Dry cleaning is a $9 billion industry where service is everything. Delivering a consistent customer experience earns you repeat customers and referrals. So, it’s important to keep your dry cleaning vans covered and on their routes to give your customers the best experience. That’s why it’s important to have the right insurance for your dry cleaning vans. In the event of a loss, it gets your vehicle back on the road fast and protects that precious cargo that your customers have entrusted to your capable hands.
But what type of insurance do you need for dry cleaning vans? Let’s take a look.
1. Auto Liability
Even the best drivers can overestimate how much distance they have or how long it takes to stop a large vehicle. And with some of the tiny, lightweight vehicles on the road today, it doesn’t take much to see them crumble. People can get hurt.
Auto liability may appear on your policy as two separate types of coverage. Property damage liability covers any damage that your driver and van cause to other vehicles or property. Personal injury liability covers medical bills for the other driver and passengers. You are required by law to carry both of these forms of liability.
Liability doesn’t, however, cover damages to your own dry cleaning van. For this, you’ll need physical damage coverage.
2. Physical Damage Coverage
Physical damage coverage covers your dry cleaning van if it’s damaged. This coverage is broken into two primary groups:
Imagine this: Your driver is going the speed limit in your dry-cleaning van on a rainy day, trying to make all of the deliveries before the evening rush. Focused on the urgency of his task, he doesn’t notice that the little hybrid in front of him turned on its signal and is now slowing down.
A collision occurs, and the hybrid is smashed. Your van’s hood looks like an accordion. Your collision insurance could then help you pay for the damage to your van.
Here’s another scenario: Your van is parked on the street when a sudden hailstorm hits on the area. Fortunately, none of your windows are broken, but your van is now covered in tiny pockmarks. In some places, even the paint has been chipped away.
While your dry cleaning van is still driveable, all of that hail made the van unsightly. This is where your comprehensive coverage could help you repair the pockmarks and repaint your vehicle. Comprehensive coverage for your dry-cleaning van can help you cover damages due to things like hail, fire, flood, vandalism, and other damages done to your van outside of an accident with another vehicle.
3. Cargo Insurance
This may be a rider or a separate line of your policy. Cargo insurance covers the items you’re transporting.
Think about it. What’s the cost of a typical load in your van? If this cargo is stolen, burned, flooded or otherwise damaged, you’ll need cargo insurance to cover it, or you could end up paying out of pocket for your client’s lost dry cleaning.
Especially if you transport designer suits, furs, and other more expensive cargo, then you’ll need higher coverage.
4. Uninsured/Underinsured Motorist
Even if the car that T-boned your van at a red light is at fault, the driver of a passenger car with minimum liability may not have enough coverage through their car insurance to repair a more expensive dry cleaning van.
Worse yet, they may be uninsured like around 13% of motorists who are breaking the law regarding minimal coverage.
Uninsured motorist coverage is then a relatively inexpensive coverage for your dry-cleaning company that can help you pay for your expenses when the at-fault driver’s insurance isn’t enough to cover the damages they’ve caused.
Medical Payments insurance is the portion of your dry-cleaning van’s insurance that can help you cover medical bills for your driver and any passengers in the van in the event of an accident. A little-known fact is that the medical payment portion of your coverage can also help cover the medical bills of your driver if they’re hit by a vehicle while walking to and from the van.
Managing the risks of dry-cleaning and delivering other’s clothes can be tough without worrying about insuring your dry-cleaning van. Make sure you have the coverage you need by calling our agents at 678.271.3449. We’ll get to know your business and help you shop through the best rates for dry-cleaning insurance coverage. To get started, give us a call or fill out our online form today.