Monday, July 11, 2011

The Basics Coverages Needed for Laundromats and Coin Laundries

You need to be careful when you buy insurance for your Laundromat, Card or Coin Laundry.  The high value of the equipment needs to be considered.  The cost to repair these items from fire damage and the time if will take to put your business back in working order, need to be seriously considered.
The front load washers and commercial dryers costs thousands of dollars each:  some washers can cost over $20,000.00 each.  Damage from fire, water or vandalism can put you out of business.  These items – along with your lease requirements – are why you must purchase business insurance.
The first type of insurance you need is Property Insurance (Business Property Insurance) which covers the building that you own or the equipment and inventory against physical loss or damage.  This type of insurance covers:  Washers, Dryers, Fixtures, Decorations, Folding Tables, Seating, Camera Sytems, Alarm System, Phone System and Computer Equipment. Furniture
Even if you do not own the building where your Laundromat is located, you still need to purchase insurance for the equipment you own and any business contents, fixtures, inventory and other supplies stored at your Laundromat.
As the owner, you can elect to insure your property for replacement cost or for actual cash value.  Actual Cash Value  (ACV) pays for the depreciated value of the property.  Replacement Cost Value (RCV) replaces all - or most of the lost property - with brand new equipment;
The second type of insurance you need is Loss of Business Income coverage.  This type of coverage allows you to still receive income in the event of damage closing your Laundromat .  Most often the type of damage that bring Loss of Business Income coverage into play is caused is caused by fire, water damage, roof collapse or other loss – if it is named in your policy – that forces you to close your doors.  If you depend on the income from your Laundromat to love, you need to have this type of coverage.
The third type of insurance you need is Business General Liability Insurance (Liability insurance.)  This is the type of insurance that protects you against lawsuits filed against you as the Laundromat owner.  This insurance is purchased to protect the owner against losses – including negligent acts - for damage, injury or loss to another's property, reputation, or health.
You are afforded coverage for damages, legal fees and court costs whenever someone files a lawsuit against you.  This coverage will also pay up to the policy limit for judgment – or settlement - covered in the terms of the policy.  Most leases will have a provision that requires you as a tenant to carry this insurance a settlement charges are paid by the insuring company when a claim is filed against the business:  often with a provision where you have to also name your landlord on your policy (Additional insured.)
Here are some coverages that are included with most liability policies”
1.       Included in most liability policies will be provision to provide for liability coverage for bodily injury.  This provides coverage – when you are found liable - Bodily Injury - for the health care cost, loss of services and payment to survivors for any loss of life due to a covered death or injury.
2.       Liability insurance also includes Property Damage Liability Insurance.  If a fire causes damage to your neighbors business you need to have this type of insurance to protect you when your business causes damage to the loss of use or damage to the property of another.
3.       Products and Completed Operations (not normally needed for a Laundromat) covers an injury due to the use of your products or services provided, the policy would pay for the resulting damages and any legal expenses up to the policy limits.
4.       Contractual Liability insurance (again seldom needed by Laundromat owners) relates to any liability assumed by the Laundromat owner in various contracts - including a lease between the owner and the landlord.
5.       Medical Payments are covered if a customer is hurt at your Laundromat.  This coverage will pay for medical costs, payments, and funeral expenses, if needed.
6.       Personal Injury Insurance Coverage is a little confusing in the title, but it provides coverage for the Laundromat owner if he is accused of publishing false information, slandering or committing a libel against another, or publishing information that violates a person’s right to privacy.

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