PUBLISHED IN JUNE 2024

. Most people don’t look closely at their insurance policies. Lots of words, too many pages and obviously written with loads of legal words prepared by an attorney to protect the insurance company. As a Laundromat business owner you may be buying your first business insurance policy or perhaps you’ve owned a store for years and although you can depend on your agent to steer you along, some recent changes insurance should prompt you to have a consultation with your agent. Rapid inflation and generous juries are providing larger awards in liability claims. An example: some years ago a child suffered injuries from a Laundromat owner who apparently bypassed the safety interlock on a washer, perhaps awaiting a replacement part. This allowed the front load washer door to be opened while the washer was still spinning. An arm was reportedly torn off when a young boy opened the door before the spin cycle was complete. The business owner and the manufacturer were both sued. The court applied a monetary judgment of about $350,000.00 against the owner. Contrast that with the Laundromat owner who in 2022 left an electric floor plug available near the folding tables so his customers could charge their cell phones. Unfortunately the plug cover was plastic (home use) not the metal cover used in most commercial operations. Over time and use the plastic cover developed a crack and a small piece broke off. At some point a mother folding her clothes placed her baby on the floor to play and the baby decided the broken piece of the plastic plug cover was worth exploring. Insertion of a little finger into this gap resulted to burns to the end of the finger. This time the insurance company determined the liability of the care of the Laundromat owner and settled the claim for a million dollars. If this injury is now settled for one million dollars what would a current verdict be for a serious injury to a customer in a Laundromat? Therefore I am advising owners to considered increasing their liability coverage from 1 million, 2 million in any one year to 2 million, 4 million in any one year. Although some companies may not yet have this coverage available, it’s worth the time to find a company willing to satisfy this need in our industry. Take the time to discuss your coverage with your agent. P.S. I only provide insurance in California so I am not soliciting your business, but I am able to discuss with you any concerns on proper insurance coverage wherever you’re located.