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Company insurance is intended to safeguard the financial assets of a firm owner and is an important investment for a leather business.

Company insurance is intended to safeguard the financial assets of a firm owner and is an important investment for a leather business.

This article will discuss the primary insurance coverage for leather enterprises, general liability insurance, as well as additional products that are appropriate for this industry.

Leather Businesses Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: A shop owner who wishes to carry your leather line falls and injures her back while visiting your company. She is suing your firm for her medical expenditures and other damages. General liability insurance would cover legal fees and awarded damages.

Example 2: Another local leather artist has filed a lawsuit against you, alleging that you copied one of her designs. General liability insurance should cover the expense of hiring an attorney to defend you in court.

Example 3: You accidently knock down a neighbouring artist’s exhibit while unloading products for a local art show. They have filed a lawsuit against you for monetary damages and lost earnings. Your general liability insurance should pay their costs and represent you in court.

Example 4: To participate in a weekly art market, you must provide proof of liability insurance as part of your application. That responsibility should be met by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Leather firms in America typically pay between $350 and $750 per year for $1 million in general liability coverage.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Leather Businesses

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all leather firms should have include:

Insurance for Commercial Property

A commercial property insurance coverage is purchased by businesses to safeguard their assets. In the event of a loss, the insurance would cover the cost of repairing or replacing owned physical property as well as any business-owned assets stored on-site. Windstorms, thefts, and fires are all examples of losses.

Commercial property insurance may be purchased as part of a company owner’s coverage (BOP).

Insurance for Inland Waterways

Make careful to explore coverages and exclusions when acquiring your business insurance. An inland marine coverage may be required if you go off-site with your business gear. Inland marine insurance protects commercial property, equipment, and tools while they are transported away from the premises. It bridges the coverage gap left by commercial property insurance.

Coverage Options for Some Leather Businesses

In addition to the insurance listed above, your leather company may need other forms of coverage based on key elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Product Liability

Product liability insurance should be included in the company owners package of entrepreneurs that manufacture, provide, or sell items. If someone becomes sick or injured as a result of your goods, they may sue you. The insurance would cover your legal bills as well as any damages awarded by the court.

You should consult with an insurance specialist about the specifics of your company in order to personalise this coverage to your specific requirements.

Insurance for Workers’ Compensation

This state-mandated insurance covers workers who get sick or are injured on the job. Employees’ medical expenditures and missed income are covered by workers’ compensation insurance. It also pays the legal expenses of the company owners if an employee sues them for the occurrence.

Workers compensation insurance may be purchased separately.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.