Why Laundromat Owners Need Property & Liability Insurance More Than Ever
Running a laundromat, dry cleaning operation, or working as a laundry jobber involves a lot more than keeping the machines running and the clothes clean. Behind every spin cycle and dryer load lies a unique set of risks—ones that can threaten your business if you’re not properly protected. That’s why property and liability insurance aren’t just nice to have—they’re essential.
At Serhey Davidson Corp, we’ve specialized in writing bonds and insurance policies for laundromats for decades. We know the business inside and out—because we’ve been part of it for over 75 years. My earliest memories were hand-writing postcards to remind laundromat owners that it was time to renew their bonds with the Department of Consumer Affairs.
We’ve written hundreds of policies nationwide, and we’re proud to say that we can help cover your operation regardless of coastal restrictions or 24-hour service, both of which are known to make it harder to get insured elsewhere.
The Risks You Face Daily
Laundromats face a unique combination of risks. Some of the most common claims include:
1. Slip and Fall Accidents
The number one liability claim in laundromats is a slip and fall—often caused by water leaking from machines, soap residue, or wet floors. Customers are usually carrying large baskets, which obstruct their view of the floor. One small spill can lead to a serious injury and a costly lawsuit.
How to prevent it:
- Place anti-slip mats and rugs throughout your facility
- Clean up spills immediately
- Regularly inspect machines for leaks or faulty hoses
2. Fire Hazards
Dryer fires are a very real threat. According to U.S. fire departments, approximately 2,900 clothes dryer fires are reported each year, causing $35 million in property loss, along with injuries and even deaths. The leading cause? Failure to clean lint traps—which accounts for 34% of these fires.
How to prevent it:
- Clean lint traps daily
- Schedule regular professional inspections
- Ensure proper ventilation for all dryers
3. Water Damage
Broken hoses, loose connections, or leaking washers can cause extensive water damage not only to your own property, but potentially to neighboring businesses in a strip mall or shared building.
How to prevent it:
- Inspect water connections frequently
- Replace old or worn hoses proactively
- Keep a log of maintenance and inspections
4. Crime and Security Risks
Laundromats often have vending machines or change machines that store cash, making them targets for theft or vandalism. Unattended or poorly lit facilities are especially vulnerable.
How to prevent it:
- Install security cameras
- Keep lighting bright and clear inside and out
- Minimize window signage for better visibility
- Consider an attendant during peak hours
More Than Just Property and Liability
In addition to standard coverage, there are several critical policy options every laundromat owner should consider:
- Business Income Insurance – Covers lost income if your business is temporarily shut down due to a covered loss.
- Equipment Breakdown – Helps pay for repair or replacement of washers, dryers, and other critical machines if they break due to mechanical failure.
- Customer Goods Coverage – Protects you in case a customer’s clothing or property is lost or damaged in your care.
- Lease Requirements – If you're renting machines or space, your loss payee (the equipment owner) may require you to carry insurance.
Rates Are Rising—But You Still Have Options
Laundromat insurance rates have been steadily increasing over the last decade. In some regions, premiums have nearly doubled, driven by rising claims costs and the increased frequency of liability claims.
That’s why shopping around matters. At Serhey Davidson Corp, we work with multiple insurance carriers to help you find the best rates and most comprehensive coverage for your specific operation—whether you're a local drop-off cleaner or a 24-hour coin-op powerhouse.
Talk to Someone Who Gets It
If you’ve been in the business long enough, chances are you’ve received one of our postcards. For over 30 years, we’ve been reminding laundromat owners to protect themselves—not just with bonds, but with smart, tailored insurance policies that grow with your business.
Whether you’re starting your first laundromat or you’re a seasoned operator looking to reduce your exposure, visit us at www.serheydavidson.com or contact us today to learn how we can help safeguard your investment.
Your machines clean clothes. Our policies clean up risk.
