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Leather Apparel Manufacturers Insurance Policy Information

Leather Apparel Manufacturers Insurance

Leather Apparel Manufacturers Insurance. Leather apparel - ranging from jackets, coats, and hats to boots, pants, and gloves - is synonymous with strength and durability.

Leather apparel manufacturers receive processed animal hides from tanneries and convert them into a wide range of apparel 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.

Although some automation may be possible in the cutting process, sewing of individual items is often a labor-intensive process. Because of the varieties of materials and processes involved in the production, the different phases of manufacture may be carried out in different locations or different countries.

A complex manufacturing process precedes consumer satisfaction, however. Whether the skin or hide originates from cattle, horses, pigs, or even fish, leather processing requires numerous steps. Preserving, soaking, liming, fleshing, and deliming are just some of them.

Companies that produce leather apparel may be responsible for the full process, from start to finish, or they may work with pre-processed hides and skins to design, cut, and sew leather clothing.

Leather apparel manufacturers of diverse sizes can take pride in producing goods that will last consumers for many years, but they are also subject to a range of risks that may jeopardize their company's financial health at any time.

This is why it is crucial to be informed about the kinds of insurance that can help you recover from unforeseen circumstances.

What kinds of leather apparel manufacturers insurance should firms in this industry carry? Find out more by reading this succinct guide.

Leather apparel 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 Leather apparel manufacturing insurance questions:

How Much Does Leather Apparel Manufacturers Insurance Cost?

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

Why Do Leather Apparel Manufacturers Need Insurance?

Insurance For Manufacturers

While you strive to run a successful business, a whole spectrum of hazards - all of them costly - may affect your company at any time. Should anything go wrong, the time for prevention will already be over, but a comprehensive insurance program can still protect you from the financial fallout.

Leather apparel manufacturers own valuable property that may include their manufacturing facility, manufacturing equipment such as sewing machines, computers, and raw materials. They may also store finished goods waiting to be shipped out to buyers.

Acts of nature like wildfires, hurricanes, earthquakes, and serious floods can easily result in significant damage or loss as well as costly business interruptions.

There is also the risk that an employee or a third party could suffer an accident and sustain injuries on your property. If you run a small business engaged in direct sales, data breaches in which customer data becomes publicly available is another threat to consider.

Without the right leather apparel manufacturers insurance coverage, these and other risks could have devastating and even bankrupting financial repercussions.

What Type Of Insurance Do Leather Apparel Manufacturers Need?

Companies that make leather apparel are diverse in scope and size. Small workshops and mass scale factories both have a place in this industry.

Your particular company's insurance needs are determined by factors that include your size, including your number of employees, but also the value and nature of the equipment you use to make leather apparel.

The jurisdiction within which your facility is based also plays an important role, as certain types of insurance may be mandated.

To begin discovering what types of leather apparel manufacturers insurance are most suitable for your unique business, talk to a commercial insurance agent. The types of coverage they will advise you to get include:

  • Commercial Property: This type of insurance shields leather apparel manufacturers from the costs associated with property loss or damage arising from perils like theft, fire, vandalism, and earthquakes. Revenue lost to this damage may also be covered. Be aware that flood insurance is often sold as a separate policy.
  • General liability: If someone were to become injured on your property, or if your company's activities were to lead to third party property damage, costly and drawn-out lawsuits are likely to follow. This type of leather apparel manufacturers insurance helps to cover your legal expenses as well as any settlement costs (such as repair or medical bills).
  • Product Liability: This form of insurance covers liability claims relating to products you manufacture. It can protect you in case a product you manufactured causes injury to third parties (including because marketing claims you have made about its properties do not live up its actual performance), but may also protect you if you need to recall a product due to manufacturing errors.
  • Workers' Compensation: Designed to protect both employees and businesses, this type of insurance covers the medical expenses as well as any lost wages for an employee who sustains a workplace injury for which your company can be held liable.

If your company uses vehicles, you will further need commercial auto insurance, and to protect yourself from costs associated with equipment breakdown or business interruptions, additional types of leather apparel manufacturers insurance are also available.

Meeting a commercial insurance broker should be your next step in evaluating your needs.

Leather apparel 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 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 usually light unless infants' or children's clothing are 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 any dyeing, finishing, or tanning. 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 dyeing, finishing or tanning 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 the 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 buffing operations 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 leather are combustible and will add to the fuel load. Leather is 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.

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 street value of leather 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. Goods in transit may be damaged by fire, collision, overturn, theft, and water damage. Because of the high market value of leather garments, vehicles should be locked, fitted with alarms, and not left unattended once loaded or during transport.

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

Description for 2386: Leather and Sheep-Lined Clothing

Division D: Manufacturing | Major Group 23: Apparel And Other Finished Products Made From Fabrics And Similar Materials | Industry Group 238: Miscellaneous Apparel And Accessories

2386 Leather and Sheep-Lined Clothing: Establishments primarily engaged in manufacturing leather and sheep-lined clothing. Establishments primarily engaged in manufacturing leather gloves and mittens are classified in Industry 3151, and those manufacturing fur clothing are classified in Industry 2371.

  • Caps, leather
  • Clothing, leather or sheep-lined
  • Coats, leather or sheep-lined
  • Garments, leather or sheep-lined
  • Hats, leather
  • Jackets, leather (except welders') or sheep-lined
  • Pants, leather
  • Vests, leather or sheep lined

Description for 2371: Fur Good

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

2371 Fur Good: 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

Description for 3151: Leather Gloves And Mittens

Division D: Manufacturing | Major Group 31: Leather And Leather Products | Industry Group 315: Leather Gloves And Mittens

3151 Leather Gloves And Mittens: Establishments primarily engaged in manufacturing dress, semidress, and work gloves exclusively of leather or leather with lining of other material. Establishments primarily engaged in manufacturing sporting and athletic gloves are classified in Industry 3949; those manufacturing dress, semidress, and work gloves and mittens of cloth or cloth and leather combined are classified in Industry 2381; and those manufacturing safety gloves are classified in Industry 3842.

  • Dress and semidress gloves, leather
  • Gloves, leather
  • Mittens, leather
  • Welders' gloves
  • Work gloves, leather

Leather Apparel Manufacturers Insurance - The Bottom Line

Leather apparel manufacturers insurance policies can be very different in coverage and costs. You can discover if your business has the best fit insurance policies by chatting with 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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