What can be included on a clothing manufacturer insurance policy?
As with any business, there are a lot of considerations to be made when it comes to insurance. Your requirements will differ depending on the shape and size of your business, but there are core covers you’ll almost certainly want to consider:
Buildings and contents
Were something to happen to your premises, you’ll need protecting from costs associated with repairs and replacement. Typically, cover can be arranged to protect you in the event of fire, flooding, theft, subsidence, or storm damage as well as accidental loss or damage.
Business Interruption insurance
Covering the costs for repair to your premises following a fire, flood or other insured event is one thing. But what about meeting your fixed costs – rent and wages for example – while you are unable to trade. It might take to be able to get back to manufacturing if the premises or a key piece of machinery are damaged or destroyed. Business Interruption cover can protect your Gross Profit in this type of situation.
You are likely to have significant value of stock held on your premises. Whether that’s raw materials or finished goods waiting to be distributed, you can protect yourself from financial loss associated with stock being damaged, destroyed or stolen. No matter whether you’re making cotton tee shirts, manufacture with expensive cashmere wools or make specialist protective clothing, your stock is your life blood and insuring it should be a priority.
<h23Machinery and equipment insurance
As a clothing manufacturer you’re likely to have a range of expensive machinery. From fabric spreading machines through to sewing machines, cutting tables and finishing equipment, you will have invested significantly in the tools you need for your business. These are vital to profitable production. Should they be damaged, destroyed or stolen, cover can be arranged to repair or replace equipment quickly.
Clothing manufacturers liability insurance
Public and product liability should be included to cover your legal liability in the event of a third party claim that they have suffered injury or loss of or damage to their property as a consequence of your business activity. We can advise on appropriate indemnity levels, but typically clients will take out £1m, £2m, £5m or £10m worth of cover.
Employers Liability for clothing manufacturers
Where you have anyone working for you, even on a part time or casual basis, it’s a requirement by UK law that you have a minimum of £5m EL cover.