Yarn Manufacturers Insurance Policy Information
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:
- How Much Does Yarn Manufacturers Insurance Cost?
- Why Do Yarn Manufacturers Need Insurance?
- What Type Of Insurance Do Yarn Manufacturers Need?
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?
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 2281 Yarn Spinning Mills, 2282 Yarn Texturizing, Throwing, Twisting And Winding Mills, 2284 Thread Mills
- NAICS CODE: 313110 Fiber, Yarn and Thread Mills
- Suggested ISO General Liability Code(s): 59726
- Suggested Workers Compensation Code(s): 2286, 2220, 2302
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.
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.
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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Insurance||What 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 Policies||What 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 Insurance||What 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 Bond||What 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
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.
- Audio & Video Equipment
- Auto Parts
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
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.