# Insurance for textile, clothing and leather manufacturers in Germany

> Fibres, bales of fabric and dust burn fast, dye works handle chemicals and waste water, and children's clothing must not have one cord or one harmful substance too many. Weaving mill, sewing workshop, knitting firm or tannery: this page shows the insurance textile and leather businesses in Germany need and what it costs.

Quelle/Source: https://www.nammert.com/en/business-insurance-textiles.php  
Updated: 2026-09-18

## Are we liable if harmful substances are found in our clothing?

Yes, if someone's health is harmed as a result, for example a skin reaction to dyes. Product liability pays for that. If the goods are merely taken off the shelves without anyone being harmed, the issue is recall costs. Those are only covered with a separate building block.

## At a glance

- **Compulsory:** No statutory insurance; for dyes and waste water you are liable without fault under the German Water Resources Act
- **Biggest risk:** Fire from fibre dust and easily ignited stock
- **Basic cover from:** around €200 a year for the general liability of a small sewing workshop or studio
- **Berufsgenossenschaft:** The statutory accident insurer is BG ETEM for textiles and clothing, BG RCI for leather making
- **Often forgotten:** Clients' goods lying at your premises for contract work
- **WZ 2025 / NACE:** 13.10 Spinnstoffaufbereitung und Spinnerei, 13.20 Weberei, 13.30 Veredlung von Textilien und Bekleidung, 13.91 Herstellung von gewirktem und gestricktem Stoff, 13.92 Herstellung von Heimtextilien und konfektionierten Textilwaren für die Innenausstattung, 13.93 Herstellung von Teppichen, 13.94 Herstellung von Seilerwaren, 13.95 Herstellung von Vliesstoff und nicht-konfektionierten Erzeugnissen daraus, 13.96 Herstellung von technischen Textilien, 13.99 Herstellung von sonstigen Textilwaren a. n. g., 14.10 Herstellung von Bekleidung aus gewirktem und gestricktem Stoff, 14.21 Herstellung von Oberbekleidung, 14.22 Herstellung von Wäsche, 14.23 Herstellung von Arbeits- und Berufsbekleidung, 14.24 Herstellung von Lederbekleidung und Pelzwaren, 14.29 Herstellung von sonstiger Bekleidung und Bekleidungszubehör a. n. g., 15.11 Gerben, Färben, Zurichten von Leder und Fellen, 15.12 Herstellung von Reisegepäck, Handtaschen, Sattlerwaren und Geschirren aus Stoffen aller Art, 15.20 Herstellung von Schuhen

## What goes wrong in this trade

- **Fibre dust and fire:** Lint gathers on machines, lamps and in extraction ducts. One spark is enough and the fire runs through the hall.
- **Chemicals in the dye works:** Dyes, bleaches and tanning agents reach the waste water or the soil through leaks.
- **Other people's goods in your care:** Contract manufacturers work with their clients' fabric and leather. If the goods are spoiled or burn, you are liable.
- **Children's wear and protective clothing:** Cords, buttons, harmful substances or inadequate protection lead to accidents and recalls.
- **Machines with long delivery times:** Weaving looms, knitting machines and stenter frames are expensive and often custom built. A breakdown means a long stoppage.
- **Theft of valuable goods:** Branded goods, leather and yarn are easy to sell and are stolen to order.

**Risk radar** (Compared with other trades, 1 low to 5 high.): Liability 3, Fire and water 5, Theft 3, Cyber 3, Downtime 4, Health 3

## The insurance you need

- **Business liability** (Essential): Covers product liability for clothing, home textiles and leather, plus damage to goods clients give you to work on. https://www.nammert.com/en/insurance-broker-business-liability.php
- **Business contents** (Essential): Replaces machines, yarn, fabric and finished goods after fire, burst pipes, storm and burglary. https://www.nammert.com/en/insurance-broker-business-contents.php
- **Business interruption** (Strongly advised): Secures wages and contribution margin when seasonal goods cannot be delivered on time after a fire. https://www.nammert.com/en/insurance-broker-business-interruption.php
- **Machinery breakdown** (Strongly advised): For weaving, knitting, embroidery and sewing machines and dyeing plant, which can take months to replace. https://www.nammert.com/en/insurance-broker-machinery-breakdown.php
- **Cargo insurance** (Depends on the business): Insures fabric and finished goods on the way to and from contract workshops, retailers and trade fairs. https://www.nammert.com/en/insurance-broker-cargo-insurance.php
- **Cyber insurance** (Depends on the business): Online shop, pattern data and stock control are vulnerable to attacks and data loss. https://www.nammert.com/en/insurance-broker-cyber-insurance.php
- **Business legal expenses** (Depends on the business): For disputes with suppliers, clients and trading partners over quality and delivery dates. https://www.nammert.com/en/insurance-broker-business-legal-expenses.php

## What it costs: example prices

The premium depends mainly on the process. Sewing workshops and studios are inexpensive; spinning mills, weaving mills and dye works pay considerably more because of fire load and chemicals.

| Insurance | Example | Typical range |
| --- | --- | --- |
| Business liability | Small sewing workshop or studio with up to three staff | around €150 to €450 a year |
| Business liability | Weaving mill or dye works with 25 staff, with environmental blocks | around €1,500 to €4,500 a year |
| Business contents | Machines, yarn and goods worth €600,000 | around €1,000 to €3,000 a year |
| Machinery breakdown | Knitting and weaving machines with a new value of €500,000 | around €1,500 to €4,000 a year |
| Business interruption | Business interruption for twelve months added to contents insurance | around €400 to €1,500 a year |

For comparison: Liability and contents cover for a small sewing workshop cost roughly as much a year as the material for 20 made to measure shirts.

_Guide figures excluding German insurance tax, as of September 2026, from published tariff examples for small businesses and our own quoting. Because of the fire load, insurers charge higher rates in the textile industry; we obtain the exact quote for you._

- [Finanzchef24: Versicherungen für Handwerker](https://www.finanzchef24.de/versicherung/handwerk)
- [transparent-beraten.de: Betriebsunterbrechungsversicherung](https://www.transparent-beraten.de/betriebsunterbrechungsversicherung/)
- [Versicherungen.org: Maschinenversicherung, Beitragsbeispiele](https://www.versicherungen.org/wiki/Maschinenversicherung,_Beitragsbeispiele)

## Our suggestions: three packages

- **Studio** (Tailors, sewing workshops and small labels with their own workroom): Business liability, Business contents. Together: around €350 to €1,000 a year
- **Production** (Knitting firms, weaving mills and contract workshops with a machine park): Business liability, Business contents, Business interruption, Machinery breakdown. Together: around €3,500 to €10,000 a year
- **Brand** (Manufacturers with their own label, online shop and retail customers): Business liability, Business contents, Business interruption, Machinery breakdown, Cargo insurance, Cyber insurance, Business legal expenses. Together: around €7,000 to €18,000 a year

## The worst day in textile production

Six losses that really happen in textile and leather firms, put together on one Wednesday in the busy season. Tap through the day.

- 07:05: A valve in the dye works leaks, and dye liquor runs into the ground beneath the hall. (€28,000, Paid by: Business liability)
- 09:40: The wrong cutting layout is used for a client's order. 400 metres of designer fabric are ruined. (€12,000, Paid by: Business liability)
- 11:20: The control unit of the circular knitting machine burns out after a power surge. (€19,000, Paid by: Machinery breakdown)
- 14:00: A customer has an allergic reaction to the dye in a blouse. Medical costs and damages. (€3,500, Paid by: Business liability)
- 18:30: Lint in the extraction system catches fire. The store with yarn and the autumn collection burns out. (€240,000, Paid by: Business contents)
- 19:00: The autumn goods cannot be delivered, retailers cancel and wages keep running. (€110,000, Paid by: Business interruption)

**Damage so far:** €412,500

## Practical tips from your broker

- Have damage to goods you work on for clients expressly included in your general liability; processing damage is otherwise often excluded.
- Insure clients' goods in your contents insurance with a sum of their own.
- Clean extraction systems regularly and keep records; after a fire insurers ask about exactly that.
- For dye works and tanneries: agree environmental liability and environmental damage insurance for waste water and chemicals.
- If you make children's wear or protective clothing, look at a higher product liability sum and a recall block.
- Build seasonal peaks into the sum insured; before autumn there is often twice as much stock in the store.

## Why NAMMERT for your business

- **We know the gaps in contract work:** Processing damage and clients' goods are the typical points of dispute. We compare exactly these clauses across several insurers.
- **Claims seen through the adjuster's eyes:** As an underwriting agency for boats we settle claims ourselves. We know how to prove stock values and lost seasonal sales after a fire.
- **Workshop, shop and private life:** We look after production, online shop, vehicles and your private cover together, and explain the German terms in plain English.
- **A family business since 1989:** One fixed contact instead of a hotline. Our work costs you nothing; the insurer pays our commission.

## FAQ

### What insurance does a tailoring business need?

General liability that includes processing damage to customers' clothing, and contents insurance for machines and fabric. Together they usually cost €350 to €1,000 a year.

### Is a client's spoiled fabric covered?

Only if processing damage to third party property is included. Many standard policies exclude exactly that.

### Why is fire insurance expensive for textile firms?

Fibres and fabric burn quickly and dust collects in machines. Insurers expect larger losses and ask about extraction and fire protection.

### Do I need environmental liability?

If you dye, bleach, coat or tan, yes. You then store substances hazardous to water and are liable for damage in waste water and soil.

### Which Berufsgenossenschaft is responsible?

For textiles and clothing it is BG ETEM; for tanneries and leather making it is BG RCI. Both are statutory accident insurers.

### Does insurance cover a recall of children's clothing?

Only with a recall cost block. Product liability only pays once a child has actually been injured.

## Request quotes

We obtain quotes and come back with a comparison. Free of charge and without obligation: the insurer pays our commission. You can write in English. https://www.nammert.com/en/business-insurance-textiles.php#anfrage

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NAMMERT Assekuradeur GmbH, insurance broker licensed under section 34d(1) of the German Trade Regulation Act, broker register no. D-C08Q-TOSD4-37. For boat and yacht insurance we act as underwriting agency, not as broker.

NAMMERT Assekuradeur GmbH, Karl-Marx-Straße 4, 15711 Königs Wusterhausen, +49 3375 29 12 77, info@nammert.com. Wikidata: Q141141479.