Buy Dry Cleaning Insurance

Dry cleaning insurance is a type of insurance that protects dry cleaning businesses from financial losses due to various risks and hazards.

This type of insurance typically covers damage or loss of clothing and other items, liability for accidents or injuries that occur on the business premises, and loss of income due to unexpected events such as natural disasters or power outages. It may also provide coverage for damage to the building and equipment used by the dry cleaning business.

The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small dry cleaning businesses ranges from $37 to $59 per month based on location, size, payroll, sales and experience.

Dry cleaners need insurance for a variety of reasons. First and foremost, insurance protects the dry cleaner's business from financial loss. This can include losses due to accidents, damage to property, or legal liabilities.

For example, if a customer slips and falls in the dry cleaner's store and suffers an injury, the dry cleaner could be sued for damages. Without proper insurance, the dry cleaner could be faced with paying for these damages out of pocket, which could financially ruin the business.

Additionally, insurance can protect the dry cleaner's employees. If an employee is injured on the job, workers' compensation insurance can cover their medical expenses and lost wages.

In summary, dry cleaners need insurance to protect their business and employees from financial loss due to accidents, damages, and legal liabilities. Dry cleaning insurance is an important tool for ensuring the financial stability and success of the business.

Commercial General Liability Insurance: If you need protection from customer injury or property damage then this is the insurance you must have for your business. When a customer slips and falls while using your services this is the best type of dry cleaning insurance to have. When you have this type of insurance you can assist with any medical costs associated with the injury.

Business Property Insurance: With this type of insurance you protect the buildings and the machines you use for the operation of your business. Equipment such as coin-operated washers, dryers, commercial laundry machines, dry cleaning machines and other equipment owned by your business will be covered by this insurance. Whether you are renting or you own a building to operate your business you must protect it with dry cleaning insurance.

Business Interruption Insurance: With business interruption insurance you protect your store when unexpected events happen that stops business operations. Any damage done to your business can cause you to lose income. This dry cleaning insurance allows for the reimbursement of any income losses and any other business expenses because of damage to your business. It's a good idea also to expand you business interruption coverage to cover utility interruptions as well.

Equipment Breakdown Insurance: This type of insurance provides coverage for when equipment breaks down in your business. When machinery breaks down you can lose income but when you have this insurance you can be reimbursed for the income you loss. You can never predict when something like this might happen which is why you need to be prepared by having this insurance.

Workers' Compensation: Workers comp is required in most states for any non-owner employees. This insurance allows you to provide assistance to an employee if they are injured and need medical attention. If an employee gets injured and the injury leads to death then this is insurance pays benefits to the surviving family of the victim.

Property exposures generally include a small office, drop off and pick up storefront, dry cleaning facilities, and perhaps a warehouse for storage. Ignition sources include electrical wiring, dry cleaning equipment, heating and air conditioning systems, and water heaters.

Flammables include the textiles or other fabrics to be cleaned, scrap materials, lint from dryers, and chemicals used in dry cleaning. At one time, the chemicals used 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 spot cleaners tend to be the most flammable. Hazards increase without proper storage and handling methods.

Fire and explosion hazard 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. Sprinklers may be advisable. Unless disposed of properly, greasy, oily rags (such as those used to clean the machinery) can cause a fire without a separate ignition source. Fuels, oils, and lubricants will increase the fire hazard if vehicles are stored and maintained on the premises.

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 of the water heaters, dry cleaning, and pressing machinery could result in a significant loss, both direct and under time element.

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. Lack of control over pre-employment background screening, separation of duties, and reviews of procedures used at customers' premises increases the exposure.

All retail operations should have a monitoring and verification system to reconcile bills and receipts with services rendered. Holdup potential is high, especially in retail operations. Frequent deposits should be made, especially on high volume days.

Inland marine exposure includes accounts receivable if the dry cleaner offers credit, bailees customers, computers, and valuable papers and records for customers' and suppliers' information. The bailees customers' exposure starts when the property is entrusted to a dry cleaner's employee and ends when the property is returned to the customer. 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 each customer's goods.

Premises liability exposure is very limited at the plant due to lack of public access. Any receiving areas should be in good condition and free from any tripping hazards. High concentrations of chemicals used in the cleaning process may be corrosive and/or toxic. 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 in the pickup and delivery operations. Personal injury exposures include 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 to moderate from items being 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 groundwater, or soil contamination from the use and application of chemicals and detergents. 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 can be high. Work may be performed under time constraints. Workers can experience lung, skin, or eye irritations and reactions to the dry cleaning chemicals, which may pose a long-term threat from cumulative exposure. 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 facility, or at customers' premises. Back injuries while lifting or handling materials can occur, especially for employees engaged in pickup or delivery. Repetitive motion injuries can be reduced if workstations are ergonomically designed. Pets owned by customers may attack or bite workers.

Business auto exposure may be high if pickup and delivery services are provided. Deadlines placed on drivers increase the hazard. 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.

There are several reasons why dry cleaners can be sued, some of which include:

Lost or damaged items: Dry cleaners are responsible for the safekeeping of their customers' clothes and other items. If any item is lost or damaged while in their care, the customer may sue them for the value of the lost or damaged item. Dry cleaners can purchase commercial property insurance, which can provide coverage for lost or damaged items in their care. The insurance policy can help pay for the cost of replacing the lost or damaged items.

Late delivery: Dry cleaners may also face lawsuits if they fail to deliver the customer's items on time. Late delivery can cause inconvenience to customers who may miss important events or appointments. Dry cleaners can purchase business interruption insurance, which can provide coverage for loss of income due to unexpected events that disrupt their operations, such as late delivery. The insurance policy can help pay for the income lost as a result of the disruption.

Bodily injury or property damage: If a customer or a third party suffers bodily injury or property damage as a result of the dry cleaner's operations, they may be sued for damages. Dry cleaners can also purchase commercial auto insurance, which can provide coverage for bodily injury or property damage caused by their business vehicles. The insurance policy can help pay for the damages awarded to the plaintiff.

Overall, insurance can provide dry cleaners with financial protection and peace of mind in the event of lawsuits or other unexpected events. It is important for dry cleaners to work with an experienced insurance agent to determine the appropriate coverage for their business.