insurance considerations for safe shipping of jewelry by tina pint from jeweler's mutual

Insurance Considerations

for

Safe Shippingof Jewelry

Insurance Considerationsfor Safe Shipping

Presented byTina Pint, Sales Representative

JM Insurance Services, LLC

About Jewelers Mutual• Nearly 100 years of experience protecting jewelry businesses:

jewelers, wholesalers, designers, manufacturers, craftsmen, appraisers, repair shops, etc.

• Established by jewelers for jewelers• Experts at loss prevention; JSA membership• Insures $2.5 billion of individuals’ personal jewelry• Free shipping insurance for USPS Registered Mail and

Express Mail included in Jewelers Block and Jewelers Standard policies

• Coverage for other shipping carriers provided via “endorsement,” or add-on coverage.

Today’s presentation• General shipping recommendations• USPS (US Postal Service)• UPS• FedEx• Parcel Pro, TransGuardian, others• Drop-off centers

Safe shipping tips• Use a box, NO envelope.

Best method is to double-box, as shown.• Show no gold- or jewelry-related terms in address,

return address, or anywhere on the package.• Enclose a detailed packing slip.• Don’t use jewelry terms!• Prepare a written agreement about the item(s) to be shipped, who

pays for shipping each way, insurance, and what shipper will be used.

• ALWAYS require signed receipt; never waive signed receipt.• Track your packages.

Safe shipping tips• Keep a shipping log or documentation.

– Who shipped the item– What was sent (and its value) so you can pull purchase order– Where – origination and destination– When– To whom and from whom– How (USPS Express Mail, FedEx)

Plus …– Amount insured by carrier– Any paperwork from the carrier (receipt, tracking, etc.)– Deductible

Valuation of shipped items• Jewelers Mutual pays based on your documentation, not

what was declared to shipper. Check with your insurance agent or carrier.

• You should be able to pull original purchase order or show documentation of the item in the annual inventory.

• For items you’ve made, Jewelers Mutual pays materials and labor, which must be documented.

Incoming shipments• Where do you receive shipments?• Who in your store receives shipments?• What is your process for receiving shipments?

Incoming shipments• Count/inspect each package before you sign.• Verify that the packages are addressed to you!• If signs of damage or tampering, do not sign for the package; ask

delivery person to report the damage.• Open in front of delivery person.• Take video, if you can.• Check contents immediately;

verify contents against packing slip.

• If item(s) missing, save all packing materials and call your insurance agent, company, or shipping service.

USPSExpress Mail• No declared value• USPS will insure up to $5,000;

USPS includes $100 automatically• 1-2 day delivery• One level of security• Mixed with “regular” mail• Travels on FedEx planes• Savings available with

Click-N-Ship online• In-store carrier pickup with online

Click ’n Ship

Registered Mail• Declared value• USPS fee is based on full value;

pay for extra security and handling• $25,000 maximum reimbursement• Sent under lock and key; signed

for at each • 3+ day delivery handoff

JM’s USPS coveragesExpress Mail• $25,000 coverage from Jewelers

Mutual• No deductible• No need to declare value• Carrier pick-up at store or take to

P.O.• Print SCAN form for carrier to

scan or ask carrier to initial/date shipment log

• $125,000 travel coverage to/from post office

Registered Mail• $100,000 coverage from Jewelers

Mutual• No deductible• Must declare full value per USPS

regulation• JM pays claims based on cost

documentation, not what is declared

• Must take to P.O.• $125,000 travel coverage to/from

post office

Condition Report Claims for Damaged Work

UPS• UPS will not accept packages

valued over $50,000.

• UPS will not insure loose cut or uncut gemstones, even in spring mountings. Stones must be in a finished settings to be insurable.

• Request signed receipt; do not waive signed receipt.

• UPS delivers internationally.

FedEx• FedEx accepts shipments

of loose stones.• MJSA and JA members can sign up

for discounted DVX (Declared Value Exception) program, which offers insurance.

• FedEx delivers internationally.• Always request signed receipt.

Parcel Pro• Parcel Pro is a leading provider of insured, high-value

shipping services to the jewelry industry.• Combines shipping and

insurance in one charge.• Uses mostly UPS within US,

but can use FedEx, USPS, etc.• Works with FedEx for shipments in Canada and other

countries.• www.parcelpro.com or 888-683-2300

Other shippers• TransGuardian

– Coverage up to $150,000 for USPS Express Mail, UPS, FedEx– Up to $25,000 for Priority Mail, UPS, and

FedEx 2nd-Day

• FedEx DVX• G4S• Armored carrier

Drop boxes

• Don’t drop packages into drop boxes.

• No receipts; no documentation.

Quiz - UPSQuestion: You want to overnight ship and insure a $75,000

loose diamond via UPS. Any concerns? Answer:• UPS doesn’t insure packages with values greater than

$50,000• UPS doesn’t accept/insure loose stones.• Ship via Parcel Pro, use another service, or add an

endorsement to your Jewelers Block policy.• Use UPSP Registered Mail, if the overnight requirement

isn’t a deal-breaker.

Quiz - AllQuestion: What documentation do you need for every

package you ship in order to submit a claim?Answer:• Shipment log that shows who packaged the item, what

was sent, where it went, when, to whom it was addressed, using what type of shipping service.

• Original purchase documents to show value.• Shipping carrier’s documentation and receipt.

Quiz - USPSTrue or False1. Jones Jewelers must declare the full value when shipping with Registered

Mail. True. It complies with postal regulations.

2. Jones Jewelers must take packages to the Post Office to ship via USPS Express Mail. False. With Click-N-Ship, Jones Jewelers can create an Express Mail label and pay for shipping online. The jeweler’s regular carrier can pick up the package or the jeweler can take the package to the post office.

3. Express Mail packages are delivered in one or two days.True.

4. It’s a federal crime to steal from the post office.True.

Questions?• General shipping recommendations• USPS (US Postal Service)• UPS• FedEx• Parcel Pro, etc. • Drop-off centers

ContactJewelers Mutual Insurance Company

24 Jewelers Park DriveNeenah, WI 54956

800-558-6411 • JewelersMutual.com

Insurance Considerations

for

Safe Shippingof Jewelry

Professional Guidelines

Claims for Damaged Work

http://www.harriete-estel-berman.info/profguidelines/claims.html

http://tinyurl.com/7cymes2

Look for the

in the Professional Guidelineshttp://www.harriete-estel-berman.info/profguidelines/profguide.html

http://tinyurl.com/yc4tamj

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• http://www.snagmetalsmith.org/resources-opportunities/professional-development/professional-development-seminar/http://www.snagmetalsmith.org/resources-

opportunities/professional-development/professional-development-seminar/

http://tinyurl.com/6ryzl5g

http://www.harriete-estel-berman.info/profguidelines/ProfDevSeminar.html

http://tinyurl.com/2g5lbwh

http://www.harriete-estel-berman.info/profguidelines/profguide.html

http://tinyurl.com/yc4tamj