Insurance for garment makers from cutting table to customer.
Workers’ comp for your garment registration, product liability, inventory and equipment coverage for cut-and-sew factories, garment contractors, private label brands and print shops.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
Your registration starts with workers’ comp
In California, every business that makes garments, including contractors who sew for other companies, has to register with the Labor Commissioner. The registration is renewed every year, and it needs a current workers’ comp certificate that names your exact legal entity and every location where you do the work.
Since 2022, the Garment Worker Protection Act (SB 62) has banned piece rate pay for garment workers. It also makes the manufacturers and brands that hire a contractor responsible for that contractor’s workers being paid correctly. So the contractors you use matter as much as your own payroll.
I work with apparel businesses in the Fashion District, Vernon, Commerce and across Los Angeles. I set up workers’ comp with the right class code, then cover the fabric, the finished goods and the products once they leave your building.
- Workers’ compRequired for employees, and for your garment registration.
- Product liabilityClaims from the clothing you make or sell.
- Property and inventoryFabric, finished goods, machines and your space.
- Business incomeLost income while a fire or breakdown shuts you down.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Operations: cut and sew, contract sewing, private label, printing or embroidery.
- Registration: your garment registration number and renewal date.
- Payroll: employees and payroll by job, such as sewing, cutting, design and office.
- Contractors: who you send work to and whether they carry workers’ comp.
- Inventory: fabric and finished goods at your busiest time, plus sprinklers and alarms.
- History: current policies, experience mod and loss runs.
Apparel manufacturer insurance, answered
Do I need workers’ comp to get a garment manufacturer registration in California?
Yes. The Labor Commissioner asks for proof of current workers’ comp coverage for a new registration and for each renewal. The certificate has to show your full legal entity name, your DBA if you use one, and every address where you do garment work. A declarations page or an insurance application is not accepted.
Who has to register as a garment manufacturer?
Every business engaged in garment manufacturing, including contractors who sew for other companies. Garment work includes sewing, cutting, making, finishing, dyeing, altering a garment’s design and attaching labels. At least one qualified person from the business has to pass the registration exam.
What workers’ comp class code covers clothing manufacturing?
In California it is usually 2501(1), Clothing Mfg. It includes cutting, sewing, embroidery and attaching labels and trim. A company that designs its garments is placed there even if it sends the sewing to contractors. A company that only buys finished clothing to wholesale is usually 8032. I check your operations against the rating bureau’s wording before I quote.
What is the Garment Worker Protection Act?
It is California’s SB 62, in effect since January 1, 2022. Garment workers must be paid at least minimum wage by the hour, not by the piece. Manufacturers and brands that contract for garment work can be held responsible for wages owed to the contractor’s workers.
What insurance does a clothing manufacturer in Los Angeles need?
Most start with workers’ comp, general and product liability, and property coverage for fabric, machines and finished goods. Many add business income, equipment breakdown, goods in transit and employment practices liability. What fits depends on what you make and who you sell to.
What insurance does a clothing brand need if it doesn’t sew in-house?
Product liability is usually the core, since your name is on the garment. You also need coverage for inventory at your warehouse, at contractors and in transit. If you design the garments in California, you may still need workers’ comp for your own staff under the clothing class.
Is fabric and inventory covered if there is a fire?
Only if your property limit is high enough to cover it. Fabric burns fast, and inventory often peaks before a season ships. I set the limit to your busiest month, not your average, and ask about sprinklers and alarms because carriers do.
Do you offer apparel manufacturer insurance outside California?
Yes. Clients across the country send the same quote form. California policies are placed directly; outside California the request is handled together with a partner agency in your state, and the shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
Official sources
- California Labor Commissioner: Garment Work in California (registration and SB 62 Garment Worker Protection Act)
- California Labor Commissioner: garment registration document requirements (workers’ comp certificate)
- California Labor Commissioner: apply for or renew a garment registration (annual registration and exam)
- WCIRB California: classification 2501(1), Clothing Mfg.
Tell me what you make. I’ll shop it.
Your operations, payroll by job and inventory value are enough to start.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
Tell me how to reach you. I’ll take it from there.
Takes about 30 seconds. I review every request personally and call you back, usually the same day.
(424) 552-4545Answered 24/7 · CA License #4348151
Get a reminder before your renewal.
Tell me when your policy renews and I’ll email you about six weeks before, when it’s worth comparing. One email, no calls.