Claims Service and Expertise

As successful laundromat owners know, one of the most attractive aspects of being in the industry is the simplicity that can underscore a profitable operation compared to other businesses servicing local communities. Much like a reliable washer or dryer, when the settings are correct, a well-run laundromat can reward the owner with time and flexibility. Since customers often bring their own cleaning products and operate the machines themselves, laundromats can run with minimal staffing and inventory.

Operating an efficient business means reducing avoidable risks. That starts with having the right insurance coverage and supporting it with a risk management program built on proven mitigation strategies. Together, they can help keep operations running smoothly and securely.

Addressing Common Laundromat Hazards Before They Spin Out of Control

Just like a smooth spin cycle depends on knowing the contents of the load, choosing the right detergent and how to operate the machine, a successful laundromat can be achieved through knowing potential hazards and the available ways to address them. Below is a list and explanation of some primary exposures that laundromats face based on loss-trending data, along with potential risk management options for each.

Electrical

Fires resulting from faulty electrical components can occur in both the machinery and the electrical panels that power them. The following can help reduce the risk of electrical fires:

• Have all machinery and electrical components installed, inspected and serviced regularly by a professional.
• Perform additional in-house checks between professional inspections.
• Use anti-vibration pads in machines that provide cushioning for moving parts and thus reduce wear and tear.
• Keep detailed service records and replace machinery at intervals recommended by the manufacturer. 

Fire Damage

Dryer fires can cause property damage, injury and even death. Dust, fiber, lint and dirty clothing are often the first items to be ignited. According to FEMA, from 2018-2020, failure to clean and maintain machines was the primary cause of dryer-related fires, accounting for about 31% of incidents. When lint builds up in the screen, it reduces ventilation throughout the machine, resulting in poor performance, operating at elevated temperatures or overheating. This emphasizes the importance of consistent housekeeping and scheduled maintenance. To help prevent dryer-related fires, be sure to do the following:

• Install 100% metal rigid or flexible dryer vents or ducts to improve ventilation and reduce drying temperatures.
• Clean lint traps and check venting systems daily to avoid the buildup of debris and maintain adequate airflow through the dryer.
• Check the air exhaust vent pipe every week to help ensure that it is not restricted and that the outdoor vent flap will open when the dryer is operating.
• Ensure that the dryer is plugged into an outlet and connected to an electrical panel suitable for its needs.
• Maintain a 3-foot area of clearance free of combustibles like cardboard boxes and clothing.
• Post clear signs asking customers not to dry items like foam-backed rugs or athletic shoes, which can damage machines.

Theft/Burglary

Having fewer employees on-site can make laundromats an attractive mark for criminals, which makes establishing the proper security measures crucial. Laundromats are also often primarily cash businesses. Targeted items can include not only the cash register, coin machine, safe, and washing or drying machines owned by the insured, but also the clothes in the machines owned by the customers. To deter theft and burglary, consider the following measures:

• Carefully choose the location of the laundromat, including assessing the local crime rate in the area and the neighboring properties that may provide natural deterrents. For example, a thief is less likely to target a laundromat next to a busy market.
• Install comprehensive interior/exterior video surveillance with recording capability. Consider a system with third-party monitoring that can provide notification when there is an incident.
• Install conspicuous signage indicating the property is being monitored and emphasizing a heightened risk of prosecution for theft or vandalism. 

Water Damage

Washing machines are a significant cause of water damage losses annually, most commonly from hose failures. You should do the following to minimize the risk of water damage:

• Install braided stainless steel washer hoses that are much less susceptible to bursting than ordinary washer hoses.
• Install water hammer arrestors that can absorb increased water pressure when the electrical valve shuts off, further reducing the chance of a hose breaking.
• Secure the drain hose so it will not flip out of the drain hole.
• Turn off the water supply to the washing machines when they are not in use.

Physical Damage (Building or Contents)

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• Fire Safety & Property Protection
• Workplace Safety

• Loss Control