Fur Garment Manufacturers Insurance

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Fur Garment Manufacturers Insurance Policy Information

Fur Garment Manufacturers Insurance

Fur Garment Manufacturers Insurance. Furs have been used for both exceptional warmth and status since the dawn of time, and fur garments like coats, stoles, hats, earmuffs, and mittens continue to to be used today. Garments with fur trimmings also fall into this industry.

Pelts like mink, rabbit, fox, and raccoon are all popular choices in the manufacture of fur clothing.

Fur garment manufacturers receive processed animal hides from tanneries and convert them into a wide range of apparel - primarily outerwear - for men, women, infants, and children.

The process consists of designing the item, developing patterns, cutting or punching the individual pieces, lacing or sewing the parts together, applying trims or clasps, treating or finishing, then packaging for shipment.

Little automation is possible in this type of operation. The cutting and sewing of each item is a labor-intensive process. Because of the varieties of materials and processes involved in production, the different phases of manufacture may be carried out in different locations or different countries.

With time, the fur industry has become a tightly-regulated field in many jurisdictions. The way in which furs are processed has evolved greatly as well. A wide variety of acids and other chemicals are used in fur processing, and many fur products are also dyed.

Companies that manufacture fur clothing are diverse; both mass-scale plants and small workshops exist in this industry, and they may process their fur and produce their garments in a factory operation or work largely by hand. Ultimately, this is a specialty business that will continue to thrive.

However, businesses in this industry do have to be mindful of the risks that face their operation. That is why we will examine what kind of fur garment manufacturers insurance are essential in protecting your interests.

Fur garment manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.

Below are some answers to commonly asked fur garment manufacturing insurance questions:


How Much Does Fur Garment Manufacturers Insurance Cost?

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small fur garment manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.


Why Do Fur Garment Manufacturers Need Insurance?

Insurance For Manufacturers

Running a business is hard and complicated work, and while those who own and manage companies that make fur garments will strive for excellence, the fact is that all commercial ventures face risks. Among the hazards fur garment manufacturers face are those shared by all businesses, but also those exclusive to your own field.

An act of nature, whether an earthquake, wildfire, hurricane, or lightning strike that then leads to fire, could have disastrous consequences - your manufacturing facility and the assets within could be severely damaged or even destroyed.

All companies have the risk of theft and vandalism, but in the face of growing opposition to the fur industry, yours may be more likely to fall victim than most.

Any company working with natural materials, including fur, has to consider the possibility that their raw materials could be compromised by pests.

Likewise, the fur industry comes with the risk of occupational illness, especially in the form of respiratory conditions following long-term exposure to dusts and fumes used in the processing of pelts. When a worker suffers any work-related injury or illness, it can lead to massive costs.

Without the business insurance your company needs, any of these situations - which can strike at virtually any time - could prove to be ruinous. That, in short, is why it is vital to invest in the right fur garment manufacturers insurance plan.


What Type Of Insurance Do Fur Garment Manufacturers Need?

The answer to this question is not simple; your exact insurance needs depend on factors such as your facility's location, the types of fur you use, your processing process, and your number of employees.

Your ideal insurance plan is, in other words, unique to you, and a skilled broker specializing in business insurance is best suited to advise you.

Some of the types of fur garment manufacturers insurance you will not want to overlook, however, are:

  • Commercial Property: If unforeseen circumstances including fire, theft, and vandalism strike your facility, this type of insurance protects your physical assets. The building and fixed assets inside (like machines and kitchens) are covered, whether you own or lease the property. Other business assets like computers, raw materials, and finished products are also covered, as well as personal property belonging to employees and third parties.
  • General liability: This kind of fur garment manufacturers insurance guards your company in case a third party files a personal injury or property damage claim. The costs it covers include attorney fees as well as settlement costs, meaning, for instance, third party medical or repair bills. Be aware that the kinds of perils against which business general liability insurance protects you differ from one insurance program to the next.
  • Product Liability: Some fur manufacturers will need product liability insurance, which protects you if your product causes illness to a consumer, but also if poor marketing decisions mean that the quality of your product was misrepresented. Likewise, it can cover events in which product recall becomes necessary.
  • Workers' Compensation: Essential for all but the very smallest businesses, workers comp offers employees who sustain work-related injuries or illness with monetary compensation to cover their medical bills and any lost wages.


The process of obtaining the right fur garment manufacturers insurance can be challenging, and a commercial insurance broker is vital in helping you get the coverage you need.

Together, you can craft an insurance plan that keeps your business safe from all possible threats.

Fur Garment Manufacturing's Risks & Exposures

Manufacturing

Premises liability exposure is normally low due to limited access by visitors. If the manufacturer has a showroom or offers tours, visitors may be injured by slips, trips, or falls. Chemicals used in the tanning and finishing may be corrosive and/or toxic. Fumes, spills or leaks may cause serious injury or property damage to neighboring premises.

Products liability exposure is normally very light unless infants' or children's clothing is manufactured. Warnings and age-appropriate information are very important, as are product recall procedures. Governmental regulations, guidelines and standards must be observed.

Environmental impairment exposure is light unless the manufacturer performs the tanning, dyeing or treating. Fumes and improper disposal of scrap can result in air, ground, or water contamination. Disposal procedures must adhere to all EPA and other regulatory standards.

Workers compensation exposures can be moderate to high. Injuries from production machinery are common, as are puncture wounds, burns, cuts, slips, trips, falls, foreign objects in the eye, hearing loss from machinery noise, and back injuries from lifting. Employees should be provided with safety training and protective equipment.

Areas that generate dust require respiratory protection devices, as well as eye protection and eye wash stations. Flammable liquids and chemicals used for processing and finishing can cause skin irritation, eye irritation and possible long-term occupational disease.

The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair.

Repetitive motion injuries can result from ongoing use of machinery. Workstations should be ergonomically designed.

Safety consciousness and commitment of management, especially in the form of ongoing enforcement and awareness programs, are important considerations. A large amount of the piece work may be done by individuals whose status (employee or independent contractor) must be clear.

Property exposures consist of an office, production plant, and warehouse for raw materials and finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Chemicals used in dyeing, finishing or tanning are often flammable and should be properly labeled, separated, and stored in approved containers.

Cutting, punching, and sewing generate dust which can catch on fire. This hazard increases in the absence of well maintained dust collection systems. Loose fibers and scraps from processing furs are combustible and add to the fuel load. Furs are susceptible to damage by fire, smoke, water and humidity.

Poor housekeeping, such as failure to collect and dispose of scraps on a regular basis, could contribute significantly to a loss. Unless disposed of properly, greasy, oily rags (such as those used to clean machinery) can cause a fire without a separate ignition source.

High-valued items may be targets for theft. In some areas, there may also be a vandalism exposure from PETA protesters. Appropriate security controls must be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.

The property coverage theft limitation for fur products will require the purchase of a separate furriers block policy.

Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained.

Crime exposure comes from employee dishonesty and theft due to the relatively high value of fur items. Employees may act alone or in collusion with outsiders in stealing money, raw materials or finished stock.

Background checks should be conducted on all employees. There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. There should be security methods in place to prevent theft.

Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), exhibitions, goods in transit, and valuable papers and records for customers' and suppliers' information. Backup copies of all records should be made and stored off premises.

Furriers block coverage will be required because of the theft limitation on furs, fur garments and fur-trimmed garments. Goods in transit may be damaged by fire, collision, overturn, theft, and water damage. Because of the high market value of fur garments, vehicles should be locked, fitted with alarms, and not left unattended once loaded or during transport.

Commercial auto exposure may be high if the manufacturer transports raw materials or finished products. Manufacturers generally have private passenger fleets used by sales representatives. There should be written procedures regarding the private use of these vehicles by others.

Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.

Commercial Insurance And Business Industry Classification

  • SIC CODE: 2371 Fur Goods
  • NAICS CODE: 315280 Other Cut and Sew Apparel Manufacturing
  • Suggested ISO General Liability Code(s): 53631
  • Suggested Workers Compensation Code(s): 2501

Description for 2371: Fur Goods

Division D: Manufacturing | Major Group 23: Apparel And Other Finished Products Made From Fabrics And Similar Materials | Industry Group 237: Fur Goods

2371 Fur Goods: Establishments primarily engaged in manufacturing fur coats, and other clothing, accessories, and trimmings made of fur. Establishments primarily engaged in manufacturing sheep-lined clothing are classified in Industry 2386, and those engaged in dyeing and dressing of furs are classified in Industry 3999.

  • Apparel, fur
  • Capes, fur
  • Caps, fur
  • Clothing, fur
  • Coat linings, fur
  • Coats, fur
  • Fur finishers and liners for the fur goods trade: buttonhole making
  • Fur plates and trimmings
  • Glazing furs
  • Glove linings, fur
  • Hats, fur
  • Jackets, fur
  • Mounting heads on fur neckpieces

Fur Garment Manufacturers Insurance - The Bottom Line

Fur garment manufacturers insurance policies differ in premiums and coverage - sometime by a large margin. You can see if your business has the best fit insurance policies by talking to an experienced commercial insurance broker.

Often they are able to save you on premiums and offer you better policy options than you currently have.

Types Of Small Business Insurance - Requirements & Regulations

Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.

Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.

Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.

Small Business Information

Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.

Small Business Insurance Information

In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.

The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.

Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.

According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.

Types Of Small Business Insurance

Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:

  • What type of business am I running?
  • What are common risks associated with this industry?
  • Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
  • Does my state require me to carry this type of insurance?
  • Does my lender or do any of my investors require me to carry this type of policy?

A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:

Business Insurance Policy Type What Is Covered?
General Liability InsuranceWhat is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.
Workers Compensation InsuranceWhat is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.
Product Liability InsuranceWhat is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.
Commercial Property InsuranceWhat is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.
Business Owners Policy (BOP)What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.
Commercial Auto InsuranceWhat is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.
Commercial Umbrella PoliciesWhat is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.
Liquor Liability InsuranceWhat is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.
Professional Liability (Errors & Omissions)What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.
Surety BondWhat is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).


Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.

Business Insurance Required by Law
Small Business Commercial Insurance

If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.

Your insurance agent can help you check applicable state laws so you can bring your business into compliance.

Other Types Of Small Business Insurance

There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:

  • Business Interruption Insurance
  • Commercial Flood Insurance
  • Contractor's Insurance
  • Cyber Liability
  • Data Breach
  • Directors and Officers
  • Employment Practices Liability
  • Environmental or Pollution Liability
  • Management Liability
  • Sexual Misconduct Liability

Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.

Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.

Additional Resources For Manufacturing Insurance

Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.


Manufacturing Insurance

For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.

Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.

The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.

Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.

In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.

What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.

Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.

Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.

The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.

Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.

Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.


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