Picture this: You have just left a department store with a brand new Rolex. In your excitement, you begin to unbox the watch as you exit the store into the parking lot. As you approach your vehicle, you trip. And as you’re falling forward, your brand new watch crashes to the ground, shattering before your eyes.

If you used your American Express card to make the purchase, you’re covered! That’s because AMEX protects all of your purchases for 90 days from the purchase date. In the event of the Platinum card, each item is covered up to $10,000 and you’re eligible for up to $50,000 in annual protection on your purchases.

Covered events include damage, theft or loss.

Filing a claim is easy, and can be done online. Proof of loss is submitted in the form of a receipt, photograph or police reports.

Purchase protection reimburses the lesser of A) the cost to repair the item, B) the cost to replace the item or C) reimbursement for the item.

Coverages vary by card, and there are plenty of reasonable exclusions. For that full list, visit the AMEX Site directly.

Purchase protection is a compelling reason to use your credit card for every purchase possible; as long as you’re following up by making that balance payment in full at the end of the month to maximize your benefits without incurring any of those interest charges.