Owners of dry cleaning services and laundromats 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 coin laundry insurance, laundromat insurance or dry cleaner insurance that is truly tailored to your specific business.
Whether you own a self-service or full-service laundry or a dry cleaning business, you have a lot more to think about than just washers and dryers. Numerous daily risks can financially ruin your lucrative business overnight. With the constant flow of people on your premises, as well as the equipment, chemicals and even security concerns, you have to make sure your business is protected 24-hous a day, 7-days a week.
Laundromats and dry cleaners face daily risks, such as these:
While fires may be considered the most financially devastating risk that coin-operated laundries and dry cleaners face, customer slips and falls are by far the most prevalent incidents. You need comprehensive dry cleaner insurance or coin laundry insurance in order to protect your business from all of the potential problems that can arise.
Business property insurance provides coverage for your coin-operated washer and dryers, commercial laundry machines, dry cleaning equipment, computers, and more. 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 an unexpected event (e.g., fire or windstorm) causes your dry cleaning business or coin-operated laundry to close its doors in order to make repairs, you need business interruption insurance, or business income protection. This coverage, which can be included with your business property policy, provides reimbursement for business expenses and loss of income if you must temporarily cease operations due to some type of covered loss.
Commercial general liability (CGL) insurance protects coin-operated laundromats and dry cleaners in instances of customer injury or property damage. If a customer slips and falls while doing his or her laundry, this policy will provide coverage for any resulting medical bills, lawsuits, legal fees and more.
Equipment breakdown coverage, or boiler and machinery coverage, is essential for your dry cleaning business or laundromat. Your business relies on its equipment, whether it is coin-operated machines, industrial washers and dryers, steamers, or dry cleaning equipment. 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.
A full-service laundromat (not coin-operated) or dry cleaner has some significant differences from a self-service or coin-operated laundromat. A dry cleaner or self-service laundromat does not rely on customers to do their own laundry; rather, the clothing or other items are entrusted to you for a period of time while you wash, dry clean, steam or iron them. If you provide this service, you also have several additional exposures.
What happens if a customer’s clothing or property 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 is an add-on to a business property policy that covers nonowned property that is stored at your shop or is in your possession. It helps pay for damage 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 laundromats and dry cleaners that take in the property of others and are expected to return it undamaged.
Laundromats and dry cleaners should consider these additional types of business insurance to complete their business insurance program:
Whether you own a single coin-operated laundry or a chain of dry cleaning stores, you need business insurance that protects your investment and your assets from injuries, property damage and lawsuits. Any one of these events can be financially devastating and can even put you out of business.
The best way to find the right coverage for your needs is to work with a knowledgeable, experienced independent insurance agent who can help you compare quotes from multiple insurance companies. Don’t settle for cookie-cutter coverage or a one-size-fits-all approach; rather, obtain quotes for laundromat insurance or dry cleaner insurance that is tailored to everything that is unique about your business.