Preventing Losses at your Business For manufacturers and wholesalers Wholesalers and manufacturers are less vulnerable to robbery and theft at their business locations than their colleagues in the retail jewelry market, who depend on easy access for the general public. Yet, robbery, burglary, and employee theft continue to be real threats for wholesalers and manufacturers, resulting in significant losses when they occur. Maintaining your security systems and practicing sound security procedures will help minimize losses, keep your insurance rates down, and improve your bottom line. Equipment to help secure your business - Install surveillance equipment: either a closed circuit television with a videotape recorder or a surveillance camera(s) with recording capability. Consider digital equipment, which is easier to use and requires no tapes.
- Install metal detectors to detect employee theft of precious metals.
- Install holdup buttons, including the wireless type. Know how and when to use them. Contact your local police to discuss how they will respond in an alarm situation.
- Install a burglary-resistant safe/vault that is listed by Underwriters Laboratories (UL). The value of the materials that you will store in the safe or vault determines the quality of safe/vault to purchase. Contact your insurance agent for input before making a purchase.
- Install and maintain a burglar alarm system that is certified by UL. The value of the merchandise that you keep on your premises and your location determine the type of premises alarm and safe/vault alarm necessary for your operation. Contact your insurance agent for input.
- Based on your business's security needs, consider using two different burglar alarm companies: one company for premises protection, and the other for safe, vault, and other interior alarms.
- Install the control unit for your alarm system within a motion detector's field of protection.
- Physically examine the phone line if it is used to transmit your alarm signals. Is it easily accessible? If it is, find out if the line can be changed or if access to it can be limited. Remove any tag or label that indicates the purpose of the phone line.
- Install a locked door system, such as a buzzer system or an interlock system, sometimes referred to as a "man trap." Comply with local safety ordinances, i.e., you may not restrict egress from your premises.
- Place fire extinguishers in easily accessible locations and maintain them as directed. Contact your local fire department for recommendations. Be sure all employees know where fire extinguishers are located and how to use them.
- Local ordinances may require a sprinkler system. The system should be maintained on a regular basis. Consider installing an alarm that indicates when the sprinklers have accidentally discharged.
Procedures to help secure your business - Routinely change the tapes or CDs used by your surveillance equipment and store them for at least four weeks before re-using them. Replace tapes after re-recording 10-12 times. Continuous recording is preferred over time-delay systems. Consider recording 24 hours a day. Digital systems are easier to use, especially for 24-hour/day surveillance. Every month, view several short segments of the tape or CD to assure that the equipment is functioning correctly.
- Make sure that your entire burglar alarm system is maintained properly and serviced on a regular basis. Test your motion detectors daily by checking the light indicators. Make sure your motion detectors provide the proper fields of protection and are set low enough to detect intruders.
- When closed, store as much jewelry merchandise and materials for manufacturing as possible in safes or vaults. Be sure to comply with the in-safe/vault percentage requirement stated in your insurance policy.
- Do not authorize your alarm company to approve irregular openings of your premises when you are closed without specific advance approval. If you must enter the premises during non-business hours, the most secure procedure is to register in person at your monitoring station. If this is not practical, arrange for your alarm company to supervise the openings and closings. This procedure requires that you use a pre-arranged pass code to open the business. Also, your alarm company will keep a log of the openings and closings.
- Never take an alarm signal for granted by assuming it is a false alarm. If your alarm system suddenly begins to malfunction, have the system checked by professionals. Don't be satisfied until they determine exactly what is wrong. If the system is not working, guard your premises personally or arrange for professional armed guards and check your insurance policy for directions. Professional burglars often sabotage alarms to observe your response procedures or lull you into being lax about alarm malfunctions.)
- Meet with a detective from your local police department and discuss the crime risks facing your business. Share information and statistics from Jewelers Mutual and Jewelers' Security Alliance. Ask for the detective's advice and assistance.
- Before entrusting jewelry to another jewelry dealer or retailer on memo or as a sale contingent on approval, do a thorough background check. This should include a credit rating from Jewelers Board of Trade, references, and a certificate of insurance. Have a written agreement about who is responsible for paying for shipping and insurance.
- Assure that all flammable materials are stored correctly and containers are inspected as directed. Check your lease and local ordinances to determine any requirements or restrictions. Assure that employees who use the flammable materials are well trained. Train all employees about how to respond to an emergency.
Opening & closing your premises - Never open or close your premises alone; someone should watch from a safe distance with a cell phone available to call for help if needed.
- As soon as you enter the premises, relock the door. Keep the door locked at all times, admitting employees and visitors only with proper identification. Robbers sometimes dress as employees of delivery companies, such as UPS, Federal Express, or the Postal Service.
- When it's time to close, store as much jewelry merchandise and materials for manufacturing as possible in safes or vaults.
Security and your staff - Have regular security meetings with your employees.
- Train employees about how to respond during an armed robbery: cooperate completely, remain calm, strictly obey the robbers' orders (don't even raise your hands unless instructed to do so).
- Remind your staff to ask salespeople, delivery people, etc., for proper identification before giving them entry.
- Never leave keys or the combination to a safe or vault in an accessible place.
- Avoid discussing jewelry business in public where others may hear you. Never discuss business with strangers or acquaintances who could use the information against you.
- Implement internal security procedures that limit access to high-value items and materials, and track use of these materials.
- Offices without lavatory facilities face a significant risk if only one individual staffs the premises. You may have no insurance coverage when that individual leaves the premises to use a lavatory located in the office building, unless the employee sets the alarm and complies with the locked in-safe/vault warranties.
- Beware of pretext phone calls. If you, your family, or business associates receive a phone call - for example from the police or alarm company - asking you to come to your business, get the caller's name and telephone number. Tell the caller you will return the call immediately. Then check with the telephone company's directory assistance to verify the phone number and identity of the caller. Never respond to telephone surveys or inquiries. Do not leave your house or open your door until you have verified the caller's identification. This could be an ambush.
- Immediately report all suspicious activity to the police and the Jewelers' Security Alliance (JSA). JSA can assist you and the police in determining whether similar incidents have occurred in your area recently and perhaps identify thieves before your business is attacked.
For more information
Contact:
Jewelers Mutual Insurance Company
24 Jewelers Park Drive
Neenah, WI 54956
www.jewelersmutual.com
800 558-6411 Jewelers' Security Alliance
6 E. 45th St.
New York, NY 11017
www.jewelerssecurity.org
800 537-0067 Do you own a Jewelry Business in Canada? See our Jewelry business insurance options in Canada . |
