Dealer question.......Commercial insurance

longtimecollector

What company do you use to insure your inventory against fire/theft ??? Is your inventory only covered at one location, or is it insured when you are on the road? How expensive is your coverage ?

coinguy1

Longtimecollector, there is a small group of insurers that handle most of the accounts of coin dealers - I can try to get you names and contact numbers if you wish.

Generally speaking (and there are many possible differences, depending upon the specific policies involved), the insured is covered up to the insured amount, as long as the coins are "on his person", meaning the insured is out of luck if he leaves his coins unattended in a car, in his home, etc.

This can lead to seemingly odd sets of circumstances in order for the coins to be covered under the policy - for example, theoretically, if you have your coins in your possession, you could walk around a horrible neighborhood and still be covered. But, if you were to leave your coins at home unattended in the country's best neighborhood, you would not be covered in the event of theft/loss. I believe that the insurance companies do this to protect themselves against "mysterious disappearance". There have been a few "losses" over the years where the insured parties were either caught trying to scam the insurance company, or at the very least suspected of such.

Allowances in coverage can be made for security systems, safes, proximity to police/fire departments, construction of the premises, etc. There are also different options for coverages for coins in transport (locally and/or to and from out of town shows), vs. those kept at an office, etc.

wayneherndon

My coverage is ultimately through Lloyds. It is was arranged through Hugh Wood, the ANA authorized insurance broker. It is a customized policy. I told them exactly what I wanted and they gave me a price. I spent a lot of time on the phone describing the types of situations I found myself in, which ones did not apply to me, and the various deductibles I would be comfortable with in different situaitons. The policy covers my inventory on premises, while set up at shows, at shows but not set up, when out on memo/consignment, in transit (e.g., in shipping to customers so I don't have to use PO insurance). The only exceptions I allowed were for terrorist events (coverage was available but I opted out). Obviously, there are rules that I have to follow to be covered. Some examples:

Not covered against flood damage if items are on the floor.
Not covered against mail theft if "coins" or other indication of value is on the exterior.
Higher valued packaged must be shipped by more secure means to be covered.

The coins do not have to be "on my person" for my coverage. For example, they are covered in an unattended automobile (provide they were not visible from the exterior (e.g., boxed or covered) and the auto was locked). In addition, they are covered in airline checked baggage as long as I (or an employee) is on the same flight.

My annual premium is aproximately 1.3% of the average value of my covered inventory.

Fortunately, I have not had to make a claim so I can't speak to that aspect of the Lloyds/Hugh Wood coverage. However, I was extremely pleased at the effort to which they went to customize a policy to fit my business practices and have one policy that covered all possible circumstances (e.g., at shows, on premises, in transit, on consignment/memo to other dealers, etc.). I was not interested in a policy that required considerably more time/cost in order to be protected (for example, requiring all packages be sent by FedEx) and they worked very well with me to tailor the coverage.

WH

iras4

Like Wayne, I use the Hugh Woods Agency representing Lloyd's of London. Easy to work with and they also customized the policy for me, but I don't leave inventory in an unattended vehicle, so my premium costs are less as a consequence.

Ira Stein

UncleWiggly

Llyods of London is not an insurance company.



Jerry