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Leather Goods Manufacturers Insurance Policy Information

Leather Goods Manufacturers Insurance. Outside of the apparel industry, manufacturers of leather goods craft an extensive range of durable products - and handbags, wallets, suitcases, upholstery, sporting goods like baseball gloves and cricket balls are merely some of many examples.

Leather products manufacturers receive processed animal hides from tanneries and convert them into a wide range of goods including luggage, handbags or purses, sporting goods, straps, upholstery, and decorative items.

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 and then the packaging for shipment.

Although some automation may be possible in the cutting process, the sewing of individual items 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.

Companies that make leather goods will typically select the best hides or skins for their products from tanneries, design their goods, and craft them in a process that includes cutting and sewing.

Within this diverse industry, there is space for both small workshops and larger factories that mass-produce leather goods to thrive. If you own and operate a company that makes diverse leather goods, regardless of the size of your business, you know that you are surrounded not only by opportunity, but also by risk.

Do you have an insurance plan you can count on in the event that anything were to go wrong? To discover what types of leather goods manufacturers insurance companies making non-apparel leather goods may need, keep reading.

Leather goods 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 goods manufacturing insurance questions:

• What Is Leather Goods Manufacturers Insurance?
• How Much Does Leather Goods Manufacturers Insurance Cost?
• Why Do Leather Goods Manufacturers Need Insurance?
• What Type Of Insurance Do Leather Goods Manufacturers Need?
• What Does Leather Goods Manufacturers Insurance Cover & Pay For?

Why Do Leather Goods Manufacturers Need Insurance?

While the manufacture of leather goods as varied as decorative items or sporting goods is not as hazardous as some other fields within the category of manufacture, your business remains exposed to a spectrum of perils.

Just like other companies, yours could be hit by an act of nature - an earthquake, hurricane, serious flood, a wildfire, or a lightning strike that could also ignite a fire.

Crime is another universal risk that your field is not immune to. Both burglary and vandalism could inflict serious property damage as well as leading to losses.

These unforeseen events can cause massive immediate financial loss, as well as jeopardizing future revenue.

Should an employee become injured as they manufacture leather goods, or even as the result of a fluke accident like slipping on a wet floor, you should further be aware that your company is likely to be held responsible for the resulting costs.

The same could happen if a third party - whether a purchaser or someone who comes in to service a sewing machine - suffers an injury on your premises.

These examples of costly perils all explain why manufacturers of leather goods need to protect their business by investing in comprehensive insurance coverage.

With the right leather goods manufacturers insurance, you will have peace of mind that it is possible to recover from almost any disaster.

Although these important types of leather goods manufacturers insurance form the meat of any insurance plan, you may also have additional perils to protect yourself against.

This is why talking to an agent specializing in commercial insurance is a step that should not be skipped.

Leather Goods 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 varies depending on the items produced. Exposures could be light for handbags or purses, but heavy for sporting goods or safety and restraining straps. Warranties and guarantees should be reviewed.

Quality control is important, including thorough inspection and documentation. 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 from 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 leather items are particular targets for theft. 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 in a central location.

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 goods, 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.

What Does Leather Goods Manufacturers Insurance Cover & Pay For?

Leather goods manufacturers can face several types of lawsuits due to a variety of reasons. These could range from product liability cases to employee-related issues. Insurance is often used as a risk management tool to cover the financial burden of such potential legal suits. Here are a few examples:

1. Product Liability: If a leather product causes injury or harm to a customer due to a defect or failure to provide adequate instructions for use, the manufacturer could be held responsible. For instance, a leather belt buckle that breaks and causes injury could lead to a lawsuit.

Insurance Solution: Product Liability Insurance can help in such cases. It is designed to protect businesses that manufacture, distribute, or sell products from financial loss due to a defect product that causes injury or bodily harm. It would cover the legal fees, settlements, and any awarded damages.

2. Workers' Compensation: If an employee gets injured while working - say due to a machine malfunction or exposure to harmful chemicals used in leather processing - the company could be sued for compensation.

Insurance Solution: Workers' Compensation Insurance can cover these costs. It typically covers medical expenses, rehabilitation costs, and lost wages for the injured employee. It also provides employer's liability coverage, which can cover legal fees and damages if the employee sues the business over the injury.

3. Environmental Lawsuits: Leather processing involves chemicals that can potentially harm the environment. If a company is found to be improperly disposing of waste or causing environmental damage, they could face a lawsuit.

Insurance Solution: Environmental or Pollution Liability Insurance can help cover the costs associated with such lawsuits. This insurance can cover the cleanup costs, legal defense costs, and any fines or penalties imposed by regulatory bodies.

4. Intellectual Property Infringement: If a manufacturer is accused of copying the design of another company's leather goods, they could be sued for intellectual property infringement.

Insurance Solution: Intellectual Property Insurance can help protect businesses from the costs associated with such claims. It could cover legal defense costs, any awarded damages, and even profits lost if the company is required to stop selling the infringing product.

5. Employment Practices Liability: If an employee sues the company for issues such as wrongful termination, discrimination, or harassment, the company could face significant legal expenses.

Insurance Solution: Employment Practices Liability Insurance (EPLI) provides coverage for such cases. It typically covers legal fees, settlements, and any damages awarded to the plaintiff.

In each of these scenarios, having the right insurance coverage can help a leather goods manufacturer navigate the potentially high costs of a lawsuit, ensuring the financial stability and ongoing operation of the business.

Commercial Insurance And Business Industry Classification

• SIC CODE: 3161 Luggage, 3171 Women's Handbags And Purses, 3172 Personal Leather Goods, Except Women's Handbags And Purses, 3199 Leather Goods, Not Elsewhere Classified
• NAICS CODE: 316998 All Other Leather Good and Allied Product Manufacturing
• Suggested Workers Compensation Code(s): 2683 Luggage Manufacturing, 2688 Leather Goods Manufacturing NOC

Description for 3161: Luggage

Division D: Manufacturing | Major Group 31: Leather And Leather Products | Industry Group 316: Luggage

3161 Luggage: Establishments primarily engaged in manufacturing luggage of leather or other materials.

• Attache cases, regardless of material
• Bags (luggage), regardless of material
• Binocular cases
• Boxes, hat: except paper or paperboard
• Briefcases, regardless of material
• Camera carrying bags, regardless of material
• Cases, luggage
• Luggage, regardless of material
• Musical instrument cases
• Sample cases, regardless of material
• Satchels, regardless of material
• Shoe kits, regardless of material
• Suitcases, regardless of material
• Traveling bags, regardless of material
• Trunks, regardless of material
• Valises, regardless of material
• Wardrobe bags (luggage)

Description for 3171: Women's Handbags And Purses

Division D: Manufacturing | Major Group 31: Leather And Leather Products | Industry Group 319: Leather Goods, Not Elsewhere Classified

3171 Women's Handbags And Purses: Establishments primarily engaged in manufacturing women's handbags and purses of leather or other materials, except precious metal. Establishments primarily engaged in manufacturing precious metal handbags and purses are classified in Industry 3911.

• Handbags, women's: of all materials, except precious metal
• Pocketbooks, women's: of all materials, except precious metal
• Purses, women's: of all materials, except precious metal

Description for 3172: Personal Leather Goods

Division D: Manufacturing | Major Group 31: Leather And Leather Products | Industry Group 319: Leather Goods, Not Elsewhere Classified

3172 Personal Leather Goods: Establishments primarily engaged in manufacturing small articles normally carried on the person or in a handbag, such as billfolds, key cases, and coin purses of leather or other materials, except precious metal. Establishments primarily engaged in manufacturing similar personal goods of precious metals are classified in Industry 3911.

• Billfolds, regardless of material
• Card cases, except precious metal
• Cases, jewelry: regardless of material
• Checkbook covers, regardless of material
• Cigar cases, except precious metal
• Cigarette cases, except precious metal
• Coin purses, regardless of material
• Comb cases, except precious metal
• Compacts, solid leather
• Cosmetic bags, regardless of material
• Eyeglass cases, regardless of material
• Handbags, men's: regardless of material
• Key cases, regardless of material
• Leather goods, small: personal
• Pocketbooks, men's: regardless of material
• Purses, men's: regardless of material
• Sewing cases, regardless of material
• Tobacco pouches, regardless of material
• Toilet kits and cases, regardless of material
• Vanity cases, leather
• Wallets, regardless of material
• Watch straps, except metal

Description for 3199: Leather Goods, Not Elsewhere Classified

Division D: Manufacturing | Major Group 31: Leather And Leather Products | Industry Group 319: Leather Goods, Not Elsewhere Classified

3199 Leather Goods, Not Elsewhere Classified: Establishments primarily engaged in manufacturing leather goods, not elsewhere classified, such as saddlery, harnesses, whips, embossed leather goods, leather desk sets, razor strops, and leather belting. Establishments primarily engaged in manufacturing gaskets and packing are classified in Industry 3053. Establishments primarily engaged in manufacturing leather and sheep-lined clothing are classified in Industry 2386.

• Aprons, leather: e.g., blacksmiths', welders'
• Aprons, textile machinery: leather
• Bags, feed: for horses
• Belt laces, leather
• Belts, safety: leather
• Boots, horse
• Boxes, leather
• Burnt leather goods for the trade
• Collars and collar pads (harness)
• Corners, luggage: leather
• Crops, riding
• Desk sets, leather
• Dog furnishings, leather: e.g., collars, leashes, harnesses, muzzles
• Embossed leather goods for the trade
• Fly nets (harness)
• Halters (harness)
• Handles, whip and luggage: leather
• Harnesses and harness parts
• Helmets, except athletic: leather
• Holsters, leather
• Jackets, welders': leather
• Lashes (whips)
• Leather belting for machinery: flat, solid, twisted, and built-up
• Leggings, welders': leather
• Mill strapping for textile mills, leather
• Novelties, leather
• Puttees, canvas and leather
• Razor strops
• Saddles and parts
• Seatbelts, leather
• Sleeves, welders': leather
• Spats
• Stirrups, wood and metal
• Straps except watch straps: leather
• Whips horse
• Whipstocks

Leather Goods Manufacturers Insurance - The Bottom Line

Leather goods manufacturers insurance policies can be very different in coverage, premiums and exclusions. You can see if your manufacturing business has the best fit insurance policies by talking to an experienced commercial 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.

• 3D Printing
• Adhesives
• Alarms
• Audio & Video Equipment
• Auto Parts
• Bottling Plants
• Boxes
• Bricks
• Brooms & Brushes
• Buttons
• Cabinets
• Camping Equipment
• Canned Fruit & Vegetables
• Cans
• Canvas Products
• Caskets
• CBD Oil And Hemp
• Cement
• Ceramics
• Chemical
• Clock & Watch
• Clothing
• Coffee
• Commercial Air Conditioning
• Commercial Electronics
• Communications Equipment
• Computers
• Condoms
• Construction Equipment
• Cork Products
• Cosmetics
• Cutlery
• Dairies & Creameries
• Down And Feather Products
• Dry Ice
• Dyes & Pigments
• Electronic Toys & Games
• Electroplating
• Elevators
• Engines
• Exercise Equipment
• Farm Equipment
• Feed & Grain
• Fences
• Fertilizer
• Fireworks
• Flavoring Extracts
• Frozen Foods
• Fruit Juice
• Fur Garment
• Garage Door
• Gears
• Glass
• Glasswear
• Gypsum Products
• Hosiery
• Ice Cream
• Industrial Equipment
• Ink
• Insecticides
• Iron & Steel Foundries
• Jewelry
• Lawn Mowers
• Leather Apparel
• Leather Goods
• Lighting & Wiring
• Lumber & Wood Products
• Machine Shop
• Major Electrical Appliances
• Manufacturing
• Marijuana Products
• Mattresses & Box Springs
• Metal & Plastic Furniture
• Metal Heat Treating
• Metal Toys
• Millwork
• Monuments
• Musical Instruments
• Nanotechnology
• Nonferrous Foundries
• Ornamental Metalwork
• Paint
• Paper & Allied Products
• Pesticides
• Pet Food
• Pharmaceuticals
• Plastic & Rubber Toys
• Plastic Goods
• Plastics
• Plastics Molding, Forming & Extruding
• Pottery
• Product Liability
• Prosthetics
• Psychedelic Drugs
• Pulp & Paper Mills
• Refractory
• Residential Air Conditioning & Heating
• Rubber Goods
• Rugs
• Sawmills & Planing Mills
• Screw Machine Products
• Sheet Metal
• Soap & Detergent
• Shoes
• Small Electrical Appliances
• Sporting Goods
• Springs
• Stone Products
• Tanneries
• Textiles
• Textiles Finishing & Coating
• Tires
• Tobacco
• Tool & Die Shops
• Vegetable Juice
• Vending Machines
• Watercraft
• Wire
• Wire Rope
• Wood Furniture
• Woodworking
• Writing Instruments
• Yarn
• Specialty Manufacturing
• Specialty Product Liability

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.