How Much Does Dry Cleaners Insurance Cost? 2026 Rates

U.S. dry cleaners can expect to pay between $600 and $960 annually for comprehensive business insurance, averaging $50 to $80 per month. The primary cost drivers are business size, location, type of cleaning services, equipment value, use of hazardous chemicals, number of employees, and past claims history.

How Much Does Dry Cleaners Insurance Cost?

A typical dry cleaner in the US pays about $600 to $960 a year for full business insurance. This is just an estimate, your real cost could be higher or lower based on your own business.

From damaged clothing, to equipment breakdowns, there are various issues a dry cleaning business has to deal with. That’s why having the right insurance is important.

Every dry cleaning business is different, and business insurance costs depend on things like the services you provide, whether you use chemical solvents, how many employees you have, and your location. These factors help insurance companies decide how much risk is involved. 

Here are some of the biggest cost drivers:

• Number of employees (affects workers’ comp and liability)
• Property size and value (affects commercial property coverage)
• Past claims history (insurers charge more if you’ve filed claims)
• Business interruption coverage and other add-ons

Knowing these factors can make it easier for business owners to figure out what kind of insurance is needed, and how much it would cost. 

Average Dry Cleaners Insurance Costs For Coverage Types

Protecting your dry cleaning business usually requires more than one type of insurance, since each policy covers a different kind of risk. Knowing the typical prices, and the factors that impact those costs can help you choose the right mix of coverage.

• General liability insurance: $50 per month
• Business owner’s policy: $81 per month
• Workers’ compensation insurance: $128 per month
• Commercial auto insurance: $176 per month
• Commercial umbrella insurance: $61 per month

General Liability Insurance

The average cost of general liability insurance for a dry cleaning business is about $50 per month.

General liability insurance protects your dry cleaning shop from common accidents and mistakes that can happen during daily work.

For example, if a customer slips on a wet spot in your dry cleaning shop and hurts their back, this policy would help pay for their medical bills and cover your legal costs if they decide to sue.

It also protects you from problems caused by your advertising, such as copyright infringement, and accidentally saying something false about another business. 

The cost of general liability insurance for a dry cleaning business is impacted by factors such as the size of your shop, your claims history, location, services offered, and use of chemicals. 

Policy limits: $1 million per occurrence and $2 million aggregate.

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

Note: These estimates reflect average annual premiums for dry cleaning businesses of varying sizes, factoring in typical exposures such as chemical handling, customer property damage, and equipment-related risks. Rates are influenced by local regulations, business scale, claims history, and coverage limits. Actual premiums will vary depending on specific underwriting criteria and operational details.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $81 per month for a dry cleaning business.

A BOP is usually helpful because it gives you several types of protection at a lower price than buying each policy separately. 

For dry cleaning shops, it usually includes general liability and commercial property insurance. A BOP is an easy and cost effective way to get the basic coverage dry cleaning businesses need. 

Several things can affect how much a business owner’s policy costs for a dry cleaning business. Some include the type of services offered, using chemical solvents, the value of your equipment, and your location. 

Policy limits: $1 million per occurrence and $2 million aggregate.

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

Note: These estimates reflect average Business Owner’s Policy (BOP) premiums for dry cleaning businesses, which typically include general liability and commercial property coverage. Pricing accounts for industry-specific risks such as fire hazards from cleaning chemicals, equipment breakdown, and customer property damage. Actual premiums will vary depending on business size, location, property value, and claims history.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a dry cleaning business is around $128 per month.

Workers’ compensation insurance helps protect your employees if they get sick while working in your dry cleaning shop. It can cover medical bills, hospital stays, and a portion of lost wages while the employee recovers.  

Premiums are influenced by the size of your payroll, the type of work employees perform, your claims history, and any implemented safety programs.

Each state sets their own rules for policy limits. Usually, state laws say that cleaning businesses with employees must have this insurance. It’s also a good idea for business owners who work alone, because regular health insurance might now pay if an injury or illness happens while doing the job. 

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

Note: These estimates reflect average Workers’ Compensation premiums for dry cleaning businesses, incorporating state-specific base rates, employee classifications, and payroll ranges typical of both small storefront cleaners and larger multi-location operations. Actual premiums will vary depending on your business’s size, claims history, number of employees, and insurer underwriting practices.

Commercial Auto Insurance

The average cost of commercial auto insurance for a dry cleaning business is about $176 per month.

Commercial auto insurance protects any vehicles your dry cleaning business uses for work, such as delivery vans or company trucks. It helps pay for repairs if a vehicle is damaged, covers medical costs if someone is hurt, and protects against injuries or damage caused to others in an accident. 

Several factors impact commercial auto insurance costs for dry cleaning businesses, such as the policy limits you choose, the driving records of anyone permitted to drive, and the value of your vehicle. 

Most states require cleaning businesses to have this insurance for vehicles they own. If you use personal, rented, or leased vehicles for work, you should get hired and non-owned auto insurance (HNOA) instead. 

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

Note: These estimates reflect average annual premiums for dry cleaning businesses operating commercial vehicles such as pickup vans and delivery trucks. Rates are based on blended data from both small and large agencies, factoring in vehicle usage for customer deliveries, local driving exposure, and liability coverage norms. Actual premiums will vary depending on location, driving history, fleet size, and insurer underwriting criteria.

Commercial Umbrella Insurance

The average cost of commercial umbrella insurance for a dry cleaning business is about $61 per month.

Commercial umbrella insurance gives extra protection on top of your other business insurance policies, like commercial auto insurance and general liability. 

For example, if a customer slips in your dry cleaning shop and sues for $2 million, your regular insurance covers $1 million, and umbrella insurance pays the extra $1 million.

Umbrella insurance costs are impacted by several factors such as, risks you have and how much coverage you want. You must have some basic insurance first before you can get umbrella insurance.

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

Note: These estimates reflect average annual premiums for Commercial Umbrella insurance tailored to dry cleaning operations, based on data from both small and large insurance agencies. Figures account for location-specific liability exposures, chemical handling risks, and business size. Actual premiums will vary depending on your dry cleaner’s unique profile, coverage limits, and insurer underwriting criteria.

Dry Cleaning Business Insurance Costs By Provider

Dry cleaning 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 premiums for small and large dry cleaning businesses in the U.S., factoring in coverage types like general liability, property, and workers’ compensation. Actual premiums will vary depending on location, business size, equipment value, number of employees, and claims history

What Factors Impact Your Dry Cleaners Insurance Costs?

The cost of insurance for a dry cleaning business can vary a lot from one shop to another. An insurance underwriter reviews your business and decides the price by looking at various factors. Knowing these factors can help you estimate your insurance needs and choose the right coverage without paying too much. 

Services Offered

If your shop provides extra services like delivery, alteration, or specialty cleaning, it can increase risks, and raise your insurance price. 

Location

Dry cleaners in busy city areas or places with higher crime may pay more for insurance. A safer neighborhood usually means lower premiums.

Size Of Your Business

Insurance costs are usually higher for bigger shops because having more employees or customers increases the chances of something going wrong. 

Equipment And Property Value

Expensive machines and equipment increase your insurance costs. You might also want extra coverage for equipment breakdown or damage to customer clothes

Use Of Chemicals

Working with strong cleaning chemicals increases safety and environmental risks, which can make insurance more expensive. 

How To Lower Your Dry Cleaners Insurance Costs

Insurance is important for protecting your dry cleaning business, but it can be expensive. Here are some practical ways to lower your dry cleaning insurance costs:

1. Policy Bundles

You can save money by putting several types of insurance, like general liability and property coverage, together in a Business Owner’s Policy (BOP) instead of buying them separately. 

2. Shop Around

The easiest way is to shop around. Different insurance companies may offer different prices and coverage options for the same type of policy. By comparing multiple quotes, you can find the best deal for your business. 

3. Implement Risk Management

You can take a few steps to implement risk management, such as train employees on how to use machines and chemicals safely, maintain equipment regularly, keeping floors clean and dry to prevent slips, and install fire alarms and security systems. 

4. Adjust Your Deductible

You can also lower your insurance costs by changing your deductible. Choosing a higher deductible usually means lower monthly or yearly premiums, because you’re taking on more of the initial cost if something happens. Just make sure you can afford the deductible amount if you need to make a claim. 

5. Review Your Policy Annually

Talk with your insurance agent every year to check your coverage. Make sure it still fits your business and all your information is correct. This can help avoid issues if you need to make a claim. 

Following these steps can help you save money and also make your dry cleaning business safer.