Providing a stone to jeweler for setting - what protections needed?

[diamondzzzz]

Hello all,

I am having a stone set in a vintage setting that I have procured through a local jewelry dealer (who has a storefront and is very reputible) here in town. The dealer sells many vintage pieces, and has the setting work done by a custom jeweler (who I have met at the store and talked to about the setting process and who they use for all their pieces that they re-sell).

I have concerns about lending such a valuable item to the store and then in turn them giving it to the jeweler for setting. What I should do to ensure that I am protected in any of the following unlikely but possible events:

1) Dealer gets robbed or damages the stone after I provide it to them.
2) Jeweler gets robbed or damages the stone after the dealer provides it to them.


I have no reason to suspect or believe that any of this will happen, but the fact remains that it could and I don''t want to get caught up into a murky legal situation. The stone/ring is insured by Chubb but I am still concerned.

What should I do to protect myself? I know this goes on all the time, so there has got to be some info out there on what to do. I was thinking of having something for the store to sign, etc, that would do the following:
1) acknowledging receipt of the specific stone/ring I provided them including a copy of the cert.
2) accepting liability for any damages or loss that may occurr upon receipt of the diamond by themselves or their subcontractors.

What do you all suggest?

 

[denverappraiser]

#1 Get it appraised.
This provides you with a benchmark of exactly what you have as of a particular date and after control moved from the seller to you. While at the appraiser’s, have the appraiser point out the distinctive attributes to your stone and teach you how to recognize it. Get a loupe and practice with it.

#2 Get it insured immediately. This doesn’t prevent the jeweler (or anyone else) from damaging or stealing your property but it does make it your insurance company’s problem instead of yours. Most insurers won''t bind a policy on an unmounted stone but some, most notably Jewelers Mutual, will. Talk to your agent about what you want to do.

#3 Choose a jeweler who has a written policy agreeing to take responsibility for your property while in their care, including the risk of damage while setting. It’s worth noting that less than all jewelers agree to this and the ones who do are usually not the cheapest.

#4 Get a receipt from the jeweler when you drop off the ring and/or stone for setting and have an inventory on the receipt of what you left with them. Most jewelers will inspect it for pre-existing damage right away, while you’re still in the showroom but this should definitely be encouraged. It helps protect them and it allows them the possibility of selling additional repairs so there’s no reason that they should object.

#5 Inspect the piece when you pick it up both for craftsmanship problems and to be sure it’s the correct stone and that it’s undamaged. If you see something that seems like a problem to you, bring it up immediately and discuss it.

#6 If you feel that there is a problem like a damaged or switched and the store can’t or won’t address it to your satisfaction, take it back to the appraiser and document that it’s different (assuming, of course, that it is) and then file a claim against your insurance. That’s what you’re paying them for. They’ll take it up with the jeweler. They may or may not be able to prove their case to the satisfaction of a court but this becomes their problem, not yours. Assuming there are no other issues at play, this would be a covered loss under any jewelry policy I’ve ever read.

Neil Beaty
GG(GIA) ICGA(AGS) NAJA
Professional Jewelry Appraisals in Denver