Laundromat and Dry Cleaner Insurance

Laundromat and Dry Cleaner Insurance

Customized insurance to protect laundromats and dry cleaning service providers

Zensurance - Laundromat Business Owner

Partnerships with over 50 leading Canadian insurance providers

Dry Cleaner

Insurance for laundromats and dry cleaning businesses

Laundromats, coin laundry operators, and dry cleaning businesses keep our clothing and linens fresh and clean. Statistics Canada estimates there are 1,092 coin-operated laundries and dry cleaners nationwide.  

Owners of laundromats, coin laundry businesses, and dry cleaners face various liability risks ranging from injuries to customers, equipment malfunctions, and property damage.

A comprehensive laundromat and dry cleaning insurance policy protects business owners’ finances and reputations if claims, damages, or legal threats arise.

Insuring your washers, dryers, and pressers is vital, but so too is covering your commercial property, inventory, and yourself from third-party bodily injury and third-party property damage risks.

A laundromat and dry cleaning insurance policy includes a broad range of coverages to protect your small business from unforeseen accidents or incidents. A typical policy may include:

  • Commercial General Liability (CGL) Insurance: Commonly called general liability insurance, CGL protects your laundry business from third-party bodily injury and property damage claims because of an accident or unforeseen incident. For example, if a customer falls and is injured on your property, CGL may cover their medical and rehabilitation expenses. If the injured customer sues you, CGL can cover your legal defence fees and any compensation awarded to the customer up to your policy’s limit.
  • Commercial Property Insurance: The building and your contents (like your washing machines) where your laundromat, coin laundry, or dry cleaning business is located should be covered against losses due to fire, water damage, a natural disaster, theft, and vandalism. Commercial property insurance provides that coverage. It may also include business interruption insurance to cover your lost income and business’s overhead expenses following an insurable loss. If it isn’t, you can add it to your policy.
  • Equipment Breakdown Insurance: The top load or front load washers, dryers, pressers, vending machines and soap dispensers on your premises must work flawlessly 24/7. However, if one or more suffer an electronic or mechanical malfunction, fixing can be costly. Equipment breakdown insurance is designed to repair or replace your equipment if it ceases to operate due to a power surge, electrical short, or an internal mechanical breakdown.
  • Product Liability Insurance: The detergents and cleaning chemicals you use or sell to your customers to wash their clothing could damage a customer’s clothing or cause them physical harm if they suffer an allergic reaction. Product liability insurance covers claims related to any product you manufacture, distribute, or sell.
  • Pollution Liability Insurance: Pollution liability insurance, or environmental liability insurance, covers costs associated with sudden or gradual damages to the environment or that trigger injuries to customers or neighbours from the chemicals your laundromat or dry cleaning business uses. It can pay for clean-up costs, civil fines, and emergency response expenses.
  • Errors and Omissions (E&O) Insurance: E&O insurance covers you for allegations of professional negligence. Also called professional liability insurance, it can pay for claims related to your services if you make a mistake, neglect to provide a service, or accidentally damage a customer’s property or clothing during the cleaning process.
  • Cyber Liability Insurance: Cyber liability insurance protects you from costs due to a data breach or cyber-attack. If your laundromat or dry cleaning business uses a point-of-sale (POS) system to accept digital payments from customers, has a website, conducts business via email, or stores customer information on a hard drive or in cloud storage, cyber liability insurance can help you recover if that information is compromised or stolen by a cybercriminal. It offers coverage for legal advice, credit monitoring, and repairing and restoring your software systems following a cyber-attack.

There may be other coverages you need to add to your policy. For example, if yours is a dry cleaning business that owns a vehicle to deliver freshly cleaned and pressed clothing to customers or to pick up supplies for your company, you might require commercial auto insurance to cover your vehicle if it’s involved in an accident.

Different insurance providers charge various premiums for a laundromat and dry cleaning insurance policy based on your business’s details, including:

  • Your location
  • The laundry and dry cleaning services you provide
  • The type and value of the equipment you own or rent
  • The type of detergents and cleaning products you use
  • If you have business vehicles or use a vehicle for business purposes
  • How many employees you have (if applicable)
  • Your annual and gross projected revenue
  • Your insurance claim history

Getting insured is quick and easy!

Complete our 5-minute online application for a free laundromat or dry cleaner insurance quote.

Common claims scenarios

Clothes at Dry Cleaners

Problem: Your dry cleaning business loses a customer’s clothing after taking possession of them. The customer is outraged and threatens to sue.

Outcome: Your commercial general liability insurance may cover the cost to replace the customer’s lost clothing and provide you with funds for your legal defence if sued.

Inside a laundromat

Problem: Your 24-hour coin-operated laundromat is vandalized and damaged by an unknown person who attempts to steal the coins in your washers and dryers.

Outcome: Your commercial property insurance may pay to repair or replace the damaged machines.

Problem: One of your customers is assaulted and robbed while in your laundromat. They sue you for damages, claiming your facility lacks adequate security and surveillance measures.

Outcome: Your commercial general liability insurance may cover the customer’s medical fees and your legal expenses to defend yourself in court.

Frequently asked questions

Can I save money on my annual premium by bundling different insurance coverages?

Yes. Many insurance providers offer business owner’s policies that combine multiple coverages, such as general liability, commercial property, and business interruption insurance, at a lower premium than if they’re purchased separately.

Is flood insurance included in a laundromat and dry cleaning insurance policy?

No. While water damage to your property caused by a burst pipe is covered by commercial property insurance, overland flood insurance is not typically included. Speak to a Zensurance broker if you need flood insurance for your business.

Can I change my coverage if my business expands or adds new services?

Yes. It’s advisable to make changes and update your policy whenever your business expands or adds new services by contacting a Zensurance broker. Also, consider how your laundry business has changed when you renew your policy each year to ensure you’re adequately covered.

Why choose Zensurance?

Online Business Insurance Quote Form

Intuitive Online Experience

Do everything online, at your

24 HR Customer Support For Insurance Questions

Always Here For You

We’re just a click away

Business Insurance Coverage Full Transparency

Full Transparency

Get only the coverage you need in clear language

Our Most Recent Reviews

See what our small business customers have to say about us.

Google reviews rating 4.8 of 5 stars from 1500 plus Google Reviews

4.8 4.8 stars review
3000+ Google Reviews

Ready to start? Let’s get a quote!

Wash away your concerns about liability risks to your laundry or dry cleaning business with a comprehensive laundromat and dry cleaning insurance policy.

Fill out our online application for a free quote. Our friendly brokers are insurance experts who will shop our partner network of over 50 Canadian insurance providers to get the low-cost policy you require and customize it to suit your business.