Insuring Drycleaner Businesses: An Overview
When it comes to financially protecting your business, there is a broad range of insurance coverages to consider. Most Drycleaner owners understand the importance of procuring General Liability to insure the business against losses, Property Insurance, and even Workers Compensation; which is required in almost all states.
These coverages certainly are important; for example you will want to make sure your property insurance meets your specific business’s needs. With business property insurance, you can insure items such as furniture, fixtures, appliances, inventory and other supplies for Replacement Cost or for Actual Cash Value (ACV).
The Drycleaner Business coverages mentioned above, however, is just the beginning. At Irving Weber Associates, Inc. (IWA) we offer specialized coverages that many standard dry cleaning and commercial launderer policies don’t provide, through our FabriCare Advantage program. The following is a guideline of our coverages, with a brief overview of each.
This coverage is for customers’ property that has been accepted for cleaning, laundering, pressing, renovation, repairing, sewing, storage or drying while in or on the dry cleaning premises owned, leased, or operated by the owner. Policies offered by many standard carriers do not include In-Storage, Work in Progress, or Human Error coverage.
This protects the dry cleaning business in the event that water comes up through the sewer or drains and causes damage by way of flood or overflow.
A covered loss for dry cleaners is a sudden and accidental breakdown of the insured’s boiler and machinery equipment or any part of the equipment described in our policy, including but not limited to steam boilers, steam pipes, hot water boilers, condensate boiler, feedwater piping, etc.
Loss of Use or Business Income
If a business is forced to close its doors due to an insurable loss, that business could be left without an income source; this coverage protects the business’s revenue stream in the event of this type of loss.
This type of liability coverage may pay the affected person or entity for the cost of care, the loss of services and restitution for death that results from an injury.
This type of policy would pay for the resulting damages and any legal expenses up to policy limits for an injury that occurs due to the use of the drycleaner’s products or services provided.
This is an extension of a General Liability policy applying to any liability the business might assume by entering into a variety of different types of contracts, such as a building lease.
Hired & Non-Owned Auto
This is intended to provide liability protection when an employee occasionally has to drive his or her personally owned vehicle, or a rented vehicle, for business purposes.
Product Liability Insurance
A person may pursue litigation against a business if they have been injured from the use of one of their products or business processes.
This policy may pay for the medical and funeral expenses occurred, up to policy limits, if someone is injured by a company’s employee or at the company site.
This type of liability policy provides coverage if a business is accused of defaming a person’s character, by publishing material that violates their right of privacy, or publishing inaccurate information that slanders or libels a person or organization, and more.
This policy provides liability protection against personal injury caused by a company’s advertising of their own goods, products or services.
The above guideline is only a brief overview of our coverages. To learn more about how these coverages apply to your or your client’s business, please contact IWA today.