**Preventing and Understanding Liability Claims in Laundromats **
Here is an article addressing some of the issues of Laundromat owners related to liability claims on their business insurance policies. Currently the availability of Laundromat insurance costs is under siege in many markets including California, Texas and Florida. Expect the companies to address premium increases in other markets as well. I addressed these concerns in a past article published in the trade journal _American Coin-Op, _and this is a publication each and every Laundromat owner should have on their reading reference shelf.
With explosive increases in inflation related expenses, increased jury awards and an ever-increasing litigation-minded customers, you need to carefully read your policies and compare it to the requirements contained in lease provisions of your store. The majority of modern leases allow landlords to cancel leases if policies do not match the requirements in the insurance policy provisions.
To properly protect yourself against liability claims, it is time for every Laundromat owner to increase their liability coverage from one million per incident and two million aggregate to the new norm of two million per incident and four million aggregate.
Q: What are the greatest insurance risks in a vended laundry setting, and why? The greatest insurance risk related to liability claims is water related “slip and fall” accidents. The greatest insurance risk related to property damage is fire. During your due diligence, look for damaged ceiling tiles, broken or missing floor tiles and sharp edges on folding tables. In liability claims the biggest headache to Laundromat owners is the time spent defending lawsuits and the related stress. It makes sense to engage in business behavior and premises inspection that reduces the risk of liability claims.
Q: What precautions should a store owner take in the following areas to help prevent accidents before they happen?
- Lighting. You have a legal and moral responsibility to provide a safe environment for your Laundromat customers. Lack of lighting, both inside and out, is a potential liability risk that can be avoided by ensuring adequate lighting in both the interior space and exterior common areas. The extra dollars spent on your electrical bill is money well spent in helping you avoid a liability claim. Examples of liability claims related to lighting have included falls and physical attacks in unlighted or inadequately lighted areas.
- Wet floors. There is no excuse for not maintaining the floors in your Laundromat. Slipping on water pooled on the floor is preventable by attention to maintenance items. If hoses are leaking, replace them. If customers oversoap and allow excess suds to spread to the floor, use floor mats or install ceramic non-slip strips or tile. Purchase non-slip liquid treatments for your vinyl tile floors. Put a little effort into preventing wet floors in your Laundromat and you might save a lot of stress and time in defending a lawsuit.
- Outdoor areas and parking lots. An often-overlooked area of liability claims is outdoor areas and parking lots. You might think that the Landlord has the responsibility to maintain for the outside of your store; however, consider your responsibility to inform the Landlord of any unusual or dangerous condition in or near your Laundromat. Send a certified letter, return receipt requested, to your landlord if you have uneven sidewalks, potholes in the parking lots, improperly operating doors or inadequately lighted exteriors.
- Stairs. Proper markings, safety handrails and signage can all be used in protecting against accidents on stairs. Serious injuries, especially to the elderly, can happen on or around stairs. When planning a location for a Laundromat, stores that include stairs should be avoided. If you already have a location that has stairs, mark and illuminate the stairs. It’s the right thing to do.
- Floors and carpeting. Non-slip floors are almost a necessity due to the potential of water on the floor. Carpet is not considered a great option for flooring in a Laundromat. Replace with a more appropriate floor covering when your carpet wears out.
Q: There are times when it may not be in the best interest of a small business to file a claim. What factors should a store owner take into account before making the decision to file? First, your insurance policy may contain a provision that obligates you to report any claim. You risk a denial of coverage if you try to cover up a claim. Second, your insurance agent is required to report to the insurer any notice of a claim. So don’t ask your agent to cover up a claim. Third, although it might mean higher premiums, the safest way to handle a claim is to properly report it. Learn to distinguish between a claim and a customer service consideration. Customer service considerations do not need to be reported.
Q: How can the presence of a surveillance or security system aid a store owner when a liability issue is raised? Security cameras can provide excellent details on a liability claim. They help prevent fraudulent claims and are often requested by law enforcement in the event of crimes committed in your Laundromat. The price of security cameras has declined so much that high-quality systems can be purchased for less than a thousand dollars. Evidence and protection make installing a camera system the proper move for Laundromat owners.
Q: Once it’s apparent that the store owner needs to file an insurance claim for their business, what actions should they take to do that? Gather your information, collect your security tapes and witness information. If pictures can tell the story better than words, take pictures. When you have put everything together, call your agent and provide the details of the claim.
Q: What’s the most common mistake or mistakes that you see vended laundry owners make when it comes to handling common liability claims? Owners sometimes fail to take a potential liability claim seriously. If you believe an incident has occurred, either inside or outside your Laundromat, take the steps to gather names, phone numbers, statements, pictures and/or video tapes. Don’t pre-judge the validity of a claim. Contemporaneously gathered information is often the best information. People have a year to make a claim or file a lawsuit. Always retain any information or evidence you have gathered for at least two years.
Q: What general advice about liability claims can you offer a vended laundry owner? Spend a little time accessing your Laundromat to decrease potential claims. Remember that most insurance policies do not extend coverage to claims of violations of American with Disabilities Claims. Check with an ADA specialist to ensure you’re not involved in a claim not covered by your insurance policy. A dash of prevention is worth a pound of liability claims distress.