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How Drycleaners Pollution Liability Insurance Can Benefit Landlords

How Drycleaners Pollution Liability Insurance Can Benefit Landlords

Due to the nature of their work, dry cleaning facilities have noteworthy pollution liability exposures, given their use of bleaches, detergents, and solvents, such as percholoroethylene (perc). While the Environmental Protection Agency notes that wearing clothes that have been successfully cleaned with perc will likely not pose any risk whatsoever, perc exposure in the air and ground surrounding the facility is possible.

Dry cleaners are well known to be a great draw for both standalone buildings and strip shopping centers. So while landlords should welcome the possibility of a dry cleaner as a tenant, selection of a responsible dry cleaner that uses the latest equipment and follow’s all current local, state and federal regulations is key.

Landlords may require that drycleaners carry a Drycleaners Pollution Liability Insurance policy, which will protect the landlords or building owners from any financial consequences they may face as a result of a Pollution Liability lawsuit or claim.  A Pollution Liability Insurance policy from Irving Weber Associates, Inc. (IWA) protects against claims of bodily injury and property damage associated with the release of Drycleaning solvents from machines or solvent storage containers. The policy will also help replace defense costs associated with a lawsuit.

The average costs to clean up a Drycleaner’s pollution spill could be 5x that of a gas station. In addition to the lawsuits that drycleaners could face due to this, landlords and building owners are being sued directly for these environmental impairments alleged to have caused bodily injury or property damage. It’s often assumed that a standard Business Owner insurance policy provides protection against pollution liability for landlords; however this policy does not provide coverage against instances such as accidental spilling, leaking, or emitting of Drycleaning solvents.

For more information, please contact IWA directly or have your current insurance agent contact the IWA Pollution Program Department at [email protected], or call Tina Brazier at 800-243-1811 Ext. 8207.

IWA’s FabriCare Advantage insurance program has offered Dry Cleaner Insurance, Commercial Launderer Insurance, Linen Supply Insurance and Uniform Rental Insurance since 1946. Endorsed by the Dry Cleaning and Laundry Institute (DLI) and 10 other industry organizations, FabriCare Advantage protects more dry cleaners than any other program – and features more targeted coverage than direct markets.