Laundromats can be seen as appealing investments to hopeful business owners because they tend to have high ROI, lots of liquidity, and no inventory. But what they do need, like any legitimate business, is the proper insurance. No matter why you decided to buy a laundromat in the first place, you should consider the advantages of having the right laundromat insurance policy.
General Liability for Laundromats
Business insurance of any kind needs to have liability coverage included. This protects both the business owner and customers. More specifically, general liability will cover any medical bills that are incurred as a result of a customer getting hurt when using your laundromat. Whether someone slams a hand in a washing machine door, gets shocked by a dryer, or is injured in any other way, you would have to pay for the medical treatment if you did not have general liability coverage as part of your laundromat insurance. This coverage even includes advertising injury insurance, which means it will pay for any lawsuits that accuse you of infringing on another company’s slogan, logo, or other intellectual property.
Business Owners (BOP)
A BOP features multiple types of coverage that can protect your business in many ways. Equipment breakdown, sewer and drain backup, and accounts receivable are just a few coverage types to expect from the BOP that comes with your laundromat insurance. This policy can also ensure that your building will be repaired and its contents replaced after a fire, robbery, or other disaster.
Commercial Auto Coverage For Laundromats
If you have any company vehicles for your laundromat, you should make sure each one is covered by commercial auto insurance. After all, your personal car insurance will not cover your company cars, and neither will your employees’ personal car insurance policies. This type of business insurance coverage should include everything from bodily injury liability to property damage liability. Just as with personal car insurance policies, you can also add comprehensive, collision, uninsured motorist, and underinsured motorist coverage to your commercial auto policy.
Workers Comp Insurance For Laundromats
You need to protect both your laundromat and your employees, and workers comp allows you to do so. This important part of laundromat insurance will pay the medical bills of any employees who are injured on the job. It will also pay for any lost wages and rehabilitation that may be necessary after the injury. Since most states require businesses to have workers comp if they have more than five employees, it just makes sense to obtain this coverage as part of your laundromat insurance policy.
Excess liability is also known as an umbrella policy. The main point of adding this to your laundromat insurance is in case you are facing a lawsuit that would deplete your liability limits. Without excess liability, you would have to pay for the remainder of the claim, which could cause you to lose your business unless you are financially prepared to pay out of pocket. That’s why it’s wise to take advantage of the minimal investment that excess liability is, since it only costs a little extra to increase your coverage by $1 million or more.