Running a commercial laundry business can be a profitable venture, but it also comes with various risks and exposures. That is why commercial laundry owners need insurance coverage to protect their investment against unexpected events that could lead to financial losses. Commercial laundry insurance provides the necessary coverage to shield your business from liability claims, property damage, and other risks.
Who Needs Commercial Laundry Insurance?
If you own or operate a commercial laundry business, you need insurance coverage to protect you against any unforeseen circumstances that may arise. Commercial laundry insurance coverage is suitable for commercial laundry owners, dry cleaners, hotel and resort businesses, and other companies that require laundry services.
Types of Insurance Needed by Commercial Laundries
There are various types of insurance coverage options available for commercial laundry businesses. These include:
- General Liability Insurance: compensates damages incurred by third-party injury, property damage, or other liability claims.
- Property Insurance: this type of insurance covers damages to your laundry facilities resulting from fire, theft, vandalism, or other unexpected events.
- Workers’ Compensation Insurance: protects your employees in case of work-related injuries or illnesses.
- Business Interruption Insurance: covers income losses when your business operations are temporarily halted due to unexpected events such as natural disasters or equipment breakdowns.
- Umbrella Liability Insurance: provides additional liability coverage beyond your primary policy limits in case of catastrophic events.
How Much Does Commercial Laundry Insurance Cost?
The cost of commercial laundry insurance coverage depends on various factors such as the size of the business, the type of insurance coverage required, and the level of risk exposure. However, on average, commercial laundry insurance coverage can cost between $500 and $1,500 annually.
Commercial Laundries Risks and Exposures
Commercial laundry businesses face several risks and exposures that could lead to significant financial losses if not correctly insured. Some of these risks include:
Fire and Electrical Hazards: commercial laundry businesses use high-temperature equipment, which poses a fire risk.
Equipment Breakdown: commercial laundry equipment is heavy-duty and can be expensive to repair or replace.
Property Damage: water damage from leaks and spills, and damage to customer’s clothing while in your possession are possible exposures.
Employee Claims: your employees could file claims for injuries or illnesses resulting from their work activities.
Liability Claims: customers could file claims for damages or injuries resulting from the use of your services.
Commercial Insurance and Business Industry Classification
- SIC CODE: 7211 Power Laundries, Family And Commercial, 7218 Industrial Launderers, 7219 Laundry and Garment Services, Not Elsewhere Classified
- NAICS CODE: 812320 Drycleaning and Laundry Services (except Coin-Operated)
- Suggested Workers Compensation Code(s): 2585 Laundry NOC & Route Supervisors, Drivers, 2586 Cleaning or Dyeing & Route Supervisors, Drivers, 2587 Toilet or Towel Supply Co. & Route Supervisors, Drivers
Commercial Laundry Insurance – The Bottom Line
Commercial laundry insurance coverage is essential for any business that provides laundry services. It provides coverage against various risks and exposures that could lead to financial losses if not adequately insured. Consult with an experienced insurance agent to determine the appropriate coverage for your commercial laundry business. Protect your investment with commercial laundry insurance coverage today!