Hello,
My father has been a jeweler for the past 30 years. He finally
opened his own store in January of last year. He has been doing
well, however he was recently robbed. Most of what was stolen
belonged to someone else and was at the store on consignment.
Unfortunately, when my father purchased insurance for the store, he
did not get jeweler’s block. The insurance salesman admitted that
that he had sold him the wrong policy, and that contact with the
Errors and Omissions Committee should be made.
Here is the problem: the Errors and Omissions Committee denied his
claim, and the next step for my father is to start a law suit
against the insurance company. Basically, the consignment items
were not covered by the insurance and now the consignee wants to
sue. Was my father responsible for insuring jewelry that was not
his, even though it was in his store?
The police did recover some of the stolen merchandise, but it was
mostly custom pieces made by my father, easily identifiable.
Has anyone had any similar experiences??
Thanks
Justin Kinney.
Was my father responsible for insuring jewelry that was not
his, even though it was in his store?
Unfortunately he absolutely was. I feel very bad for him because he
is between a rock and a hard place. Frankly I think his only option
would be to sue the insurance salesman directly (if that is possible)
as he is the only one who might truly be responsible. Of course the
salesman would have to have something to sue for.
Daniel R. Spirer, GG
Spirer Somes Jewelers
1794 Massachusetts Ave
Cambridge, MA 02140
617-491-6000
@spirersomes
www.spirersomes.com
Basically, the consignment items were not covered by the
insurance >and now the consignee wants to sue.
This is an unfortunate situation indeed, and admittedly a legal
nightmare for both parties involved. A note for the future for
avoiding this scenario; all consignment agreements, no matter how
simple or complex the wording, should address the issue of insurance.
There should always be a clearly stated and agreed upon definition of
whose liability any loss or damage to the consigned items will
become. My advice is to make sure that the gallery has a policy which
covers your consigned work in their possession, and also consider
implementing your own policy as an additional safeguard.
Michael David Sturlin, jewelry artist @Michael_David_Sturl1
https://www.ganoksin.com/orchid/sturlin.htm
Michael Sturlin Studio, Scottsdale Arizona USA
Justin,
Was my father responsible for insuring jewelry that was not his,
even though it was in his store?
There is no question that he is ethically responsible for
compensating the consigning jeweler. And, as far as I am concerned,
he is legally responsible as well. My consignment agreements with
galleries state clearly that the store owner is responsible for
insuring my consigned items and compensating me for them in the event
of theft, loss, fire, etc. It’s a shame your father was so badly
treated by his insurance company, but that’s not an excuse for
treating the consigning jeweler badly in return.
Beth
