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Clothing Manufacturer Insurance

clothing manufacturer insurance

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Whether you’re a knitting mill, cut and sew clothing manufacturer or your organization manufactures clothing accessories or component materials, textiles and fabrics, you’re part of an industry that provides valuable products and services and therefore faces several risks. From product liability and negative publicity to supply chain management and day-to-day manufacturing operations, a simple mistake or a malicious act by someone inside or outside of your company could leave you exposed to substantial losses. Our clothing manufacturer insurance packages are tailored to fit your company’s specific risk management needs. 

Liability Risks Faced by Clothing Manufacturers

Common risks that clothing manufacturers have to contend with include:

  • Materials, chemicals or products that can harm consumers, especially children
  • Health and safety of workers 
  • Unreliable and dishonest suppliers
  • Uncertainty when dealing with suppliers or vendors outside of Canada
  • Pollution and waste disposal
  • Supply chain and logistics delays and availability
  • Fires and other natural disasters at the manufacturing plant
  • Employee theft & fraud
  • Cyber breaches

The following are examples of potential liability exposures for clothing manufacturers:

  • A vendor visiting your clothing manufacturing plant slips on a slick floor and is injured.
  • You find out after the fact that a supplier of zipper sliders used a lead-based paint on zippers that were already used in finished products and shipped to retailers.
  • One of your products is blamed for causing rashes to consumers, some of them severe.
  • Equipment failure causes a delay in manufacturing which results in multiple shipments being missed and losses for your vendors.

In cases involving legal liability, our clothing manufacturer insurance policies can cover:

  • Lawyer’s fees and defence costs
  • Out-of-court settlements
  • Awards for damages

The policies listed in the next section can provide your organization with the coverages it needs to stay in business in case of major loss or liability. On a related note, as a clothing manufacturer, it’s a good idea to check this Government of Canada page regularly in case of any changes to the regulations and standards required of Canadian textile manufacturers.

Insurance Coverages for Clothing Manufacturers 

clothing manufacturer insurance
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As every clothing manufacturer is different, we custom-fit our coverages and clothing manufacturer insurance plans, giving you only the coverage you need. The following is a list of insurance policies that are suited to the clothing manufacturing industry.

Commercial General Liability Insurance 

Product Liability Insurance 

Product Recall Insurance 

Pollution Liability Insurance 

Property Insurance 

Business Interruption Coverage 

Extra Expense Insurance 

Accounts Receivable Insurance 

Cargo Insurance

Hull & Machinery Insurance 

Commercial Auto Insurance / Commercial Vehicle Insurance

Crime Insurance / Fidelity Insurance 

Cyber Liability & Privacy Insurance

Cover your clothing manufacturing business from litigation that could leave you with nothing more than the clothes on your back.

When you choose ALIGNED, you get a commercial insurance specialist advocating on your behalf for comprehensive clothing manufacturer insurance at affordable rates. We work with Canada’s top insurance companies to ensure you get reliable protection when you need it the most. Contact an ALIGNED advocate to get a free quote on clothing manufacturer insurance in minutes or get started right away by using our free online tool.

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