Insurance as a Risk Management Tool for Commercial Laundries


Risk Management / Friday, January 8th, 2021

Commercial laundry operations face a certain number of risks. For example, complex and expensive laundry equipment might malfunction, stopping operations and possibly damaging clients’ clothing or linens as a result. Water can back up, causing flooding and property damage. A comprehensive risk management plan can help mitigate some of the risks associated with operating a commercial laundry business. The right commercial laundry insurance program should be part of that plan. 

What Does Commercial Laundry Insurance Cover?

The exact provisions of your policy will ultimately be decided based on your business’ needs. However, some highlights you can expect to see in a commercial laundry insurance program include:

  • Business-owned vehicles
  • Customer goods
  • Employment liability
  • Water backup
  • General business liability
  • Umbrella coverage
  • Workers’ compensation

What Are Other Components of a Risk Management Program?

Insurance is an important business tool. It can protect you if there is an accident or claim filed against your business. However, it should not be the sole component of a risk management strategy. General maintenance contracts for equipment reduce breakdowns and malfunctions, which minimizes disruptions to business operations. Having an attendant on-site and ensuring all employees are adequately screened before hiring them are also helpful. Many of the things that make up a solid risk management strategy can also help you secure reasonable insurance rates. 

The right insurance policy, used as part of a broader risk management strategy, can reduce liability for commercial laundry operators.