A tailor provides very specialized clothing services day in and day out. Designing pants, jackets, and creating custom-made suits and other clothing is your bread-and-butter. Tailor shop owners face unique risks in their businesses. Some of the risks involved may include possible theft of your clothing, accidental fires, floods that damage your property, or even electrical outages that might negatively affect your operations. As a professional tailor, it is crucial to ensure that your financial assets are protected and fully covered from any potential risks with the appropriate small business insurance.
Insurance Coverage Options for Tailors
Business insurance for tailors is wide and varied, and each insurance company has its own policies that specifically protect tailoring businesses at different levels. You have the option to choose from the following options for optimum coverage:
Tailor Shop General Liability Insurance
This is one of the most important insurance coverages for your tailor shop since it covers a broad range of unexpected events. For instance, if a customer is accidentally injured in your business premises, you can be held legally responsible for the injury. However, with general liability insurance, you are assured of protection that covers lawsuits, damages, and associated medical expenses. It is the best way to protect your customers and your business from liability.
Business Owners Policy
A business owner policy, popularly known as a BOP, is more of an insurance package, and it covers a variety of potential risks. It is designed for small business owners like you and allows you to choose the right option for your business.
A very basic BOP includes general liability coverage and property insurance. Here are some of the coverages a BOP can include:
- Equipment breakdown Coverage: You use your equipment to provide quality outfits for your clients, and unfortunately, you don't get to choose when tragedy strikes the equipment. Your sewing machine, for example, might be damaged due to an electrical surge. Replacing it might be a huge expense. In the case of such a scenario, a BOP will help you repair or replace the whole machine.
- Commercial Property Insurance: When your store is struck by fire or water damage, and the cost of replacement or repair is far above your means, property insurance will play a vital role in ensuring your shop is back in order. A BOP will take care of the covered damages to your building and valuables you stored inside the building, such as office equipment, sewing machines, customers' clothing, and other inventory.
- Electronic data: Specialized computer software, hardware, and digital media are effectively covered from damage by a BOP. In case they get damaged, the BOP insurance provider will handle the situation and make necessary arrangements for compensating for any financial loss.
- Business Interruption Insurance: Some major events may force your business to relocate or temporarily shut down. You don't have to worry about the extra expenses involved because a BOP will cover the qualifying losses.
- Employee dishonesty coverage: While most of your employees might be trustworthy, fraud and dishonesty are common, too. They account for about a 6% loss of revenue annually for the average small business.
- Valuable paper protection: Your tailor shop might have papers such as customer contracts (which are typically filed in paper form). A BOP will stand for any expenses that arise when these papers get damaged.
Professional Liability Insurance
If you work with high-end luxury suits and tuxedos or vintage family heirlooms, you cannot afford to make an error or mistake. If you make an error or are accused of professional negligence that damages these expensive pieces of clothing, professional liability insurance covers cost associated with potential lawsuits or settlements.
Commercial Auto Insurance Policy
While your tailor shop may not be majorly involved in pickups and delivery, it is necessary to have commercial auto insurance. Commercial auto coverage will protect your car in case it is involved in an accident—whether you use a company vehicle or your personal vehicle.
Tailor Shop Workers Compensation' Insurance
If you have more than one employee, you are legally required to have workers' compensation insurance in most states. Workers' comp protects you and your company from paying medical bills and related expenses in case of an accident while using sewing machines, chemical dyes, or heavy materials during the job.
Get a FREE tailor shop insurance quote
Tailor shop insurance policies cover almost all aspects of your job, but only if you have the right insurance policy. That’s why it’s so essential to look for proper business insurance. At Commercial Insurance net, we understand the need for reliable, dependable, and professional expertise for your tailor shop insurance matters. Whether you're simply looking for basic general liability insurance or need workers' comp, we are here to help your business thrive by finding you affordable quotes for your commercial insurance. Complete the form above and one of our agents will contact you soon!