Company insurance is intended to safeguard the financial assets of a business owner and is an important investment for a laundromat.
This article will discuss the primary insurance coverage for laundromats, general liability insurance, as well as additional products that are appropriate for this industry.
Table of Contents
Laundromat 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.
Common Situations That A Laundromat’s General Liability Insurance May Cover
Example 1: Without your awareness, one of your dryers develops an electrical problem. When a consumer uses the dryer, he gets electrocuted and suffers injuries that need medical attention. The expense of the customer’s medical care would be covered by your general liability insurance coverage.
Example 2: A client slips on the damp floor of your restroom and falls, injuring themselves and filing a lawsuit against your firm. Your general liability insurance will cover your legal expenses, including a settlement, up to the limits of your policy.
Example 3: An employee inadvertently spills cleaning chemicals on a rack of freshly laundered garments. Many of the items were designer clothing from a regular client. Instead of having to pay for new apparel out of cash, your general liability coverage would most likely cover the expenditures.
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 American laundry pays between $350-$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:
Location
Deductible
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 Laundromats
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 laundromats should have are as follows:
Insurance for Commercial Property
Your laundromat is brimming with high-priced equipment, all of which is essential for you to do business. In the case of a calamity, such as a fire, your equipment and the structure may be partly or fully destroyed. A business property insurance coverage would cover the cost of replacing your equipment up to the policy limits. Having the funds on hand to get back up and running will guarantee that you have as little downtime as possible.
Insurance for Workers’ Compensation
Keeping up with client demand necessitates the hiring of personnel, and hiring employees necessitates the purchase of workers’ compensation insurance. Workers’ compensation is not only needed by law, but it also assures that you can care for your employees if they are harmed while doing work-related responsibilities. Your workers’ compensation coverage will cover the expenses of treating workplace injuries as well as assisting with the payment of missed income while the employee recovers.
Coverage Options Available to Laundromats
In addition to the insurance listed above, your laundromat may need other forms of coverage based on specific parts of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Insurance for Commercial Vehicles
Commercial car insurance is required if you own one or more vehicles that are mainly used for business purposes. Your business car coverage, like your personal auto policy, assists in covering expenses associated with accidents in corporate vehicles. Coverage will assist pay for any injured parties’ medical expenditures as well as the repair or replacement of business cars.
Umbrella Insurance for Businesses
When your general liability coverage’s policy limitations are reached, a business umbrella insurance policy kicks in. Most firms do not have the cash on hand to pay additional liability expenses, such as those incurred as a result of a lawsuit, which is why commercial umbrella insurance may be so advantageous.
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.