It seems like everyone these days is getting into dry cleaning — and there are good reasons for that. There’re a lot less fuss and mess with dry cleaning, and it’s much faster than regular washing. But do you really need dry cleaning insurance? Depending on your circumstances, certain chemicals, dyes, and other cleaning supplies you use could face unique fire or safety hazards — and perhaps you do need specific dry cleaning insurance to safeguard you against liability claims specific to these chemicals/hazmat hazards. So, how much does dry cleaning insurance cost?
If you’re working in a high-risk area, it’s worth your while to have this insurance, as you could be forced to pay out-of-pocket damages if you accidentally burn, spill, or otherwise damage a customer’s property or person while they’re in your dry cleaning machine. This costs money, but what if you have no insurance and the customer decides to sue anyway? You could be facing thousands of dollars in damage fees and legal fees. So you can see why it’s better to be safe than sorry in this instance.
If you own a dry cleaning service, then you know you need to protect yourself against these risks, as you don’t want to be responsible for any accidents your employees might have while handling dangerous chemicals. There are two types of laundry service insurance policies to choose from: actual cash value and agreed value. Actual cash value (ACV) covers only replacement costs for materials damaged during the time the policy was issued — but you won’t get full replacement costs for items that were damaged and destroyed before the policy was issued. Agreed value covers whatever the actual cash value of your inventory was at the time of your loss. While it is possible to claim for all of your inventory, most companies choose to use the value of agreed upon inventory for liability purposes.
There are also many risks that are unique to dry cleaning businesses, such as people using rented or leased machines or the cleaners being unaware of hazards. These can vary significantly. Some common problems include faulty dryers, non-staffed garages, working with contaminated air and equipment that aren’t covered by a previous industrial safety policy. Some cleaners have been known to cause respiratory problems, temporary skin and eye irritation and even death in workers. Obviously, these risks are only going to increase as more people start using high-powered, electric dryers that are more powerful than ever before.
It is important that business owners get the right insurance coverage so that they can protect themselves and their businesses. However, it is equally important that they find the best policy for their particular circumstances. There are many risks involved in this type of industry and there is great risk involved with not having the right insurance coverage. Finding the perfect policy for your business is simply a matter of doing your research and making sure that you are purchasing from a reputable company.
When it comes down to it, if you want to be sure that you are adequately protected, then you need to make sure that you purchase workers’ compensation insurance, liability insurance, health insurance and dry cleaning insurance. These are the most common types of insurance that people purchase for their careers and there is nothing wrong with buying them. It is important that you know the ins and outs of your particular industry though, as only then can you be sure that you are protecting yourself, your business and your employees.