These establishments receive materials, such as cloth and yarns, from other sources and use machines to complete the embroidery. Embroidery operations pack and ship the embroidered fabrics or fabric-based products to their recipients. We tailor General Liability, Property, Business Auto and other insurance policies to cover the specific liabilities an embroidery operation faces.
Embroidery shops, like any other service-oriented business, have liability risks and need protection from third-party claims and lawsuits. Visitors to the embroidery shop can injure themselves as the result of an everyday accident. For instance, a needle vendor could trip over an electrical cord or a customer could slip on a wet bathroom floor. Serious injuries can result from these types of accidents, resulting in high dollar medical claims and even lawsuits.
Employees can easily sustain injuries from the use of sewing machines, scissors, and needles. A sewing machine needle could break and fly into the eye of a worker, for instance. A malfunctioning machine could easily harm someone’s hand or fingers. And employees are susceptible to slip/trip/fall accidents on the job. Worker’s Compensation covers the medical costs and pays the employee’s wages while he/she recovers from the injuries suffered.
Business auto risks for embroidery operations should be low because most customers travel to the business premises. However, employees may drive to deliver competed orders, attend trade shows, or run errands to places such as the bank or post office. Personal auto insurance policies typically don’t cover vehicles driven for business purposes.
Fire on the premises is a fairly high risk for embroidery operations due to the electrical equipment, clothing and other materials on site. Property can also be damaged by severe weather, such as electrical storms, high winds and hail, or from mishaps in the building’s electrical or plumbing system. A burst water pipe or roof damaged by a tree falling in a thunderstorm could lead to considerable water damage to the flooring, walls, office and embroidery equipment, furniture and business files. Property insurance also covers loss of income if the business cannot operate while repairs are being made.
Dishonest employees may steal money and securities through embezzlement. Property loss due to theft by employees is also covered.