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Ensuring Safety in Your Coin Laundry (Part 1)

Common Laundromat risks and liabilities and how they can be avoided

CHICAGO — Like many small-business owners, coin laundry operators must ensure that the needs of their customers are met, and that they are satisfied with their overall experience.

Several hindrances can get in the way of this, however, particularly when a customer’s safety and security is involved.

Wet floors, an uneven walkway, and equipment that is improperly taken care of can not only lead to an unsatisfactory customer experience, but can also present safety risks and hazards that can possibly hurt and negatively impact a customer’s well-being.

American Coin-Op sat down with three experts from the fabricare and small-business insurance industry to discuss the risks and liabilities that are common to many coin laundry stores, and the best practices store owners can follow to ensure the safety and security of their Laundromat.

THE COMMON CLAIMS

Ann Hawkins, insurance underwriter and vice president of St. Louis-based NIE Insurance, explains that there are many aspects about a coin laundry that sets it apart from other types of small businesses.

“First of all, there’s a lot of equipment in there to maintain, so that requires a commitment on the part of the business owner to maintain that equipment and keep it in working order so that no one gets hurt,” she says.

As it relates to equipment, one claim that Hawkins says she frequently encounters are dryer fires.

“Typically, those are the insured’s fault because they don’t clean the lint and dust out on a daily basis, and that ignites when the dryer gets too hot,” she says.

One other aspect that sets coin laundry businesses apart from other small businesses, according to Hawkins, is the greater risk of slip-and-fall exposure.

“It makes it unique because other businesses only have a small area where [customers] walk [on]. The coin laundry has a whole, big area for people to walk [on],” she says, adding that wet spots in coin laundries can not only be caused by the weather (as customers can track rainwater inside) but by machines leaking water, as well.

Larry Trapani, president of Westbury, N.Y.-based Brooks-Waterburn Corp., says that his agency sees “almost every type of claim,” as he says his company insures more than 1,000 Laundromats nationwide.

Trapani says that his company has helped its coin laundry store owner clientele in addressing various liability hazards, including uneven sidewalks; snow/ice not being removed from the front of the store or parking lot; a poorly lit store exterior; and improper signage that does not make customers aware of other hazards or store rules.

Trapani agrees with Hawkins, however, in that chief among the claims his company processes are incidents involving slips and falls.

“By far, the most frequent type of accident is the slip and fall,” says Trapani. “Whether it is a child that is not being supervised properly by [his or her] parents, or a customer slipping on a wet spot, slip-and-fall claims are a burden to Laundromat owners as well as insurance companies.”

THE POWER OF AN ATTENDANT

With the various demands store owners face in running a coin laundry, having an attendant on hand can not only help with the day-to-day operational tasks, but in ensuring the safety of customers, as well, according to Christine Brazier, new business coordinator for Ronkonkoma, N.Y.-based Irving Weber Associates (IWA).

“If you have an attendant, they are able to … clean up any messes [like water spills] that would create that slip-and-fall situation, as well as clearing lint and doing maintenance,” says Brazier. “They would also be aware of any problems [and] would deter any kind of vandalism or theft that might go on. So, having an attendant, in our opinion, is vital for the life of the business.”

So much so that agencies, like IWA, have set policies for their clients to have an attendant on staff, according to Brazier, who adds that having one “helps from an insurability point of view.”

“With the slip and falls [and other risks in Laundromats], attendants being on premises … helps out with that because they make sure that there’s no puddles,” says Brazier. “So, that [is a] requirement of our program. We do not insure, if they do not have an attendant.”

“Having an attendant in your store will have a significant impact on both the type of insurance policy [you] can purchase, as well as the price,” says Trapani. “The truth is, most insurance companies do not want to write an unattended store because the risk of loss is much higher. In most parts of the country, there are only one or two companies that will offer a quote, whereas an attended store will have the choice of four or five companies.”

“The type of policy offered for unattended stores has less coverage and always costs more.  In some cases, the cost of an attended store is half of an unattended store,” adds Trapani.

He also recounted a recent claim involving a small dryer fire that his company processed, and how the attendant on staff prevented the situation from escalating.

“The attendant, being well-trained, calmly evacuated the store and knew enough not to open the dryer. She secured the money and prevented further loss. Because of her actions, she prevented a small claim [from turning] into a major one.”

A CONSTANT EYE ON THINGS

For store owners who do not have the finances to hire an attendant, or simply do not require one for their operation, installing security systems, like surveillance cameras, is paramount, according to the experts.

“The absolute best thing an owner/operator can do to protect themselves is [to] install a good camera system,” says Trapani. “In 2014 alone, we have helped our customers dismiss 11 potential liability claims because the camera was able to prove that either the accident didn’t occur or it was clearly the customer’s fault.”

“Surveillance cameras would help you distinguish where the fault lies as far as an incident like [slips and falls], as well as theft and vandalism,” says Brazier.

Because accidents, like slips and falls, can occur anywhere on the premises, Hawkins advises store owners to install cameras both inside and outside of the store.

She stresses, however, the importance of saving surveillance footage.

“Most of the time, [footage] is just recorded over immediately. So, if something happens when somebody’s not there, nobody knows [an incident occurred],” says Hawkins. “So, we actually do give a credit for somebody who saves their tapes for two years.”

Trapani also stressed the importance of saving surveillance footage, saying, “Plaintiffs’ attorneys now know about cameras and wait until the data is recorded over before presenting a claim. If you can save them six months, or even a year, in the long run, it will pay for itself with fewer claims and lower insurance costs.”

Trapani adds that business insurance companies often offer premiums discounts for installing a security camera system, in addition to other investments, like a central fire and burglar alarm.

“Besides getting a discount on insurance, they will provide an early detection to a calamity, like fire and theft. It monitors your business 24/7 and gives you peace of mind,” he says.

In addition to alarms, Trapani adds that automatic locks and card systems are among some of the other investments store owners should look into to ensure the safety and security of their store.

Check back Wednesday for the conclusion!

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(Photo: ©iStockphoto/Grumpy59)

Have a question or comment? E-mail our editor Bruce Beggs at [email protected].