As most business owners are aware, having a sound insurance package provides peace of mind and protection. Have you taken a closer look at your policy since you first signed up? Granted, most laundromat business owners don’t think twice about their policies since they only renew it once a year. However, the potential gaps in your coverage could lead to significant consequences if a claim was filed. With that in mind, here are some things to consider when reevaluating your existing policy for your Coin-Op Advantage Program.
Did you build your laundromat from scratch or was it already in existence?
When a laundromat owner takes over from another and builds on the property, the insurance coverage must reflect this. Otherwise, these will be huge gaps that are not covered under the existing policy. In insurance terms, these are referred to as “tenant improvements.” Consult with your insurance professionals at IWA to ensure the entirety of your store is secured.
Get Insured for the entire cost of the loan.
If you only borrowed $500,000 to start your business, but you put in another $100,000 in renovations, you have to insure the total cost of the business, not just the loan amount.
Don’t forget workers’ compensation!
Even though the laundromat business is a cash business, your employees are still employees, not contractors. Therefore, you are obligated to carry this coverage.
Include Bailee coverage.
If something happens to your customers’ goods while they are in your possession, are you covered? Bear in mind that the total value of customer goods in your store could exceed $10,000 at any time, and a Bailee policy will cover those losses in the event of a fire or other calamity.
Read your lease.
American Coin-Op explains that it’s important to read your lease thoroughly because landlords and their lawyers often request things that would be either very expensive or impossible to get. The insurance requirements vary depending on the building, and it’s important to understand them to get adequate coverage.
At Irving Weber Associates, Inc. we understand what it takes to run a successful laundromat business, including investing in a comprehensive Coin-Op Advantage program to ensure that you are financially protected against legal claims. For more information regarding our products or to have us review your policy, contact our experts today at 855-661-4557.