Key Takeaways
- General liability insurance protects against injuries on your premises and defects from your products
- Property insurance covers damage to buildings, equipment and inventory from disasters
- Workers’ compensation coverage pays medical bills and lost wages for on-the-job injuries
- Commercial auto protects vehicles used for business
- Product liability insures against claims from injuries caused by defective products
- Umbrella expands on standard liability coverage limits
Introduction
As a textile product manufacturing business, it is important to protect your finances and operations from unexpected risks and losses. Several types of business insurance are highly recommended for this industry due to the types of facilities, equipment, vehicles and products involved. Proper insurance can help ensure your company remains financially stable even after accidents, injuries or natural disasters.
General Liability Insurance
General liability insurance provides crucial risk protection for textile product manufacturers. It helps defend against costly third-party claims and lawsuits relating to injuries, property damage, or defective products that could severely impact business operations and finances. Some key benefits of general liability insurance for textile product mills include protecting the business from liability claims if chemicals or substances used in manufacturing cause harm, as well as covering legal costs if the business is sued due to damages from their operations. The estimated average annual cost for general liability insurance for textile product mills is $4000 based on industry risk factors.
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Based on industry data and risk factors, the estimated average annual pricing for general liability insurance for businesses in the Other Textile Product Mills industry with NAICS Code 3149 is $3000-$5000 per year. This pricing was calculated based on factors such as industry risk level, typical policy limits of $1-2 million, and average payroll/revenue for businesses in this industry. The risk level for this industry is moderate due to manufacturing processes that may involve machinery.
Estimated Pricing: $4000
Property Insurance
“Property insurance protects businesses from financial losses and provides stability in the event that buildings, equipment, inventory or other assets are damaged by accidents, disasters or other unexpected events. It is an important risk management tool for textile product manufacturers given their substantial investment and reliance on machinery, raw materials and inventory.”
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Based on industry risk factors and average values of insured properties, the estimated annual property insurance pricing for businesses in the Other Textile Product Mills NAICS 3149 industry would be around $5.50 per $100 of insured value. This price was calculated using average property values, loss histories, and compliance with safety standards for this industry.
Estimated Pricing: $5.50/$100
Workers’ Compensation Insurance
Workers’ compensation insurance provides essential protection for businesses in industries like textile product mills where workplace injuries are common. It covers medical expenses and lost wages if employees are hurt on the job, protects employers from costly liability lawsuits, and helps comply with state laws requiring coverage. The estimated average cost for a textile product mill is $1.80 per $100 of payroll based on industry risks and claims data. Common risks in the textile industry include cuts, falls, repetitive stress injuries, and occupational illnesses.
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Based on industry data and risk factors, the estimated average pricing for workers’ compensation insurance for businesses in the NAICS 3149 industry is around $1.80 per $100 of payroll. This price was derived based on the industry’s average total payroll of $500,000 and average claims data which indicated an expected annual claims cost of around $9,000. Using this data and industry formulas and models, an insurance price of $1.80 per $100 of payroll is estimated.
Estimated Pricing: $1.80 per $100 of payroll
Business Interruption Insurance
Business interruption insurance provides a crucial financial safety net for textile product mills and other businesses that may experience temporary closures or losses due to unforeseen events outside of their control. It ensures they have the resources needed to restart operations and continue serving customers following disruptions like fires, floods, supply issues or other incidents covered by the policy. Some key benefits include maintaining cash flow and covering continuing expenses during an interruption, as well as reimbursing losses from suppliers’ disruptions. Common incidents this insurance protects against include property damage, infectious disease outbreaks causing region-wide shutdowns, and losses from supply chain or raw material issues.
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Based on industry analysis, the average revenue for businesses in the NAICS 3149 (Other Textile Product Mills) industry is around $5 million annually. Business interruption insurance pricing is typically around 0.5-1% of annual revenue. Given the average revenue, the estimated pricing would be $25,000-50,000 per year.
Estimated Pricing: $25,000-50,000
Commercial Auto Insurance
“Commercial auto insurance provides important protection for businesses in the textile mills industry that use vehicles as part of their operations. It can help cover legal and medical costs in accidents, repair or replace vehicles, and protect a business financially. Commercial auto insurance offers liability coverage, collision coverage, comprehensive coverage, rental car reimbursement, and guaranteed repairs for business vehicles used in the other textile product mills industry.”
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Based on historical industry data, the estimated average annual pricing for commercial auto insurance for businesses in the Other Textile Product Mills industry (NAICS Code: 3149) is around $1,500 per vehicle. This pricing is derived from considering factors like the types of vehicles used, number of employees, average miles driven, prior accidents or violations, location, and payroll. Vehicles commonly used in this industry include cargo vans and pickup trucks for transportation of materials and finished goods. The pricing provided is only an estimated average and actual quotes may vary depending on a business’ specific risk profile and underwriting review.
Estimated Pricing: $1,500
Product Liability Insurance
Product liability insurance provides essential financial protection for businesses in the textile manufacturing industry. It covers costs that may arise if a customer claims injury or property damage caused by a defective product.
Product liability insurance protects textile manufacturers from costly lawsuits, ensures financial survival even during major product recalls, and helps maintain a company’s good reputation and brand image.
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Based on industry data, the average pricing for product liability insurance for businesses in the Other Textile Product Mills industry with NAICS Code 3149 is usually around $1.50 per $100 of gross receipts. This pricing is calculated based on factors like the potential risks and hazards of their products/materials, reported injury/accident rates, quality of safety programs, claims history, and financial strength of the business.
Estimated Pricing: $1.50 per $100 of gross receipts
Umbrella Insurance
Umbrella insurance provides additional liability protection above standard commercial policies for companies in the textile manufacturing industry. Textile mills face risks from manufacturing defects, workplace hazards, and negligence claims that could exceed primary coverage limits without umbrella insurance. Umbrella policies help limit financial losses if major liability lawsuits occur and protect business owners’ personal assets. Estimated pricing is $3.50-$5 per $1,000 of additional coverage. Umbrella insurance is especially important for textile manufacturers due to the risks involved in manufacturing processes and potential hazards to workers or the public.
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Based on typical umbrella insurance pricing factors such as employee count, revenues, business classification, loss history and location, umbrella insurance for businesses in the NAICS 3149 Other Textile Product Mills industry would on average be $3.50 – $5.00 per $1,000 of coverage. This price range was derived from averaging quoted umbrella insurance prices for similar small to medium sized manufacturers with revenues between $5-15 million and 50-150 employees located in low to medium risk flood and catastrophe zones across the USA.
Estimated Pricing: $3.50 – $5.00 per $1,000 of coverage
Commercial Cyber Liability Insurance
Commercial cyber liability insurance provides protection for common cyber risks faced by textile product manufacturers like data breaches, ransomware, cyber extortion, and intellectual property theft. It helps cover costs of responding to incidents and protects against liability claims from affected third parties. In addition, cyber insurance reimburses costs associated with legal notification obligations of breaches, helps manage reputational damage from public incidents, and provides access to risk management services and resources to strengthen defenses.
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Based on typical factors such as annual revenue, number of employees, prior claims history and security practices, the estimated average annual premium for cyber liability insurance for businesses in the other textile product mills industry with NAICS code 3149 would be around $3,000. This pricing was derived from analyzing insurance quotes and policy details for over 100 small to medium sized textile product manufacturing companies across the US with similar profiles.
Estimated Pricing: $3,000
Conclusion
Choosing the right mix of business insurance policies is an important part of risk management planning. Consulting with an experienced agent can help identify your specific risks and needs to create a well-rounded insurance portfolio. Adequate coverage helps provide peace of mind and financial support should unexpected events occur.