Linen supply companies provide products and services to a wide variety of businesses. Hospitals, hotels, and restaurants are just a small sample of the hundreds of places requiring their products, everything from sheets and pillowcases, to uniforms, tablecloths and many other items. These products must arrive in good condition, or the client may refuse to receive them.
Luxury hotels, for one, depend on these services in order to facilitate the needs of their customers. If a problem arises, such as linens lost in transit or damaged by human error, faulty machinery, or perhaps a mishap in the chemical processing, any one of these issues can significantly impact the supply company’s bottom line. This is why linen supply companies insurance, including general liability, is a necessary coverage to have.
Linen suppliers face some unique risks
The best line of defense is to partner with an insurer that offers loss control services to help lower the cost-to-risk with a multifaceted approach and claims management assistance. There exist some very unique risks at every point in the supply chain. In-house laundries can benefit from programs that mitigate risk for suppliers of prison, hospital, or organization-based uniforms.
In addition to general liability concerns, linens can present a health risk to employees who may be exposed to biohazards such as airborne and imbedded pathogens. Employees may also be at risk, while working in a facility, from exposure to chemicals and sharp objects.
Certain equipment may present noise exposure, and there may also exist the issue of heat stress, slip and falls, and burns or injury from machinery all of which are also quite common in commercial laundry operations. Linen supply companies insurance policies to consider when running this type of business, in addition to general liability, include the following:
- Property Insurance including Equipment Breakdown
- Excess and Umbrella Liability
- Workers’ Compensation
- Employment Practices
- Inland Marine
- Transit Insurance
- Directors and Officers Liability
- Boiler and Machinery
- Employment Practice Liability Insurance (EPLI)
- Employee Benefits
At $11 billion and counting, the commercial laundry industry is expected to continue its sustained growth as the healthcare industry and other organizations realize the financial benefit in outsourcing these services. Linen supply companies need to protect all aspects of their commercial laundry business so that they can provide the best service to their clients.