Why is Calgary Clothing Manufacturing Insurance Important?
Some people have the impression that getting business insurance coverage, such as Calgary clothing manufacturing insurance, is not necessary as long as they follow the regulations and best practices of their trade. In reality, nothing could be further from the truth—especially with respect to the manufacturing industry (i.e., clothing industry). Manufacturing products and sending them out into the world leaves you vulnerable to a wide range of serious liability and property loss risks. Regardless of how careful and conscientious you are, there's just no way to avoid all the potential pitfalls that could ruin your business's success and even take a huge toll on your personal finances.
What if you manufactured a piece of baby apparel that turned out to be a choking hazard for infants or used a fabric that shed dangerous allergenic chemicals and could cause an allergic reaction or worse? Could you pay legal defense fees and settlement costs on your own? What about the major expenses associated with recalling and rehabilitating the faulty product, or repairing your company's damaged reputation? What if your warehouse in Calgary caught on fire and most of your inventory was lost, causing you to break contractual obligations with suppliers and soak up the cost of all that destroyed stock—not to mention pay for the facility itself to be repaired? Most business owners simply don't have enough money in their budget to cover the potentially eye-watering costs associated with those types of mishaps and many more.
That's why it is so critically important to have comprehensive Calgary clothing manufacturing insurance. The exact coverage you need will vary based on how you choose to run your business. No two clothing manufacturers are exactly alike, which is why no two Calgary clothing manufacturing insurance policies are exactly alike. The expert insurance brokers at Krywolt Insurance will find out more about your business and design a Calgary clothing manufacturing insurance that offers you the best protection against all the perils that are most likely to befall you during the course of your business operations.
What Coverage is Available for Calgary Clothing Manufacturing Insurance?
There are a number of different components to Calgary clothing manufacturing insurance, and it can be difficult to navigate the ins and outs of every type of coverage you may need to be adequately protected. An experienced commercial insurance agent at Krywolt Insurance can walk you through the options and explain what you really need to include, along with what you might want to consider adding to create comprehensive manufacturing insurance policies.
Professional Liability Insurance
Every type of business owner in Calgary and beyond should have adequate professional liability insurance, and naturally, that includes effective coverage on a Calgary manufacturer's insurance policy. Also known as errors and omissions (E&O) insurance, professional liability insurance enables the policyholder to recover legal defense costs and damages related to your products, services, and advertising, up to the coverage limits specified on your policy.
Suppose you experienced a major disruption in your manufacturing processes for some reason and were unable to meet your contractual obligations to a purchaser who was relying on your product for their own business obligations. In that case, they could choose to bring legal action against you for disrupting their supply chain. That's one situation in which your insurer would provide funds to help you cover the cost of your legal defense and settlement costs you are ordered to pay.
Commercial General Liability Insurance
Commercial liability coverage is a standard type of business insurance that business owners need so they can recoup expenses related to personal harm, third-party bodily injury, and third-party property damage. Suppose a client comes into your Calgary office, warehouse, or another type of commercial space to negotiate a contract and trips over a random shipping box on the floor. In that case, they might suffer an injury and decide to take legal action against you for the cost of their medical expenses. Commercial general liability is part of your Calgary clothing manufacturing insurance that assists you in handling legal fees and medical bills arising from injuries that occur on your business property, along with third-party property damage that happens on your business property.
Product liability coverage is a component of commercial general liability that covers expenses related to third-party bodily injury or third-party property damage that is caused by your product, on or off your actual business property. It's possible that problems such as design and manufacturing defects, misleading or inaccurate labeling, noncompliance with advertising regulations, and failure to warn a consumer how to properly use a product could cause the end-user to suffer injury or illness and lead to a claim on your product liability insurance policy. For example, if you included defective snap closures on a piece of infant apparel and they came off the clothing, that would pose a choking hazard that could lead to litigation.
Commercial Property Coverage
Maybe you operate a massive clothing manufacturing facility, or maybe you're an artisan who is hand-stitching bespoke apparel in a home studio. Either way and for everyone in between, it's important to have commercial property coverage as part of your Calgary clothing manufacturing insurance. You can't run your business just anywhere—you need access to the facility you've tailored to suit your specific processes. Commercial property insurance is designed to give you peace of mind so you can sleep soundly at night, knowing you'll get the help you need to recover from property damage caused by catastrophes such as fire, theft and, natural disasters.
Commercial property coverage on clothing manufacturing insurance in Calgary, AB is either all-risk or named perils. All-risk coverage protects you against a wide range of common or likely perils, except the ones that are specifically excluded. A named perils policy protects against the specific risks that are listed in your policy—in other words, the "named perils." Take the time to speak with your Krywolt Insurance broker about business insurance services and make sure you have the right type of commercial property coverage to protect you from the risks that are most likely to occur.
Product Recall Insurance
Many Canadian manufacturers pass up product recall coverage when they are purchasing clothing manufacturers insurance because they assume they will never have to recall a product or that the recall will be covered by product liability claims. But the reality is that product recalls are very common across a wide range of industries, including apparel. Your product liability coverage protects you against financial losses from lawsuits, but it doesn't apply to the actual costs associated with a product recall, such as getting the finished products back from retailers and rehabilitating them to make them appropriate for sale, if possible. If rehabilitation isn't feasible, you'll have to soak the cost of all that destroyed inventory as well if you don't have product recall coverage on your clothing manufacturing insurance. Calgary, AB manufacturers can get help from their insurer to pay expenses related to the logistics of a product recall so they can get back on their feet as soon as possible.
Cargo Insurance
The goods you make won't do any good just sitting around your warehouse—they need to be shipped to retailers and suppliers, whether that involves sending massive pallets of goods across the ocean or just packing a few boxes into a delivery van to go across town. Regardless of distance, many potential hazards could pop up between your facility and the shipping destination to ruin your day and your budget. Cargo insurance is worth adding to your Calgary clothing manufacturing insurance because it offers protection against financial losses that result from damaged or missing cargo.
Pollution Liability Insurance
Even when creating apparel products out of natural fibers like cotton or silk, some stages of the manufacturing process may involve the use of chemicals, solvents, or other substances that have the potential to cause environmental harm. Pollution liability is well worth considering for your Calgary clothing manufacturing insurance if you regularly use or work with materials that have the potential to pollute the environment if they are accidentally introduced into the ecosystem. Pollution legal liability coverage applies to both sudden events such as a chemical spill and gradual events such as a slow leak that is allowing contaminants to seep into groundwater. In those types of situations, you could be responsible for extensive clean-up costs, property damage, bodily injury claims, and more that are related to the incident that caused environmental harm. It can also apply to legal defense costs if legal action is brought against you in relation to the polluting event.
Other Types of Calgary Clothing Manufacturing Insurance
- Equipment Breakdown Insurance
- Commercial Auto Insurance
- Cyber Insurance
- Crime Insurance
- Employee Dishonesty Coverage
- Negative Publicity Coverage
- Stock and Inventory Insurance
- Accounts Receivable Coverage
- Business Interruption Insurance
Frequently Asked Questions About Calgary Clothing Manufacturing Insurance
Is Calgary Clothing Manufacturing Insurance Mandatory?
No, it's not. Aside from the requirement for commercial auto insurance, there are no mandatory business insurance requirements in Alberta or the rest of Canada, and that includes clothing manufacturing insurance in Calgary, AB. That being said, operating a business without the protection of a robust Calgary clothing manufacturing insurance policy would be a huge mistake and could even cost the business you can't afford to lose.
Even if you are the most conscientious, cautious perfectionist out there, you simply can prevent every possible problem that could befall your business, from fire and flood to theft and lawsuits. You can be sued for alleged damage or injury that had nothing to do with you, but you still have to defend yourself in court. Random, unfortunate mishaps could end up costing a shocking amount of money for medical costs, legal fees, settlements, product rehabilitation, property damage mitigation, and much more—and you certainly don't want to be left without insurance support to deal with those unexpected financial losses.
You may also find that clients are unwilling to work with a manufacturer who does not have Calgary clothing manufacturing insurance, forcing you to pass up valuable contracts that will ultimately line your competitors' pockets instead. Let the dedicated team of brokers at Krywolt Insurance company find the right coverage for you at competitive prices so you can rest easy knowing your business is protected and you can keep on operating the company you've worked so hard to build.
How Much Does Calgary Clothing Manufacturing Insurance Cost?
Your business is one-of-a-kind, so your Calgary clothing manufacturing insurance needs to be unique. Unfortunately, there's simply no way we can give you accurate insurance quotes until you've spoken with a Krywolt Insurance broker and given them the information they need to assess the best options for your clothing manufacturing insurance. Calgary, AB business owners know their business inside and out—and we know how to protect your company from devastating lawsuits and damage mitigation expenses.
What Factors Influence Calgary Clothing Manufacturing Insurance Premiums?
When it comes to the cost of premiums for clothing manufacturing insurance, Calgary, AB residents can expect factors such as the following to have an impact on the rate they pay:
- Location of business
- Business type
- Annual revenue
- How your business functions
- Number of employees
- Past claims history
- Coverage options you select
You can count on the reliable brokers at Krywolt Insurance company to help you sleep soundly at night by finding the best possible insurance for clothing manufacturers. Calgary, AB professionals on our team are ready to get you the right combination of coverages at competitive prices so you can rest assured you won't suffer from sudden financial losses.
