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.

Here are some of the biggest cost drivers:

• Services offered (affects product liability)
• Number of employees (increases workers’ compensation requirements)
• 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

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

When it comes to protecting your laundromat business, different types of insurance cover different risks. Understanding the average cost, coverage details, and what influences pricing for each policy type can help you build a more effective insurance plan. Here’s a closer look at the major coverages most laundromat businesses need.

• 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

General Liability Insurance

The average cost of general liability insurance for a laundromat business is about $39 per month.

General liability covers third-party bodily injury, property damage, and advertising injuries. For example, if a washing machine is broken, resulting in a puddle on the floor, and a customer slips and breaks their wrist, this policy would help pay for their medical expenses and your legal defense costs.

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

Factors that influence the cost include the business type (your services), location, laundry environment (if clients handle their own washing at your facility or if they drop off and pick up their clothes), contract requirements, and previous claims history.

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

The average cost of a business owner’s policy (BOP) is about $180 per month for laundromat businesses.

A BOP bundles general liability insurance with commercial property insurance. It protects against customer injuries, property damage, and loss or damage to your office building, furnishings, and equipment. For instance, if a fire damages your washers and dryers or any seating areas you had for customers while they wait on their clothes, the BOP would help cover repairs and replacements.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability, with separate property coverage limits based on the value insured.

Cost factors include the size of your business and the location risk. Laundromats, for example, in areas with high crime might have higher rates, as would those in areas prone to flooding.

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

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.

Customer Goods Insurance

The average cost of customer goods insurance for a laundromat business can be around $150 per month.

This is a form of protection if your laundromat facility handles things like fluff and fold services, where you take possession of customer garments. In the event that customer clothing is lost or damaged while in your possession, this could help cover replacement costs.

For example, a customer drops off an item for specialty cleaning, but while under your care, this item is permanently damaged. Your customer goods insurance would cover the cost of reimbursing your customers.

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.

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

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a Laundromat business is around $102 per month.

Workers’ comp covers medical bills, rehabilitation, and lost wages for employees injured on the job. For example, if an employee trips and falls on a wet floor in front of a broken sink and breaks their ankle, workers’ compensation would cover their hospital visit and part of their lost wages while they recover.

Policy limits are regulated by each state, but typically include medical costs and a percentage of lost wages without a set cap.

Premiums are influenced by the size of your payroll, the type of work employees perform (whether in your facility like fluff and fold or on-site for each client like deliveries), your claims history, and any implemented safety programs.

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

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.

Commercial Auto Insurance

The average cost of commercial auto insurance for a laundromat business is about $152 per month.

Commercial auto insurance covers vehicles owned or used by the business for accidents, theft, vandalism, or damage. For example, if an employee causes an accident while driving a washed and folded laundromat to a customer’s home, this policy would cover the damages and any third-party claims.

Typical policy limits are around $1 million combined single limit (covering both bodily injury and property damage).

Factors influencing the cost include the number and type of vehicles, how often they are used, the driving records of employees, and whether you add endorsements like hired and non-owned auto insurance (HNOA) for employee-owned vehicles used for company services like driving to and from off-site pick-ups.

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

Note: Estimates are based on blended average annual Commercial Auto premiums for laundromat businesses using sample quotes from small and large insurance agencies and reflect laundromat-specific factors (number and type of service/utility vehicles used for pickup or maintenance, driver records, annual mileage, vehicle values, garaging ZIP code, and local loss trends); actual premiums will vary by insurer, coverage limits and deductibles, fleet size, driver histories, and other underwriting and location-specific risk factors.

Business Interruption Insurance

The average business interruption insurance cost is $89 per month for a laundromat business. The final cost is based on things like your revenue, claims history, and employees, but regardless, this form of protection is there in the event that your laundromat has to temporarily close because of things like unforeseen natural disasters.

For example, a summer storm knocks over a tree on the front of your property, breaking through the front glass. Your business has to close until such time as that front glass can be replaced. Business interruption insurance would cover part of that lost income until you can open doors again.

It can help compensate you for the lost income during that time.

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

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.

Commercial Property Insurance

The average cost of commercial property insurance for a laundromat business, when purchased separately, usually runs $224 per month.

Commercial property insurance covers damage to the laundromat building and its contents due to fire, theft, vandalism, or certain weather events. For example, if a fire destroys equipment like washing machines and ATMs, this policy would pay for repairs or replacement.

Typical policy limits are based on the replacement cost value of the insured property, which could easily reach into the hundreds of thousands depending on your location, building size, and equipment investments.

Premiums are determined by factors like the building’s age and construction type, fire safety systems in place, replacement cost of equipment, neighborhood crime rates, and whether you add endorsements such as customer goods liability or cyber protection.

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

Note: Estimates are modeled from blended average annual Commercial Property premiums for laundromat businesses using sample quotes from both small and large insurance agencies and reflect laundromat-specific factors (building replacement cost and contents value, number of machines, on-site inventory, fire and security protections, local hazard exposures, and regional reconstruction costs); actual premiums will vary by insurer, coverage limits and endorsements, deductible choices, property condition and protection systems, claim history, and other site- and business-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.

How To Lower Your Laundromat Business Insurance Costs

Running a laundromat facility is expensive, but your insurance bill doesn’t have to break the bank. While you can’t eliminate the need for coverage, you can take smart steps to reduce your premiums without sacrificing protection. Here are some practical ways to lower your Laundromat insurance costs:

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation or product liability insurance, bundling all three through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Insurance companies often reward companies that commit to a policy long-term. Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Accidents are expensive for both you and your insurer. Taking steps to reduce the chance of customer or employee injuries can lead to lower premiums over time. For example, installing non-slip flooring, using wet floor signs, maintaining clean, clutter-free walkways, and regularly servicing company machines can help lower your general liability risk.

4. Create A Safe Working Environment

A solid safety program can reduce workers’ compensation costs. This includes training staff on fire safety procedures, and having clear emergency exit routes. It might include extra security cameras or smart technology to ensure leaks or similar hazards are addressed immediately. Fewer accidents mean fewer claims—and that translates to lower premiums in the future.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your company a safer, more resilient business.