Tailoring Insurance for Dressmakers and Shops: Cost & Quotes From $20/mo

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As a dressmaker, you may encounter unique risks and liabilities related to your business operations, such as damage to materials or equipment, accidents or injuries, or legal disputes with the clothing shop that bought your products. 

That’s why it’s important to have tailor insurance to protect your business from these potential threats. After all, it’s not impossible for that leather material you bought from the tanner to cause skin allergies to its user. 

 In this article, we’ll explore the different types of insurance coverage that may be relevant to tailors and dressmakers and provide cost estimates and quotes from top insurance providers.

General Liability Insurance for Tailors 

CoverWallet  NEXT (Best) Thimble  Hiscox The Hartford
Per occurrence limit  $1,000,000 $1,000,000 $1,000,000/$2,000,000 $300,000/$1,000,000 $1,000,000/$2,000,000
Aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000 $1,000,000/$2,000,000
Products and completed operations aggregate limit  $2,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Advertising injury coverage aggregate limit  $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000
Tenant’s legal liability coverage limit  $100,000 $100,000 $5,000 $100,000 $1,000,000
Waiver of subrogation included? Yes No Included Can be included No
Hired/non-owned auto liability coverage included? Yes No Excluded Can be included Can be included


General liability insurance for tailors and tanning shops can help protect your business in case of accidents or incidents that may occur on your premises or as a result of your business operations. Coverage limits for general liability insurance usually start at $1 million per occurrence and can go up to $5 million.

Specific Situations Where This Insurance Can Help

  • Customers’ clothing gets damaged due to a mistake made by your employee during alteration, repair, or customization.

  • The vendors visiting your shop trip over a loose carpet and sustain an injury

  • A fire breaks out in your shop and causes damage to neighboring properties

  • A customer alleges that your business caused financial harm due to a mistake or negligence

Add-Ons to General Liability Insurance for Tailors 

  • Hired and non-owned auto liability insurance–This seamstress insurance coverage is essential if your business uses personal vehicles or rents cars for business purposes. It covers damages or injuries resulting from accidents involving these vehicles

Does General Liability Insurance Cover Damages Caused by an Employee’s Actions?

In most cases, general liability insurance covers damages caused by an employee’s actions as long as the employee acted within the scope of their job duties. However, it’s important to check your policy to see if there are any specific exclusions or limitations related to employee actions. Additionally, the insurance may not cover the damages if the employee’s actions were intentional or criminal.


Product Liability Insurance for Tailors

This is a dressmaking insurance policy that protects you from legal liabilities that may arise due to injuries or damages caused by your products. This type of insurance policy is important for you if you manufacture or sell products such as clothing, accessories, or other fashion items.  Coverage limits for product liability insurance usually start at $1 million per occurrence and can go up to $5 million.


Some Specific Situations Where This Insurance Can Help Include

  • If a custom dress is not labeled properly, such as missing care instructions or fabric content, the customer experiences harm or damage to the garment

  • If you are aware of a potential hazard associated with a custom dress and fail to provide adequate warning to the customer, resulting in harm or damage


Do I Need Product Liability Insurance if I Only Make Custom Dresses for Individual Customers?

You should consider getting product liability insurance. Even if you don’t manufacture large quantities of clothing, there is still a risk that a customer may claim that the dress you made caused them harm or injury. 

For example, if a customer alleges that the dress caused an allergic reaction or skin irritation, you could be liable for any resulting damages or medical expenses. Product liability insurance can help protect your business from such claims and cover legal fees and settlement costs.


Pollution Liability Insurance for Tailors 

If you are a tailor who uses chemicals or hazardous materials in your work, it is important to consider obtaining pollution liability insurance. This coverage can protect you from potential lawsuits and financial losses due to accidental pollution incidents.  The insurance covers up to $1 million per occurrence and up to $2 million in aggregate.

For example, if a chemical spill were to occur at your workshop and cause harm to nearby residents or the environment, you could be held liable for damages. Pollution Liability Insurance can help cover cleanup costs, legal fees, and any settlements or judgments against you. Accidents can still happen even if your business follows strict safety protocols and regulations, making this coverage a worthwhile investment to protect your livelihood.


Add-Ons to Pollution Liability Insurance for Tailors

  • Extended reporting period–Provides coverage for claims that arise after your policy expires but were caused while the policy was in effect

  • Transportation pollution liability–Provides coverage for pollution caused by transporting materials or products

What Types of Tailoring Businesses Should Consider Pollution Liability Insurance?

If you operate a tailoring business that uses chemicals or dyes that could harm the environment, you should consider pollution liability insurance. Additionally, don’t skip this policy when operating in a location with a higher risk of environmental contamination, such as near a water source or in an area with heavy industrial activity. Pollution liability insurance may be a wise investment to help protect your business from potential environmental risks.

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Commercial Property Insurance for Tailors 

CoverWallet NEXT (Best) Thimble The Hartford Hiscox
Building coverage limit (minimum) $50,000 $340,000 $25,000/$500,000 $35,000 $25,000
Contents coverage limit (minimum) $50,000 $35,000 $25,000/$500,000 $35,000 $15,000
Outdoor signs Excluded $2,500 Excluded Excluded Included
Accounts receivable  Excluded Excluded $5,000/$10,000 Excluded Included
Money and securities Excluded $2,500 $1,000 Excluded Included
Lock and keys  Excluded $2,500 Excluded Excluded Included
Business interruption floater Excluded Included Included Excluded Included
Equipment breakdown floater Excluded Included Excluded Excluded Included
Inland marine insurance floater Excluded Excluded $10,000 Excluded Excluded
Employee dishonesty floater Excluded $5,000 $2,500 Excluded Excluded


Commercial property insurance is designed to protect the physical assets of your business, including your building, equipment, inventory, and furniture, in case of unexpected events such as fire, theft, or natural disasters. The coverage limit for this tailor shop insurance ranges from $500,000 to $2,000,000, depending on the insurer. 


Specific Situations Where This Insurance Can Help

  • Fire damage to your property or inventory

  • Water damage due to burst pipes or flooding

  • Theft or vandalism of business property or equipment

  • Damage caused by severe weather, such as hail, windstorms, or lightning

  • Business interruption due to property damage or loss

Add-Ons to Commercial Property Insurance for Tailors 

  • Business interruption insurance–This coverage provides financial support if your business is temporarily shut down due to a covered event, such as a fire or a natural disaster. It can help cover your lost income, rent, and other expenses

  • Equipment breakdown insurance–This coverage protects you in case of sudden and accidental equipment breakdown, such as your sewing machine. It can help cover the cost of repairing or replacing the equipment

Business Owner’s Policy for Tailors 

CoverWallet NEXT (Best) Thimble  The Hartford Hiscox
General liability aggregate limit  $2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $1,000,000/$2,000,000 $300,000/$2,000,000
Commercial property coverage limit  $50,000 $320,000 $25,000/$500,000 $35,000 $75,000
Optional policies can be added? Yes Yes Yes Yes Yes
Name additional insureds for free? Yes Yes Yes Yes Yes
BOP discount? Yes Yes Yes Yes Yes


This comprehensive insurance policy combines general liability and property insurance in a single package. For you as a  tailor, a BOP provides coverage for liability claims and property damage, including damages caused by theft, fire, or other unexpected events. The coverage limit for a BOP policy varies from $1,000,000 to $3,000,000.

Specific Situations Where This Insurance Can Help

  • Liability claims resulting from bodily injury or property damage caused to third parties while on your business premises,

  • Product liability claims resulting from injuries or damages caused by your products

  • Property damage caused by unexpected events such as fire, theft, or natural disasters

Add-Ons to Business Owner’s Policy for Tailors

  • Customer property coverage–This can reimburse the customer on your behalf if expensive clothing they own gets damaged or lost while in your care, custody, and control

  • Employment practices liability insurance (EPLI)–This add-on covers legal claims arising from employment discrimination or wrongful termination allegations. With EPLI, you can protect your business from lawsuits that may result in significant financial damage

Tools and Equipment Insurance for Tailors 

NEXT  Thimble Hiscox The Hartford
Aggregate limit $3,000/$10,000 $2,500/$5,000 $15,000/$25,000 $5,000-$10,000
Covers hired and borrowed equipment? $3,000/$10,000 $2,500/$5,000 No Yes
Miscellaneous equipment also covered? $5,000/$10,000 No Yes Yes
Offered as an endorsement to general liability insurance? Yes Yes Yes Yes
Deductible $500 $500 $0 $0


You may have invested in expensive equipment and tools to help you create high-quality garments for your customers. Your tools and equipment can be damaged or stolen, leading to costly repairs or replacement. Tools and equipment insurance is important to protect your business from these risks.


Specific Situations Where This Insurance Can Help

  • Power surges can cause significant damage to electronic equipment, including sewing machines and computers

  • If you misplace or lose your tools and equipment, the insurance can cover replacing them

  • Tools and equipment insurance can cover repair or replacement if your sewing machine or other equipment breaks down due to a mechanical failure or other issues

Add-Ons to Tools and Equipment Insurance for Tailors

  • Off-premises coverage–This add-on extends coverage to your tools and equipment while off-site, such as when working at a customer’s location or transporting them to and from a job site

Can Tools and Equipment Insurance Cover Damaged Equipment While Transported to a Customer’s Location?

The coverage will depend on the specific terms and conditions of the policy. It’s important to review the policy carefully to determine whether transportation-related damage is covered and under what circumstances. 

Some policies may require that a specific type of vehicle transports the equipment or be properly secured during transit. It’s also important to document any damage and file a claim promptly to ensure the insurance company can assess the damage and provide appropriate coverage.


Workers Compensation Insurance for Tailors 

Workers’ compensation insurance is an insurance policy that benefits employees who suffer work-related injuries or illnesses. As a tailor, your employees may be at risk of injuries such as cuts, burns, or repetitive motion injuries. Workers’ compensation insurance can provide benefits to employees, such as medical expenses, lost wages, and disability benefits. 


Coverage Limits of Workers Compensation Insurance for Tailors

The amount of coverage needed depends on the number of employees and the risks associated with the job. Generally, workers’ compensation insurance for tailors typically covers medical expenses, lost wages, and rehabilitation costs associated with work-related injuries or illnesses.


Specific Situation Where This Insurance Can Help

  • Accidents are caused by using sharp tools such as scissors, needles, and pins

  • Injuries caused by sewing machines or other heavy machinery used in tailoring

  • Repetitive stress injuries from tasks such as cutting, sewing, or ironing

  • Injuries caused by exposure to chemicals or other hazardous materials used in tailoring

Are All Tailors Required to Carry Workers’ Compensation Insurance?

If you are a tailor and have employees, you may be legally required to carry workers’ compensation insurance. The exact requirements vary by state, so it’s important to check with your local government or insurance provider to determine what’s required for your business. However, even if it’s not required by law, it’s still a good idea to consider getting workers’ compensation insurance to protect your employees and your business in case of an accident or injury.

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Tailor Insurance Cost 

Cost per Month Cost per Year Deductible
General Liability $34 $408 $0-$500
Professional liability insurance $40 $480 $500-$1,000
Product Liability $70 $840 $1,000-$2,000
Pollution Liability $50 $600 $1,000-$2,000
Commercial Property $80 $960 $1,000-$2,000
Business Owner’s Policy $114 $1,368 $1,500
Tools and Equipment $38 $456 $500-$1,000
Workers’ Compensation $120 $1,440 $1,000-$2,000


The average tailor insurance cost is $34 per month or $408 per year for a $1 million general liability coverage. Here are some factors that can affect the cost of insurance for tailors:

  • Type of insurance–The type of insurance you choose will significantly impact the cost. For example, general liability insurance is typically less expensive than pollution liability insurance

  • Coverage limits–The higher the coverage limit, the more expensive the insurance premium. If you need higher coverage limits to protect your business adequately, expect to pay more for insurance

  • Location–Insurance costs can vary depending on your business location. You may pay more for insurance if you operate in an area with higher crime rates or a higher risk of natural disasters

  • Size of business–The size of your business, including the number of employees and annual revenue, can impact your insurance costs. Larger businesses may pay more for insurance because they have more assets to protect

  • Claims history–If you have a history of filing insurance claims, your premiums may be higher as insurance companies consider you a higher risk

  • Industry risks–Certain industries, such as those that involve working with heavy machinery or hazardous chemicals, may be considered higher risk by insurance companies 

  • Deductibles–The deductible is the amount you pay out of pocket before insurance coverage. A higher deductible may result in a lower monthly premium, but you’ll pay more out of pocket if you need to file a claim

In connection, here’s a table showing the cost of $1 million general liability insurance from companies we recommend:

Cost per Month Cost per Year Best for
NEXT $20 $240 Tailoring businesses seeking customizable coverage and a streamlined online experience
CoverWallet $26 $312 Comparing tailor insurance quotes online
The Hartford $29 $348 Tailoring businesses seeking customizable coverage and a streamlined online experience
Hiscox $30 $360 Businesses seeking strong financial backing
Tivly $32 $384 Comparing tailor insurance quotes over the phone
Thimble $35 $420 Tailoring businesses with short-term projects

Compare Cheap Tailoring Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Tailor Insurance Companies 

Here are some of the best tailor insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability insurance. 


NEXT Tailor Insurance

Pros

  • Next Insurance’s pricing is generally competitive, particularly for small businesses with limited budgets for insurance coverage

  • Next Insurance offers a user-friendly online platform that allows customers to manage their policies and claims quickly and easily

  • Their policies are customizable so that public relations businesses can tailor their coverage to their needs

Cons

  • Couldn’t find any

NEXT is a technology-driven company specializing in providing small business insurance. With this company, customers can customize their policies to meet their specific budget, making it a popular choice among small business owners.

Best for: Tailoring businesses seeking customizable coverage and a streamlined online experience

Average cost: $20 per month 

Our rating: 10/10


CoverWallet Tailor Insurance

Pros

  • They provide excellent customer service and support, with a dedicated team of insurance advisors available to answer any questions or concerns

  • Consolidate all of your insurance policies into a single location, streamlining the process of reviewing your coverage, paying your bills, and filing claims

Cons

  • Not an insurance company but an insurance broker 

CoverWallet is an insurance company providing digital solutions to small and medium-sized businesses. The company aims to simplify the insurance buying process by allowing businesses to compare and purchase policies.

Best for: Comparing tailor insurance quotes online

Average cost: $26 per month 

Our rating: 10/10


The Hartford Tailor Insurance

Pros

  • Hartford has a long history of financial strength and stability, giving customers peace of mind that the company can pay out claims

  • Free benefits like new car replacement are included with auto insurance policies

  • Reduced prices or lower rates are offered to individuals 50 years old or older

Cons

  • You might need to contact an agent for higher coverage limits 

The Hartford has been a well-known insurance company in business for over 200 years. They provide personalized customer service and have a team of experienced agents who can help businesses find the right coverage for their needs.

Best for: Established tailoring businesses 

Average cost: $29 per month 

Our rating: 10/10


Tivly Tailor Insurance

Pros

  • Has affordable insurance solutions, with monthly policies starting at $20

  • Immediate data analysis to enhance the satisfaction of customers

  • Getting a quote with Tivly is fast and easy

Cons

  • Tivly is a new insurance market, and some customers may prefer to work with more established providers

Tivly is an insurance technology company specializing in business insurance products. Their mission is to make insurance simple, transparent, and accessible to all businesses. Call now to compare quotes over the phone. 

Best for: Comparing tailor insurance quotes over the phone 

Average cost: $32 per month

Our rating: 8/10


Thimble Tailor Insurance

Pros

  • Offers flexible insurance policies that can be purchased by the hour, day, or month, providing coverage only when needed

  • They have a model plan that can be easily adjusted to accommodate different levels of growth

Cons

  • Their coverage options may not be as comprehensive as some other providers in the market

Thimble is an insurance provider that offers on-demand coverage for small businesses and self-employed professionals. With this company, you can avail general liability insurance as a policy that last for hours, days, weeks, or months. 

Best for: Tailoring businesses with short-term projects

Average cost: $35 per month 

Our rating: 9/10


Hiscox Tailor Insurance

Pros

  • Hiscox offers a range of insurance products, including professional liability, property, cyber, and marine insurance, making it a convenient choice for businesses needing multiple types of coverage

  • You can get a discount of up to 5% if you purchase two or more products from Hiscox

  • The company has a solid financial rating, which can provide peace of mind to customers

Cons

  • Hiscox does not offer insurance in all states in the US, which can limit the company’s availability for some customers

Hiscox is a leading insurance company that offers a variety of insurance products for businesses. With over 100 years of experience, Hiscox is known for providing tailored coverage and exceptional customer service.

Best for: Businesses seeking strong financial backing

Average cost: $30 per month 

Our rating: 9/10

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