Quilt Business Insurance
Getting insurance for your quilt business is essential.
Quilt businesses need to be protected against things like claims of breach of contract and misrepresentation.
For example, a customer could claim that one of the quilts you shipped arrived damaged or didn’t meet the customer’s specifications.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Quilt Business
General liability insurance is — generally speaking — one of the most important insurance policies for quilt businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
Although general liability insurance provides extensive coverage for your business, there may still be certain risks that it does not cover. To manage and reduce these risks, it may be advisable to explore additional insurance policies.
- If you store sensitive customer information online and a hacker steals it, you might face legal action. Data breach insurance can offer protection against such lawsuits, covering legal fees and damages.
- If your business relies on physical assets like sewing machines or computers, commercial property insurance can guard them against damage or theft.
- If you use a vehicle for your business, you'll need commercial auto insurance to cover accidents that occur during work-related tasks.
Choosing the right insurance provider can be difficult. One of the initial steps in this process is identifying which of the two primary categories of insurance providers is the best fit for your business.
The first category comprises traditional brick-and-mortar insurers, which have a physical storefront and employ insurance agents. Companies like Nationwide and The Hartford fall under this category.
The second category includes online insurers, which operate exclusively through digital channels and rely on AI instead of insurance agents. Next and Tivly are examples of companies that fall under this category. Most small businesses go with online insurers because they’re cheaper.
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Cost of General Liability Insurance
On average, quilt businesses in America spend between $300 - $600 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a quilt business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
Find the Best Rate
Discover the best coverage at the lowest rate in our low-cost business insurance review.
Common Situations That General Liability Insurance May Cover for a Quilt Business
Example 1: A visitor to your quilt business slips on wet flooring in the restroom, breaks her tailbone in the fall, and asks you to pay for her medical treatment. General liability insurance would cover her medical expenses.
Example 2: A competing business sues you for libel. While you disagree with the accusation, you know you need to hire a lawyer right away. General liability insurance would pay for your legal defense and any required settlement.
Example 3: While taking some visitors on a tour of your quilt business, you accidentally knock one of them to the floor. The visitor breaks a wrist in the fall and decides to sue you for damages. General liability insurance would pay for your legal defense.
Other Types of Coverage Quilt Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Product Liability Insurance
While you put a lot of love and care into the quilts you create for your customers, there’s always a chance someone might decide your product caused them harm. In the event of a lawsuit, product liability insurance would cover your legal fees and any required settlement.
Commercial Property Insurance
You made a major investment in the quilting supplies, equipment, and real estate needed to run your business. In the event of a fire, theft, or natural disaster, commercial property insurance would cover the cost of repairing or replacing your business-related property. This includes structural damage to your building as well as the business materials stored there.
Workers’ Compensation Insurance
If you have any employees, most states will require you to carry workers’ compensation insurance for your part-time and full-time workers. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability or death benefits stemming from a workplace accident.
Home-Based Business Insurance
If you run your business from your home, you may need this insurance to safeguard the equipment and space in your home devoted to your business. A typical homeowners insurance policy may not cover business-related items or customer injuries on your property if you don’t disclose you use your home for business purposes.
You can typically purchase this coverage as part of a business owners policy (BOP).
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your quilt business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Quilt Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
In order to launch a quilt business, it is necessary to have business insurance due to the unique set of risks that this type of business faces. Failing to obtain sufficient insurance coverage could result in significant liability and financial uncertainty.
Furthermore, in some cases, specific insurance policies may be legally required, such as workers' compensation insurance, and starting the business without these policies could result in legal consequences.
Not necessarily. Certain exceptions may be written directly into your quilt business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.