Specie Insurance

Specie insurance is an important niche of the global insurance industry. Specie insurance can encompass valuable items during their transit. These valuable items include Diamonds, Bullion, Cryptocurrency, Cash, paintings and other high value items in transit. Specie insurance provides coverage against major loss of these items.

Listed below are Specie Insurance companies in USA and Canada.

No. USA Canada
1 AXA Insurance Company XL Specialty Insurance Company
2 Catlin Insurance Company, Inc. AXA Insurance Company - Canadian branch
3 Greenwich Insurance Company Lloyd’s Syndicate Coverage
4 Indian Harbor Insurance Company
5 XL Insurance America

Define a specie insurance niche

Specie insurance is a specialized coverage form that protects valuable goods, like bullion, cash, diamonds, valuable documents, fine arts and even cryptocurrency too, when they’re on location, in transit, or at a third-party location. In other words, Specie insurance is a niche product that covers high-value, transportable items.
specie insurance

Under specie policy a coverage is normally provided on an all risks of corporal loss or damage basis, with policy phrasings personalized to unique risk requirements. Specie insurance covered the core risks include damages or loss caused by natural perils, like flood, fire and windstorm, as well as theft or physical damage.


Specie insurance is a lesser known but very important niche as it is provided to protect the transit of most valuable and precious items.
What is actually covered under a specie policy?
Each insurer will have a different risk worries of what they want to cover under a specie policy.

So, here we are with some common items that may be covered with specie insurance:

1. Cash and securities:

In our everyday life, we’ve all seen the armored vans that pull up to banks and other financial institutions to bring together, and then move, large amounts of cash. Specie insurance protects this cash while it is in shipment. It also applies to other financial risks like currency, travelers checks, promissory notes, tax and other vouchers of a traversable nature. According to surveys, cash in transit theft is one of the more common causes of damage under specie insurance policies.

2. Bullion or Precious metals in their purified form:

Bullion can be silver, gold, platinum, palladium or any other precious metal. With the help of specie insurance, bullion’s journey, from extracted ore to the processing plant, to storage in a bullion bank, to a buyer can be made safe.

When people think of bullion, they might imagine shiny gold bars in a vault. However. Bullion technically is a decontaminated form of a precious metal, these precious metals can either be gold, palladium, silver, platinum, or other metal. It is mostly produced in bars, but bullion also can be in the form of large rounds or coins.

Now let’s take an example with gold, specie insurance can protect this precious metal at all points in its expedition, from mined ore to its irregular form, known as doré bars, from refineries that cleanse these doré bars according to established standards, to storage in a bullion bank before theses bars are relocated to a buyer.

A gold bullion bar, stereotypically at least 99% pure and weighs around 400 troy ounces, is called a ‘good delivery bar’ and at the current price of gold this good delivery bar worth more than $500,000. Now that’s the reason why bullion is usually stored in high-security vaults and transported in armored vehicles.
And specie insurance is there during the whole process.

3. Specie insurance for Diamonds and precious stones:

Diamonds are nature’s hardest known substance and is also one of the world’s most strenuous objects of value. The price per carat of diamonds varies due to its color, size, clarity, and other factors. The larger the diamonds, the rarer, they are and therefore more valuable.

A one-carat cut and polished diamond, for example, may raise more than $5,000 per carat, while in another case a two-carat diamond of the same quality and style velour four times as much per carat.

Diamonds and other precious gemstones are used in jewelry take journeys similar to that of Bullion, and specie insurance can them along the way from the mine to the cutter, to grader, to a jeweler and ultimately to the consumer.

Another important feature of the global diamond business is the Kimberley Process, which endorses the origin of rough diamonds to avert trade in conflict diamonds. Specie insurance thus countersigns a safe aide of diamond during each process.

4. Fine art:

Here comes one of the most common insurer risk profiles for specie.
Specie insurance can be used to protect valuable pieces of artistic media, including historical artifacts, ceramics, paintings, manuscripts, textiles, books and more.

5. Crypto-currencies:

In addition to the supervised and precise currency that is produced by governments, advanced forms of currency are also developing. Among these are cryptocurrencies such as Bitcoin, Cardano, etc.

Cryptocurrency is a relative newcomer to the specie game. One might fairly question: “How can you guard a digital asset in transit?” Well, that is one of the risks that specie guarantors are trying to wrap their arms around.

Though these digital currencies are produced through scientific mining, rather than struck from mined metals as corporal currencies are, they also are attractive targets for theft. Cryptocurrencies depicts present-day form of risk, and future-focused specie insurance sponsors are prepared to provide protection for customers.

6. Numismatics:

Numismatics is field spans minted coins, medals, paper currency, and related objects. Rare coins can be worth millions, such as Double Eagle, the 1933 $20 gold coin. Coins and currency are popular among accumulators, and various system of government around the world, include the American Numismatic Society, encourage the study of numismatics. And specie insurance is responsible for the secure transit of these Numismatics.

7. Cash in transit:

Businesses and financial institutions all around the world rely on armored transportation for cash supervision and to move large amounts of cash and currency. Specie insurance provides protection of cash and currency in transit.

Depending on the location Loss frequency is relatively high. The Federal Bureau of Investigation categorizes cash in transit robbery as a form of cargo theft.

In 2016, cargo theft from a vehicle was the most regular crime of that type in the United States, with more than one episode occurring every day.

8. Robbery:

Among all forms of specie, robbery is one of the primary causes of loss, and sometimes it is committed by or with the backing of employees. Physical damage and fidelity are insomnia-inducing risks for the possessors and transporters of high-value items. Specie coverage helps them sleep more soundly.

9. Automated teller machines (ATM) and the cash they contain:

A comparatively new twist on these brute-force approaches is stealing an entire ATM machine. Criminals around the world have committed smash-and-grab thefts for a long time. This sort of risk is on the rise as more financial foundations installed freestanding ATMs, separate from branches. Specie insurance is inevitable to compensate this type of loss.

Specie insurance covers cash, gold, diamond, cryptocurrency, bullion and other precious and sometimes rare valuable items like coins and paintings, etc.

What are the most common causes of loss under a specie policy?

According to global insurer Chubb, the principal causes of loss of all forms of specie are damaged, theft, or physical loss. The most common form of claims for gold and bullion in transit includes enigmatic disappearance, replacement or robbery committed either by an employee or by a third-party who has acknowledged insider information.

Though it is true that much of this risk can be counterbalanced by pre-emptive risk management, such as varying transit routes, interfere proof packaging, spot audit procedures, varying transit staff and some major losses are impossible to predict.

Other damages can arise from circumstances that simply can’t be controlled such as fire, a major accident to the travelling vehicle, flood, sophisticated large-scale robbery, or other natural disaster. The world has seen all of the above losses.

Specie insurance specialists also raise the issue of employee betrayal. A booklet provided by the insurance group states that, Due to the nature of the goods such as precious metals, cash, or other valuables, one of the most protruding risks is employee theft. It is therefore important for specie insurance that their policy addresses this exposure effectively.


The common causes responsible for the loss of a valuable item are fire, theft, large scale robbery, natural disaster and most of the cases an employee’s dishonesty. Specie insurance provides the owner a fulfillment over these loses.

Key buyers of specie insurance

Specie insurance policyholders will be the possessors, shippers or producers of incredibly valuable items. They may be mining companies or financial institutions on the commercial side. After them there are the sellers, like diamond dealers and traders, like the Packers, the transporters, and movers of fine art or bullion, and the institutional or individual collectors.

A specie insurance expert at Jardine Lloyd Thompson Group (JLT) explained that it is the responsibility of ATM service providers, cash-in-transit companies, gold refiners and other specie-related businesses procure insurance before trading with their customers. They further stated that these firms should insure the goods in their care and in many cases, insurance forms a part of the pledged terms provided by them to their customers.

Frequently Asked Questions (FAQs)

1. What is political risk insurance?

Political risk insurance saves you from the risk that you as an investment’s returns could suffer as a result of instability or political changes in a country.

2. What are the examples of political risk?

Riots, terrorism, civil wars, coups, international wars, and in some cases even elections that may change the ruling government. These are some of the examples of political risks that intensely affect business ability to operate.

3. What is contingency insurance?

A contingency insurance serves you during an event or condition is such as an emergency that may but is not certain to occur trying to provide for every contingency.

4. What is jewelers block insurance?

Jewellers Block Insurance is designed to provide coverage for loss of or damage to the stock of jewelry retailers, pawnbrokers, wholesalers, and manufacturers.

5. What does fine art and specie insurance cover?

This type of specie insurance protects fine art, cash, precious metals and high-value property, whether they are held on premises or in transit, against damage.

6. What is general specie insurance?

General Specie insurance is a type that covers everything from cash and securities, to miscellaneous valuable property risks, precious metals and specialist products such as Excess SIPC.


Though specie insurance provides a large-scale coverage over the loss of a valuable item, it is however a responsibility of an owner to safely transit their products to the consumer. The ever-growing damage and theft threats, has awakened the acknowledgment of the importance of specie insurance all over the world. But its services are widely available in the USA and at some places in Canada. It is now become inevitable in all countries to provide their dealers with a safe transit like Specie Insurance did.

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