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Yarn Manufacturers Insurance Policy Information

Yarn Manufacturers Insurance

Yarn Manufacturers Insurance. Yarn can be described as any length of combined fibers; synthetic and natural fibers can both be spun, or twisted into stronger joined strands, into yarn. Wool, alpaca, linen, silk, and polyester are common examples of fibers from which yarn is produced.

The yarn can be sold as a finished product to be used for crocheting and knitting, or it can be woven into lengths of fabric.

Yarn manufacturers produce interlocked natural or synthetic fibers used by individuals or textile mills to make cloth by knitting, matting or weaving. 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. Raw fibers are taken through processes that may include carding, blending, winding, twisting, and spinning.

The resulting threads and yarns are dyed and finished or coated before being packaged in skeins for sale to individual consumers, or wound onto cones for industrial use.

Although the basic principles employed in the spinning of yard and the weaving of fabric have not changed over the centuries, the machines used in the industrial manufacture of yarn and fabric have evolved a great deal, beginning with the industrial revolution and continuing until this day.

Now, manufacturers in the yarn spinning and weaving industry commonly rely on valuable equipment like industrial looms, spinning rotors, and air-jet spinning machines. Capable of delivering breathtaking quantities of yarn or fabric in short periods of time, this modern equipment is essential in the modern textile industry.

Manufacturers in the textile industry who spin yarn or weave represent an important part of the global economy, but like other manufacturers, they are also vulnerable to a range of risks that could threaten their solvency. A comprehensive insurance plan helps keep any business safe from these unforeseen circumstances.

What kinds of yarn manufacturers insurance would yarn spinning operations need? Discover more here.

Yarn 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 yarn manufacturing insurance questions:

What Is Yarn Manufacturers Insurance?

Yarn manufacturers insurance is a type of insurance policy specifically designed for companies that produce and sell yarn. This type of insurance provides coverage for the specific risks and hazards faced by yarn manufacturers, including property damage, liability, and business interruption. The policy may also cover losses related to product liability, workplace safety, and employee benefits.

The purpose of yarn manufacturers insurance is to protect the financial stability and operations of the business in the event of a loss or accident.

How Much Does Yarn Manufacturers Insurance Cost?

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

Why Do Yarn Manufacturers Need Insurance?

Insurance For Manufacturers

All commercial ventures should be prepared for a myriad of potentially catastrophic perils. While some of the risks that threaten companies can be mitigated - by investing in security systems and following health and safety protocols to the letter, for example - other circumstances will always be beyond your control.

Both threats universal to all fields of industry and those that apply specifically to the textile industry could take any company involved in spinning and weaving by surprised. When this happens, the right insurance can save your business.

Natural disasters, commonly referred to as acts of nature in the insurance field, can strike any business. The same can be said for criminal hazards such as theft and vandalism. Fire, which can result from many different causes, is another serious threat in the textile industry in particular.

Within the yarn spinning industry, companies have to pay close attention to occupational risks faced by workers. The most common threats in this arena include breathing in cotton dust and chemicals used to process fibers, but also the high noise levels associated with the manufacturing equipment used in this industry.

Workers affected by occupational illnesses are able to hold their employers liable, and that is one more eventuality insurance can protect you from.

Yarn spinning companies further have to consider the possibility that their activities could cause third party property or environmental damage, or that a third party sustains an injury on their premises.

Costly lawsuits can result, and yarn manufacturers insurance will once again prove to be invaluable in this instance.

What Type Of Insurance Do Yarn Manufacturers Need?

The scope of a company's insurance needs depends on factors such as the location of their manufacturing facility, their exact activities including the raw materials and machines they work with, and their number of employees.

Some of the types of yarn manufacturers insurance textile companies will need to carry are:

  • Commercial Property: This kind of insurance is similar to residential home insurance; it protects a company's physical building alongside the assets therein, including manufacturing equipment, finished inventory, and raw materials. When circumstances beyond your control, like acts of nature or theft, lead you to miss out on expected revenue because your production is temporarily halted, commercial property insurance can cover that as well.
  • Equipment Breakdown: Essential for manufacturers with high-value machinery, this form of insurance covers the costs of replacing or repairing equipment that stops working.
  • Commercial General Liability: This type of yarn manufacturers insurance protects companies in case of third party bodily injury or property damage claims, and covers legal fees as well as settlement costs. Product liability insurance may also be needed, to cover commodities you manufactured in similar circumstances.
  • Workers' Compensation: Long-term occupational illness and acute workplace injury alike are covered by workers comp insurance, which takes care of employees' medical expenses and lost wages if they suffer from work-related health conditions for which your company can be held liable.

Each company in the yarn spinning industry is unique. Their insurance needs are, too, and that is why only a commercial insurance agent can help you discover what yarn manufacturers insurance coverage is best going to protect your specific company.

Yarn Manufacturing's Risks & Exposures


Premises liability exposure is 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 generally low, but could increase if the manufacturer produces yarns that have specialized qualities, such as fire resistance, or hypoallergenic products.

Environmental impairment exposure may arise from coating and treating operations. 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 can cause skin irritation, eye irritation and possible long-term occupational disease.

Cumulative exposure to wool and animal hair (such as goat or camel hair) may trigger allergies. Workers exposed to cotton dust in poorly ventilated shops may develop byssinoris, or brown lung.

Property exposure consists 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.

Dust from some fibers and coatings may present an explosion hazard if ignited. This hazard may be severe unless there are well maintained dust collection systems. Raw materials and yarns are often highly combustible, especially if poorly stored without adequate aisle space and shelving.

Yarns are susceptible to damage by fire or smoke, water and moisture, or temperature. 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.

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.

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 of expensive 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 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, 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 Yarn Manufacturers Insurance Cover & Pay For?

Yarn Insurance Manufacturers Claim Form

Yarn manufacturers can be sued for various reasons, just like any other business. Here are a few examples and how the right insurance policies can mitigate the risks associated with such lawsuits:

1. Product Liability: If a yarn manufacturer produces a defective product that causes harm to a customer or end-user, they could face a product liability lawsuit. For example, if yarn was manufactured with a harmful chemical that caused skin irritation or other health issues to customers, those customers could sue the manufacturer.

Insurance Protection: Product liability insurance would help in such a scenario. It covers the legal costs of defending against such claims and any compensation or settlement money that may be awarded if the manufacturer is found liable. It helps ensure that a single product mishap doesn't cripple the company financially.

2. Employee Injuries: Yarn manufacturing involves machinery and equipment, which can cause injuries. If an employee is injured on the job, they might sue the company for damages.

Insurance Protection: Workers' compensation insurance covers medical expenses and a portion of lost wages for employees who get injured or sick due to their job. In many places, having this insurance also grants employers immunity from most lawsuits by injured workers.

3. Property Damage: A fire, storm, or other disaster could damage a yarn manufacturer's factory or warehouse, causing significant financial loss. While this doesn't involve a lawsuit, it can lead to significant expenses.

Insurance Protection: Commercial property insurance would cover the costs of repairing or replacing damaged property, helping the manufacturer to get back to business more quickly and with less financial strain.

4. Intellectual Property Infringement: If a yarn manufacturer unintentionally uses a design or technique that's patented by another company, they could face a lawsuit for intellectual property infringement.

Insurance Protection: Intellectual property insurance can help cover the legal costs associated with defending against such claims. In some cases, it may also cover damages if the company is found to have infringed on someone else's patent.

5. Breach of Contract: If a yarn manufacturer fails to deliver an order as agreed, or if the quality doesn't meet the agreed standards, they could face a lawsuit for breach of contract.

Insurance Protection: Commercial general liability insurance often includes coverage for claims of advertising injury, which can include certain types of breach of contract claims. Additionally, a professional liability insurance policy can protect against claims that professional services or advice led to a financial loss, which may include certain breach of contract suits.

In each of these scenarios, the right insurance policy can help cover the legal costs associated with a lawsuit and any settlement or judgment that may be awarded. This can make the difference between a lawsuit being a minor setback or a major financial disaster for the yarn manufacturer.

Commercial Insurance And Business Industry Classification

Description for 2281: Yarn Spinning Mills

Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 325: Structural Clay Products

2281 Yarn Spinning Mills: Establishments primarily engaged in spinning yarn wholly or chiefly by weight of cotton, manmade fibers, silk, wool, mohair, or similar animal fibers. Establishments primarily engaged in dyeing or finishing purchased yarns or finishing yarns on a commission basis are classified in Industry 2231 if the yarns are of wool and in Industry 2269 if they are of other fibers. Establishments primarily engaged in producing specialty yarns or producing spun yarns of other fibers are classified in Industry 2299.

  • Acetate yarn, made from purchased staple: spun
  • Acrylic yarn, made from purchased staple: spun
  • Carded yarn, cotton
  • Carpet yarn, cotton
  • Combed yarn, cotton
  • Cordage yarn, cotton
  • Crochet yarn: cotton, silk, wool, and manmade staple
  • Darning yarn: cotton, silk, wool, and manmade staple
  • Embroidery yarn: cotton, silk, wool, and manmade staple
  • Knitting yarn: cotton, silk, wool, and manmade staple
  • Manmade staple fiber yarn, spun
  • Modacrylic yarn, made from purchased staple: spun
  • Nylon yarn, spinning of staple
  • Polyester yarn, made from purchased staple: spun
  • Polypropylene yarn, made from purchased staple: spun
  • Rayon yarn, made from purchased staple: spun
  • Spinning yarn: cotton, silk, wool, and manmade staple
  • Spun yarn: cotton, silk, manmade fiber, wool, and animal fiber
  • Weaving yarn: cotton, silk, wool, and manmade staple
  • Yarn, spun: cotton, silk, manmade fiber, wool, and animal fiber
  • Yarn: cotton, silk, wool, and manmade staple

Description for 2282: Yarn Texturizing

Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 325: Structural Clay Products

2282 Yarn Texturizing: Establishments primarily engaged in texturizing, throwing, twisting, winding, or spooling purchased yarns or manmade fiber filaments wholly or chiefly by weight of cotton, manmade fibers, silk, or wool, mohair or similar animal fibers, or in performing such activities on a commission basis. Establishments primarily engaged in dyeing or finishing purchased yarns or finishing yarns on a commission basis are classified in Industry 2231 if the yarns are of wool and in Industry 2269 if they are of other fibers. Establishments primarily engaged in producing and texturizing manmade fiber filaments and yarns in the same plant are classified in Industries 2823 or 2824.

  • Acetate filament yarn: throwing, twisting winding, or spooling
  • Acrylic and modacrylic filament yarn: throwing, winding, or spooling
  • Animal fiber yarn: twisting, winding, or spooling
  • Beaming yarns for the trade
  • Mohair yarn: twisting, winding, or spooling
  • Nylon yarn: throwing, twisting, winding, or spooling
  • Polyester filament yarn: throwing, twisting, winding, or spooling
  • Polypropylene filament yarn: throwing, twisting, winding, or spooling
  • Rayon yarn, filament: throwing, twisting, winding
  • Spooling yarn: cotton, silk, and manmade fiber continuous filament
  • Textured yarns
  • Throwing, winding, or spooling of yarn: silk, wool and manmade
  • Twisting yarn: silk, wool, and manmade fiber continuous filament
  • Winding yarn: cotton, silk, wool, and manmade fiber continuous
  • Wool yarn: twisting, winding, or spooling

Description for 2284: Thread Mills

Division D: Manufacturing | Major Group 32: Stone, Clay, Glass, And Concrete Products | Industry Group 325: Structural Clay Products

2284 Thread Mills: Establishments primarily engaged in manufacturing thread of cotton, silk, manmade fibers, wool or similar animal fibers. Important products of this industry include sewing, crochet, darning, embroidery, tatting, hand-knitting, and other handicraft threads. Establishments primarily engaged in manufacturing thread of flax, hemp, and ramie are classified in Industry 2299.

  • Cotton thread
  • Crochet thread: cotton, silk, manmade fibers, and wool
  • Darning thread: cotton, silk, manmade fibers, and wool
  • Embroidery thread: cotton, silk, man-made fibers, and wool
  • Hand-knitting thread: cotton, silk, man-made fibers, and wool
  • Manmade fiber thread
  • Nylon thread
  • Polyester thread
  • Rayon thread
  • Sewing thread: cotton, silk, manmade fibers, and wool
  • Silk thread
  • Spinning thread: cotton, silk, manmade fibers, and wool
  • Tatting thread: cotton, silk, manmade fibers, and wool
  • Thread: except flax, hemp, and ramie

Yarn Manufacturers Insurance - The Bottom Line

Not every yarn manufacturers insurance policy has the same premium and coverages. To see if your yarn manufacturing operation has the best fit insurance program - talk to an experienced commercial insurance broker.

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.

Manufacturing Insurance

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.

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