If you run a dry cleaning business, you're juggling a lot—managing customer expectations, handling delicate fabrics, maintaining expensive equipment, and keeping your retail space welcoming. But here's something that might keep you up at night: one slip-and-fall accident or one accidentally damaged garment could cost you everything you've built. That's where general liability insurance comes in. It's not just another business expense—it's your financial safety net when things go wrong.
Most dry cleaner owners think their biggest risks are chemical spills or equipment breakdowns. But the reality? Your biggest exposure is probably the wet floor near your entrance on a rainy day, or the customer who trips over a loose floor mat. General liability insurance handles exactly these scenarios—and many more you haven't even thought about yet.
What General Liability Insurance Actually Covers for Dry Cleaners
General liability insurance protects your dry cleaning business from three main categories of claims: bodily injury, property damage, and personal/advertising injury. Let's break down what that actually means for your day-to-day operations.
Bodily injury coverage kicks in when someone gets hurt on your premises or because of your business operations. A customer slips on your freshly mopped floor and breaks their wrist? That's covered. Someone trips over a bundle of hangers you left in the aisle? Covered. A delivery driver gets injured while picking up garments from your shop? Also covered. These incidents happen more often than you'd think, and the medical bills, lost wages, and legal fees can add up fast. In 2026, what used to be a $50,000 settlement now frequently exceeds $150,000 thanks to rising jury awards—a trend insurers call "social inflation."
Property damage coverage protects you when you accidentally damage someone else's property. If you're operating a mobile dry cleaning service and your employee backs into a customer's garage door, general liability handles the repair costs. If a leak from your equipment damages the retail space below yours, your policy covers it. Here's an important distinction: general liability covers damage you cause to other people's property, but it doesn't cover the customer garments in your care—that's what bailee's coverage is for.
Personal and advertising injury coverage is the third pillar, and it protects you from claims like libel, slander, copyright infringement, or false advertising. If a competitor claims you used their logo in your marketing materials, or a customer sues you for defamation over a negative review dispute, this coverage handles your legal defense and any settlements.
How Much Coverage Do Dry Cleaners Actually Need?
The standard general liability policy for dry cleaners comes with two key numbers: a per-occurrence limit and an aggregate limit. The most common configuration is $1 million per occurrence and $2 million aggregate. Here's what that means in plain English: your insurer will pay up to $1 million for any single incident, and up to $2 million total for all claims during your policy year.
Is $1 million enough? For most dry cleaning retail shops, yes—it's become the baseline that landlords and commercial lease agreements require. In fact, you'll almost certainly need to provide a certificate of insurance showing these limits before you can even sign a retail lease. Some shopping centers or commercial buildings may require even higher limits, like $2 million per occurrence, especially if your dry cleaning operation is in a high-traffic area or upscale location.
The cost for this coverage is surprisingly affordable given the protection it provides. Most small dry cleaning businesses pay between $350 and $750 per year for $1 million in general liability coverage. If you opt for the $1 million/$2 million policy, expect to pay somewhere between $37 and $59 per month. Compare that to the potential cost of a single lawsuit—which could easily run into six figures—and it's one of the best investments you can make in your business.
Why Dry Cleaners Face Unique Liability Risks
Your dry cleaning business combines several liability exposures that many other retail operations don't have to worry about. First, you operate a retail storefront where customers come and go throughout the day. Every person who walks through your door represents a potential slip, trip, or fall risk—especially during wet weather when floors can become slippery.
Second, you're handling customer property every single day. While general liability won't cover damage to the clothes themselves (again, that's bailee's coverage), it does cover situations where your operations cause other types of property damage. For instance, if cleaning solvents leak from your facility and damage neighboring businesses, or if your employee accidentally knocks over a customer's laptop sitting on your counter, general liability steps in.
Third, if you offer pickup and delivery services, you're extending your liability beyond your four walls. Your employees are driving to customer locations, entering homes and offices, and transporting garments. Each interaction creates additional exposure. While you'll want commercial auto insurance for vehicle-related incidents, general liability covers situations like an employee accidentally breaking a client's vase while picking up dry cleaning from their home.
Finally, dry cleaning operations often involve chemicals and processes that could potentially cause harm. While pollution liability coverage addresses chemical-specific risks, general liability provides a foundation of protection for standard business operations. The reality is that customers, landlords, and business partners all expect you to carry this coverage—it's become a basic requirement for operating professionally in the dry cleaning industry.
What General Liability Doesn't Cover
Understanding what's not covered is just as important as knowing what is. General liability insurance won't protect customer garments in your care—that requires bailee's customer goods coverage, which is specifically designed for property you're holding for service or repair. If you ruin a customer's wedding dress or lose a suit, bailee's coverage handles the claim, not general liability.
General liability also doesn't cover injuries to your own employees—that's what workers' compensation insurance is for. If an employee burns themselves on pressing equipment or develops respiratory issues from chemical exposure, workers' comp covers their medical bills and lost wages. Your business property and equipment aren't covered either; you'll need commercial property insurance to protect your pressing machines, dry cleaning equipment, and building improvements.
Professional errors and mistakes in your cleaning services typically fall outside general liability coverage. If you use the wrong cleaning method and damage a garment, or give incorrect care advice that ruins expensive fabric, you might need professional liability insurance (also called errors and omissions). Vehicle accidents involving your delivery vehicles require commercial auto insurance. And cyber incidents—like a data breach exposing customer credit card information—need cyber liability coverage.
Getting Started with General Liability Insurance
The process of getting general liability insurance for your dry cleaning business is straightforward. Insurers will ask about your annual revenue, number of employees, square footage of your retail space, whether you offer pickup and delivery, and your claims history. They'll also want to know about your safety measures—things like how you maintain floors, whether you have security cameras, and what training you provide employees.
Many dry cleaner owners bundle general liability with other essential coverages into a Business Owner's Policy (BOP). A BOP typically combines general liability and commercial property insurance at a lower cost than buying them separately. For a dry cleaning operation, expect to pay $2,000 to $5,000 annually for basic BOP coverage, depending on your business size, location, and risk factors.
When shopping for coverage, compare quotes from multiple insurers who specialize in dry cleaning businesses. The general liability classification code for your industry is GL Code 14733 (Laundry and Dry Cleaning Stores), and insurers familiar with this class code will better understand your specific risks and offer more competitive pricing. Don't just go with the cheapest option—look for an insurer with a strong reputation for claims handling and experience in the dry cleaning industry.
Running a dry cleaning business requires attention to detail, customer service, and quality work. General liability insurance gives you the peace of mind to focus on those things, knowing you're protected if something goes wrong. With coverage costing less than $100 per month for most operations, it's an affordable way to protect everything you've worked to build. Don't wait until you need it—get quotes today and make sure you have the coverage your business deserves.
