Linen Supply Companies

What Linen Supply Companies Need to Know About Insurance

The number of industries that rely on linen supply services is large and growing. The successful operation of hospitals, prisons, spas, hotels and restaurants is intertwined with each business’ ability to procure clean linens daily. Yet linen supply services can break down at any point. That’s why linen supply companies insurance is a critical need for linen service providers.

Many Reasons Insurance Is Needed

Linen supply companies experience risk to the business at multiple points during service. During transit, linens can be lost or damaged due to employee mistakes, and company vehicles can experience collisions or mechanical problems that crimp a business’ ability to serve its customers. Employees are subject to risk when retrieving soiled linens, whether caused by biohazards or back injuries. The cleaning process can result in burns or chemical exposure to workers. Employees could slip and fall, experience noise pollution or be exposed to sharp objects.

Types of Insurance Available

A qualified insurance provider can help you develop an insurance policy that meets your needs. You can obtain general liability insurance, business property insurance, workers’ compensation insurance and commercial auto insurance. You may even opt for cyber or crime liability insurance.

A problem or interruption in linen service can cause a catastrophe for a large facility such as a hospital, and it may also cause you to lose ongoing clients. Regardless of whether you are cleaning and delivering tablecloths or towels, your business needs linen supply companies insurance.

Linen Supply Companies and Business Interruption Policies

Linen Supply Companies provide a significant service for many businesses across a wide spectrum. Restaurants, hotels, the medical industry, companies employing uniformed guards, laundromats, gyms and spas are just the tip of the iceberg. Imagine if one or more linen companies had to shut down for just one day how many businesses would be affected? The number would likely be staggering, which illustrates how important business interruption insurance is to this burgeoning industry.

As you may well know, business interruption insurance generally steps in when a business is forced to temporarily shut down. It specifically insures the business’s income when a crisis arises and the business must momentarily cease operations. If a business is unable to perform its usual operations because of an event covered by commercial property insurance, policy benefits can help an owner address his or her ongoing expenses.

Coverage is included in Many Business Owners Policies (BOPs)

Business Interruption can often be included in a BOP as part of its commercial property coverage and will provide coverage for lost revenues, including profits would have been earned if the incident did not occur, the day-to-day expenses, including normal operating costs such as employees’ wages, and relocation expenses to move the business to a temporary location, which might also include both moving costs and rent.

Key Components of Business Interruption insurance

Business Interruption coverage helps make ends meet until an owner is able to get their operations back up and running. For example, if you’re running a bakery and your ovens are destroyed due to an electrical fire, you would be able to collect your benefits as long as your business has an underlying property policy in place.

The cause of the interruption must be a covered loss, so if a fire destroys the bakery shop, then this type of an event would generally be covered. If the damage was the result of a flood, without flood insurance you’ll probably be out of luck. Commercial flood insurance is typically a policy purchased separately.

Note that your business must be forced to close completely, so if you’re still operating in any capacity (e.g., out of your home or online) and generating revenue, you won’t be eligible to collect benefits.

Most policies have a time deductible, and therefore Linen Supply Companies often can’t collect benefits until they’ve been shut down for 72 hours, so hopefully you’ll be able to make it on your own through the first three days until benefits become available. The good news is that Business Interruption insurance policies typically offer up to 12 months of coverage while you get your business back up and running.