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Insuranks

Laundry, Laundromat & Dry Cleaners Insurance

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Ever since the world’s first laundry machines were invented in the early-1800s, laundromats have provided laundry washing, folding, and delivery service to customers. Around the same time, dry cleaning also became a popular way to clean high-end fabrics that could be damaged by the vigorous motion of a washing machine. 

Despite the fact that many modern households have laundry machines and dryers, the laundromat industry is still alive and well. People and families who don’t have time to wash their own laundry (let alone fold it, iron it, or dry clean it) still frequent launderettes and use various other laundry services to save time and energy. 

Suppose you’re just starting your laundromat, dry cleaning, or laundry delivery service. In that case, you’re going to need a business liability insurance policy to protect you and your business from damage or injury claims. In this article, we’ll explain the different types of laundry business insurance, what kind of coverage each laundry business needs, and show you some average quotes that you can expect to pay for an insurance premium! 

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Insurance For Laundry Business

Let’s begin by taking a minute to discuss the different types of laundry business insurance policies available and what each covers. 

Public Liability Insurance

Suppose you own a physical laundromat that’s open to the public. In that case, public liability insurance can provide you with coverage if a customer is injured within your business space. 

Product Liability Insurance

If your laundromat sells cleaning products like bleach, washing soap, or fabric softener, then you should never rule out the possibility of a product liability claim. One of these products could be faulty and cause damage to a customer’s clothing or even cause an inflammatory reaction on their skin. Product liability insurance will protect you if your business’s physical cleaning products cause problems. 

Read more about product liability insurance

Professional Liability Insurance

If you offer a specialty service such as delivery, dry cleaning, ironing, starching, or clothing repair, then you could also benefit from professional liability insurance. Basically, this protects your business from claims that you didn’t deliver or perform the service “as advertised.” 

For example, if a customer wants a hard-to-remove stain taken out of an expensive wedding dress and you’re unable to do so (despite your best efforts), they could try to sue you for claiming that you could. 

General Liability Insurance

Almost all laundry businesses can benefit from a general liability policy. These liability insurance policies are comprehensive in nature and often cover aspects of public liability, product liability, and even professional liability. Just make sure to talk with your insurance agent and make sure that your general liability policy includes all of the coverage you need.

Read more about general liability insurance

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Commercial Laundry Insurance: Common Risk Factors

There are very few risk factors for most types of laundry businesses (contrast this to commercial construction insurance). After all, you’re just washing clothes, right? 

That being said, there are a number of different risk factors that you need to be aware of. This is especially true when you’re dealing with higher-end fabrics, designer clothing, or providing laundry service to wealthy executives and homeowners. Below are some of the most common risk factors associated with commercial laundry insurance. 

Property Damage

Property damage is usually the most commonly occurring risk factor in the laundry industry. Many articles of clothing are fragile, and if they aren’t treated properly, then they can easily rip, tear, or fall apart under the strain of the washing machine or high temperatures. While the blame may be on the customer for bringing the article of clothing to your laundromat, to begin with, it’s not uncommon for disgruntled customers to try to shift the blame onto the laundrette owner instead. 

For lower-value clothing, this typically isn’t something that you’ll have to worry about. Most people aren’t going to sue your business over a $10 shirt or a $75 suit. However, if you mess up somebody’s $4,000 designer suit, then that could be a very different story. 

Bodily Injury 

If you run an open laundromat that allows customers to come inside and use the washing machines, dryers, or irons for themselves, then there’s always a possibility for bodily injury. For example, a child could slam their fingers in a washing machine door, or an elderly individual could trip over a heavy-duty cord running across the floor. 

Without coverage for bodily injury, then you and your business could be held financially liable for paying for that customer’s medical bills, physical therapy, or even disability. The right insurance company would be able to negotiate a fair amount and pay it out of your policy, saving you from heft medical bills. 

Laundry Delivery-Related Risks

If your laundry business or dry cleaning business offers a delivery service, several other risks may be associated with delivery. For one, the vehicle you’re using for delivery may need to be insured with a commercial auto insurance policy to provide coverage if your delivery driver is ever involved in an accident. 

Additionally, you may also need to purchase insurance coverage to cover the brief period of time when your delivery driver is on another person’s property. For example, your driver could drive over a customer’s expensive grass, knock over a costly garden gnome, or even steal from a client’s home. A liability policy will help protect your business from customer claims against your delivery team. 

Coverage For Various Types of Laundry Businesses

Below, you’ll find the most common forms of insurance coverage necessary, depending on the laundry service that your business provides. 

Laundromat Insurance or Launderette Insurance

Laundromats (or launderettes, if you’re from the UK) typically need a comprehensive plan that includes public, professional, product, and general liability coverage. 

Dry Cleaners Insurance

Most dry cleaners’ insurance programs include general liability coverage and professional liability coverage. However, since most dry cleaners don’t have facilities open to the public, they may not need a public liability policy. 

Laundry Delivery Insurance

If you own a laundry delivery service (or if your laundromat/dry cleaners provides a delivery service), then you’ll need to add additional coverage for commercial auto insurance to insure your delivery vehicle. 

Clothing Repair or Tailor Insurance

If your laundromat provides a custom tailor or clothing repair service, you may qualify as a commercial artisan. You may need to purchase additional artisan insurance, given the specialized nature of the service. 


How Much Does Laundry Business Insurance Cost? 

For the most part, laundry business insurance is relatively straightforward. It is simply designed to protect you and your business from the financial risk associated with handling your client’s clothing or customer injury claims (if your offer public facilities). 

Assuming that you purchase a general liability insurance policy with $1,000,000/$2,000,000 aggregate coverage (which is standard for laundry businesses), listed below is what you can expect to pay from various commercial insurance providers. Generally speaking though, the average laundry business insurance cost is $46 per month, or $550 per year. 

Insurance ProviderAverage Monthly PremiumAverage Annual Premium
Chubb $53$636
State Farm$46$552
Next $51$612
USAA$35$420

Looking For Cheap Laundromat Insurance? 

If you own a laundromat business, then you’ll usually need to purchase business insurance before your city or state allows you to start offering your services. This means that time is of the essence. To help you find the cheapest laundry business insurance quotes from the best laundry business insurance companies, we've located a 'Get Quotes' button at this page. Simply click it and follow the process to receive and compare online quotes from top providers and find the best laundry insurance for your business needs!

Compare Laundry Business Insurance Quotes

Get all the best quotes from leading providers in a click of a button!

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