What it does
CM 00 59 is ISO's filed jewelers block form. It covers the jeweler's stock in trade (jewelry, precious and semiprecious stones, precious metals and other stock used in the business), property sold but not delivered, similar property of customers outside the trade, and property of other jewelers in the insured's care (only to the extent of money advanced or legal liability). Coverage is open perils within or between the United States, its territories, Puerto Rico and Canada.
Who needs it
Jewelry retailers, wholesalers, manufacturers and repairers. Standard property forms sharply limit theft of jewelry, so jewelers block is the core property coverage for the trade and is underwritten heavily on security.
Key provisions
- Not covered: installment-sale property after it leaves the premises, property at publicly sponsored or trade-association exhibitions, showcase or window displays away from the premises, property being worn by the insured, staff, family or friends (watches worn for adjustment excepted), shipments by ordinary mail, express, rail, air or motor carriers except registered mail, merchant parcel delivery, armored car and passenger baggage services.
- Exclusions: earthquake and flood at the premises; theft from a vehicle unless someone is in or on it (carrier shipments excepted); unexplained disappearance; inventory shortage; shortage in packages received with seals intact; dishonest acts; show window smash-and-grab unless a show window limit is shown; processing; poor packing; fragile breakage.
- Coverage options: show windows and money in locked safes when limits are shown.
- Valuation: lowest of ACV, restoration, replacement, or the lowest figure in the insured's inventories; no antique or historical value.
- Conditions: protective safeguards, records retained three years, annual physical inventory, changes to premises need consent, and the signed Proposal (CM 59 90) becomes part of the policy.
Quoting and selling notes
Expect detailed underwriting: the CM 59 90 proposal, safe and vault ratings, alarm grade and central station, traveling salesperson practices, show schedules and shipping methods. The proposal answers are warranties in practice, so they must be accurate. CM 59 07 limits property away from premises; CM 59 03 sets a deductible for registered mail packages.
