Gem Sales Business Insurance

Getting insurance for your gem sales business is essential.

Gem sales businesses need to be protected against things like fraudulent misrepresentation, negligence, and breaches of contract. 

For example, an employee grossly misrepresents the quality of a piece of jewelry, or a client claims that you did not pay them adequately for their sale to your business.

We’ll help you find the most personalized and affordable coverage for your unique business. 

Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for a Gem Sales Business

General liability insurance is — generally speaking — one of the most important insurance policies for gem sales businesses. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Alongside general liability, it’s worth looking into several other insurance policies to ensure your gem sales business is comprehensively protected. Some policies to consider include:

  • Workers’ compensation insurance
  • Commercial auto insurance
  • Home-based business insurance
  • Commercial umbrella insurance

Be aware that the insurance providers you can buy coverage from are generally one of two types: 

  • Traditional brick-and-mortar insurers — These firms, which are connected by their use of physical spaces such as stores and offices to offer coverage to their clients, are some of the most reputable and trustworthy in the industry. However, they are also renowned for their steep prices due to their high overheads.
  • Online insurers — On the other hand, these firms are all linked by the choice to run their business entirely online. As a result of the far lower overheads this business structure needs, this choice has become hugely popular due to the budget prices it is able to offer.

Find the Right Policy at the Best Rate

We’ve reviewed and tested the major business insurance providers. Let us help you find the best match for your business.

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Cost of General Liability Insurance

On average, gem sales businesses in America spend between $350 - $750 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for a gem sales business to other professional industries using the graph below:

Graph showing average price of general liability insurance prices per industry

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

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Finding the most affordable premium starts with getting accurate quotes from highly rated providers.

Common Situations That General Liability Insurance May Cover for a Gem Sales Business

Example 1: As you showcase a new order of expensive gemstones to a client, you reach up to a high shelf to grab a large gem and accidentally knock the shelf off the wall and on top of your client. He sustains a serious head injury and must take an ambulance to the emergency room. General liability insurance would cover your client’s medical expenses and your legal fees if he decides to sue.

Example 2: You write a blog to help attract new customers and boost your company’s ranking on popular search engines. When one of your blog posts criticizes the way other gem sales businesses handle aftercare for their clients, a competitor sues you for libel. General liability insurance would pay for your legal defense costs and any associated settlement.

Example 3: As you accept a large order of new inventory, your loading dock door malfunctions and causes extensive damage to the delivery van. General liability insurance would pay to repair the damaged vehicle and cover your legal defense in the event of a lawsuit.

Check out our review of the Best Small Business Insurance Companies.

Other Types of Coverage Gem Sales Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some other types of insurance all gem sales businesses should obtain:

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a workplace accident.

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business materials you carry in your vehicle.

Home-Based Business Insurance

If you run your business from your home, you may need this insurance to safeguard your business property and the space in your home devoted to your company. A typical homeowners insurance policy may not cover business-related items or medical expenses and legal fees associated with any client injuries that occur in your home.

Commercial Umbrella Insurance

While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your gem sales business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Business Insurance Is the Best Way to Protect Your Business

If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.

Be sure that everything you've built is safe by getting business insurance.

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Gem Sales Business Insurance FAQ

Can I buy business insurance online for my gem sales business?

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

What is included in a business owner’s policy?

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

What is the difference between business insurance and general liability insurance?

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

Do I need insurance before I start a gem sales business?

Yes. Ensuring your gem sales business is adequately covered by business insurance is one of the first essential steps to complete before starting.

Even in cases where it is not a legal requirement to carry some form of insurance (e.g., workers’ compensation or commercial auto), it is extremely beneficial for the financial security of your business.

Will insurance protect my gem sales business from everything?

Not necessarily. Certain exceptions may be written directly into your gem sales business insurance policy, and some perils may be entirely uninsurable.

Do I need business insurance if I already have an LLC?

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.

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