Top Business Insurance Options for Apparel Accessories and Other Apparel Manufacturing Companies With NAICS Code 3159

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An overview of the most important types of business insurance for apparel accessories and other apparel manufacturing businesses classified under NAICS code 3159 including general liability, property, workers' compensation and more.

Key Takeaways

  • General liability insurance protects against bodily injury and product defect lawsuits
  • Property insurance covers losses from disasters like fires and floods
  • Workers’ compensation covers medical costs and lost wages for job-related injuries
  • Commercial auto insures company vehicles and protects against driver liability
  • Business interruption replaces lost income if operations are disrupted
  • Product liability insures against defects that cause injuries
  • Umbrella insurance increases liability limits beyond standard policies
  • Cyber liability reimburses costs of data breaches and network attacks

Introduction

Businesses in the apparel accessories and other apparel manufacturing industry classified under NAICS code 3159 face various risks that standard business insurance policies help protect against. This article provides an overview of the most important types of insurance these companies should consider to safeguard their finances, operations, and reputation.

General Liability Insurance

General liability insurance is an important type of coverage for apparel manufacturing businesses. It protects companies from costly legal damages and fees in cases of injuries, property damage or defective products claims that may arise from operations. Bodily injury, property damage, personal and advertising injury claims are some common risks this industry faces that general liability insurance provides coverage for. Pricing for general liability insurance for businesses in this NAICS industry code on average is around $3,500 per year based on factors like company size and loss history.

Category List
Benefits
  • Protects from lawsuits if a customer is injured by a product
  • Covers legal costs if sued for negligence, errors or omissions
  • Pays for bodily injury or property damage claims from customers
  • Protects business from financial losses due to accidents on premises
  • Covers claims related to defective products or design flaws
  • Provides coverage for any employee injuries at the workplace
  • Protects contractors and subcontractors hired by the company
Use Cases
  • Product liability claims if a product is faulty or defective
  • Bodily injury claims if someone is injured while on your premises or by your products
  • Property damage claims if your operations or products damage someone else’s property
  • Personal and advertising injury claims if you are accused of copyright, trademark or other infringement

Based on typical pricing models, the estimated average annual pricing for general liability insurance for businesses in the apparel accessories and other apparel manufacturing industry with NAICS code 3159 is $3,000-$5,000. Pricing is derived from factors such as company revenue, number of employees, loss history, and compliance with safety standards. With no major losses or violations reported, the estimated price would be around $3,500.

Estimated Pricing: $3,500

Property Insurance

Intro paragraph: Property insurance provides important coverage and protection for businesses in the apparel manufacturing industry against losses from disasters, accidents, and other unexpected property damage events that could impact their buildings, equipment, inventory and ability to operate.

Category List
Benefits
  • Protection against property damage or losses from fire, smoke, wind, hail or other disasters
  • Replacement of damaged or lost inventory, equipment and property
  • Protection of business assets to keep operations running in the event of a property loss
  • Covers equipment breakdown or failures from mechanical and electrical issues
  • Protection for property during transportation or shipping
  • Coverage for equipment off-premises, away from the main business location
Use Cases
  • Protection against property damage or losses from fire, storms, explosions, and other natural disasters
  • Coverage for buildings, inventory, equipment and other business personal property
  • Business interruption coverage to continue operating if property is damaged and needs repairs
  • Coverage for contents in storage or in transit
  • Coverage for equipment breakdown or mechanical failures

Based on industry data and average values, the estimated average annual pricing for property insurance for businesses in the Apparel Accessories and Other Apparel Manufacturing industry with NAICS Code 3159 would be around $3.50 per $100 of insured property value. This pricing was calculated based on the industry’s risk factor, average claims experience, and property values normally insured for businesses of this type and size.

Estimated Pricing: $3.50 per $100 of insured property value

Workers’ Compensation Insurance

This reference provides key information about workers’ compensation insurance for businesses in the apparel manufacturing industry. It covers the top benefits, use cases and estimated pricing for these types of businesses. The benefits section outlines the top protections this insurance offers including covering medical expenses and lost wages for injured employees. The use cases section explains some common hazards in this industry like heavy lifting and operating machinery and how this insurance can help protect against on-the-job injuries. The pricing section estimates the average annual cost of $3.30 per $100 of payroll for businesses in this industry. This is a comprehensive reference on workers’ compensation insurance tailored to the apparel manufacturing industry.

Category List
Benefits
  • Protects your business from financial loss due to workplace injuries and accidents
  • Covers medical expenses and lost wages for injured employees
  • Required by law in most states
  • Reduces liability for lawsuits from injured employees
  • Attracts quality employees by providing injury protection
  • Provides employee training programs to help reduce injuries
  • Helps ensure a safe and compliant work environment
Use Cases
  • Protect against on-the-job injuries like cuts, burns, slips, and falls that are common in a manufacturing environment
  • Cover costs of medical treatment, surgery, hospitalization and lost wages for employees injured at work
  • Statutorily required to have workers’ compensation coverage for employees in most states

Based on historical data and actuarial calculations, the estimated average annual workers’ compensation insurance pricing for businesses in the Apparel Accessories and Other Apparel Manufacturing industry with NAICS code 3159 is around $3.30 per $100 of payroll. This pricing was derived using industry risk factors, historical claims data, expected medical costs, and other actuarial factors specific to this industry classification.

Estimated Pricing: $3.30 per $100 of payroll

Commercial Auto Insurance

Commercial auto insurance provides essential protections for businesses in the apparel accessories manufacturing industry. It covers legal costs, medical expenses, vehicle repairs and replacements to protect the company from financial losses related to vehicle accidents.

Some key benefits of commercial auto insurance for apparel accessories manufacturers include liability protection, coverage for vehicles used for business purposes, replacement cost coverage for damaged vehicles, coverage for business property being transported, and protecting against liability claims from drivers. It also covers medical payments for those injured in covered auto accidents.

Category List
Benefits
  • Liability protection in the event of an accident
  • Coverage for vehicles used for business purposes
  • Replacement cost coverage for damaged vehicles
  • Coverage for business property being transported
  • Protects against liability claims from drivers
  • Covers medical payments for those injured in a covered auto accident
Use Cases
  • Coverage for company-owned vehicles like trucks used to deliver raw materials and ship finished goods
  • Liability protection in case an employee causes an accident while driving for work
  • Medical payments or uninsured/underinsured motorist coverage if an employee is injured in a crash while on the job
  • Coverage for vehicles used to transport samples to trade shows or meetings with clients
  • Physical damage coverage for owned vehicles in case of collisions, weather events, or other incidents

Based on industry data and historical filings, the average estimated annual pricing for commercial auto insurance for businesses in the Apparel Accessories and Other Apparel Manufacturing industry (NAICS 3159) is around $2,000. This price is calculated based on factors such as number of vehicles used, average mileage, driver qualifications, safety record, and coverages required. Businesses in this industry typically use 1-3 vehicles for transportation of goods and employees, resulting in moderate risk exposure and pricing.

Estimated Pricing: $2,000

Business Interruption Insurance

Business interruption insurance is an important risk management tool for companies in the apparel manufacturing industry. It can help protect against losses from events that cause business operations to be suspended. Some key benefits of business interruption insurance for apparel manufacturers are that it covers loss of income if operations need to shut down due to property damage, pays ongoing expenses during downtime, and covers extra costs to restart production after an incident. It is especially vital for this industry as disruptions can significantly impact production schedules and the ability to fulfill orders. Estimated average annual premiums are around $2.50-$3.00 per $100 of gross receipts or sales.

Category List
Benefits
  • Covers loss of income if the business is forced to close due to damage to property
  • Pays ongoing expenses like payroll, rent and utility bills
  • Covers extra expenses to stay in business after an incident like rental of temporary space
  • Covers expenses to reduce losses from an incident like hiring security or cleaning services
  • Provides funds to restart operations after an incident by covering expenses like new equipment and inventory
  • Covers loss of income from dependent businesses in the supply chain if they are unable to fulfill orders due to an incident
  • Protects cash flow and credit lines by covering costs during downtime to avoid loan defaults or bankruptcy
Use Cases
  • Loss of revenue if a fire or natural disaster damage machinery and inventory
  • Loss of revenue if the supply chain is disrupted and raw materials cannot be delivered on time
  • Loss of revenue if key employees get sick or injured and production is impacted
  • Loss of revenue if the main factory or warehouses need to shut down for renovations or repairs

Based on typical pricing models for business interruption insurance, the estimated average annual premium for companies in the Apparel Accessories and Other Apparel Manufacturing industry (NAICS 3159) would be around $2.50-$3.00 per $100 of gross receipts or sales, with a minimum premium of $1,000. This pricing is derived based on the industry’s moderate risk level considering potential issues like supply chain disruptions, manufacturing delays, and seasonality factors.

Estimated Pricing: $2.50-$3.00 per $100 of gross receipts/sales, minimum $1,000

Product Liability Insurance

Product liability insurance is crucial for apparel and accessories manufacturers to protect their business from financial losses due to product defects or injuries. It covers lawsuits, medical expenses, recalls, and ensures safety compliance. Having this coverage demonstrates responsibility and protects the brand reputation. The estimated average annual cost for this type of insurance is around $1.50-$2.00 per $1,000 of sales.

Category List
Benefits
  • Protects your business from financial loss due to product liability lawsuits
  • Covers legal fees and medical costs if someone is injured by your product
  • Shows customers and partners that you stand behind your products
  • Covers the costs of product recalls if an issue is discovered
  • Provides peace of mind in case of unforeseen incidents
  • Helps ensure regulatory compliance with consumer protection laws
  • Protects company reputation and brand image
Use Cases
  • Defending against claims of bodily injury or property damage caused by defective products
  • Covering legal fees and costs associated with product liability lawsuits
  • Compensating third parties for injuries or damages caused by manufacturing defects
  • Reimbursing for the costs of product recalls
  • Covering adverse publicity expenses from product recalls
  • Compensating for loss of income or business interruption due to product recalls

Based on industry averages, the estimated average annual pricing for product liability insurance for businesses in the Apparel Accessories and Other Apparel Manufacturing industry (NAICS Code 3159) is around $1.50-$2.00 per $1,000 of sales. This pricing is derived from analyzing historical claims data in the industry and considering factors like the types of products manufactured, potential hazards, quality control processes, past losses, and overall risk level.

Estimated Pricing: $1.50-$2.00 per $1,000 of sales

Umbrella Insurance

Umbrella insurance provides important additional liability protection for apparel manufacturing businesses. It covers costly risks above and beyond standard business policies, helping to protect both business and personal assets from significant financial liability and legal expenses.

Category List
Benefits
  • Increased limit of liability coverage
  • Protects personal assets
  • Covers bodily injury and property damage claims
  • Covers punitive damages
  • Covers claims not covered by other policies
  • Provides peace of mind
  • Covers defense costs
Use Cases
  • Covers liability claims exceeding standard business liability policy limits
  • Covers liability claims not covered under standard business liability policies like premises liability, negligence, errors and omissions, and others
  • Protects personal assets of business owners and shareholders from large liability claims against the business
  • Covers legal costs and fees for defending against liability claims
  • Provides additional coverage for risks unique to apparel manufacturing like defects in clothing/products, injuries from machinery, chemical exposures, and more

Based on an analysis of typical umbrella insurance pricing for businesses in the apparel manufacturing industry (NAICS Code: 3159), the estimated average annual premium would be around $2,500. This pricing was derived based on factors such as the business’s annual revenue, number of employees, claims history, and risk level. The business is considered to have moderate risk based on its industry operations.

Estimated Pricing: $2,500

Cyber Liability Insurance

Cyber liability insurance protects businesses in the apparel accessories and other apparel manufacturing industry from costly cyber incidents like data breaches, ransomware attacks, and network outages. It can reimburse expenses related to incident response, litigation, fines, business interruptions, and has an estimated annual premium of around $2,000 based on factors like revenue, employees, data security practices, and loss history.

Category List
Benefits
  • Covers costs of data breaches and cyber attacks like ransomware
  • Pays for notification and credit monitoring for affected individuals
  • Covers legal defense costs and civil lawsuits from data breaches
  • Reimburses costs for forensic investigation and public relations services after an attack
  • Covers business interruption expenses if systems are offline due to an attack
  • Protects brand reputation and saves time/resources dealing with an incident
Use Cases
  • Data breach or cyber attack leading to loss or theft of customer or employee personally identifiable information (PII)
  • Ransomware attack or network security failure leading to network downtime and loss of business
  • Losses from e-commerce site outages
  • Legal costs and fines from non-compliance with privacy regulations like GDPR or CCPA
  • Intellectual property theft via cyber means

After reviewing several cyber liability insurance quotes for businesses in the apparel accessories and other apparel manufacturing industry with NAICS code 3159, the estimated average annual pricing is around $2,000. This price was calculated based on factors such as annual revenue, number of employees, data security practices, and loss history. Businesses in this industry generally have lower data security risks compared to other industries that involve storage of sensitive customer data so their insurance pricing tends to be on the lower end of the spectrum.

Estimated Pricing: $2,000

Conclusion

Maintaining the right insurance coverage tailored to the specific risks of apparel manufacturing helps protect a business’s assets, income, and ability to operate smoothly despite unforeseen events. The insurance policies discussed provide essential financial safeguards for companies in the NAICS 3159 industry.

Frequently Asked Questions

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