Equipment Breakdown for Jewelry Manufacturing

Berkley Asset Protection
Equipment Breakdown Coverage
for Jewelry Manufacturing
Jewelry manufacturers design, decorate,
and create rings, earrings, watches,
pendants, bracelets, broaches and
necklaces using precious metals such
as platinum or gold and stones such
as diamonds, emeralds, and sapphires.
Jewelry pieces can be custom-made or
mass produced and are displayed for
customers to view and shop.
Typical Losses
Additional value-added activities
include consultation, adjustment
and repair, value appraisals of gems
and jewelry, melting and refining of
precious metals, model making and
casting, electroplating, surface finishing,
welding/soldering, and the sale of
heirloom, novelty, or gift items such as
dinnerware, flatware, home decorations,
stemware, table linens, figurines and
clocks.
The low water fuel cut off was
inoperable on a cast iron steam boiler,
which caused the boiler to overheat
and crack. As a result, the boiler had
to be replaced with a different boiler
manufacturer of like, kind, and quality
due to its age.
Property Damage: $4,000
Jewelry manufacturers have multiple
insurable equipment exposures. Most
jewelers use air compressors, boilers,
motors, compressors and all types of
different electronic equipment. Many of
the boilers and pressure vessels require
jurisdictional inspections, which are
performed by the equipment breakdown
insurer at no additional cost.
Electrical breakdown, followed by
mechanical breakdown are the most
prevalent loss causes in jewelry
manufacturing operations. Boiler and
pressure vessel failures account for the
lowest frequency of loss. Breakdown of
equipment can lead to an interruption
of business operations resulting in a
loss of business income. These types of
losses would be covered by equipment
breakdown coverage.
Several pieces of electronic equipment
including a security DVR, and carat
scale were damaged by an outside power
surge from the utility company and
required replacement.
Property Damage: $5,900
Exposures
Boilers and Pressure Vessels
Sanitary Hot Water Supply Boilers
Comfort Heating Boilers
Compressed Air Storage Tanks
Heat Exchangers
Mechanical Equipment
Exhaust/Ventilation Fans
Dewaxing Machine
Vacuum Casting Machine
Melting Furnace
Polishers
Tumblers
Etchers/Blasters
Acid Picklers
Ultrasonic Cleaning Baths
Oven/Kiln
Centrifuge
Hydraulic Jewelry Press
Grinders/Deburring Stations
Welding Machines (Laser, Arc)
Air Conditioning Compressors
Air Compressors
Ventilation/Filtering Station
Electroplating Systems
Oxygen Generator
Air Pollution Control System
Electrical Equipment
Motors
Rectifiers
Fan/Blower
Transformers
Electrical Service Panel
Desktop PC and Servers
Inventory Security System
Time Element
Business Interruption
Extra Expense
Service Interruption