Laundromats are often viewed as low-risk businesses. In reality, they carry a unique mix of property, equipment, and liability exposure. I regularly review laundromat policies that look fine on paper but fall apart during a claim.

Here are the most common gaps I see and how to fix them.

1. Equipment Is Underinsured

Washers, dryers, boilers, and change machines are expensive to replace. Many policies list outdated values or lump equipment into general contents.

What to do:
Ensure equipment values reflect today’s replacement cost and that equipment breakdown coverage is included, not optional.

2. Water Damage Is Not Properly Covered

Burst hoses, blocked drains, and sewer backups are among the most frequent laundromat claims.

What to do:
Confirm sewer backup and overland water coverage limits are adequate. Many policies carry minimal limits that do not cover a full loss.

3. Business Interruption Is Overlooked

When equipment fails or water damage occurs, downtime is where owners lose the most money.

What to do:
Business interruption should reflect real revenue and realistic repair timelines, not generic estimates.

4. Liability Coverage Is Too Low

Slip and fall claims are common in laundromats due to wet floors and customer traffic.

What to do:
Review liability limits and ensure the policy is written specifically for laundromat operations.

Final Thought

Laundromats are stable businesses, but only when insurance keeps pace with rising costs and real-world risks.

If you own a laundromat in Ontario and have not reviewed your coverage recently, now is the time.

Contact Insured by Kash for a complimentary laundromat insurance review.