Laundromat Insurance – Why do you need insurance for your laundromat and what kinds of insurance do you need?
Insuring a laundromat is extremely important in order to protect your business from catastrophic loss. A coin laundry business contains expensive equipment that is costly to repair and replace.
Damage to machines from fire, water, or vandalism can result in serious expenses to the owner, from service calls to lost income while a machine is inoperable.
There are many other components to your business that require laundromat insurance as well. This is why you need to carefully consider ALL aspects of insuring your “cash machine”.
Considerations for Laundromat Insurance Coverage
There are a few types of insurance coverage you’ll need to properly cover different sources of risk and all aspects of your laundromat business.
- Business property & equipment (washers, dryers, vending machines, etc.)
- Business income
- Liability insurance, both business and personal and for all kinds of legal liability
- Workman’s comp insurance (if you have employees)
- Auto insurance for company cars driven by employees
- Umbrella insurance
There are even more considerations should you operate multiple business centers such as wash & fold service, pickup and delivery, dry cleaning, food & beverage café, etc. For example, you need auto insurance for your company car that covers your employees driving around for pickup and delivery.
Laundromat Insurance – Protecting Your Laundry Business Cash Flow
The vast majority of laundromats earn annual returns of 20% to 40%. It makes financial sense to understand the insurance products offered to protect a consistently profitable cash business.
One of the easiest ways to protect your laundromat’s long term profitability is to have comprehensive laundromat insurance. It is best to talk with several insurance agents about covering each aspect of your business with laundromat insurance.