NEW YORK — As the apparel industry continues an expansion of sourcing goods overseas, companies are increasingly finding themselves facing greater risks, which is why traditional insurance coverage may not be enough.
As a result, insurance companies are looking for ways to better serve clients. Hub International Northeast, a subsidiary of insurance broker Hub International, recently launched a practice to address risk management needs unique to the apparel industry.
"Most companies in the apparel industry, especially manufacturers and distributors, look at their insurances and say, ‘I need property insurance, liability insurance, product liability insurance and workers compensation insurance.' With so many apparel manufacturers overseas, there's a lot of additional exposure to different kinds of losses," explained Ken Schreiber, senior vice president, of Hub International Northeast.
Overseas operations carry greater exposures, he said, which could interrupt business. In addition to the obvious risks associated with outsourcing production, such as fire or natural disasters, Schreiber said there's also "political risk" that must be considered when dealing with foreign countries where confiscation, nationalization or expropriation could affect sourcing.
There are also supply chain distribution risks that need to be mitigated. Insurance policies that pertain to cargo losses cover the physical loss of cargo. But for an industry like apparel, working within tight, 30-day lead times, shipment delays can mean lost shelf space at retail.
"There are a lot of these types of exposures that the [apparel] industry has that people may not even know they have," he added.
In some cases, additional insurance might be the solution. But often, a more creative approach is needed. In dealing with contingent business interruptions, there are insurance policies available that pay for loss of income resulting from losses that occur at a supplier location. There are also ways to establish contingency plans, for example, which involve identifying potential backup suppliers who can pick up the slack and stave off a supply-chain interruption, Schreiber said.
"There is so much apparel sourced from overseas, I don't see a slowdown. If anything, I see more and more coming from overseas. In the world we live in today, the risks overseas are greater and greater every day; businesses need to protect themselves as best they can," he said.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)