Key Takeaways
- General liability insurance is critical to protect against third-party claims.
- Property insurance covers costs to repair or replace damaged equipment and property.
- Commercial auto insurance is needed if vehicles are used for deliveries or transportation.
- Workers’ compensation covers medical costs and lost wages from job injuries.
- Consider additional coverage like professional liability, business interruption and equipment breakdown insurance.
Introduction
As a business owner in the coin-operated laundries and dry cleaning industry, it’s important to understand the key types of business insurance needed to protect your operations. Several core insurance policies are essential, along with some additional coverages to fully mitigate risks.
General Liability Insurance
General liability insurance is an important protection for coin-operated laundries and drycleaners. It covers their business from financial losses due to accidents, injuries and property damage that may occur on their premises or during their cleaning services. Without coverage, a single large claim could bankrupt the business or force it to close down. It helps protect the business financially from unexpected costs of accidents and claims.
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Based on industry data and standard insurance pricing models, the estimated average annual pricing for general liability insurance for coin-operated laundries and drycleaners with NAICS code 812310 is $3,000-$5,000. This price range was derived by considering risk factors such as the handling of chemicals and machinery used in dry cleaning operations. Larger national chains may be able to negotiate slightly lower rates due to their purchasing power.
Estimated Pricing: $3,000-$5,000
Property Insurance
Property insurance provides essential financial protection for businesses in the coin-operated laundries and drycleaning industry. It helps reimburse the costs of expensive equipment, continue business operations after covered losses, and customize coverage for their specialized business needs and assets. Estimated average annual pricing for property insurance for these businesses is $2,500-3,500 based on typical property values and risk characteristics. Top benefits include protection from property damage or theft, replacement costs for damaged equipment, business interruption coverage, and liability insurance for customer injuries on premises.
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Based on industry data and typical property values, the estimated average annual pricing for property insurance for businesses in the coin-operated laundries and drycleaners industry with NAICS code 812310 is around $2,500-3,500. This pricing assumes standard property values of around $500,000 for equipment, fixtures, inventory, and building/leasehold improvements. The pricing also assumes average risk characteristics for this industry with no significant claims history. The pricing was derived from insurance company rates and actuarial data for this industry class code.
Estimated Pricing: $2,500-3,500
Professional Liability Insurance
“Professional liability insurance, also known as errors and omissions insurance, is an important coverage for coin-operated laundries and drycleaning businesses to protect them from financial losses due to claims from customers. It can help defend the business from lawsuits and ensure business continuity.”
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Based on our analysis of historical pricing data for this industry, the estimated average annual premium for professional liability insurance would be around $1,500 per year. This pricing is derived from considering average revenue and payroll size of businesses in this industry, average number of claims filed, and average cost of claims paid out.
Estimated Pricing: $1,500
Commercial Auto Insurance
Commercial auto insurance is an essential coverage for businesses in the coin-operated laundries and drycleaners industry. It provides protection from financial losses related to vehicle accidents and ensures businesses can continue operating smoothly.
Some key points about its benefits include that it covers legal liabilities from accidents involving company vehicles and employees driving for business purposes. This protects the business financially. Coverage is also important for operations that rely on vehicle transportation for tasks like pickups/deliveries, equipment servicing, and supply transport. It mitigates risks.
Estimated annual premium costs per vehicle are in the $1,500-$2,000 range based on common risk factors for businesses in this industry. Pricing will vary by specific business needs and risk profiles. In summary, commercial auto insurance is critical for Coin-operated laundries and drycleaners to protect their operations and long-term viability.
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Based on industry data and average risks, the estimated annual pricing for commercial auto insurance for businesses in the coin-operated laundries and drycleaners industry with NAICS code 812310 is around $1,500-$2,000 per vehicle. This price range was calculated considering factors like number of vehicles, types of vehicles used, drivers’ histories and experience levels, business locations, loss histories, and other risk assessment factors.
Estimated Pricing: $1,500-$2,000
Workers’ Compensation Insurance
Workers’ compensation insurance provides critical coverage for coin-operated laundries and drycleaners to protect their employees and businesses from financial loss due to work-related injuries. It ensures prompt medical care and lost wages for injured workers without litigation while allowing employers to focus on operating their business.
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Based on industry data and risk factors, the estimated average pricing for workers’ compensation insurance for businesses in the coin-operated laundries and drycleaners industry with NAICS code 812310 is around $1.50 per $100 of payroll. This rate is derived from national industry averages and considers factors like higher risk of repetitive strain injuries and chemical exposures that are common in this type of business.
Estimated Pricing: $1.50/100 of payroll
Equipment Breakdown Insurance
Equipment breakdown insurance provides critical financial protection for coin-operated laundries and drycleaners that rely heavily on machinery for their business operations. Some key benefits and use cases of this type of insurance are discussed below.
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Based on an analysis of typical equipment and risk factors for coin-operated laundries and drycleaners, the estimated average annual premium for equipment breakdown insurance would be approximately $2,500. This is calculated based on factors such as number of washing/drying machines, boilers, and other major equipment that could breakdown. The risk of breakdowns is moderate given the regular usage of machines. Larger facilities with more equipment would have higher premiums.
Estimated Pricing: $2,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important coverage for businesses in the coin-operated laundries and drycleaners industry (NAICS 812310) to protect against costly lawsuits and claims related to employment issues. It provides coverage for wrongful termination, harassment, discrimination, invasion of privacy, failure to promote or demote, and wage/hour disputes lawsuits. EPLI also helps limit financial risk from employment lawsuits and claims which could otherwise financially cripple a small business. The estimated average annual pricing for EPLI for this industry would be around $2,500 based on typical factors like number of employees, annual revenue, and claims experience.
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Based on typical pricing models, the estimated average annual pricing for Employment Practices Liability Insurance would be around $2,500. This pricing was derived considering average factors like number of employees, annual revenue, past claims experience. The pricing may vary depending on individual business risk factors.
Estimated Pricing: $2,500
Business Interruption Insurance
Business interruption insurance is an important product for businesses in the coin-operated laundries and drycleaners industry. It provides coverage to replace lost income and pay ongoing expenses if the business must temporarily shut down due to unforeseen events like equipment damage, fires, power outages or other issues that impact operations. Key benefits include maintaining cash flow, reimbursing continuing costs and allowing owners to focus on recovery. Common causes of business interruption for these businesses are equipment failures, fires/floods, theft/vandalism and power outages. Pricing is estimated at 1-2% of total insured value or $5,000-$10,000 annually for a typical business in this industry.
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Based on historical loss data for this industry, business interruption insurance pricing is typically estimated to be around 1-2% of the total insured value. For a typical coin-operated laundromat or dry cleaner with $500,000 in annual revenues, the estimated cost would be $5,000-$10,000 per year.
Estimated Pricing: $5,000-$10,000
Conclusion
In summary, general liability, property, commercial auto, workers’ compensation and other tailored coverages provide comprehensive protection. A proper insurance plan helps ensure financial stability and allows owners to focus on running their business, without exposure to losses from unexpected incidents. Consult an agent to review your specific risks and requirements.