646 666 9601 [email protected]

Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for a dry cleaning business.

Company insurance is intended to safeguard the financial assets of a firm owner and is a necessary investment for a dry cleaning business.

This article will discuss the primary insurance coverage for dry cleaning firms, general liability insurance, as well as additional products that are appropriate for this industry.

Dry Cleaning Companies Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.

Situations That a Dry Cleaning Business’s General Liability Insurance May Cover

Example 1: Some kids are playing within your building, and one of them gets into a washing machine, which then turns on with the kid inside. If your company is determined to be accountable for the child’s injuries, general liability insurance would most likely pay whatever you owing or any settlement made as a result of the accident.

Example 2: A faulty washing machine spills water into the floor, resulting in an unattended pool in the centre of the front path. A client slips and falls in the water, sustaining severe injuries. If found accountable, your organisation would most likely be protected by general liability insurance for any damages or settlements made.

Example 3: A defective dryer severely damages a customer’s costly collection of professional dresses, costing her thousands in replacement costs and jeopardising her appearance at an impending business event that afternoon. If you are found accountable for damages, general liability insurance may be able to help pay any money you owe as a result of a court judgement or a settlement between your company and the plaintiff.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

The typical dry cleaning company in America pays between $350 and $750 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Dry Cleaning Businesses

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all laundry and dry cleaning firms should have include:

Insurance for Commercial Property

Dry cleaning firms, without a doubt, need coverage for their costly and difficult-to-replace/repair commercial property. Dry cleaning enterprises are equipped with technology for the effective washing and drying of garments, and calamities such as fire or severe weather may jeopardise a company’s assets, leaving it with enormous replacement or repair expenditures. A business property coverage will protect your equipment and any owned real estate. When covered calamities hit, an insurance like this might be the difference between bankruptcy and overcoming a difficult challenge.

Insurance for Professional Liability

Professional liability insurance is appropriate for organisations that provide meticulous, professional services with potentially serious implications. Customers are appreciative and happy when everything goes perfectly. However, if your services are supplied without adequate care, or if an employee makes a mistake in professional judgement, major problems might occur. If your method makes a customer’s clothing useless due to bad professional decision making, this coverage will assist to pay costly losses and save your organisation from going bankrupt.

Coverage Options for Some Dry Cleaning Businesses

In addition to the insurance listed above, there are a few more kinds of coverage your dry cleaning firm may need based on particular parts of your operations. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Insurance for Business Interruption

What can a company do to prepare for natural disasters such as fires and tornadoes? Nature’s forces come and go as they choose, destroying items and destroying enterprises in a fraction of the time it took to construct them. Fortunately, there is business interruption insurance to help organisations recover predicted earnings losses during difficult times.

When a calamity shuts down your firm, this coverage may even cover the price of temporarily moving or training new personnel to operate complicated equipment. This insurance, when combined with a commercial property coverage, may keep a firm viable during difficult times.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.