Running a dry cleaning business in Florida means navigating a specific set of insurance requirements that can feel overwhelming at first. Between state-mandated coverage, environmental regulations, and protecting customer property worth thousands of dollars, you need the right protection in place. Here's the thing: getting your insurance right from the start isn't just about compliance—it's about protecting the business you've worked so hard to build.
This guide breaks down exactly what insurance you need to operate legally in Florida, what coverage protects your business best, and how to avoid costly gaps that could shut down your operations overnight.
Workers' Compensation: Florida's Mandatory Requirement
Let's start with what Florida law actually requires. If your dry cleaning business has four or more employees—including yourself if you're a corporate officer or LLC member—you must carry workers' compensation insurance. This isn't optional. It's the law under Chapter 440 of the Florida Statutes.
Workers' comp covers your employees if they get injured on the job—think burns from pressing equipment, chemical exposure from cleaning solvents, or back injuries from lifting heavy loads. The coverage typically pays about two-thirds of their average weekly wage while they recover, plus medical expenses. For 2026, there's actually good news: Florida approved a 6.9% rate decrease for workers' comp premiums, the ninth consecutive year of reductions.
Here's what happens if you skip this coverage: the Florida Division of Workers' Compensation can issue an immediate stop-work order. That means your business shuts down completely—not just one location, but every site you operate in Florida—until you get proper coverage and pay all penalties. You'll also be on the hook for backdated premiums, potentially doubling what you would have paid if you'd been insured from the start.
General Liability Insurance: Not Required, But Essential
Florida doesn't legally require general liability insurance for dry cleaners. But here's the reality: you won't get far without it. Most commercial landlords won't lease you space without proof of liability coverage. Business clients who send you corporate uniforms or hotel linens will ask for a Certificate of Insurance before signing any contract. Without general liability, you're essentially locked out of the most profitable accounts.
General liability covers the accidents that can happen in any retail business. A customer slips on your wet floor and breaks their wrist. Your employee accidentally damages a client's property during pickup or delivery. Someone claims you ruined their wedding dress. These situations can lead to lawsuits costing tens of thousands of dollars in legal defense alone, even if you win. Your general liability policy handles those defense costs, settlements, and judgments up to your policy limits.
Most dry cleaners carry at least $1 million per occurrence with a $2 million aggregate limit. If you're working with larger commercial accounts, they'll often require higher limits—sometimes $2 million per occurrence or more.
Commercial Property and Bailee's Coverage
Your dry cleaning equipment represents a massive investment—pressing machines, industrial washers, dry cleaning machines, and spotting stations can easily total $100,000 or more. Commercial property insurance protects that equipment, plus your inventory, furniture, and the building itself if you own it, from covered perils like fire, storms, theft, and vandalism.
But here's what standard property insurance doesn't cover: customer property. On any given day, you might have $50,000 worth of customer garments in your care. If a fire destroys your shop, your property insurance covers your equipment—but not those customer clothes. That's where bailee's coverage comes in.
Bailee's coverage (sometimes called bailee's customer insurance) protects customer property while it's in your care, custody, and control. It covers damage from fire, theft, water damage, and other covered perils. For dry cleaners, this coverage is critical. Without it, you're personally liable for replacing every damaged garment—and customer claims add up fast when you're dealing with expensive suits, designer clothing, and delicate fabrics.
Business Owner's Policy: Bundled Protection
Many dry cleaners save money by purchasing a Business Owner's Policy, or BOP. This bundles three essential coverages into one package: general liability, commercial property, and business interruption insurance. You get broader protection at a lower premium than buying each policy separately.
Business interruption coverage is particularly valuable for dry cleaners. If a covered loss—like a fire or major equipment breakdown—forces you to close temporarily, this coverage replaces your lost income and helps pay ongoing expenses like rent and payroll while you get back on your feet. For a business that depends on daily customer traffic, that financial bridge can mean the difference between temporary closure and permanent shutdown.
Florida-Specific Licensing and Tax Requirements
Florida doesn't require a state-issued license to operate a dry cleaning business, but there are important registration and tax obligations you need to handle. First, you'll need to register with the Florida Department of State, the IRS, and the Florida Department of Revenue. Most Florida counties and cities also require a Business Tax Receipt (formerly called an occupational license) to operate within their jurisdiction.
Here's a requirement that catches many new dry cleaning owners off guard: Florida charges a 2% gross receipts tax on all dry cleaning and laundry services. Before you start operations, you must register for this tax online or by filing Form DR-1 with the Florida Department of Revenue. This isn't optional—it's a state tax specific to the dry cleaning industry.
Additionally, Florida levies a pollutant tax on perchloroethylene and other solvents commonly used in dry cleaning. If you produce or import these chemicals for use in your business, you'll need to account for this tax as well. The Florida Department of Environmental Protection may also require air, water, and waste permits depending on your operations and location.
Getting Started: Building Your Insurance Package
If you're starting a dry cleaning business in Florida or reviewing your current coverage, begin with these steps. First, confirm you have workers' compensation insurance if you have four or more employees—this is non-negotiable. Second, secure a Business Owner's Policy that includes general liability, property coverage, and bailee's coverage for customer garments. Third, register for your gross receipts tax and obtain any necessary environmental permits.
Work with an insurance agent who specializes in commercial coverage for dry cleaners. They understand the unique risks your business faces—from chemical exposures to customer property damage—and can structure coverage that fills the gaps. Ask about additional endorsements like employment practices liability if you have employees, or commercial auto coverage if you offer pickup and delivery services.
Running a dry cleaning business comes with real risks, but the right insurance protection lets you focus on serving customers instead of worrying about what-if scenarios. Florida's requirements exist to protect both your employees and your business. Meet them, add the coverage that makes sense for your specific operation, and you'll have a solid foundation for growth.
