What Insurance Do I Need to Sell Jewellery?

Selling jewellery can be a sparkling business, but it also comes with a range of risks. From customer injuries to accidental damage and product liabilities, having the right insurance is essential for peace of mind and long-term success. This guide breaks down the key coverages that jewellery designers and retailers should consider, with a focus on public and product liability insurance for jewellery designers.

Introduction: why insurance matters for jewellery sellers

Whether you’re a solo jewellery designer crafting pieces at home or you run a small boutique, insurance protects you, your customers, and your reputation. The jewellery trade involves delicate materials, high-value items, and frequent customer interactions. A well-chosen insurance package can help you manage risks like customer slips in your shop, accidental damage to pieces while being examined, or a customer claiming a fault in a piece after purchase. In this post, we’ll outline the main types of insurance to consider, with particular emphasis on public and product liability insurance for jewellery designers.

Public liability insurance: essential protection for customer interactions

Public liability insurance covers you if a member of the public suffers injury or property damage due to your business activities. For jewellery designers, common scenarios include:

• A customer cuts themselves on a sharp gemstone setting during viewing in a showroom.
• A passerby slips near your stall at a market or event, and your signage or display contributes to the incident.
• A piece being tried on causes an allergic reaction or skin irritation due to metal content.

Key considerations:

• Cover limit: Determine how much protection you need based on turnover, average order value, and potential exposure. Many small businesses start with £1 million or £2 million limits, but you can tailor this to your risk.
• Product and display risk: Some policies include coverage for damage to third-party property (like a customer’s eyeglasses damaged by a display).
• Customer claims handling: Check if the insurer provides support with claims, investigations, and defence costs. Public liability insurance is often the baseline protection for jewellers who meet customers face-to-face, whether in-person, at fairs, or in a studio.

Product liability insurance: protecting your creations and customers

Product liability insurance is specifically designed to cover defects or faults in goods that cause injury or property damage. For jewellery designers, this is particularly relevant because:

• Fine jewellery can involve small components, sharp settings, or prong work that could fail and cause harm.
• A customer might allege that a wearer's skin irritation or allergic reaction (from metals like nickel, cadmium, or certain alloys) was caused by your product.
• Repairs, resizing, or re-polishing services can introduce additional risks if a piece is damaged during service.

Key considerations:

• Coverage scope: Ensure the policy covers design, manufacturing, and any alterations or repairs you perform.
• Toxic or reactive materials: Some customers have sensitivities; verify that coverage includes claims arising from metal content or plating.
• Defence costs: Product liability can involve legal defence and settlement costs, which can be substantial even if you’re not at fault.

Employers’ liability and others to consider

If you hire staff or work with collaborators, employers’ liability insurance is a legal requirement in the UK for businesses with employees. Even if you’re a sole trader, you should be mindful of those you employ or engage, such as assistants, makers, or workshop co-founders.

Other policies to consider:

• Professional indemnity insurance: If you offer design advice, bespoke commissioning, or specifications, this covers claims alleging negligence in your professional services.
• Contents insurance: Protects your workshop, tools, gemstones, and finished pieces against theft, fire, or damage.
• Stock and inventory insurance: Specifically for high-value jewellery, this covers loss or damage to stock held for sale.
• Transit and shipping insurance: When you transport pieces to shows, galleries, or clients, this can cover loss or damage in transit.
• Cyber liability: If you run an online shop or collect customer data, cyber insurance can help with data breaches and related costs.

How to tailor insurance to your jewellery business

1. Assess your risk profile: Consider where you work (home studio, rented workshop, market stalls), who you interact with, and the value of your stock.
2. Calculate potential exposures: Use your annual turnover, average order value, and expected number of customer interactions to estimate needed coverage.
3. Choose a reputable broker: Work with an insurance broker who understands jewellery businesses, auditing their policies for exclusions and clear definitions of terms.
4. Review policy wordings: Pay attention to definitions of “bodily injury,” “property damage,” “products,” and “mutual indemnity” to avoid gaps.
5. Consider bundling: Some insurers offer package policies that combine public and product liability with other essential covers, potentially saving on premiums.

Your action plan: getting insured

• List all activities: Retail sales, bespoke commissions, repairs, workshops, and exhibitions.
• Identify potential risks: Customer handling, display, shipping, and online sales.
• Gather details: Your estimated annual turnover, average sale value, stock value, and locations where you operate.
• Speak to specialists: Contact insurers or brokers who specialise in jewellery or artisan businesses.
• Obtain quotes and compare: Look at price, coverage limits, exclusions, and claims support.

Final thoughts: a confident step toward a safer business

Insurance is not just a compliance checkbox; it’s a strategic tool for confidence in your jewellery business. Public and product liability insurance for jewellery designers are foundational coverages that address the most common and potentially costly risks: accidents involving customers, damages to property, or defects in your creations. By understanding these policies and tailoring them to your operations, you’ll protect your craft, your customers, and your future profits. Invest time in getting the right cover, and you’ll be free to focus on designing, creating, and growing your brand.

Gold Plus memberships of The Guild of Jewellery Designers and The British Pearl Association provide immediate PPL cover up to GB£10M