Professional Liability Insurance (or E&O Insurance), protects your small business from claims of mistakes, negligence or malpractice made when providing your services that caused somebody financial loss. PLI covers your legal defense costs, damages and settlements.
Business Interruption Insurance protects your small business if impacted by a covered risk. It'll cover the costs in replacing lost income and paying for additional expenditures. Also known as Business Interruption Coverage, this policy is usually part of your BOP (Business Owners Policy).
Equipment Breakdown Insurance protects your equipment from breakdowns caused by motor burnout, power surges, boiler malfunction, and operating error. It covers you for the costs to replace or repair your damaged equipment, and other related expenses.
General Liability Insurance protects your small business against claims of third-party bodily injury and property damage, reputational harm and advertising injury. It covers medical bills, repair costs & legal fees.
Business Owners Policy (BOP) protects you from business liability and property damage at a lower cost. BOP covers claims resulting from fire, theft & disasters. BOP also covers claims of bodily injury or property damage during your business operations.
Workers Compensation covers your employees' medical costs and lost wages while recovering from a work-related injury or illness. The employee gives up the right to sue your company in return for receiving cash and benefits from Workers Compensation. In some states it’s mandatory for businesses!
What risks could Dry Cleaners & Laundromat Services face?
General Liability risks of third-party claims of bodily injury and property damage remain some of the most common issues a dry cleaning and laundry business face. In addition, your employees could get sick from the chemicals they may be exposed to. Workers could face repetitive motion injuries. Many of the chemicals present at dry cleaners have the potential to ignite a fire and cause substantial loss. By getting the right insurance coverage, you'll be able to mitigate these risks.
What is Bailee's Coverage for Dry Cleaners and Full-Service Laundromats?
Bailee's Coverage is an add-on to basic laundromat insurance, namely Commercial Property insurance. It covers non-owned property stored in your shop or that is in your possession. This coverage will pay for the damage and minimize the financial risk your dry cleaning business could face when the property damaged is under your control.
How much does Dry Cleaner & Laundromat Insurance cost?
The cost of insurance depends on the size and location of your business, among other rating factors. Often basic general liability is $500-$1,000 per year and adding property insurance will just about double it. For a full insurance program including Workers Compensation, Commercial Auto, and Bailee's coverage, the cost reach upwards of $5,000 per year. Of course, this cost is always markedly lower than the cost to handle a property loss or lawsuit without insurance.
Do I need Workers Compensation as a Dry Cleaner?
In most states, it is mandatory once you hire full-time employees. Also consider the level of risk that a dry cleaning business faces, making it important that your business has a safety net against workers getting sick or injured on the job. Without Workers Compensation, those employees can sue you and your business for lost wages and additional costs associated with a workplace injury.