There are millions of fashion, designer, clothing brands, some known worldwide and some locally recognised. Hong Kong fashion brands are one of the biggest industries in the city, bringing in many tourists and local buyers. There are specific insurance for clothing brands that help cover endless risks.
No matter if it is a high fashion brand, luxury brand or a new local brand – insurance for clothing brands is vital when starting and running the business. The range of insurance can help avoid claims, property damage and even online cyber risks.
Hence, the article will highlight the policies that make up the perfect clothing insurance for fashion brands in Hong Kong or anywhere in Asia.
Top Insurance for Clothing Brands
Public Liability
When clothing brands operate through a store, people always walk in and out. Therefore, when a customer steps into the clothing store, the owner is liable for their safety.
Public liability insurance for clothing brands is one of the most important policies to protect its liability. The insurance will financially cover if a third party (customer/public) sues the brand due to an injury in or due to the clothing business. For example, the injuries could be a slip & fall, falling product injury or even if an employee accidentally knocks a customer to the ground in the store.
Third-party injuries in a store could happen at any point, and one angry customer can lead to an expensive lawsuit. The insurance can save the business a large amount of financial loss and protect the business’s liability.
Product Liability
Clothing products seem pretty harmless compared to most products, don’t they? But unfortunately, even clothing products can cause injuries and illness to customers. The clothing product defects may include sharp parts, toxic fabrics or even poorly created products (that do not do as intended).
Product liability insurance for clothing brands can be a lifesaver when faced with product defect lawsuits. The insurance will cover the costs related to any clothing product defects that caused a third party an injury or illness.
Even if clothing product injuries may be rare, this clothes insurance is necessary for any clothing fashion brand in Hong Kong and Asia.
Property All Risk
Renting property and buying large stock is expensive, especially for designer brands in Hong Kong. Property damage can result in a large amount of financial loss and business interruption. For example, this could include a fire burning the store and products due to faulty lights.
Property all-risk insurance for clothing brands can cover the financial loss in these disastrous situations. The insurance will cover financial loss due to property damage, loss, vandalism, and theft.
The policy is the perfect clothing store insurance for retailers in Hong Kong. Business interruption insurance can also be added to the insurance to cover financial loss due to a business interruption period.
Property damage can happen due to weather, faulty wiring or many other unexpected reasons.
Cyber Insurance
Most clothing fashion brands in Hong Kong have a presence online, may it be a brand website, online store, or both. Customers in this trust businesses and insert their card details online to purchase clothing products. Companies are responsible for the security of customer data used on the website.
For this reason, cyber insurance for clothing brands is crucial to protect the business from cyber-attacks. The insurance will help the fashion e-commerce business recover from cyber-attacks, which include recovering data, informing third parties and expert cyber advice.
The insurance can help a business move on from cyber threats and protect their customer’s data. It is a vital insurance for any business working online and dealing with sensitive data.
Employee Compensation
All clothing stores and online businesses run due to employees. Employees are in charge of different duties such as sales, design, finance, etc. The clothing brand is liable for each employee, including work injuries or illness.
The Hong Kong labour department requires all businesses to have employee compensation insurance for their part-time and full-time employees. So whether it is a designer brand or an e-commerce business, the insurance for clothing brands is legally mandatory to protect hard-working employees.
The insurance will provide the salary while the staff is recovering, medical and compensation expenses. The injury could happen at any point – for example, a staff slipping from a ladder while removing shoes from high shelves.
Why Is Insurance for Clothing Brands Crucial?
Insurance for clothing brands could be the safety net through unforeseen challenging times. From lawsuits, property damage to cyberattacks, the combination of these insurance will cover these fashion brand risks.
Insurance is also perfect for customers who have purchased designer products. For example, many customers insure handbags with asset insurance to protect their value.
Insurers can customise the combination of insurance for clothing brands and the coverage for different brands and clothing stores. If your clothing brand sells casual clothes, designer products, bridal dresses, or sports gear – you need the above clothing insurance in Hong Kong and Asia.
Additionally, if you plan to start a clothing e-commerce business, read our article – How To Successfully Start an E-Commerce Business in 2023? .
To Learn More about business insurance for clothing brands and get the best coverage for your fashion business in Hong Kong and Asia, contact Red Asia Insurance.
