Understanding Drycleaner Legal Liability Terms
Last week, we discussed what a wide range of insurance coverages drycleaners need. As we mentioned, one of the most important coverages a drycleaning business can obtain is bailee coverage. However, in last week’s post we noted some terms within certain coverages that drycleaners might question.
For example, Work in Progress is a coverage within your bailee coverage that provides financial protection against loss or damage to your customers’ property caused by the actual work performed by you or your employees. So if you overlook a pen in a customer’s garment and end up with an ink load or your buck unit causes damage to a shirt or dozens of shirts, the Work in Progress policy would cover this. Below are some other common terms used when describing Drycleaner Insurance policies.
Mysterious Disappearance: If there is an unexplained shortage in inventory, or a customer claims their property has been lost, then this type of coverage would offer a your customer(s) financial reimbursement.
Actual Loss Sustained (ALS) or Actual Cash Value (ACV): This is the dollar amount that is needed to replace property, deducting depreciation value and limited to the maximum dollar amount shown on your policy.
Employee Dishonesty: Unfortunately, inventory loss is occasionally caused due to a dishonest employee. This coverage also pertains to loss of money, securities, or damage to the drycleaning property.
Civil Authority: Let’s say that your dry cleaner business suffers damage due to a hurricane, and you could not save or move any of your property because you were required by authorities to evacuate. If your access is prohibited in this way then civil authority coverage will offer some of the financial reimbursement you need for this type of damage.
These are just a few key drycleaning legal liability terms. Be sure to check with your IWA insurance agent or broker if you have any questions about your coverage or what certain terms mean.
At Irving Weber Associates (IWA) we understand the unique risks that Dry Cleaners face in serving the public. Included in our FabriCare Advantage insurance program are specialized coverages that many standard Dry Cleaning Liability and Commercial Launderer policies don’t provide. Please Contact Us today to learn more about our products and services.