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Leather Goods Manufacturers Insurance Policy Information

Leather Goods Manufacturers Insurance

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:

How Much Does Leather Goods Manufacturers Insurance Cost?

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

Why Do Leather Goods Manufacturers Need Insurance?

Insurance For Manufacturers

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.

What Type Of Insurance Do Leather Goods Manufacturers Need?

The modern insurance market offers an extremely broad range of options to suit the needs of businesses within any field.

The kinds of policies that will be optimal for an individual company depend on variables like the location of its manufacturing facility, the size of the business, the number of employees, and the value of its manufacturing equipment.

This is why companies that make leather goods should consult an experienced commercial insurance broker to talk them through their options. Among the types of leather goods manufacturers insurance coverage your chosen commercial insurance specialist will suggest are:

  • Commercial Property: In the event that your manufacturing facility is hit by a disaster like an act of vandalism or nature, this type of insurance will cover the financial losses resulting from lost or damaged property. That includes your building, machinery, raw materials like hides and skins, and finished leather goods.
  • Commercial General Liability: This type of leather goods manufacturers insurance coverage is designed to help cover your legal costs should your company be sued for bodily injury or property damage. Scenarios that fall under commercial general liability insurance would include a third party suffering an injury on your premises, or an employee damaging the property of a client as they deliver goods.
  • Product Liability: Another kind of liability coverage, product liability insurance primarily serves the purpose of protecting you from the financial fallout of consumers and other third parties being injured by one of your products or suffering property damage. Whether you need this kind of insurance depends on what type of leather goods you make.
  • Workers Compensation: All but the very smallest companies should also carry workers comp insurance. If an employee becomes injured at work, this coverage will pay for their medical costs and any lost wages, while protecting you from litigation.

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.

Commercial Insurance And Business Industry Classification

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.

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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