Insurance for Apparel Manufacturers
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What Insurance Do Apparel Manufacturers Need?
Equipment Breakdown Insurance protects your equipment from breakdowns caused by motor burnout, power surges, boiler malfunction, and operating error. It covers you for the costs to replace or repair your damaged equipment, and other related expenses.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused sobody financial loss. PLI covers your legal defense costs, damages and settlements.
Business Interruption Insurance protects your small business if impacted by a covered risk. It'll cover the costs in replacing lost income and paying for additional expenditures. Also known as Business Interruption Coverage, this policy is usually part of your BOP (Business Owners Policy).
Frequently Asked Questions
Why do Apparel Manufacturers need insurance?
Manufacturing companies within this industry focus primarily focus on creating various forms of clothing, apparel, and accessories. This includes clothing for men, women, children and infants, handbags and footwear. Establishments in this industry will take raw materials, such as hides, furs, and textiles, and turn them into products for later sale.
As an owner of an apparel manufacturing business, you can expect many risks. Risks like property destruction by fire or natural disaster or losing inventory to a thief. Employees could sue for negligence or customers could claim that you are liable for an injury caused by the use of your product.
These are just some of many possible risks your business may see and the right insurance coverage will help you get back on your feet and continue on with your business if these events occur.
What risks do Apparel Manufacturers face?
Apparel Manufacturers face a lot of risks. The textile machinery that you use to produce apparel is prone to catching fire. This could risk destroying your entire supply of raw materials or worse, destroying your property. Some others may be:
- Your employees could get sick or injured during the manufacturing process.
- While transporting the finished product, one of your trucks is in an accident, leaving only 10% available for resale.
These are just some of the many risks Apparel Manufacturers face.
How much does insurance cost for apparel manufacturers?
The price of insurance depends on the type of textile manufacturing business you own and the number of policies you need to carry. There is no concrete amount as your insurance has unique needs. Call our customer service representatives to get a quote for your insurance.