Rug cleaners have taken a big risk to open and operate their businesses. You might think it makes sense to purchase standard business insurance, but what you really need is an independent insurance agent who has experience working with businesses like yours.
Rather than placing the fate of your livelihood in the hands of cookie-cutter coverage, an independent agent can work with insurance companies who specialize in rug cleaner insurance that is truly tailored to your specific business.
Why Do You Need Rug Cleaner Insurance?
Rug cleaners are different from typical carpet cleaners who go to customers’ homes to clean their permanent carpets. Rug cleaners typically clean area rugs, oriental rugs, and heirloom rugs in a professional cleaning environment after they’ve been picked up from the clients’ homes.
Using state-of-the-art machinery and cleaning solutions, rug cleaners remove stains and odors in a climate-controlled environment, while carefully protecting the rugs from damage. The goal is to return the rug to the client in better condition than it was when you picked it up, and anything less is unacceptable.
Numerous daily risks can financially ruin your lucrative rug cleaning business overnight. With expensive equipment, chemicals, and customers’ expensive property on your premises, you have to make sure your business is protected 24-hours-a-day, 7-days-a-week.
Rug cleaners might face risks such as:
- Fires due to faulty machinery, made worse by chemicals and multiple flammable items on the premises
- Equipment breakdown
- Floods, power outages, or weather events that force you to cease operations
- Electrical problems
- Property damage due to tornados, hail, windstorms, flooding, or heavy rain
- Causing damage to customers’ property
- Accidents caused by delivery drivers
Why Do Rug Cleaners Need Property Insurance?
Commercial property insurance: This provides coverage for your rug cleaning equipment and supplies, as well as your building (if you own it), computers, and any other business property. If these items are damaged by fire, theft, vandalism, or other covered perils, your commercial property coverage may pay for repairing or replacing damaged items.
- If you rent your space, your lease may require you to buy property insurance for the building. Be sure to review your lease carefully and consult an attorney to be sure you are complying with your lease agreement.
- If you do not own your building you still need coverage for the contents, including rug dusters, specialized wash tubs, drying equipment, flooring, fixtures, decorations, computers and other office equipment, tables, chairs, and any other furniture.
- Be sure to discuss with your agent replacement cost vs. actual cash value property coverage. How you insure your business property could make a huge difference in how you are reimbursed in the event of a loss.
If a covered event (e.g., a fire or severe storm) causes your rug cleaning business to close its doors in order to make repairs, you need business interruption insurance, or business income protection. This coverage can be included with your business property policy, and provides reimbursement for business expenses and loss of income during if you must temporarily cease operations due to some type of covered loss.
- You may want to consider expanding your business interruption insurance to include coverage for loss of income due to utility interruptions (water, electric, etc.). You can purchase utility interruption coverage that pays for the income you lose due to interruptions in utility services that occur away from your premises, after a certain waiting period. This may cover you if, for example, you lose power to your business and are unable to open for several days.
- You can also purchase coverage for physical damage to equipment that occurs as a result of a utility interruption (e.g., a power surge damages your washers).
- Equipment breakdown coverage: Also known as boiler and machinery coverage, this is essential for your rug cleaning business. You rely on your equipment for every aspect of your business because without functioning equipment, you literally cannot operate. This coverage helps you with the costs of repairing and replacing damaged equipment, and may also pay for lost income that is directly attributable to the breakdown of covered equipment.
Why Do Rug Cleaners Need Liability Insurance?
Most businesses are very susceptible to lawsuits, and rug cleaners are no exception. You can be sued by someone who is injured on your premises. Or you can be sued for ruining a customer’s rug or causing an automobile accident while dropping off a finished rug at a customers’ home. If a delivery person causes damage to a customers’ home, you can also be sued.
Commercial general liability (CGL) insurance: This protects rug cleaners in instances of customer injury or property damage. If someone slips and falls on your premises, or you’re responsible for an injury or property damage while inside a customer’s home, this policy will provide coverage for any resulting medical bills, lawsuits, legal fees, and more.
You might also need some additional liability policies for circumstances that are not covered by a general liability policy.
- If you provide rug pickup and delivery services, you need commercial auto insurance to cover your liabilities if your drivers are involved in an accident.
- Rug cleaners that use and dispose of certain chemicals or other pollutants may need pollution liability insurance.
- Commercial umbrella insurance: or excess liability coverage, provides supplemental liability protection beyond the limits of certain other liability policies.
- Employment practices liability insurance: This covers you if an employee sues you for discriminatory employment practices.
A Note about Bailee’s Coverage for Rug Cleaners
The rugs that you clean are entrusted to you for a period of time while you dust, clean, and dry them, creating additional exposures for your business.
What happens if a customer’s rug is damaged while it is in your care, custody, or control? Because standard business property and liability policies cover only your own business property, you need special coverage for your customers’ property that is in your possession.
Bailee’s coverage: This is an add-on to a business property policy that covers non-owned property that is stored at on your premises or is in your possession. It helps pay for damages and minimizes the financial implications for you and your customers if their property is damaged while in your control. Bailee’s coverage is specifically designed for businesses like rug cleaners that take in the property of others and are expected to return it undamaged.
Protection for Employees and Other Concerns
Rug cleaners should consider these additional types of business insurance to complete their business insurance program.
- Workers’ compensation insurance: This is recommended and is likely required by law for any rug cleaner who has employees. Your employees may be exposed to heavy machinery, heat, chemicals and other dangers that can cause injuries or illnesses. Workers’ compensation insurance covers the costs of work-related injuries and illnesses.
- If you live in a flood prone area, you may need flood insurance. Flood insurance is available only from the National Flood Insurance Program (NFIP), but your independent insurance agent can obtain quotes and coverage on your behalf.
How Much Does Rug Cleaner Insurance Cost?
Rug cleaner insurance costs will vary depending on the size of your business, the number of employees you have, the amount and value of your commercial property, the location of your business, and a variety of other variables.
An independent insurance agent can guide you though your options so you get coverage that meets your needs and budget.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right rug cleaner insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get — but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t see the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost-saving opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
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