Footwear manufacturers need a variety of protections in place to protect their businesses from fires, employee injuries, lost inventory, damaged goods and product recalls – and lawsuits related to all of these.
Even with careful attention to safety and implementation of quality risk management programs, you still need manufacturing insurance to help you mitigate your risks.
While your employees face work-related injuries and illnesses, you are also susceptible to equipment breakdown, product defects, fire, weather and other types of interruptions, such as these:
Footwear manufacturers need comprehensive footwear manufacturing insurance designed with the help of an experienced and knowledgeable independent insurance agent.
Footwear manufacturers have numerous flammable materials on hand, including fabrics, plastics, yarn and appliqués. Your buildings, equipment and inventory are susceptible to fire, theft, vandalism and natural disasters.
You should work with an experienced independent insurance agent who can help you evaluate how much and what type of coverage you need for your plant, equipment and inventory.
Another potentially devastating property risk for footwear manufacturers is damage to or breakdown of equipment. Without your specialized equipment, your business would be unable to operate, pay for expenses and earn revenue.
Footwear manufacturers also need several types of liability insurance for protection from third-party claims of negligence and the costs associated with lawsuits.
Imagine you have a small fire in the office of your manufacturing facility. You have very little fire damage, but smoke has reached every corner of the plant, and fire sprinklers have added to the mess. Now, your facility is filled with smoke- and water-damaged products that can’t be sold – at least not as planned.
In these cases, a “fire sale” may be appropriate. Your property insurance company may consider these items a total loss. However, it may also want to attempt to sell them at salvage prices in order to recoup some of the losses that they have to pay out to you.
But do you want your visibly damaged, branded goods sold at a discount store? A brands and labels endorsement to your business property policy allows you to take control of this process and avoid any damage to your brand that could result. It allows you to remove your label or brand from damaged goods or mark them “salvage” and reimburses you for the costs associated with this process. This endorsement may also allow you to direct how and where the goods will be sold.
Your footwear manufacturing plant can be a dangerous place for your employees, as they work with cutting and sewing equipment as well as hand tools and other specialized equipment. Your employees might be susceptible to cuts, pokes, crushed fingers or limbs, and repetitive motion injuries.
Excessive employee injuries and illnesses can be financially devastating for your business. Workers’ compensation insurance provides insurance coverage when accidents happen at the workplace. It ensures that the injured worker gets medical care and income protection while unable to work.
Workers’ compensation insurance provides benefits to injured workers regardless of who is at fault for their injury. And it provides death benefits for a worker’s dependents if there is a fatality.
In addition to purchasing workers’ compensation insurance, you need safety programs and employee training that helps keep employee injuries to a minimum and your workers’ compensation claims and costs under control.
Any importer or exporter who buys or sells goods overseas needs protection from huge financial losses should those goods be damaged or lost while in transit. If your goods are damaged during transit, you may lose no matter which side of the transaction you are on.
Cargo insurance covers the loss and/or damage of cargo while it is in transit by sea, air or land. It is often referred to as ocean cargo insurance, as in many cases the primary form of shipment is by boat. Cargo insurance can be standardized for all of your shipments or customized for every shipment you make or receive.
How can you find tailored footwear manufacturing insurance? Talk to an independent insurance agent in the Trusted Choice® network who has experience working with manufacturers. Manufacturing insurance is complex and highly technical. You should work with an agent who can obtain proposals from multiple insurance companies that specialize in your industry.
Contact a Trusted Choice Agent for manufacturing insurance.