Purse and handbag manufacturing is a thriving global industry. In 2017, retail sales of women’s handbags reached nearly $8.3 billion, according to a survey by NPD Group.
Handbags come in all shapes and sizes, from totes and satchels to backpacks, wristlets, and messenger bags. And purse manufacturers are as diverse as the products they make.
But whether they make value-priced purses, luxury handbags, or one-of-a kind, handcrafted bags, most purse manufacturers have a similar list of concerns.
Topping that list: An inherent set of business risks and a desire to protect their livelihoods from the costs of unexpected disasters, lawsuits, and business interruptions. Find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
Why Do I Need Purse Manufacturing Insurance?
Purse manufacturers need a comprehensive business insurance program that protects their assets and ability to operate. Without purse manufacturing insurance, unforeseen events can lead to financial losses that you can’t recover from.
Purse manufacturing insurance can help you cover losses related to:
- Employee injuries and illnesses such as burns, injuries caused by machinery and equipment, slips and falls, respiratory irritation, and repetitive motion injuries
- Plant and equipment damage due to industrial accidents, fire, vandalism, severe weather, and other unforeseen events
- Machinery and equipment breakdown
- Business interruptions due to industrial accidents, fire, vandalism, natural disasters, machinery breakdown, utility interruptions, and more
- Products and inventory damaged in transit
- Product defects
Without purse manufacturing insurance, how would you rebuild, make repairs, or replace your lost property or income? Would you be able to pay for attorneys and settlements if you were sued?
Purse manufacturing insurance keeps your business viable even when the worst happens.
Lawsuits Are Devastating for Any Business. Protect Yours with Liability Insurance
Liability insurance is the first line of defense from lawsuits for any manufacturing business, and purse manufacturers are no exception. Liability insurance, in its many forms, protects your business when a third party claims that your business, employees, or products have caused some type of damage or injury.
In these cases, you may be required to pay for medical bills and lost wages for injured persons. And you can expect to pay to repair or replace damaged property.
What’s more, there is a high likelihood that you will be sued. Defending a lawsuit costs a lot of money. But you must defend yourself, even in cases where the accusations are without merit.
Purse manufacturers need several types of liability insurance to protect them in these situations.
- Commercial general liability (CGL) insurance: This is necessary when your business is careless and causes bodily injury or property damage to someone else, such as a customer, vendor, delivery person, or some other member of the general public. A CGL policy provides coverage for attorney fees, court costs, settlements, and judgments.
- Product liability insurance: Covers your financial responsibility for losses or injuries to a user, buyer, or bystander caused by a defect or malfunction of your product. If you are sued for some type of product negligence, you may be required to pay for medical costs, compensatory damages, economic damages, attorney fees, and court costs.
- Commercial auto insurance: Covers your vehicle fleet and drivers in the event of an auto accident or other vehicle damage.
- Commercial umbrella insurance, or excess liability insurance: Provides an extra layer of liability protection to several of your other liability policies. It is activated when the limits of your other applicable liability policies (e.g., CGL, commercial auto) have been reached for a covered claim.
Property Insurance Is Essential for Purse Manufacturers
Purse factories are filled with machinery, heavy equipment, electrical components, and a wide variety of flammable materials like fabric, leather, plastic, yarn, and appliques. A single spark could ignite a fire that devastates your factory and destroys your livelihood.
What’s more, your buildings, equipment, and inventory can be damaged in many other ways. Break-ins, theft, vandalism, severe weather (wind, hail), and other natural disasters can damage or destroy your buildings and their contents and leave you unable to operate until you make repairs.
You need customized insurance policies that protect all of your business property from the risks you face at your plant and anywhere you transport goods.
- Commercial property insurance: Covers your buildings (plant, warehouse, office) and other property after a loss. It is invaluable coverage that allows you to replace your fabric cutters, sewing and embroidery machines, warehouses, office buildings, office equipment, furniture, computers, and more if they are damaged or destroyed.
- Business interruption coverage: this is part of your commercial property policy. If you are temporarily unable to operate while you make repairs or replace equipment, it pays for ongoing expenses like rent and employee salaries. And it reimburses you for lost income, relocation fees, and other expenses related to the covered loss.
- Utility interruption coverage: Provides coverage when a utility interruption (power, water) causes a work stoppage and results in a financial loss.
You also need specialized coverage for your expensive manufacturing equipment.
Imagine that an important machine breaks down in dramatic fashion, damaging nearby materials and part of the plant floor, too. What’s more, the machine is so essential that you can’t operate until it is replaced.
- Equipment breakdown insurance: Supplements your commercial property policy. It covers certain costs associated with accidental breakdown of machinery or equipment and the resulting property damage and lost income.
Special Coverage for Goods in Transit
Most manufacturers need inland marine insurance as part of their overall commercial property insurance program. It protects you from losses when cargo is damaged in transit. Any piece of property that is moved from one location to another can be covered with an inland marine policy.
Purse manufacturers who ship goods overseas have additional considerations, too. Cargo insurance covers loss of or damage to cargo that is in transit by sea, air, or land. It is often referred to as ocean cargo insurance, because most import/export goods are transported by boat.
Cargo insurance can be standardized to cover all of your overseas shipments, or it can be customized for every individual shipment you make or receive.
A Little-Known Endorsement Offers Big Protection for Your Brand
Imagine having a small fire in the office adjacent to your plant. Even though the fire doesn’t spread to the entire facility, smoke engulfs part of the factory and all of the fire sprinklers engage.
While actual fire damage is minimal, you are left with a smoke- and water-damaged mess. What will happen to finished handbags that are damaged, but salvageable?
While your property insurance company may declare the purses a total loss, it may want you to sell the damaged products at much lower prices in order to recoup at least some of the costs related to the fire.
Now you have visibly damaged goods marked with your brand being sold at a “fire sale” or at a discount store. Is there any way to protect your business from the potential for brand or reputational damage in this situation?
A brands and labels endorsement on your commercial property policy allows you to take control of the salvage sale process and minimize or avoid damage to your brand.
- Allows you to remove your label or brand from the damaged goods, or mark them “salvage.”
- Reimburses you for the costs associated with “un-branding” your damaged goods.
- May allow you to direct where and how the damaged good will be sold.
Purse Manufacturers Need Workers’ Compensation Insurance
Your purse manufacturing plant can be a dangerous place for your employees. They can easily be injured as they work with cutting and sewing equipment, as well as hand tools and other specialized equipment.
Your employees might experience cuts, punctures, crushed fingers or limbs, repetitive motion injuries, and other types of job-related injuries or illnesses.
Excessive employee injuries and illnesses can be financially devastating for your business. And a work-related injury could destroy an employee’s physical wellness and ability to work.
Workers’ compensation insurance provides insurance coverage when accidents happen in the workplace, regardless of who is at fault. It ensures that the injured worker gets medical care and income protection. And it may provide death benefits for a worker’s family if there is a fatality.
And remember, manufacturing jobs are inherently more dangerous than many other occupations. If you have more injuries and accidents than the average for purse manufacturers, your workers’ compensation insurance will cost you more in the long run.
Safety programs and employee training are the best way to keep employee injuries and accidents to a minimum, and your workers’ compensation claims and costs under control.
How Much Does Purse Manufacturing Insurance Cost?
Purse manufacturing insurance costs will vary depending on the size of your business and the coverage you need. A large manufacturer will pay more than a small one; a factory in a hurricane zone will pay more than one located away from the coast.
With so many variables (e.g., number of employees, types of manufacturing equipment, size and location of your building, and the volume and geographical distribution of your products), insurance costs can be hard to predict.
But an independent agent can guide you though your options so you get coverage that meets your budget.
Find and Compare Quotes
An independent agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right purse manufacturing insurance. They’ll walk you through some handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can leave out important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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