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T-shirt manufacturer to be asked to cover insurance costs

Friday 13th of October 2006 01:35:00 PM

US-based t-shirt manufacturer Fruit of the Loom is to be asked to cover a portion, or all of the increased insurance costs at its Louisiana site Jeanerette Mills, it has emerged.

Insurance for the property, which is leased by Fruit of the Loom, is to run out next week.

The current insurance coverage is based on an appraisal of $9.6 million (£5.2 million) for the Jeanerette Mills building, although Armond Schwing, of Schwing Insurance Agency, said the figure should be closer to $17 million, reports the Daily Iberian.

Storms in the area have forced insurance costs up, Mr Schwing said, with the costs of replacing the t-shirt manufacturing plant now greater than insurance premiums.

"The replacement cost is a lot more than the appraisal amount, presenting a problem if the building ever has to be rebuilt from the ground up," he told the Louisiana newspaper.

"[Jeanerette] is not the only place experiencing this, homeowners are, businesses are and it's all because of the storms," Mr Schwing added.

In related news, proposals to regenerate the site of an old Fruit of the Loom factory on Ireland's east-cost have been rejected.

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