Rising jewellery store robberies highlights need for sound risk strategies

The latest heist that occurred at a Midrand jewellery store, resulting in two shopping centre employees being shot, adds to the alarming growth in the number of armed robberies in the jewellery industry. Consequently, it is becoming increasingly critical

This is according to Natasha Maroun, Managing Director of Gem & Jewel Acceptances - a specialist insurance underwriter, writing on behalf of Compass Insurance Company Limited - who says it is highly alarming that the number of persons being injured or killed during jewellery store robberies is on the rise. “In 2011 two separate cases resulted in the deaths of two police officers who responded to armed robberies in jewellery stores.”

These incidents can be hugely traumatic for employees and customers, says Maroun. “Any kind of robbery is a distressing experience for those involved but when it becomes as serious as armed robbery or potentially even a hostage situation then it is crucial for those affected to be given assistance in dealing with the aftermath.”

She says a specialised insurance policy is able to offer a number of benefits specific to the retailers’ needs, such as trauma counselling, and shoplifting cover.

Maroun says even though there is a security presence in malls in general, the risk of armed robbery is always there.“Crime syndicates know there are many innocent customers and staff in stores, which reduces the likelihood of a retaliation by the security or staff in a specific store, for fear of innocent bystanders being harmed.”

She notes that implementing some form of access control at a store can be a very effective risk management measure. “In fact, sometimes an access control system is a necessity for an insurer to even consider insuring the risk, particularly if the shop is located in what is perceived to be a high risk area. However, this is not always the case and installing an access control system is not a factor used in determining the premium, so it cannot be used as a bargaining tool.”

“It is advisable for any jewellery retailer to consider some easy safety and risk management tips such as ensuring that sufficient trained staff are on duty at all times. Given that retailers also take on extra staff during busy periods, it is vital that students and inexperienced temporary staff are under supervision at all times.”

Maroun says other easy-to-implement advice includes keeping the number of items shown to any customer to a minimum at one time. “It is also important to be aware and vigilant when potential customers arrive in large groups or are joined during the visit by other people. If any suspicion arises, the store should have an action plan in place, for example, the panic button is to be activated in certain agreed circumstances, even prior to an adverse event occurring. Ideally this panic button should be linked to the centre security to ensure a quick response.”

“Given the increase in deaths and injuries related to jewellery store heists, it is imperative that appropriate security measures are implemented. However, one can never really determine when, where or how a theft may occur, so the best safety measure any jewellery store can have in place is a comprehensive insurance policy to cover against any loss,” concludes Maroun.