CHES Jewellery block insurance, Fine Art and Specie, in Canada.

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Fine Art, Jewellery and Specie
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Introduction
The Jewellers Block insurance policy was
originally developed at Lloyd's of London in the
late 1880's by a diamond merchant's clerk named
Thomas March. Mr. March, who was concerned at
the inability of his employer to obtain insurance
against theft, was friendly with one of the
leading Lloyd's Underwriters of the day and
between them they devised the first Jewellers
Block policy. CHES Special Risk has one of the
leading MGA teams specialising in Jewellery, Fine
Art and Specie, in Canada. We have global
expertise providing clients with innovative
programs and customised solutions with
integrated placement, administration and claims
services, and our Underwriters at Lloyds of
London are exclusive to us. We have a team
specialist Team of people focusing on the class,
so we are able to offer a wide range of
knowledge and with a large team are able to
provide a high level of service to our
clients. As one of the largest MGAs, we have
the necessary buying power to enable us to meet
our clients needs.
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Areas of Expertise

• CHES Special Risk are able to offer a flexible
  approach and offer specially structured and
  creative insurance products based on
  international terms for the following sectors
• Fine Art
• Jewellery Insurance in Canada, Jewellery Retails,
  Wholesalers and Manufacturers
• Diamond and Gemstone dealers
• Precious Metals and Gemstone mining operators
• Armoured Car and Cash/Valuables in transit
• Cash and Valuables in vault
• Reinsurance Programs and Treaties
• Captive Programmes

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Client Base
Our client base emanates from all aspects of the
SPECIE Market, from Art Galleries, Jewellery
Stores, Furriers, to Pawn Brokers with high
valued precious gems and Metals, and armoured
car delivery of high value items. We have
recently seen an evolution in the PAWN Broker
business Insurance which is now buying and
selling high value designer items such as hand
bags and leather goods. CHES Special Risk has
kept pace with these changes and met demand with
a tailored policy that responds to the demands of
the market. Dont just think of this Type of
coverage only responding to the high valued
items, because the policy covers furniture,
fixtures, Fittings, office equipment, show cases,
glass, a true Tenants policy, which can also
be extended to cover CGL, and Electronic
Breakdown
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Fine Art

• Fine Art encompasses a wide range of collectible
  items, from paintings and sculptures to
  glassware, antiques and coins.
• Our client base includes
• Museums
• Private and Corporate Collections
• Fine art Dealers
• Shippers and Packers
• Auctioneers
• Antique Dealers
• Coin Collections and Dealers
• Stamp Collections and Dealers
• Exhibitions

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Fine Art Scope of Coverage

• CHES Special Risk have a number of wordings which
  are designed for different proposes. Generally,
  these are on an All Risks physical loss or
  physical damage basis, including depreciation
  with a number of exclusions, for example
• Losses sustained whilst the art is being worked
  upon, for example, whilst being repaired
• Wear, tear and gradual deterioration
• Consequential loss
• Radioactivity
• Earthquake
• War
• Terrorism

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Fine Art Extension to Cover and Other coverages

• In addition to the standard coverage, insurers
  are often prepared to extend coverage or place a
  separate contract to include
• Earthquake
• Terrorism
• Furniture, Fixtures and Fittings of the Gallery
  or Museum
• Transit of the Fine Art
• Defective Title
• Professional Indemnity
• Agreed value of pair of items, when one of
• pair or set is lost or damaged
• War whilst the interest is in transit
• First loss coverage basis
• Contingent coverage
• Difference in Conditions or Limits

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Fine Art Underwriting Requirements

• Whilst not a complete list, the basic information
  underwriters will need to consider whether or
  not to accept the account and if so under what
  conditions and premium includes
• Type of business, for example, Museum, Private
  Collection or Dealer
• Items to be insured schedule of items which
  should include brief details of each
• item, the value and nature (fragile or
  non-fragile)
• Location(s) where are the items located, are
  any items displayed outside or in basements
• Security details protections against fire and
  theft
• Area is the area liable to flood, is it in an
  earthquake zone
• Occupancy of location is the property ever left
  unoccupied for a period of time
• Is coverage required for transit how is it
  shipped, packed and what are the annual values
  shipped, who is the shipper
• Deductible
• What basis should claims be paid on Agreed
  Value or Cost Price
• Level of coverage / wordings to be used
• Claims record for five years

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Fine Art Exhibitions and Fine Art Fairs
Underwriting Information

• Over the years, the Team at CHES have placed a
  number of blockbuster exhibitions, many with
  very high sums insured.
• In order to consider Exhibitions, insurers will
  need to know
• Name of exhibition
• Organiser of exhibition
• Name of Insured / details of insured and
  experience
• Period of exhibition
• Venue(s)
• Total Values
• Breakdown of values split between fragile and non
  fragile
• Security at exhibition for example guards,
  alarms, temperature controlled and lock
  showcases
• Is transit required to/from the exhibition
• Pre and post condition report
• Previous losses

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Jewellery and Gemstones

• We provide solutions for a wide range of
  different operations within the industry, from
  large multinational Jewellery Retailers and
  Diamond Wholesalers. The type of business will
  include
• Jewellery Retailers
• Watch Manufacturers and Retailers
• Diamond Dealers
• Wholesalers and Manufacturers
• Luxury goods retailers
• Pawn Brokers
• Diamond and Gemstone mining Operators
• Transporters
• As well as placing individual accounts, we have
  experience in putting together covers for third
  parties such as overseas Insurance Companies,
  including both binders and treaties.

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Jewellery Scope of Coverage

• The Jewellers Block Insurance Policy is an "all
  risk" coverage, which means that the insurer must
  specify what is not covered. If a risk is not in
  the list of exclusions, it is covered. Typical
  risks that are covered are Burglary, Robbery,
  Shoplifting, Grab and Run, Trick Loss,
  Substitution and Accidental Damage, in addition
  to the usual risks such as Fire.
• For larger clients, we produce bespoke policies
  based on our clients needs and requirements,
  which we have developed over the years.
• Coverage is on a Jeweller block insurance basis
  and can be extended for
• Coverage for stock held in store windows
• Personal conveyance for stock in transit
• Stock on memorandum to third parties
• Stock whilst at employees homes
• Shipments of stock
• Exhibitions
• Wearing of items at events
• Earthquake
• Cutting and polishing of diamonds

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Jewellery Underwriting requirements

• It is normal practice to ask the client to
  complete a full proposal form which will outline
• details of the insured, which will include
• Name/Address
• Retailer or wholesaler
• Types of stock, for example watches, jewellery or
  diamonds
• Sum Insured for each location, window limit and
  amount out on memorandum
• Personal Conveyance average and maximum amount
  carried, number of days travelled
• Full security details which will include
  details of safes, alarm and CCTV
• Claims details over the past five years
• Once all the information has been considered,
  insurers apply rate to various aspect of the
  coverage required to come to a final pricing.
• For large volume business, for example smaller
  Jewellery Retailers, Reinsures would consider
  placing a binder or treaty with set terms, rates
  and conditions.

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General Specie and Cash in Transit

• This area includes coverage for cash, gold and
  other valuables companies such as
• Cash in Transit Companies
• Cash Counting Operations
• Vault coverage for Banks
• Safe Deposit Vaults
• Automatic Teller Machine (ATMs) operators
• Gold and Precious Metal Traders
• Precious Metal Refiners
• Precious Metal Mines
• Rare Metal dealers
• Cheque Cashers

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General Specie Underwriting Requirements

• Whilst of some classes a standard proposal form
  is available, with other areas it is more common
  to ask individually tailored questions to the
  risk in question, the general information that
  will be needed includes
• Name and address of client
• Operation details / activity types
• How long has the client been in business
• Sum Insured per location / any one transit
• Total annual shipments
• Territorial limits
• Gross revenues
• Security at premises
• Vault / safe details
• How are staff screened

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Loss Prevention and Claims
Not every risk we write is surveyed, however,
when needed our network of risk surveyors are
able to work with our clients to manage and
reduce risk. Surveyors are on occasion appointed
to visit the client to discuss possible
improvements in risk management. If a claim
does occur we have a dedicated claims team, who
have a proven track record of settling all types
of losses, from the small to the large and
complex.
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Contact Us
Rachana Patel Senior Underwriter
Emily Newell Underwriter
416 559 7297 rachana.patel_at_chesspecialrisk.ca
647 480 1534 emily.newell_at_chesspecialrisk.ca
Thank you
.