Bullion & Precious Metals Dealer Insurance UK
Bullion and precious metals dealers in the UK are insured under a specialist block-style policy that covers gold, silver, platinum and coin stock in a vault, on premises and in transit. Because bullion is portable, anonymous once melted and easy to resell, underwriters treat it as one of the highest theft risks in retail. Cover is placed through Lloyd's syndicates and specialist MGAs, and the premium and terms are driven by where the metal is kept, the grade of safe or strongroom, alarm and police response, how stock moves between vault, shop and customer, and how you buy metal from the public. Most dealers keep the bulk of their stock in a professional vault and insure a lower limit on site, because the difference in premium and acceptability between the two is usually significant. A complete programme usually adds liability, crime and cyber cover, and some dealers buy a specialist kidnap and extortion add-on.
Need bullion dealer insurance?
Cover for vaulted and on-premises metal, transit and buy-back stock. Get a quote online or speak to a specialist broker directly.
Key facts at a glance
- Location drives the rating. Vaulted metal is far cheaper to insure than metal held on site.
- Safe limits are strict. Each safe's grade sets the maximum value you can hold in it overnight.
- Transit is a separate exposure. Secure carriers and hand-carrying carry their own limits and conditions.
- Buy-back needs checks. Buying from the public raises theft, title and money laundering questions.
- Crime and cyber sit alongside. Staff dishonesty and payment fraud are not part of block cover.
How is bullion stock insured in a vault and on premises?
If you store metal in a third-party vault, check whether the vault operator's own insurance protects your holding or only their liability to you, and whether your stock is allocated and identifiable. Many dealers insure it themselves under their own policy to avoid gaps. For metal on site, underwriters want accurate daily stock records, a clear policy on how much is moved out of the vault each day, and the grade of every safe.
| Location | Typical underwriter focus |
|---|---|
| Professional vault | Vault operator, allocation of stock, the operator's own cover |
| Own safe or strongroom | Safe grade and rating, anchoring, alarm with police response |
| Out of safe during trading | Locked-door entry, counter screens, CCTV, staff numbers |
| In transit | Secure carrier, declared value, hand-carry rules |
| Customers' metal held | Bailee terms, storage records, separation from own stock |
What safe limits apply to precious metals?
Before buying a safe, ask your broker what limit it will support for bullion, not just for cash or jewellery. Weight matters too: a heavy, anchored safe in a monitored strongroom is a very different risk from a smaller unit in a back office.
How is bullion insured in transit?
Hand-carrying is the exposure that worries insurers most. Expect conditions on routes, varied timings, two-person carrying above a set value, and no stops on the way. Postal deliveries of coins to online customers are usually insured within a set per-parcel limit, with signed-for, fully declared services.
What do insurers expect when you buy metal from the public?
- Verified photo ID and proof of address for every seller
- A record of items, weights, assay marks and photographs
- Payment by bank transfer to the seller's own account
- Escalation rules for unusual quantities or repeat sellers
- Retention of records for the period your obligations require
Do bullion dealers need HMRC supervision?
This is not an insurance requirement as such, but a weak compliance position can affect how underwriters view the business, and regulatory fines are generally not insurable.
What about online dealing, cyber and crime?
Chargebacks on card payments are generally a trading risk rather than an insured loss, so many dealers limit card payments for larger orders. See our cyber insurance page, and our crypto business insurance guide if you also deal in digital assets.
Is kidnap and extortion cover worth considering?
For the wider picture, read our pillar on jewellers block insurance and our guides to pre-owned watch dealer insurance and jewellery workshop insurance.
Frequently asked questions
Not necessarily. The vault's cover may only protect its own liability. Confirm what it covers and insure the gap under your own policy.
It is difficult to insure. Most markets will offer little or no cover at home unless security is exceptional.
They can be, under a customers' goods extension, provided they are recorded and kept separate from your own stock.
Policies usually settle on the metal's value at the date of loss or your cost, so check the basis and keep sums insured under review as prices move.
Usually not, or only in a limited way. Employee dishonesty is normally insured under a separate crime policy.
Often yes, with improved security. See our guide to insurance after a robbery or theft claim.
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