For those in the market to buy dry cleaning insurance, it is important to identify all of the inherent risks and exposures associated with this industry, and then purchase coverage to protect the business against these many concerns.
First of all, and this goes for most businesses, it is important to invest in liability coverage. This provides protection in the event that the company is responsible for, or causes property damage or bodily injury to an individual or their personal property. For example, say that an expensive piece of clothing is damaged. The liability coverage would help to compensate the client.
Or in the event that some cleaning chemicals were accidentally sprayed on a visitor or customer causing burns, or an allergic reaction, the company might very well become involved in a damaging lawsuit. Dry cleaners insurance will help pay for expenses related to hospital bills or any time missed from work.
Investing in insurance to cover equipment
Dry cleaning equipment is often incredibly complicated and interconnected (not to mention expensive). If even a small mechanical problem knocks the operation offline for an extended period of time, literally thousands of dollars could be lost. This example demonstrates the need for business insurance for dry cleaners to keep equipment in good running condition.
Fire and environmental insurance is often required
Also, depending on the types of dyes, chemicals, and cleaning solutions in use, (the company likely has concerns about special fire or hazmat hazards) the business probably needs special dry cleaning insurance to protect against liability concerns specific to those chemicals and/or hazards, depending on how the company goes about disposing of used chemicals and hazardous materials.
Also, workers’ compensation insurance (if four or more people work at the facility) is also required. This coverage will protect the business if an employee gets hurt at work, whether they get caught up in a machine and injured, or merely slip and fall in a break room accident, which could cause a severe injury as well. Other considerations for insurance include life, health, loss control, and business interruption, to name a few.
Anyone operating a dry cleaner is best served by seeking help from people who have experience and credentials to identify any exposures and mitigate against them through the proper application of business insurance for dry cleaning companies. The right agent can suggest the best solutions for this dynamic industry.