Issue link: http://www.insightdigital.biz/i/201303
"There are basically two kinds of criminals we deal with. We have the opportunistic criminal who asks to see the most expensive Rolex, grabs it and runs out of the store. Then you have what everyone dreads: Organized crime and career professionals. Those individuals have to be caught and put in jail because if they're not, they will plague the industry." – David Sexton, Jewelers Mutual vice president of loss prevention consulting that kind of loss recently. It's extraordinarily traumatic." A Jewelers Mutual client on the East Coast who owns numerous retail locations was robbed of more than $3 million in jewelry this way, Copeman adds. It's a serious, scary phenomenon that calls for advanced training, emphasizing safety. "Our advice is you can replace inventory but you can't replace a life," Sexton says. "We try to teach jewelers to be aware. Once they come in with weapons, you have no choice but to cooperate." Last year, about 500 jewelry criminals were arrested in the U.S., Kennedy says. Murders involving jewelry robberies are down from 37 in 1992 to just two to four each year. Further, inflation adjusted losses due to crime are at least half of what they were a decade ago. Kennedy credits Jewelers Mutual and its strong partnership with the nonprofit trade association for improving these statistics. "Without Jewelers Mutual's help, we couldn't possibly do this," Kennedy says. "It helps the whole industry." Claims side: Quick replacement is key O n the claims side, Jewelers Mutual is unique from other property and casualty companies in that it does not generally issue checks for personal claims. Rather, it strives to repair or replace the items with the same items, working directly with jewelers to make good on policy claims. Unlike most homeowner's insurance policies, Jewelers Mutual will cover "mysterious disappearance" of an item. Lose a stone from your diamond ring? Go to your trusted jeweler and your stone will be replaced. "The fact that we are sending you back to the jeweler rather than writing you a check really eliminates fraud," Copeman says. Amy Heline, Jewelers Mutual salvage specialist and curator of the R. Harder Gallery, oversees the recovery of jewelry for claims in the commercial and personal lines, working with w w w. i n s i g h t o n b u s i n e s s . c o m jewelers, diamond cutters and wholesalers. Heline, a 20year veteran of the jewelry industry, joined Jewelers Mutual about five years ago after having owned and operated Heline Jewelers in Darboy for almost five years with her husband. "We take care of you right away," says Heline. "You work with your jeweler to replace that item, as long as it was covered and approved by the claim." After that, Heline works behind the scenes with craftsmen and other resources to restore recovered items so that they can be sold and the value recouped for the company. In the case of a retail claim, Jewelers Mutual does whatever is necessary to get the retailer immediately back in business, issuing a check for the lost value so the store owner can replenish whatever was damaged or stolen. Again, Jewelers Mutual works behind the scenes with the police to locate, identify or repair the stolen goods. Heline also curates the R. Harder Gallery and stays in touch with industry trends, attending trade shows and maintaining relationships with jewelers and wholesalers throughout the U.S. and Canada. As Harder and Copeman emphasize, it's all about relationships, she says. Katherine Bodoh, director of Industry Relations and Corporate Events, concurs. "The best part of my job is getting the opportunity to work with our jewelers," says Bodoh. "We are there protecting them in their happiest times and some of the worst times in their lives. It's very rewarding when we are working with our customers. They are like family in many cases." Copeman expects to soon become involved in selecting his replacement: He plans to retire in May 2015. Until then, he'll be focusing on growth. The company estimates there are 25,000 to 26,000 retail jewelers in the U.S. and Canada, and about 40 percent choose to self-insure. All are potential clients. The individual insurance side is especially ripe for growth, Copeman adds. "There are 300 million people in this country," he says. "A good share of them own some sort of jewelry. We have 300,000 policyholders. We realize there's a whole world out there that doesn't know about us in the personal lines area. "We are the snowflake on the tip of the iceberg in terms of penetrating that market." N o v e m b e r 2 013 • Insight | 29