EMMI INC. v. Zurich American Ins. Co.

This appeal involves the question of whether a jeweler's block insurance policy provides coverage when an insured's employee is standing behind his car when the automobile, which contains jewelry, is driven away by a thief. E.M.M.I. Inc., doing business as Universal Fine Jewelry (plaintiff), appeals from a summary judgment in favor of Zurich American Insurance Company (defendant). Plaintiffs salesperson, Brian Callahan, was outside his car inspecting a possible mechanical malfunction. The car, containing jewelry display cases, was stolen. The trial court concluded Mr. Callahan was not "actually in or upon" the car at the time of the theft, therefore, the jeweler's block insurance policy issued by defendant did not cover the loss. We agree. Accordingly, we affirm the judgment.

Jeweler's block insurance was conceived by Lloyds of London at the turn of the century. ( JMP Associates, Inc. v. St. Paul Fire & Marine Ins. Co. (1997) 345 Md. 630 , 693 A.2d 832, fn. 1 ; 70 N.Y.Jur.2d (1998) Insurance, § 1530; Annot., Construction and Effect of "Jeweler's Block" Policies or Provisions Contained Therein (1994) 22 A.L.R.5th 579 , Summary.) Jeweler's block insurance differs from…