Clothing Manufacturer Insurance for Garment And Apparel Producers 
What types of insurance does a clothing manufacturer need?
Get Tailored Insurance to Protect Your Clothing Manufacturing Business
As a clothing manufacturer, you’re responsible for production quality, supply chains, and delivery deadline, each with its own risks. Clothing manufacturer insurance helps protect your business from equipment damage, liability claims, product defects, and business interruptions. Whether you run a small workshop or a larger operation, the right coverage ensures your manufacturing stays protected from fabric to finish.
Business Owners Policy Insurance
Business owners policy insurance bundles commercial property insurance and general liability insurance coverages into one affordable package for small and mid-sized companies.
Best for
Customer bodily injuries
Damaged client property
Repair stolen property
General Liability Insurance
General liability insurance is essential for small businesses looking to protect themselves against common risks like bodily injury, property damage, and legal claims.
Best for
Slip-and-fall accidents
Damage to a customer's property
Claims of advertising injury
Workers Compensation Insurance
Required by law in many states, workers compensation insurance helps cover medical expenses, lost wages, and rehabilitation costs for on-the job injuries
Best for
Injuries sustained while working
Work-related illnesses
Medical expenses and rehabilitation costs
Professional Liability Insurance
Professional liability insurance, also known as errors and omissions insurance, is designed to protect your small business from claims of negligence, missed deadlines, or unsatisfactory work.
Best for
Claims of missed deadlines
Lawsuits of inaccurate advice
Claims of misrepresentation
Cyber Insurance
Cyber insurance protects against the financial fallout of stolen data, system outages, and regulatory fines. It's strongly recommended if your businesses handles credit card numbers, email addresses, and other personal information.
Best for
Protect against hacking
Covering breach notification costs
Protections against malware
Commercial Auto Insurance
Commercial auto insurance covers the cost of accidents involving a vehicle owned by your business. Most states require this coverage for vehicles owned by a business.
Best for
Bodily injury in accidents
Property damage in accidents
Protections against uninsured motorists
What Kind Of Clothing Manufacturing Insurance Do You Need?
If you run a beverage manufacturer, having the right insurance is essential to protecting your operations, employees, equipment, and reputation.
Here’s a breakdown of the essential types of beverage manufacturing insurance:
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General Liability Insurance – Covers third-party injuries and property damage.
- Business Owners Policy– General liability and business equipment coverage all in one.
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Workers’ Compensation – Required if you employ walkers, covering medical expenses and lost wages for job-related injuries.
- Product Liability Insurance – Covers claims of injury or damage caused by products your business makes or sells.
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Inland Marine Insurance – Protects your products, materials, tools, and equipment while in transit, especially when shipping goods to distributors, retailers, or customers.
- Commercial Auto Insurance – Required if your business uses vehicles to transport food products, covering liability and damage to the vehicles themselves.
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Business Income Insurance – Replaces lost income if your business has to temporarily close due to a covered event like a fire.
- Umbrella Insurance – Provides additional liability coverage above the limits of your underlying policies, such as general liability and commercial auto.
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Equipment Breakdown Insurance – Covers the cost to repair or replace mechanical, electrical, or computer equipment that malfunctions, such as conveyor systems, generators, or production machinery.
- Cyber Liability Insurance – Safeguards against digital threats, ransomware, and data breaches.
Do I Really Need Insurance For Clothing Manufacturers?
If you’re searching for the best clothing manufacturing insurance, the answer is simple: the right insurance protects your operation, your reputation, and your future.
Here’s how:
- Protect Your Business Assets – Coverage helps pay for equipment damage, contamination, injuries, and property loss so one incident doesn’t shut you down.
- Comply With Industry Regulations and Contracts – Meet insurance requirements for suppliers, retailers, and regulators so you can operate and grow without delays.
- Safeguard Against Product Liability Claims – If a product causes harm, insurance can help cover recalls, legal costs, and settlements to protect your bottom line.
- Build Trust With Clients and Partners – Having coverage shows you’re reliable and prepared, giving customers confidence to do business with you.
What Is the Cost Of Insurance For A Clothing Manufacturer?
Clothing manufacturer insurance costs can vary, but generally, Gild Insurance customers’ policy coverages start at $500 annually.
Here are a few factors that influence insurance for a clothing manufacturer:
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Location
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Size of your operation
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Revenue
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Employee count
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Inventory value
- Claims History
The best way to find your clothing manufacturing insurance cost is to get a free, online quote in minutes!
Count on Fast Support for Your Business When the Unexpected Happens
When an incident affects your business, you deserve support that works as hard as you do. Gild’s Claims Concierge helps you navigate the business insurance claims process with speed, clarity, and confidence.
Our team works alongside you to:
- File and manage claims efficiently to minimize downtime and stress.
- Coordinate directly with your insurance provider for faster resolutions.
- Connect you with trusted repair and recovery partners to restore operations quickly.
Our goal is simple: get you back to serving clients and growing your business as quickly as possible. We’re here to keep you steady, supported, and ready for whatever comes next.
Get The Best Clothing Manufacturing Insurance Today!
Clothing manufacturing insurance is about more than just coverage. It’s about protecting your livelihood and everything you’ve built. With Gild, you get more than a policy. You get a partner who understands the manufacturing industry and provides the protection, tools, and support you need to stay secure and keep growing.
Frequently Asked Questions
Clothing manufacturers manage risks tied to fabric supply, production lines, and distribution. The core coverages include:
- General Liability – Protects against third-party injuries or property damage, such as slips in a factory or client site visits.
- Commercial Property Insurance – Covers factories, warehouses, sewing machines, and inventory against fire, theft, or storm damage.
- Workers’ Compensation – Required in most states if you employ staff; covers workplace injuries such as repetitive strain, cuts, or equipment accidents.
- Product Liability – Protects against claims if garments are defective or cause harm to consumers.
- Business Owner’s Policy (BOP) – Bundles liability and property protection, often with income coverage for production shutdowns.
How much does clothing manufacturer insurance typically cost?
On average, Gilders pay between $500-$1200 a year for protection.
Cost can vary depending on your:
- Location
- Size
- Value of Equipment and Tools
Gild will work with you to find the right tailored coverage that fits your budget and your needs
Is insurance required by contract, licensing, or retailer standards for clothing manufacturers?
Yes. Even when not mandated by law, insurance is often necessary to do business:
- Workers’ compensation is legally required in most states if you have employees.
- General and product liability coverage may be required by retailers or wholesalers before placing garments on shelves.
- Commercial property coverage is often required by lenders or landlords if you lease factory or warehouse space.
Having insurance demonstrates professionalism and ensures compliance with both regulatory and commercial standards.
Does clothing manufacturer insurance cover risks like product defects, supply chain delays, or shipping losses?
Absolutely. With the right policies in place:
- Product Liability covers defective or harmful clothing claims.
- Commercial Property Insurance protects against lost or damaged inventory in storage.
- Inland Marine or Cargo Insurance can cover goods while in transit.
- Business Interruption Coverage helps offset income loss if supply chain disruptions or equipment breakdowns halt production.
Supply chain risks remain one of the largest exposures for manufacturers, making coverage essential to keep operations running.
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