For members of the precious metals industry, effective risk management requires unique sophistication. Protection against loss from cash market price fluctuations requires carefully planned hedging investment strategies. Protection against loss from theft, embezzlement, insolvency of consignees and other unique or heightened industry risks requires a specially designed insurance program and innovative policies, such as the so-called "stock floater," designed to follow your owned or leased metals wherever they go. But even the best risk management design requires diligent follow-through: execution of the often mundane tasks of providing a broker with underwriting information or dealing with a broker or insurer in the event of a loss or claim. A misstep at this stage can cause forfeiture of coverage rights or, at a minimum, place an insurer in a position to delay your recovery or force you into expensive litigation.
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