I started flipping watches on the side. I carry 5-10 Rolexes in a backpack to trade shows. I assumed my personal Jewelers Mutual policy covered me. Then I read the exclusion: “Property held for sale or commercial purposes is excluded.” I was walking around with $150,000 of uninsured inventory.
Key Takeaways
- Personal Policies Exclude Business: If you buy watches with the intent to resell (profit), personal jewelry insurance (JM Personal / Hodinkee) does NOT cover them.
- “Backpack Dealer” Risk: Carrying inventory to shows (traveling salesman) is the highest risk category in the industry. Robberies are targeted.
- Jewelers Block Policy: You need a commercial Jewelers Block policy. This covers inventory in the safe, in transit, and at shows.
- Wax Insurance (Commercial): Wax and other modern insurtechs offer commercial policies specifically for solo dealers/flippers that are easier to get than traditional block policies.
The “Why” (The Trap)
The trap is “Intent.”
If you own 50 watches and sell one a year, you are a collector.
If you buy 5 watches a month and sell them, you are a dealer.
If you file a theft claim for 10 watches stolen from a backpack at a watch show, the adjuster will look at your tax returns and sales history. If they see “Business Activity,” they deny the claim under the Commercial Exclusion.
The Investigation (My Analysis of Commercial Options)
I looked for coverage for the “Side Hustle.”
Jewelers Mutual (Commercial)
- The Standard: Comprehensive coverage.
- The Barrier: They require high security (TL-30 safes, alarms, cameras). Hard for a guy working out of a bedroom.
Wax Insurance
- The Disruptor: They offer policies for “Pro-sumers” and small dealers.
- The Coverage: Covers shipping, travel, and inventory. Much easier onboarding.
Shipsurance / Parcel Pro
- The Transit Piece: If you just need shipping coverage, these are essential. But they don’t cover the watches while sitting in your backpack.
[IMAGE: Photo of a pelican case full of watches sitting on a trade show table]
Comparison Table
| Feature | Personal Policy | Jewelers Block (Commercial) |
| Intent | Personal Use/Collection | Resale/Profit |
| Premiums | ~1.5% | ~2-3% (Higher risk) |
| Travel Limits | Worldwide | Specific (Show/Sendings) |
| Requirements | Low | High (Safes/Alarms) |
Step-by-Step Action Plan
- Define Your Status: Are you a collector who sells, or a dealer? If you file a Schedule C for watch sales, you are a dealer.
- Get a Commercial Quote: Contact Wax or a specialized broker for a “Jewelers Block” quote.
- Upgrade Security: You will need a real safe (TL-15 minimum) to get commercial insurance.
- Never Use Personal Insurance: Do not try to lie on a claim. Insurance fraud is a felony.
FAQ
Can I insure consignment stock?
Yes. Jewelers Block covers “Goods of others in your custody.”
Is trade show theft covered?
Yes, but often requires “Attended Automobile” clauses (don’t leave it in the car) and strict line-of-sight rules.
What if I get robbed at a meetup?
Covered, provided you followed the security warranties of the policy (e.g., public place, etc.).