How to seal up your shipping practices to avoid preventable losses

Courtesy of Jewelers Mutual Insurance Co.

It may seem like simple advice, but when you’re sending valuable shipments of jewelry merchandise, you can’t be too careful. It’s an everyday risk in the jewelry industry, but shipping losses can also be one of the most frustrating sources of insurance claims for jewelry manufacturers, wholesalers, and designers, and frustrating for your jewelry customers too.

You might be surprised by the number of calls we get from our policyholders on items that go missing during the shipping process,” said David Sexton, CPCU, vice president of loss prevention at Jewelers Mutual Insurance Co. “Between your shipping department and your customer’s door, there are countless opportunities for theft and damage. The good news for manufacturers and designers is that there are steps you can take to help your shipments arrive intact and on time for your customers.”

Preparing for Successful Shipments

Jewelry operations vary in size and scope from home-based designers to large-scale manufacturers, but defining a structured shipping process can significantly decrease shipping-based claims for any company. By taking steps to guard against theft and errors on the receiver’s end, suppliers can be proactive in protecting their goods and ensuring their shipments arrive on time and intact.

The first step to safe shipping is to review your insurance policy to verify you have appropriate and adequate limits of shipping coverage. Jewelers Block policies often have standard shipping limits that, if left unamended, might not be sufficient for the scale of your business’s shipments. A knowledgeable Jewelers Block agent can help you assess your shipping risks and work with your insurance provider to find the right coverage for your needs.

Jewelry businesses can amend their Jewelers Block standard limits of shipping coverage by requesting an endorsement to the policy. This amendment to the policy can be a temporary or permanent change in the limit of coverage. In some cases this endorsement may involve establishing limits of coverage for specified shipping carriers and in other cases not. In any case, it is critical that the companies always utilize the appropriate shipping carrier and method for which there is coverage under their policy.

Maintaining accurate and complete inventory records is one of the best practices any jewelry business can follow to help protect their operation from loss. Likewise it is good business practice to log all shipments, noting the recipient, merchandise details, value, and shipping carrier used for each shipment.

In the event of a claim, it is common for insurance companies to request the following documentation:

• An itemized list of missing jewelry property
• A signed statement from a principal in your firm describing the loss
• Copies of the original invoices or memo agreements to substantiate the cost of the items
• Copies of all shipping documentation

Some jewelers have helped to facilitate their shipping claims process by submitting photos of damaged packages they received or videos of their shipping and receiving procedures recorded in their shipping area. Though typically not required, this kind of supporting evidence can be extremely helpful in resolving the claim in a timely manner.

Choose Your Carrier Wisely

Manufacturers and wholesalers may elect to establish agreements with a specific shipping vendor because of the volume of shipments they need to send. Research shipping companies thoroughly to determine the best shipping agent for your business.

Scheduled pickup at a jeweler’s operation by the shipping carrier’s personnel is allowed but not recommended. Jewelers Mutual recommends that you deliver your shipments to the carrier’s service center instead. Do not discuss the contents of the package or the nature of your business with the shipping carrier’s personnel, and never, under any circumstance, use a drop box.

If you experience a loss with a shipper, consider alternating shipping carriers for a period of time. Regardless of the shipping carrier, you should always request a signature for your jewelry package. Shipping coverage generally ends when a signature is obtained and the recipient takes possession of your package.

Shipping with Purpose

Having confirmed that the proper and adequate limits of shipping insurance coverage are in force, and having established the discipline of maintaining your shipments log, it’s time to examine your shipping materials. Sturdy, unmarked boxes are the preferred material for packaging jewelry shipments. Envelopes are notoriously unsafe as they’re easily torn and more likely to be lost. Be sure you have several sizes of boxes to accommodate shipments of various sizes. If you prefer to use envelopes, make sure that an envelope is secured in a small box and then packed within a larger box no smaller than a shoebox. Inside the boxes, your packing materials should be easy for recipients to unwrap.

Interior boxes should be labeled with the recipient and return addresses as well as the tracking number, if possible. Then pack the interior box snuggly within the larger exterior box. By protecting and labeling the interior box, you may avoid losses due to damage in transit.

Once the boxes are secured, seal the shipping box with gummed, reinforced paper mailing tape or pressure-sensitive shipping tape. Do not use string, cellophane tape or masking tape to seal your boxes as these materials are easily compromised.

Planning your shipments is also a factor in a successful delivery. Schedule your shipments so packages do not sit in a shipping hub over a weekend or holiday, and refrain from shipping packages by ground service on Thursday, Friday, or Saturday. Remember, your recipients may not be open or available for Saturday delivery.

Disguise Your Shipping Label and Plan for the Destination

As you create your shipping labels, try to avoid language that identifies the contents of the package as jewelry merchandise. Avoid all words associated with jewelry. If you’re sending a package to J. Jones Jewelers, for instance, consider addressing it to “J. Jones.” Disguise the return address in a similar fashion.

One best practice is to address the package to the name of a business associate (with the recipient’s permission, of course) rather than the jewelry store. Doing this may also help you avoid issues of fraudulent signatures and employee theft.

As important as it is to ship quickly, it is just as important to avoid shipping packages to known jewelry destinations, which are likely to attract criminal attention. Avoid the telltale ZIP codes 10036, 90013, 90014, or 90015. Caution is also advised for ZIP codes 60602, 60603, 60659, 94102, 94103, and 94108. If shipping to and from these addresses, arrange for packages to be picked up or delivered to the post office or the carrier’s service center, or coordinate a delivery to a location outside of these ZIP code areas with your recipient.

Share Video Reminders with Your Employees

The efficacy of your shipping security is in the hands of your trusted staff. Jewelers Mutual has tools to help you share this valuable information with your associates. The tips and tools for safe shipping are simple and, more important, they’re effective in making your company shipments more secure. (Print off a two-sided “Safe Shipping” poster or share a link to Jewelers Mutual’s two-minute video called “Shipping Safely and Securely”; both can be accessed here.)

Contact Jewelers Mutual

To learn more about insuring your jewelry business or to find an agent who specializes in coverage for wholesale, manufacturing, and designers, contact Jewelers Mutual at 1-800-558-6411. You can also find more loss-prevention tips and best practices for your business at JewelersMutual.com.

MJSA exclusively endorses Jewelers Mutual Insurance Company’s commercial and personal jewelry insurance products.