What you don’t know — or think you know — about insurance for shipping jewelry could put you at risk if a package is damaged, lost, or stolen.
Many jewelers who have policies with Jewelers Mutual are confused about things like:
Carriers and options covered by their jewelers block policy
When they should obtain coverage through a carrier
Why it sometimes makes sense to mix their block policy with third-party coverage
Even if you feel confident about the way you ship (maybe because you started using JM™ Shipping Solution), it's worth reviewing your habits to see if they've become myths instead of best practices.
Disclaimer: Any coverage descriptions are a brief summary of coverage and are not part of any of the described insurance policies, nor a substitute for the actual policy language. Actual policy or endorsement language may change after publication of this post and should be referenced to determine coverage applicability and availability.
Myth #1
It's best to always select USPS Priority Mail Express, because it's covered by a JM jewelers block policy.
While it's true that next-day delivery with Priority Mail Express is covered with a JM jewelers block policy, that does not mean the option itself is less expensive. In the end, transit costs typically amount to $6-10 more than even two-day delivery — and carrier or third-party coverage can be included at a low cost.
This is why you should plan ahead and shop around. Even after considering what you may save on insurance, you'll be surprised how low your overall costs become when you compare carriers and their service options.
Myth #2
It's not necessary to purchase coverage when shipping with different carriers, because they're all covered by a regular JM jewelers block policy.
Here's a quick run-down of the most common options and if they are automatically covered:
UPS = NOT COVERED WITHOUT ENDORSEMENT
FedEx = NOT COVERED WITHOUT ENDORSEMENT
DHL = NOT COVERED WITHOUT ENDORSEMENT
USPS Priority Mail Express = COVERED
USPS Registered Mail™ = COVERED
Whether or not you have a policy with Jewelers Mutual, it's important to confirm your specific policy language and limits with your trusted agent or broker.
Some jewelers ship with UPS or FedEx and never buy coverage because they believe they're covered under their block policy. Unless an endorsement is added that goes beyond the USPS options, shipments with other carriers are not covered!
Myth #3
It's more expensive to add insurance through the carrier or third-party than to a JM jewelers block policy.
This myth isn't completely true or false — sometimes it's more expensive and other times it's less.
There are multiple variables that are unique to every policy and shipment, and they all impact the cost of insurance. This is another reason why it's important to review your policy and compare options.
For valuable packages where coverage isn't automatically included on your block policy, it's wise to place the risk with logistics providers simply because losing experience without a loss on a block policy can be detrimental in the long-run.
In other cases, it may just be easier to purchase the coverage with the carrier or third-party than to be approved for a temporary endorsement.
Take the guessing game out of insurance for shipping jewelry
Ship smarter by using JM® Shipping Solution to shop for coverage options and sync JM jewelers block policies to insure your packages.
There are many other features and benefits, and you can take advantage of the platform even if you're not a JM policyholder.
