How Much Does Business Insurance Cost For Laundromats?

U.S. Laundromat businesses can expect to pay between $470 and $600 annually for comprehensive business insurance, averaging between $39 to $50 per month. The primary cost drivers are the services you offer, the size of your business, location, and claims history.

How Much Does Laundromat Insurance Cost?

The average laundromat in the U.S. pays between $470 and $600 per year for a full business insurance package. That breaks down to roughly $39 to $50 per month. However, this is just a ballpark range, and actual business insurance costs can vary widely depending on your specific situation.

For example, a laundromat business that provides fluff and fold services as well as pickup and delivery will have higher risks compared to those that have self-service machines only. Even those facilities with self-service machines might have higher risks if they are open 24 hours or provide access to things like vending machines on site.

Understanding these variables can help you better estimate your insurance needs and prepare for the real costs of protecting your laundromat.

Average Laundromat Insurance Costs For Coverage Types

Laundromat owners face risks ranging from customer injuries to machine breakdowns and building damage. Different insurance policies protect against different exposures, and each comes with its own pricing range. Below are the average monthly costs most laundromats can expect to pay:

• General liability insurance: $39 per month
• Business interruption insurance: $89 per month
• Business owner’s policy: $52 per month
• Customer goods insurance: $150 per month
• Workers’ compensation insurance: $102 per month
• Commercial auto insurance: $152 per month
• Commercial property insurance: $224 per month
• Cyber liability insurance: $42 per month

Commercial Property Insurance

Commercial property insurance for laundromats averages around $224 per month. It protects the building, fixtures, machines, change dispensers, card payment systems, tables, vending units, and signage against covered damage such as fire, theft, vandalism, and certain weather events. Laundromats rely heavily on high-value equipment and utilities, which makes this one of the most important and cost-influenced policies.

Example: An electrical short causes a fire that destroys several commercial washers and seating areas. Commercial property insurance helps pay for repairs, equipment replacement, and cleanup.

Premiums vary based on total equipment value, building age, local crime rates, sprinkler and alarm systems, and whether the laundromat is attended or unattended.

Here’s a look at the average annual premiums for 10 different states:

Note: Costs are based on estimated averages reflecting laundromat building values, equipment replacement needs, site protections and local risk conditions. Actual rates vary by insurer, limits, deductibles and property specifics.

Commercial Auto Insurance

Commercial auto insurance for laundromats averages around $152 per month. It covers company-owned vehicles used for pickup, delivery, supply hauling or maintenance transport.

If a driver causes an accident while transporting folded laundry to a customer, this policy can cover third-party damage and injuries. Typical limits are $1 million combined single limit.

Premiums change based on the number of vehicles, mileage, driving records, vehicle type and whether the business adds hired and non-owned coverage for employees using personal cars.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are based on sample pricing considering vehicle use for laundry delivery or service needs, driver history and local risk. Actual premiums vary by insurer and coverage selections.

Customer Goods Insurance

Customer goods insurance typically costs about $150 per month for laundromats. It applies when the business takes possession of customer clothing, such as wash and fold services or specialty cleaning.

If garments are lost, stained or damaged while in the laundromat’s care, this insurance helps reimburse the customer. It is useful for high-volume service locations or those handling delicate items.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from blended average annual Customer Goods (bailee’s customers) insurance premiums for laundromat businesses using sample quotes from both small and large insurance agencies and reflect laundromat-specific exposures (volume of customer items on premises, average item value, use of drop-off/valet services, staffing and security practices, and location); actual premiums will vary by insurer, coverage limits and sublimits, deductible choices, claims history, and other business- and site-specific underwriting factors.

Business Interruption Insurance

Business interruption insurance averages around $89 per month for laundromats. This coverage helps replace lost income if the facility must temporarily shut down due to a covered property event, such as storm damage, broken windows, or equipment-related closure.

It can help pay ongoing expenses like rent and utilities until operations resume. Rates depend on revenue levels, location and prior claims.

Note: Estimates are modeled from blended average annual Business Interruption premiums for laundromat businesses using sample quotes from both small and large insurance agencies and reflect laundromat-specific exposures (anticipated revenue replacement needs, number of machines and locations, business income limits, continuation of fixed expenses, local hazard frequency, and dependency on utility and supplier continuity); actual premiums will vary by insurer, chosen waiting period and coverage limit, endorsements, claims history, revenue reporting accuracy, and other business- and site-specific underwriting factors.

Workers’ Compensation Insurance

Workers compensation insurance for laundromats averages about $102 per month. This coverage pays medical treatment, wage replacement and recovery support for employees injured while working.

Injuries may occur from wet floors, lifting laundry bags, equipment cleaning or handling chemicals. Rates are influenced by payroll size, job duties, accident history and safety procedures. State laws dictate required limits.

Note: Estimates are modeled from blended average annual Workers’ Compensation premiums for laundromat businesses using sample quotes from both small and large insurance agencies and reflect laundromat-specific factors (payroll size and mix of attendants and maintenance staff, job classifications, part-time vs. full-time ratios, local wage levels, and regional claim frequency); actual premiums will vary by insurer, state rate filings, experience modification factor, payroll audits, safety and return-to-work programs, and other business- and site-specific underwriting factors.

General Liability Insurance

General liability insurance for laundromats averages about $42 per month. General liability insurance helps protect a laundromat if a customer is injured on the premises or if their clothing or personal property is accidentally damaged while using the facility. Since laundromats have wet floors, moving machinery, and constant customer traffic, this coverage is one of the core policies owners typically carry.

The cost of coverage can vary depending on factors such as the size of the laundromat, whether attendants are on-site, the neighborhood, customer volume, past claims history, and any contractual insurance requirements from landlords or lenders.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Here is a snapshot of estimated average annual premiums in 10 states:

Note: Estimates are modeled from blended average annual General Liability premiums for laundromat businesses using sample quotes from both small and large insurance agencies and reflect laundromat-specific exposures (customer slip-and-fall risk, coin-operated equipment, on-site attendants, number of machines and wash cycles, location and foot traffic); actual premiums will vary by insurer, coverage limits and deductibles, claims history, payroll, business revenue, local loss trends, and other business- and site-specific underwriting factors.

Business Owner’s Policy (BOP)

A business owner policy for laundromats costs roughly $52 per month on average. A BOP combines general liability with commercial property insurance, offering a more affordable bundled option. It protects against customer injuries, damaged property, and losses to equipment and furnishings.

If a fire damages dryers and seating areas or a customer slips while machines overflow, a BOP can respond. Limits usually include $1 million per occurrence and $2 million aggregate for liability, with property limits based on equipment and building value.

Costs increase in high crime zones, flood-prone areas or where equipment values are high.

Note: Estimates are modeled from blended average annual Business Owner’s Policy (BOP) premiums for laundromat businesses using sample quotes from both small and large insurance agencies and reflect laundromat-specific factors (machine count and replacement value, on-site staffing and payroll, coin-operated hazards, building and contents values, location and local loss trends); actual premiums will vary by insurer, coverage limits and endorsements, deductible choices, claims history, and other business- and site-specific underwriting factors.

Cyber Liability Insurance

The average cost of cyber liability insurance for a laundromat business is $42 per month.

Cyber liability insurance covers the costs a laundromat might incur after a cyber incident. This extends to lost income after a cyber attack, forensic investigations, data recovery costs, regulatory fines, and the costs of informing customers about the attack.

Laundromat businesses can benefit from this coverage if they handle any sensitive data, particularly those that might have scheduling software and booking software for online payments and appointments, or if they want to cover gaps in their insurance.

Costs are based on factors like the size of your organization, the type of client data you handle, and the cybersecurity measures you already have in place. For example, if your website allows clients to submit payment online or save a client profile internally, with contact information and home address for clean laundry deliveries, this would help protect against cyber crimes involving said data.

Here’s a look at the average annual premiums for 10 different states:

Note: Estimates are modeled from blended average annual Cyber Liability premiums for laundromat businesses using sample quotes from both small and large insurance agencies and reflect laundromat-specific factors (customer payment and card processing exposure, point-of-sale and property management systems, use of cloud services and third-party vendors, number of locations and annual revenue); actual premiums will vary by insurer, coverage limits and sublimits, incident response services and endorsements, deductible choices, claims history, and other business- and site-specific underwriting factors

Laundromat Business Insurance Costs By Provider

Laundromat business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for laundromat businesses observed across both small and large agencies, reflecting typical coverages such as general liability, property/BOP, equipment breakdown, and workers’ compensation; actual premiums will vary depending on location, number of machines, revenue, claims history, security and fire suppression measures, and selected coverage limits

What Factors Impact Your Laundromat Business Insurance Costs?

Laundromat insurance premiums are carefully calculated by underwriters based on your business’s risk profile. From the services you offer to your location and claims history, several factors influence what you’ll pay for coverage.

Type Of Services

Different laundromat businesses carry different risks. Laundromat businesses that offer things like fluff and fold services also have to maintain part-time or full-time employment, and may possibly need extra coverage for company vehicles. Those that are coin-operated but are open 24 hours may only need to consider high security investments.

Location

Laundromat businesses in high-crime, flood-prone, or urban areas typically pay more for property and liability insurance. A low-risk suburban location with fewer claims can lower your premiums.

Size Of Your Operation

More square footage, employees, and revenue all raise the chances of a claim. Workers’ compensation costs also rise with larger staff counts, especially in environments where workers contend with high risks of foot traffic, extreme weather, or crime.

Property Value And Office Equipment

Expensive laundry equipment or second-hand inventory can increase your commercial property premiums. Many laundromat businesses add endorsements like customer goods liability or cyber insurance to protect client information and other data.

Claims History

If you’ve filed frequent insurance claims, underwriters will see you as a higher risk, leading to higher rates. A clean claims record can qualify you for discounts.

Policy Limits And Deductibles

Higher policy limits mean better protection but come with a higher premium. Choosing a larger deductible can lower your monthly costs but raise your out-of-pocket risk when claims occur.

Optional Endorsements

Add-ons like business interruption, cyber liability, and hired and non-owned auto coverage tailor protection but increase your premium. They are essential for laundromat businesses with limited employees and tight bottom lines, sensitive client data, or high risks of natural disasters interrupting business.

Insurance Provider

Rates vary among insurers. If you find providers who specialize in the laundromat business, particularly in the risks of laundromat items, you might find better deals. Comparing quotes from multiple carriers can save you money.