Hosiery Manufacturers Insurance Policy Information
Hosiery Manufacturers Insurance. Hosiery encompasses legwear such as tights, stockings, knee-highs, and medical compression stockings. While hosiery has a surprisingly long history, dating back even to the Romans, modern hosiery is typically manufacturers using synthetic fibers such as nylon and spandex. Hosiery made with natural fibers like silk caters to the luxury market, meanwhile.
Hosiery manufacturers knit fibers -- natural (silk and cotton) and synthetics (nylon) - into stockings, socks, or pantyhose. Hosiery may be produced from natural or synthetic fibers.
Natural fibers come from animal, plant, and insect sources, and include cotton, hair, linen, silk and wool. Common synthetic fibers include acrylic and nylon.
Natural and synthetic fibers are commonly blended to produce desired qualities such as absorbency, comfort, durability, or water resistance. The process starts with designing the item, knitting and sewing, applying treatments or finishes, boarding (steaming the hosiery into its desired shape), and packaging for shipment.
Hosiery is nearly always knit by machine on premises, then sewn by hand or machine. In the mass production of products such as tights and stockings, large machines such as circular knitting machines are employed, and much of the process is guided by computers.
The hosiery market is projected to grow over the long-term, and hosiery manufacturers of diverse sizes making a wide variety of different products can run profitable ventures.
Like companies in other fields, however, business in this industry also face a number of potentially-devastating perils - and investing in the proper hosiery manufacturers insurance is essential for business owners who want to do everything they can to protect their companies.
This short guide will offer some insights into the types of business insurance that may required.
Hosiery 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 hosiery manufacturing insurance questions:
- How Much Does Hosiery Manufacturers Insurance Cost?
- Why Do Hosiery Manufacturers Need Insurance?
- What Type Of Insurance Do Hosiery Manufacturers Need?
How Much Does Hosiery Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small hosiery manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Hosiery Manufacturers Need Insurance?
Even the most competent business owners face risks. Some are small in magnitude, meaning that you would be able to overcome them on your own. Others are larger in scale, and these perils could put your company in serious financial danger.
In both cases, the right insurance coverage can help your company recover from the setback.
The threats hosiery manufacturers have to consider include those common to all commercial ventures as well as those more specific to their own field.
Acts of nature are a prime example of a hazard that could affect any business - floods, hurricanes, earthquakes, and wildfires, for instance, all inflict different kinds of damage that could not only halt your production process but also ravage your facility.
Vandalism and theft are two more examples of threats that any company could fall victim to.
In the hosiery industry, companies will also deal with potential environmental and health hazards caused by the dying of fibers. Your company could be held responsible in cases of spills that affect the local water supply.
The flammability of the synthetic materials often used to make hosiery is another threat to consider; it could lead to serious workplace injuries as well as damaging your facility.
Companies can take steps to minimize these and other risks, but no safety plan can prevent all accidents and unforeseen circumstances. Hosiery manufacturers insurance protects you after something has already gone wrong, by helping you cover the resulting costs.
What Type Of Insurance Do Hosiery Manufacturers Need?
Manufacturers of all different kinds of hosiery will need to carry several kinds of insurance to optimally protect their businesses.
The exact policies that will best meet your needs depend on factors like the location of your manufacturing facility, your number of workers, and the materials and machines you work with.
A seasoned commercial insurance agent can help you build your hosiery manufacturers insurance plan once they are familiar with all these variables. With that in mind, these key types of insurance will certainly be on your list:
- Commercial Property: Any number of accidents and catastrophes could damage or destroy your physical assets; your facility, machinery, raw materials, inventory, and computers. Commercial property damage is designed to cover them in case of theft, vandalism, and acts of nature. It can also reimburse some of the revenue you may lose due to these hazards.
- General Liability: This kind of hosiery manufacturers insurance exists to cover you if a third party becomes injured on your premises, or your company's activities lead to third party property damage (including environmental damage caused by spills). That means both your legal and any settlement expenses, in case of a successful lawsuit, are covered.
- Product Liability: Designed to protect your company in the event your product caused third party injury or property damage, this kind of insurance is especially important to manufacturers of medical hosiery. Should your product not function as advertised, the resulting legal expenses are covered by this type of insurance.
- Workers' Compensation: In any field, workers can become injured on the job. In fields such as hosiery manufacture, that carry the potential for exposure to toxins, chronic occupational illness is another risk. Workers comp makes sure that employees don't have to worry about medical bills, and their lost wages are covered as well.
Keep in mind that businesses in this industry may need additional forms of hosiery manufacturers insurance; your commercial insurance broker can advise you further.
These key types will, however, go a long way toward protecting your company from the dangers it may face.
Hosiery Manufacturing's Risks & Exposures
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 coating 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 low to moderate as long as all government standards are met. Children's wear is typically subject to more stringent flammability requirements.
Environmental impairment exposure is light unless the manufacturer performs any yarn dyeing or chemical 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 exposure can be moderate to high. Injuries from production machinery are common, as are 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 to treat yarns and finished goods 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 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 or finished goods. Ignition sources include electrical wiring, heating systems, and production machinery. Chemicals used in dyeing or coating are often flammable and should be properly labeled, separated, and stored in approved containers.
Loose fibers and scraps from processing generate dust which can explode if ignited. This hazard increases in the absence of well-maintained dust collection equipment attached to the knitting and cutting stations. Yarns and finished hosiery are often highly combustible, especially if poorly stored without adequate aisle space and shelving.
Minor fires may result in major inventory losses. 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 the machinery) can cause a fire without a separate ignition source.
Sprinkler systems may be advisable. 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.
Equipment breakdown exposures include malfunctioning production equipment, dust collection and ventilation systems, electrical control panels and other apparatus. These should be properly maintained and records kept at a central location.
Crime exposure comes from employee dishonesty and theft of designer brands or exotic materials such as silk. 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 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 knitting machines), 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. Goods in transit may be damaged by fire, collision, overturn, and theft or water damage.
Business 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: 2251 Women's Full-Length And Knee-Length Hosiery, Except Socks, 2252 Hosiery, Not Elsewhere Classified
- NAICS CODE: 315110 Hosiery and Sock Mills
- Suggested ISO General Liability Code(s): 51896
- Suggested Workers Compensation Code(s): 2361
Description for 2251: Women's Full-Length And Knee-Length Hosiery
Division D: Manufacturing | Major Group 22: Textile Mill Products | Industry Group 225: Knitting Mills
2251 Women's Full-Length And Knee-Length Hosiery: Establishments primarily engaged in knitting, dyeing, or finishing women's and misses' full-length and knee-length hosiery (except socks) both seamless and full-fashion, and panty hose. Establishments primarily engaged in knitting, dyeing, or finishing women's and misses' knee-length socks and anklets are classified in Industry 2252. Establishments primarily engaged in manufacturing elastic (orthopedic) hosiery are classified in Industry 3842.
- Dyeing and finishing women's full-length and knee-length hosiery,
- Hosiery, women's full-length and knee-length, except socks
- Nylons, women's full-length and knee-length
- Panty hose, women's
- Stockings, women's full-length and knee length, except socks
- Tights, women's
Description for 2252: Hosiery, Not Elsewhere Classified
Division D: Manufacturing | Major Group 22: Textile Mill Products | Industry Group 225: Knitting Mills
2252 Hosiery, Not Elsewhere Classified: Establishments primarily engaged in knitting, dyeing, or finishing hosiery, not elsewhere classified. Establishments primarily engaged in manufacturing women's full-length and knee-length hosiery (except socks), and panty hose are classified in Industry 2251. Establishments primarily engaged in manufacturing elastic (orthopedic) hosiery are classified in Industry 3842.
- Anklets, hosiery
- Boys' hosiery
- Children's hosiery
- Dyeing and finishing hosiery, except women's full-length and
- Girls' hosiery
- Hosiery, except women's and misses' full-length and knee-length
- Leg warmers
- Men's hosiery
- Nylons, except women's full-length and knee-length
- Socks, slipper
- Stockings, except women's and misses' full-length and knee-length
- Tights, except women's
Hosiery Manufacturers Insurance - The Bottom Line
Not every hosiery manufacturers insurance policy is the same in coverage, premiums and exclusions. To learn if your hosiery manufacturing operation has the best fit insurance policies - talk to an experienced business insurance agent.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Psychedelic Drugs
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Vegetable Juice
- Wire Rope
- Wood Furniture
- Writing Instruments
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.