Who Else Needs Insurance When You Buy a Laundromat?

One of the most overlooked aspects of due diligence by new owners is found in the failure to understand and secure adequate insurance coverage for the operation of your new Laundromat. One of the most overlooked is the coverage for the workers you hire to install equipment, perform carpentry, plumbing and electrical work in your Laundromat. These subcontractors often do not have insurance protecting you and them from liability risks and injuries on the job.

Any subcontractors you work with must carry coverage with limits greater than or equal to your own. You must obtain and store a certificate of insurance from each of your subcontractors listing you as an additional insured on their policy. In case of a claim related to your subcontractor, you may not be covered without this documentation. Your subcontractors must have all required licenses before performing work.

You may not be covered for the following:

1.???? Damage to your tools or equipment (that's actually Inland Marine insurance)

2.???? Damage to yourself, employees, or subcontractors (that's Worker's Compensation insurance)

3.???? Any damages related to abuse or molestation

4.??? Damage to someone else's property in your care, custody or control

5.? ?? Damages from accessing or disclosing confidential or personal information

6.???? Damages from foreign drywall contaminants

7.???? Damages from your hiring, firing, or other employment practices

8.???? Damages that existed before the start of the policy period or progressed from previous damages

9.?????Damaging or losing electronic data

10.?? Exposure to fungi or bacteria

11.?? Exposure to lead

12.?? Exposure to silica or silica-related dust

13.?? Fines, penalties, or other punitive damages

14.?? Firearms

15.?? Injury to employees

16.?? Operating or servicing any manned or unmanned aircraft or watercraft (including drones)

17.?? Physical or verbal violence

18.?? Property damage to your work or your subcontractor's work

19.?? Serving, selling, or distributing alcohol or allowing alcohol on premises

20.?? Sexually transmitted diseases

21.?? Suing or filing claims against your co-owners, partners, or employees.

22. Working with pollutants or causing pollution