Spinning is a twisting technique to form yarn from fiber. Indian spinning mill industry is one of the biggest industries in the world with around a 50million spindles. Thus these figures made India one of the largest cotton-producing nations. The spinning mill industry is part of the textile industry which includes Weaving mills, Knitting mills, Dyeing mills, Garments. In addition, companies that sell buttons, zippers, sewing machines all are related to the Textile industry. But even Textile industries have so many risk factors that can cause financial losses to the owner. To keep the risk factor out of the business we have a tool called Textile Insurance.

Textile Business Insurance

There are two main coverage types that are important for you to have, and two others that might prove useful depending on your particular business.

Commercial General Liability
  • This is the essential type of insurance that will provide coverage if your company is responsible for causing third-party property damage or bodily injury.
  • As a textiles distributor, you might provide materials for bed sheets that lead to a skin condition or car tires involved in a road accident.
  • In either case, a lawsuit typically would include anyone involved in the supply chain, like you.
Property Insurance
  • Unlike CGL, which covers damage done to someone else’s property, this policy applies to your property. Commercial property insurance covers your warehouse and everything in it, including the following:
  • Your stock
  • Equipment
  • Raw materials
  • Office contents
  • Computers

If you import raw materials from overseas and they travel by boat or plane, you’ll want to talk to your customs broker about ocean cargo insurance.

This insurance extension covers your goods in transit, whether by sea as the name suggests, or by air.

To expand your coverage even further, you could add inland transit coverage, which applies when your goods are on the ground between the port and the warehouse.

Clothing textile manufacturers often opt for cyber insurance, and if e-commerce is a part of your business, you should too.

Textile manufacturing companies that sell clothing directly to online shoppers will need a cyber policy to protect against financial losses resulting from a breach of theirs and their customer’s data, as well as from cyber attacks.

Business Insurance Policy Cover
- Damage Caused By Fire And Smoke

If a fire broke into a building obviously it’s a bad situation but if it occurs in a textile manufacturing plan then nothing can get worse than this. The reason is actually the material is more combustible than most, and that can lead to greater damage. Even if it does not fire still the smoke will be enough to completely ruin your textiles. DAMAGE CAUSED BY FIRE AND SMOKE policy can reimburse you for lost value.

- Theft

Theft is not that common in the textile industry. It’s not common that criminals will steal yarn and wool, still, it’s good to have coverage, a kind of security is important.

- Vandalism

If ever your warehouse is left unattended for long periods of time, during weekends or vacations, you want to know that you have this insurance coverage in case something goes wrong.

Showing up one morning to broken windows and graffiti can make your heart sink.

The peace of mind of an insurance policy is worth the cost of coverage.

It’s important to review your business insurance policy to make sure these three types of coverage are included.

If an insurance broker isn’t familiar with your industry, they might leave one out by mistake.

Avoid an oversight and look for those key terms.