Dry Cleaning Insurance Policy Information
Dry Cleaning Insurance. If you own and operate a dry cleaner, then you should consider insurance to protect your business. Being the owner of a dry cleaning business means that you are exposed to lots of risks. One single lawsuit can cause you to lose everything you've worked so hard to build.
Dry cleaners use chemical applications instead of water to remove dirt, dust, and other debris from customers' clothing and other fabric items. These may include special fabrics that may be damaged by water, including leather goods and furs. Services may be provided to the general public or may be limited to commercial or institutional customers.
Depending on the type of customer and services offered, the operations may include pickup of soiled material (either from customers' premises or from owned drop-off stations), sorting, spot-cleaning (pretreatment for stains), laundering or dry-cleaning, pressing, and, delivery or return of the 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, may also be performed.
To protect yourself from the risks that come with operating this type of business, dry cleaning insurance is a good choice. Let's take a look at some of the different laundry service insurance policies that you can use to protect your business.
Dry cleaning insurance protects your laundry service from lawsuits with rates as low as $37/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked dry cleaners insurance questions:
- What Is Dry Cleaning Insurance?
- How Much Does Dry Cleaning Insurance Cost?
- Why Do Dry Cleaners Need Insurance?
- What Type Of Insurance Do Dry Cleaners Need?
- What Are Dry Cleaners Risks & Exposures?
- What Does Dry Cleaning Insurance Cover & Pay For?
What Is 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.
How Much Does Dry Cleaning Insurance Cost?
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.
Why Do Dry Cleaners Need Insurance?
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.
What Type Of Insurance Do Dry Cleaners Need?
With the amount of people using your services, there's a chance of injury while on your premises. Slips and falls are the most common risks you face. Having the right dry cleaning insurance gives you the protection you need when it happens. Following are some of the most common dry cleaning insurance coverages:
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.
What Are Dry Cleaners Risks & Exposures
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.
What Does Dry Cleaning Insurance Cover & Pay For?
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.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7212 Garment Pressing, and Agents for Laundries and Drycleaners
- NAICS CODE: 812320 Drycleaning and Laundry Services (except Coin-Operated)
- Suggested Workers Compensation Code(s): 2586 Cleaning or Dyeing & Route Supervisors, Drivers, 2589 Dry Cleaning and Laundry Store - Retail & Route Supervisors, Drivers, 8017 Store - Retail NOC
Description for 7212: 7212 Garment Pressing, and Agents for Laundries and Drycleaners
Division I: Services | Major Group 72: Personal Services | Industry Group 721: Laundry, Cleaning, And Garment Services
7212 Garment Pressing, and Agents for Laundries and Drycleaners: Establishments primarily engaged in providing laundry and drycleaning services but which have the laundry and drycleaning work done by others. Establishments in this industry may do their own pressing or finishing work. Establishments operating their own laundry plants are classified in Industry 7211, and those operating their own drycleaning plants are classified in Industry 7216.
- Agents, retail: for laundries and drycleaners
- Bobtailers, laundry and drycleaning
- Cleaning and laundry pickup stations not owned by laundries
- Press shops for garments
- Truck route laundry and drycleaning
- Valet apparel service
Dry Cleaning Insurance - The Bottom Line
When you are in the laundromat and dry cleaning business you face many risks. Having the right insurance for your business protects you when your business faces a lawsuit. Insurance can be the difference between losing everything in a lawsuit and keeping your business profitable..
Additional Resources For Retail Insurance
Read valuable small business retail insurance policy information. In a retail business, you need to have the right type of commercial insurance coverage so that your store, employees, and inventory are protected.
- Adult Novelty
- Antique Dealers
- Appliance & Electronics Store
- Army Navy Surplus Stores
- Art Dealers
- Art Gallery
- Arts & Crafts Supply Stores
- Bicycle Shop
- Boat Dealers
- Book Store
- Bridal Shop
- Candy Confectionery Store
- Carpet Store
- Cell Phone Stores
- Clothing Store
- Collectibles Memorabilia Store
- Consignment Stores
- Convenience Store
- Cosmetics Store
- Costume Stores
- Dry Cleaning
- Embroidery Services
- Equipment Rental
- Fabric Stores
- Fish Markets
- Flea Markets
- Funeral Home
- Furniture Store
- Gift Store
- Greeting Card Stores
- Hardware Store
- Harness & Saddle Shops
- Home Improvement Store
- Infant, Baby & Children's Clothing Stores
- Jewelry Store
- Lamp Stores
- Lingerie Store
- Luggage Store
- Meat Market & Butcher Shop
- Men's Clothing Stores
- Music Store
- Office Supply Store
- Paint & Wallpaper Store
- Pawn Shop
- Pet Store
- Pharmacy Liability
- Plumbing Supplies Fixtures Store
- Poultry Dealers
- Rent To Own Stores
- Scrap Metal Dealers
- Sewing Store
- Shoe Store
- Sporting Goods Store
- Stationary Store
- Thrift Store
- Ticket Agency
- Tire Store
- Tobacco Store
- Toy Store
- Travel Agency
- Trophy Stores
- Tuxedo And Formal Wear Rental Store
- Vending Machine Operators
- Wig Store
- Women's Clothing Stores
- Specialty Retail Stores
The retail industry is a vital sector of the economy, providing goods and services to consumers across the globe. It is also a sector that is constantly evolving, with new technologies and trends emerging on a regular basis.
Despite its importance, the retail industry is not without its risks. Retail businesses face a variety of threats, including theft, damage to property, and liability issues. These risks can have significant financial consequences for retail businesses, which is why commercial insurance is so important.
Insurance can provide retailers with protection against financial loss resulting from unforeseen events. For example, if a retail store is damaged by a natural disaster, insurance can help cover the cost of repairs and help the business get back on its feet. Similarly, if a retail employee is injured on the job, insurance can help cover their medical expenses and any lost wages.
In addition to protecting against financial loss, commercial insurance can also help retail businesses protect their reputation. If a retail business is sued or faces other legal challenges, insurance can provide financial support and legal representation. This can help to protect the business's reputation and maintain customer trust.
Overall, insurance is an essential component of a successful retail business. It helps to safeguard against financial loss and protect against potential legal challenges, which can be especially important for smaller businesses that may not have the resources to absorb these types of losses.
By investing in business insurance, retail businesses can ensure that they are well-equipped to handle the many challenges that come with operating in this dynamic industry.
Minimum recommended small business insurance coverage: Business Personal Property, Business Income and Extra Expense, Equipment Breakdown, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Valuable Papers and Records, General Liability, Employee Benefits, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Building, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Computer Fraud, Forgery, Bailees Customers, Goods in Transit, Jewelers Block, Cyber Liability, Employment-related Practices, Business Auto Liability and Physical Damage and Stop Gap Liability.