Michigan Commercial Laundry Insurance Policy Information
Michigan Commercial Laundry Insurance. Commercial laundry services professionally and efficiently launder, dry, and press laundry for their customers.
Commercial laundries use either chemical (dry cleaning) or water applications with heavy-duty cleaners and detergents to clean fabrics, leather goods, and furs for their customers. Services may be provided to the general public or be limited to commercial or institutional customers such as medical facilities, restaurants, hotels, and firms that provide uniforms for employees.
Depending on the type of customer and services offered, the operations may include pick up of soiled items from customers' premises or owned drop-off stations, sorting, pretreating stains, laundering or dry cleaning, pressing and delivering the cleaned items to the customer.
Special coatings, such as stain proofing or waterproofing, may be applied during the cleaning process. Incidental repair work, such as sewing on buttons or restitching seams or hems, may also be performed.
While some commercial laundries cater specifically to private residences who prefer to have their laundry handled by someone else, many provide services exclusively to other commercial ventures such as hotels or catering companies, thereby doing the laundry on an industrial scale.
To achieve their goal of processing the laundry entrusted to them quickly and competently, industrial laundries rely on valuable equipment such an army of industrial washers, dryers, and presses. Following quality control, the laundry is then packed and ready either for pick-up or delivery back to the customer.
While there is no doubt that commercial laundries provide an invaluable service by allowing businesses and private individuals alike to outsource this tedious task, running a commercial laundry is not without risk.
A commercial laundry can, at any time, fall victim to circumstances beyond their control that may prove to lead to exorbitant costs. That is why it is so crucial to invest in comprehensive Michigan commercial laundry insurance. To find out what that may entail, keep reading.
Michigan commercial laundry insurance protects laundries from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Why Do MI Commercial Laundries Need Insurance?
A commercial laundry service needs to be insured not merely because they will legally be obliged to carry certain types of coverage, but also, quite simply, because carrying the right types of insurance may one day make the difference between bankruptcy - or at the very least, significant financial hardship - and continued success.
MI commercial laundries face some of the same threats common to any business, after all, but in addition, companies within this branch of industry have to consider some hazards unique to their line of work.
Your building and its contents may be impacted by an act of nature - a wildfire, hurricane, serious flood, or storm, to name a few examples. You may fall victim to theft or vandalism, or the expensive equipment that is essential to your operation may suddenly break down and require repair or replacement.
The goods a customer entrusted you with may be damaged due to an employee error or mechanical malfunction, or simply lost. An employee could face an occupational injury, whether a physical trauma or an illness related to long-term exposure to detergents. While on your premises, a customer could be hurt.
In all these cases, you will be glad that you invested in Michigan commercial laundry insurance coverage, so that the resulting costs do not solely fall onto your shoulders.
What Type Of Insurance Do Michigan Commercial Laundries Need?
While a commercial laundry can be sure that it needs a variety of policies to protect itself from all major perils, your exact insurance needs depend on factors like the size of your business, your location, your number of employees, and whether third parties visit your premises.
Because your Michigan commercial laundry insurance needs are as unique as your services, it is vital to talk to a commercial insurance broker. Having said that, commercial laundries should begin their path to full coverage by exploring:
- Commercial Property - Should your commercial premises be struck by acts of nature, theft, or vandalism, this kind of insurance covers the cost of property loss and damage. Both your building and the equipment within can be protected.
- Commercial General Liability - This form of coverage is designed to cover events in which third parties are injured on your premises, or their property is damaged as a result of your activities. It covers a substantial portion of your legal fees in case of lawsuits.
- Bailee's Liability - As commercial laundries temporarily take custody of property belonging to third parties, you will also need bailee's insurance in case such property is lost or damage while in your care.
- Workers' Compensation - This type of Michigan commercial laundry insurance covers employee medical expenses and lost wages if an employee sustains an occupational injury or illness for which your business could be held liable. In the process, it reduces the risk of litigation against your company.
- Commercial Auto - As a commercial laundry, it is likely that you pick orders up from customers and then deliver them to their door once the laundry is complete. Any driver using a vehicle for professional reasons needs to be covered by commercial auto insurance, in case of accidents, theft, and vandalism.
Keep in mind that, while these types of insurance play a core role in protecting the financial health of any commercial laundry in the face of disastrous events, you may need further types of Michigan commercial laundry insurance coverage.
Because that is dependent on your unique circumstances, you are advised to consult an experienced commercial insurance broker.
MI Commercial Laundries' Risks & Exposures
Premises liability exposure is very limited at the plant due to lack of public access. If customers drop off or pick up items at receiving stations, the exposure increases. To reduce slips and falls, there should be no frayed or worn spots on carpet and no cracks or holes in flooring. The number of exits must be sufficient and well marked, with backup lighting in case of power failure.
Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. Courts may deem the security of visitors in parking areas as the responsibility of the owner or operator of the premises. Factors affecting the risks include exterior lighting, fencing, and any other security measures in place.
High concentrations of chemicals used in the cleaning process may be corrosive, toxic, or both. Fumes, spills, or leaks may result in bodily injury or property damage to neighboring premises.
Off-site exposures are high as drivers interact with customers during the pick up and delivery of items from customer's premises.
Personal injury exposures include allegations of assault and invasion of privacy. Failure of the cleaning service to run background checks and review references on employees both increases the hazard and reduces available defenses.
Completed operations liability exposure is low. Items may be damaged during the cleaning process, with the frequency being a greater concern than severity. Vapors, odors, and skin, eye, or lung irritants may result if chemicals are not properly removed from the item cleaned.
Environmental impairment liability exposure is high due to the potential for air, surface or ground water, or soil contamination due to the disposal of used cleaning chemicals and wastes extracted from soiled items that are cleaned. The soil around the premises may be contaminated by disposal of chemicals used in the past. Disposal of perchloroethylene must adhere to EPA standards. The chemical is expensive but can be reclaimed and reused.
Workers compensation exposures are high. Work is frequently performed under time constraints. Workers can experience lung, skin and eye irritations, and reactions to the cleaning chemicals. Employees must be fully informed as to the potential effects of any chemicals, including long-term occupational disease hazards, so that they can take action as quickly as possible.
Cuts and puncture wounds can result from sewing. Slips and falls can occur during cleaning at the dry cleaning and laundering facility or at customer's premises when picking up or delivering items. Lifting and material handling can cause back injury, hernia, sprain, and strain.
There may be foreign objects in the eye. Repetitive motion injuries can be a concern. Workstations should be ergonomically designed. Pets owned by customers may attack or bite workers.
Property exposure generally includes a small office, drop off and pick up area, laundering and dry cleaning facilities, and perhaps a warehouse for storage of supplies. There may be a garage area for vehicles used for pick up and delivery services. Ignition sources include electrical wiring, laundering and dry cleaning equipment, water heaters, heating and air conditioning systems.
Flammables include textiles or other fabrics to be cleaned, lint from driers, and scrap materials. At one time, the chemicals used for dry cleaning were highly flammable, but most dry cleaners now use alternative chemical applications with less exposure to fire or explosion. One chemical is generally used to pretreat stains and another to clean the entire item. The spot cleaners tend to be the most flammable.
Hazards increase without proper storage and handling methods. Fire and explosion hazards may be severe unless there are dust collection systems and procedures for regular removal and disposal of scraps. Poor housekeeping is a serious fire hazard. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source.
Sprinklers may be advisable. Fuels, oils, and lubricants will increase the fire hazard if vehicles are stored and maintained on the premises. Sprinklers may be advisable.
Equipment breakdown exposures include breakdown losses to the dust collection and ventilation systems, laundering and dry cleaning equipment, electrical control panels, and other apparatus. Breakdown and loss of use to the water heaters, dry cleaning and laundering machinery, and pressing equipment could result in a significant loss, both direct and under time element.
Inland marine exposure includes accounts receivable if the cleaner offers credit, bailee's customer, computers, and valuable papers and records for customers' and suppliers' information.
The bailee's customer exposure is for customers' property in the care, custody, and control of the laundry, which starts when the property is entrusted to the laundry and ends when the property is returned to the customer.
A small spill or other damage to a customer's property could reduce the value or require its replacement. The primary causes of loss are fire, theft, collision, overturn, and water damage. Hazards increase in the absence of adequate procedures, such as tagging or marking, to identify customers' goods.
Crime exposure includes both employee dishonesty and theft of money and securities, particularly if there are numerous cash transactions, such as at drop-off points or collections by route drivers. Background checks should be conducted on all employees handling money. There must be a separation of duties between persons handling orders, deposits and disbursements and reconciling bank statements.
All operations should have a monitoring and verification system to reconcile bills and receipts with services rendered. Holdup potential is high as many transactions are paid in cash. Frequent deposits should be made, especially on high volume days.
Business auto exposures are high if pick up and delivery services are provided. Deadlines placed on drivers increase the hazard. Deliveries may be made in residential areas with children present. All drivers must have a valid driver's license and acceptable MVR.
Vehicles must be regularly maintained and records kept at a central location. If vehicles are taken home, there should be written procedures regarding personal use by employees and their family members.
Michigan Commercial Laundry Insurance - The Bottom Line
To learn more about the kinds of Michigan commercial laundry insurance policies you'll need, how much coverage you should carry and the associated costs - speak with a reputable agent that is experienced in commercial insurance.
Michigan Economic Data And Business Insurance Requirements
Business owners who are interested in establishing operations Michigan must have a thorough understanding of the state's economy. They should also familiarize themselves with any regulations and limits that state may have in place for commercial insurance.
Any entrepreneur who is thinking about starting a business in the Great Lake State first needs to determine if it's a feasible location for business operations. As such, it's important to have a keen understanding of pertinent details regarding the economy of Michigan, in addition to the types of insurance coverage that are mandatory for corporations that operate within the state.
Economic Trends for Businesses In Michigan
After a long period of stagnant job growth in the early part of the 21st century, MI has been experiencing a steady increase in employment gains. Between 2009 and 2018, the state has enjoyed a period of uninterrupted job growth; the longest stretch of job growth since World War II. According to economists at the University of Michigan. While there has been a slight decline in the rate of job growth, job creation continues and forecasters say will continue for the next two years, into 2021.
In 2018, an estimated 55,200 jobs were created; in 2019, it's expected that 35,800 jobs will be created, and in 2020, economists believe that there will be a total of 39,300 jobs created in Michigan. While that rate of growth is 1.9 percent slower than the job growth rate between 2011 and 2016, it is still a steady increase overall. In total, approximate 683,200 jobs will be created in MI between 2099 and 2020; almost four out of the five jobs that were lost during the early part of the 21st century will be recovered.
While the unemployment rate has steadily improved, it is still above the national average. In March of 2019, the national unemployment rate was 3.8 percent, while in the state of Michigan, it was 4.0 percent. Mid-Michigan has experienced the largest growth rate in the state, and according to forecasters, it looks like that trend will continue, moving forward. Industries that are expected to see the most growth include:
- Energy, due largely to research and development in clean energy
- Food and agriculture
- Transportation and mobility
- Healthcare industry
- Information and technology
In the state of MI, business owners are not legally required to carry liability insurance; but most entrepreneurs opt to invest in a General Liability or Business Owner's Policy (BOP). A commercial auto insurance policy is also required for any businesses that use motor vehicles to conduct any aspect of their business operations. Workers' compensation insurance is also required for any businesses with non-owner employees. While the following forms of coverage are not required, depending on the type of business you operate, they are recommended:
- Data breach insurance
- Business income insurance
- Commercial Umbrella insurance
Additional Resources For Professional Services Insurance
Get informed about small business professional services insurance, including Professional liability, aka errors and omissions (E&O insurance), that protects your business against claims that a professional service you provided caused your client financial loss.
- Answering Service
- Armored Car
- Attorney Lawyer
- Background Music Services
- Business Consulting
- Chemical Engineers
- Civil Engineers
- Claims Adjuster
- Commercial Laundries
- Commodity Broker
- Corporate Wellness
- Court Reporter
- Credit Bureaus
- Debt Collection Agency
- Detective Agency
- Diaper Services
- Electrical Engineering
- Environmental Consultant
- Executive, Career & Life Coaching
- Executive Search Firm
- Expert Witness
- Financial Planner
- Financial Services
- Funeral Directors
- HR Consultant
- Inspection Bureaus
- Insurance Agents & Brokers Insurance
- Mediator - Arbitrator
- Medical Billing
- Music, Drama & Dance Therapy
- Office Machine Repair & Maintenance
- Piano Tuners
- Project Management
- Safety Consultants
- Speakers Bureaus
- Temporary Staffing
- Tax Preparer
- Title Abstractors
- Valet Parking
Let's face reality. People today are claims conscious, resulting in a significant share of malpractice lawsuits against professionals.
Liability resulting from the rendering of or the failure to render professional services is excluded in most liability coverage forms. This means that a policy covering a account's or lawyers' office will cover liability arising out of the maintenance or use of the premises, but specifically exclude liability arising out of the rendering of a professional service or the omission of such a service.
In addition to the professions in which actual physical or mental injury may be caused to clients, certain other professions are exposed to claims for malpractice.
Claims may be brought against lawyers, accountants, architects, and similar professional persons for errors or omissions in their professional capacity. Errors & Omissions insurance pays damages that might be awarded to a plaintiff alleging professional negligence.
Professional liability policies are made available to such risks, and these policies provide essentially the same protection as is afforded under the physicians, surgeons or dentists professional liability policy.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Professional Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Equipment Breakdown, Flood, Computer Fraud, Forgery, Money and Securities, Special Floater, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
Request a free Michigan Commercial Laundry insurance quote in Adrian, Allen Park, Allendale, Ann Arbor, Auburn Hills, Battle Creek, Bay City, Berkley, Beverly Hills, Big Rapids, Birmingham, Burton, Cadillac, Clawson, Coldwater, Cutlerville, Dearborn, Dearborn Heights, Detroit, East Grand Rapids, East Lansing, Eastpointe, Escanaba, Farmington, Farmington Hills, Fenton, Ferndale, Flint, Forest Hills, Fraser, Garden City, Grand Haven, Grand Rapids, Grandville, Grosse Pointe Park, Grosse Pointe Woods, Hamtramck, Harper Woods, Haslett, Hazel Park, Highland Park, Holland, Holt, Inkster, Ionia, Jackson, Jenison, Kalamazoo, Kentwood, Lansing, Lincoln Park, Livonia, Madison Heights, Marquette, Melvindale, Midland, Monroe, Mount Clemens, Mount Pleasant, Muskegon, Muskegon Heights, New Baltimore, Niles, Northview, Norton Shores, Novi, Oak Park, Okemos, Owosso, Pontiac, Port Huron, Portage, Riverview, Rochester, Rochester Hills, Romulus, Roseville, Royal Oak, Saginaw, Sault Ste. Marie, South Lyon, Southfield, Southgate, St. Clair Shores, Sterling Heights, Sturgis, Taylor, Traverse City, Trenton, Troy, Walker, Warren, Waverly, Wayne, Westland, Wixom, Woodhaven, Wyandotte, Wyoming, Ypsilanti and all other MI cities & Michigan counties near me in The Great Lakes State.
Also find MI local small businesses by General Liability Class Code and learn about Michigan small business insurance requirements for general liability, business property, commercial auto & workers compensation including MI business insurance costs. Call us (313) 344-7177.