in watches or jewellery needs jeweller's block. But most do. Here's how to assess your situation.

Business Profile	Recommended Coverage	Why
Watch dealer (retail or wholesale) with stock above SGD 100,000 / RM 200,000	Jeweller's Block	High per-item values; sublimits in standard policies are too low
Jewellery retailer with customer repair services	Jeweller's Block	Customer property exposure; standard policies don't cover it
Dealer with consignment arrangements	Jeweller's Block	Consignment stock needs coverage; standard policies exclude third-party goods
Dealer who transits stock regularly (showings, branches, exhibitions)	Jeweller's Block	Transit coverage is built in; standard policies are premises-only
Pawnbroker	Jeweller's Block	Holds customer pledged goods; bailee liability is central to operations
Fashion jewellery retailer (low per-item value, no repair services)	Standard commercial may suffice	Low per-item values stay within sublimits; limited customer property risk
Online-only dealer with no physical showroom	Jeweller's Block (for transit and storage)	High shipping frequency creates constant transit exposure

What Jeweller's Block Still Doesn't Cover

Jeweller's block is comprehensive, but it's not unlimited. Every JB policy has exclusions you need to understand.

Exclusion	What It Means
Wear and tear / gradual deterioration	Natural aging of stock isn't insurable
Courier and postal losses	Goods sent via third-party courier are excluded once they leave your custody
Unattended vehicle	Stock left in a parked car without a person present isn't covered
War, terrorism, nuclear events	Standard exclusions across all commercial insurance
Counterfeit goods knowingly held	Illegal stock isn't insurable
Payment fraud (bounced cheques, fake transfers)	Commercial risk, not insurable peril
Non-compliance with security conditions	If you didn't set the alarm or lock the safe, the claim may be denied

For the full list of what JB policies exclude and how to manage those gaps, see our stock protection gaps guide.

FAQ

Is standard business insurance enough for a jewellery shop?

No, for most jewellery and watch dealers. Standard business insurance (fire, burglary, or combined packages) doesn't cover customer property, consignment stock, transit, mysterious disappearance, or employee theft. It also applies sublimits on jewellery that are far too low for real stock values. These gaps leave you exposed to the very risks your business faces daily.

What is the main difference between jeweller's block and standard insurance?

Jeweller's block is an all-risk policy; standard insurance is named-perils. With JB, everything is covered unless specifically excluded. With standard policies, only the perils listed in the policy are covered. This fundamental difference means JB protects against a much wider range of scenarios without needing to identify the exact cause of loss.

Does jeweller's block replace all my other insurance?

It replaces fire, burglary, transit, and fidelity guarantee for your stock. But you'll still need separate policies for public liability (customer injuries in your shop), building or tenancy insurance, workers' compensation, and potentially professional indemnity if you provide valuation services. JB covers stock-related risks, not all business risks.

Why doesn't my burglary insurance cover robbery during business hours?

Burglary and robbery are legally distinct events. Burglary requires unlawful entry (forced or otherwise) to premises. Robbery involves taking property from a person through force or threat. Most burglary policies only cover the former. Jeweller's block covers both because it's all-risk rather than tied to specific crime definitions.

Can I add jewellery coverage to my existing commercial policy instead?

Some insurers offer endorsements or riders to increase jewellery sublimits on commercial policies. But even with higher sublimits, you still won't get customer property coverage, consignment protection, transit cover, or mysterious disappearance. The endorsement approach patches one gap while leaving others open.

Is jeweller's block more expensive than standard business insurance?

Yes, the premium is higher. But you're comparing one comprehensive policy against a stack of individual policies (fire + burglary + transit + fidelity), and even stacked policies still leave coverage gaps. When you factor in the administrative simplicity and the breadth of protection, JB often represents better value for businesses with significant stock values.

Does jeweller's block cover my home if I work from home?

Jeweller's block can cover stock stored at your declared home address if it's listed as a covered location on the policy. You'll need to meet the security requirements for that location just as you would for a retail premises. Your regular home insurance won't cover business stock at all.

What happens if I have both standard insurance and jeweller's block?

If both policies cover the same loss, the "contribution" or "non-contribution" clauses in each policy determine which pays. This can create delays and disputes. Most dealers cancel their standalone fire and burglary policies once JB is in place, since JB covers everything those policies did and more. Consult your broker to avoid paying for overlapping coverage.

MINT Conclusion

Standard business insurance was built for general retail. Jeweller's block was built for you. The coverage-by-coverage comparison makes the gaps clear: customer property, consignment stock, transit, robbery during hours, mysterious disappearance, and proper stock valuation are all blind spots in standard policies that JB addresses directly.

If you hold significant stock value, accept customer property for repair, deal in consignment, or move goods between locations, standard insurance isn't just insufficient. It's a liability you're carrying unknowingly.

Talk to our specialists to find the right coverage for your business