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:
- What Is Hosiery Manufacturers Insurance?
- How Much Does Hosiery Manufacturers Insurance Cost?
- Why Do Hosiery Manufacturers Need Insurance?
- What Type Of Insurance Do Hosiery Manufacturers Need?
- What Does Hosiery Manufacturers Insurance Cover & Pay For?
What Is Hosiery Manufacturers Insurance?
Hosiery manufacturers insurance is a type of insurance coverage that is designed specifically for companies that produce and sell hosiery products. This type of insurance provides protection against various risks and exposures that are inherent in the hosiery manufacturing industry.
This can include protection against losses due to product liability, property damage, and business interruption, as well as coverage for workers' compensation, cyber security, and environmental liabilities. The insurance policy can be tailored to meet the specific needs and requirements of the hosiery manufacturer.
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.
What Does Hosiery Manufacturers Insurance Cover & Pay For?
Hosiery manufacturers, like any other business, can be sued for various reasons. Here are a few common scenarios where lawsuits might occur and the role of insurance in mitigating those risks:
1. Product Liability: If a hosiery product is defective or causes harm to a customer, the manufacturer can be sued for product liability. For instance, if a customer experiences a severe allergic reaction due to the dye used in the hosiery, they might file a lawsuit against the manufacturer. In such a case, a Product Liability Insurance policy can help. This insurance covers the cost of legal defense, settlements, and any court-ordered judgment costs related to the product liability claim.
2. Worker's Compensation: If an employee of the hosiery manufacturer gets injured while on the job, they may sue the company for compensation. In such an instance, having a Workers Compensation Insurance policy is beneficial. This policy typically covers medical expenses, rehabilitation costs, and a portion of the employee's lost wages. Moreover, it also has an Employer's Liability cover which can help pay for legal defense costs if the employer is sued for the incident.
3. Intellectual Property Infringement: Another manufacturer or designer may sue a hosiery manufacturer if they believe their patented designs or trademarks have been infringed upon. In such cases, Intellectual Property Insurance can help. This policy provides coverage for legal defense costs, and if the company is found guilty, it can also cover the financial damages awarded by the court.
4. Property Damage: If a fire, storm, or other disasters damage the manufacturer's facility, a third party may sue if they believe the manufacturer's negligence caused the incident. Commercial Property Insurance protects businesses against claims for property damage. It also covers the cost of repair or replacement of damaged property, minimizing out-of-pocket expenses.
5. Supply Chain Disruption: If a hosiery manufacturer fails to deliver goods on time due to supply chain issues, they might face a lawsuit from their business partners. Supply Chain Risk Insurance can protect the business in such situations. This policy covers financial losses incurred due to supply chain disruptions, including any legal costs associated with breach of contract lawsuits.
Overall, insurance is a crucial part of risk management for hosiery manufacturers. By transferring the financial risk to an insurance company, these businesses can focus on their primary objective: producing and selling quality hosiery products.
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 Workers Compensation Code(s): 2361 Hosiery Manufacturing
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.
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.
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The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
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.