Professional dry cleaners need insurance just like every other business does. A dry cleaning insurance package should also contain policies such as equipment insurance and bailee coverage. Bailee coverage is necessary for any business that temporarily takes possession of customers’ property.
Other people’s property is not covered by insurance on your own property. If a customer’s clothing is damaged or lost during the dry cleaning process, standard business or property liability will not pay to replace the clothing. You need a separate policy that will take care of the cost of replacing the clothing. Bailee coverage protects both you and your customers when such accidents happen.
Some bailee policies also include liability clauses for times when allegations about the damage to the clothing are false. If a customer claims that you destroyed their clothing when you did not, you are not automatically obligated to replace it. Your policy may pay legal costs if you need to prove that the clothing was already damaged when it entered your possession.
Bailee coverage is essential to your dry cleaning insurance plan. Accidents happen, and when they do, this policy compensates your customer without costing you extra money out of pocket. A qualified insurance agent can discuss the right policy to fit your needs.