Jewellery Business Insurance in Malaysia: What You Actually Need (and What You're Probably Missing)

You have fire insurance. Maybe burglary too. Your landlord required it, so you got it. But when RM200,000 of gold jewellery disappears during a consignment arrangement gone wrong, you discover your policy doesn't cover it.

This guide explains every type of insurance a Malaysian jewellery business actually needs, where standard commercial policies fail jewellers, and what you're probably missing right now.

What this article covers:

• The complete insurance landscape for jewellers
• What standard fire and burglary policies don't cover
• Transit, liability, and employee risks
• Why Jeweller's Block exists and what it solves
• How to audit your current coverage for gaps

The Insurance Landscape for Malaysian Jewellers

Jewellery businesses face risks that standard retail shops don't. You're holding concentrated value in small, portable, easily stolen items. Your stock fluctuates daily. You hold other people's property. You move goods constantly.

Here's the full picture of what coverage exists:

Insurance Type	What It Covers	Typical Gaps for Jewellers
Fire Insurance	Fire, lightning, explosion	Excludes theft, transit, customer property
Burglary Insurance	Forced entry theft	May exclude mysterious disappearance, staff theft
Public Liability	Customer injuries in your shop	Doesn't cover stock or customer property
Money Insurance	Cash in transit or on premises	Doesn't cover stock, low limits
Fidelity Guarantee	Employee theft	Requires prosecution, may have low limits
Jeweller's Block	All-risk stock protection	Designed specifically for jewellers

Most jewellers have rows 1-2. Some have 3-4. Very few have proper coverage for what actually goes wrong.

What Standard Fire and Burglary Policies Don't Cover

Your landlord required fire insurance. Your bank required burglary coverage for the loan. But these policies were designed for general retail, not jewellery.

Fire Insurance Gaps

Standard fire policies cover damage from fire, lightning, and explosion. That's it.

Scenario	Standard Fire Policy
Shop burns down, stock destroyed	Covered
Electrical fire damages showcases	Covered
Thief breaks in, steals stock	NOT covered
Stock damaged by burst pipe	Usually NOT covered
Staff accidentally breaks display	NOT covered

Fire insurance protects the building and contents from fire. It's not stock protection.

Burglary Insurance Gaps

Burglary policies are better but still limited:

Scenario	Standard Burglary Policy
Break-in with forced entry, stock stolen	Usually covered
Armed robbery during business hours	Check policy, often excluded
Stock missing, no sign of break-in	NOT covered
Employee steals from safe	NOT covered
Goods stolen during transit	NOT covered
Customer's repair piece stolen	NOT covered

The key limitation: most burglary policies require evidence of forced entry. "Mysterious disappearance" where stock is simply gone at stocktaking, with no evidence of how, is typically excluded.

Transit Risk: The Gap Nobody Thinks About

You send a RM50,000 diamond ring to a customer via courier. The package is lost. You file a claim.

Your fire policy? Doesn't cover transit. Your burglary policy? Only covers premises. The courier's liability? Capped at RM100-500 typically.

The gap: RM49,500+ is your loss.

Transit Scenario	Typically Covered By
You hand-deliver to customer	Jeweller's Block (if you have it)
Courier loses package	Courier liability only (very low limits)
Pos Malaysia registered post	Postal liability only (very low limits)
Stock stolen from your car	Depends on policy, often excluded if unattended

Transit is one of the highest-risk moments for jewellery. Yet most jewellers have zero transit coverage beyond whatever the courier provides.

Customer Property: The Hidden Liability

A customer leaves a RM30,000 heirloom ring for resizing. Your shop is broken into. The ring is stolen.

Whose insurance covers this?

Policy Type	Covers Customer Property?
Your fire insurance	No
Your burglary insurance	Maybe, check wording carefully
Customer's home insurance	Maybe, if they declared it
Jeweller's Block	Yes, "property entrusted to you"

Many jewellers assume their burglary policy covers customer items. Some do, some don't. And even if it does, limits may be inadequate. The real risk: You're legally liable for customer property in your care. If it's lost or damaged and you can't pay, you face legal action and reputation damage.

Employee Theft: More Common Than Break-Ins

Industry data suggests internal theft causes more losses than external burglary in retail jewellery. Yet most jewellers have no coverage for it.

Coverage Type	Employee Theft Coverage
Standard burglary	No
Fidelity guarantee	Yes, but requires prosecution
Jeweller's Block	Often included, check terms

Fidelity guarantee policies exist specifically for employee theft, but they typically require you to prosecute the employee. Many business owners, especially with long-serving staff or family members, won't do this. No prosecution often means no payout.

Consignment Stock: Whose Insurance Applies?

You place RM100,000 of your stock in a boutique hotel's gift shop on consignment. The hotel has a fire. Your stock is destroyed.

Scenario	Who Pays?
Hotel's fire insurance	Usually covers hotel's property only
Your fire insurance	Usually covers stock on your premises only
Consignment agreement	Depends what it says

The gap: Consignment stock sitting in someone else's premises is often uninsured. Your policy covers your premises. Their policy covers their property. Your stock in their shop falls through the crack.

This is one of the most common blind spots for jewellers who use stockists, boutiques, or trunk shows.

Public Liability: Necessary But Not Sufficient

A customer trips on your display, breaks their arm, and sues. Public liability covers this.

But public liability doesn't cover:

• Damage to customer property in your care
• Damage you cause to customer's items during repair
• Stolen stock
• Business interruption

It's essential coverage, but it's not jewellery-specific coverage.

Why Jeweller's Block Exists

Jeweller's Block insurance was designed specifically because standard policies don't work for jewellers. It's an all-risk policy covering:

Coverage Area	What's Included
Your own stock	Finished pieces, loose stones, precious metals
Consignment stock you hold	Other people's goods in your possession
Customer property	Repair pieces, items left for appraisal
Premises risk	Theft, fire, damage at your shop
Transit risk	Moving goods between locations
Exhibition/show risk	Stock at trade fairs, trunk shows

"All-risk" means it covers everything except what's specifically excluded, rather than only covering named perils.

What Jeweller's Block Typically Excludes

Common Exclusions	Why
Wear and tear, gradual deterioration	Not sudden loss
Mysterious disappearance at stocktaking	No evidence of how loss occurred
Courier/postal losses	Third-party custody
Damage during actual repair work	Workmanship issue, not insurable event
War, terrorism, nuclear	Standard market exclusions

These exclusions are standard across the market. They exist because these risks are either uninsurable or need to be managed through business practices rather than insurance.

How to Audit Your Current Coverage

Take your existing policies and check each scenario:

Scenario	Your Current Coverage?
Fire destroys shop and all stock
Break-in, forced entry, stock stolen
Armed robbery during trading hours
Stock missing at stocktaking, no evidence of theft
Employee steals from safe
Customer's ring stolen during repair
Your goods stolen from consignment location
Courier loses RM50,000 shipment
Stock stolen from your car during delivery

If you have blanks or "not sure" answers, you have gaps.

What Coverage Costs

Insurance costs vary based on:

Factor	Impact on Premium
Total stock value	Higher value = higher premium
Location and security	Better security = lower premium
Claims history	Previous claims increase premium
Safe rating	Certified safe reduces premium
Alarm and CCTV	Monitored systems reduce premium
Business type	Retail, wholesale, manufacturing differ

Rough guidance: Jeweller's Block typically costs 0.3% to 1% of insured stock value annually. A jeweller with RM500,000 average stock might pay RM1,500 to RM5,000 per year, depending on security and risk profile.

This is a rough range only. Get actual quotes for your situation.

Getting the Right Coverage

Step 1: Know Your Exposure

Calculate:

• Maximum stock value at any time
• Typical consignment stock held
• Customer property typically in your possession
• Transit values (how much moves, how often)
• Exhibition/show values

Step 2: Review Current Policies

Check what you actually have, not what you think you have. Read the exclusions section.

Step 3: Identify Gaps

Use the audit table above. Be honest about what's covered and what isn't.

Step 4: Get Proper Quotes

When requesting Jeweller's Block quotes, provide:

• Detailed stock breakdown
• Security setup (safe, alarm, CCTV)
• Premises details
• Transit patterns
• Claims history

Step 5: Compare Total Protection

Don't just compare premiums. Compare what's actually covered, limits, excesses, and exclusions.

FAQ

Do I need Jeweller's Block if I already have fire and burglary insurance?

Probably yes. Fire and burglary cover specific perils on your premises only. They typically don't cover transit, consignment arrangements, customer property, or stock in other locations. If you only trade from a single shop and never move goods, you might be adequately covered. Most jewellers aren't in that situation.

How is stock value calculated for insurance purposes?

Usually at cost price or replacement cost, not retail price. Insurers want to know what it would cost to replace the stock, not what you'd sell it for. Some policies use "agreed value" where you declare a value upfront. Discuss valuation basis with your insurer.

What happens if I'm underinsured?

If you insure for RM300,000 but actually hold RM500,000 and have a total loss, you may only receive 60% of your claim (proportional reduction). Accurate valuation matters.

Can I get transit coverage without full Jeweller's Block?

Sometimes, as a standalone marine cargo policy. But it's often more cost-effective to have comprehensive Jeweller's Block that includes transit rather than piecing together multiple policies.

Does Jeweller's Block cover my staff's personal jewellery?

No. It covers business stock and customer property. Personal items aren't included.

What security do insurers require?

Varies by stock value, but typically: certified safe (EN 1143-1 rated), monitored alarm with dual signalling, CCTV covering entrances and displays, and documented closing procedures. Higher stock values need higher security standards.

Is online selling covered?

Selling online is fine, but transit risk matters. If you're shipping high-value items, you need transit coverage and should understand the courier's liability limits.

How quickly are claims paid?

Depends on the claim complexity. Straightforward claims with good documentation can settle in weeks. Complex or disputed claims take longer. The quality of your records significantly affects speed.

MINT Conclusion

Most Malaysian jewellers have some insurance, but few have coverage that matches their actual risks.

The gap between what standard policies cover and what can actually go wrong in a jewellery business is significant. Consignment, transit, customer property, and stock in other locations are the areas where jewellers are most often exposed.

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