Are you already in operation and need to re-examine your existing vending machine business insurance? Or are you considering jumping into the vending world and want to make sure you have the right kind of coverage before you start? Either way, looking at the reasons insurance for vending machines is necessary is a good way to prepare yourself for the process of getting the right quote.
What Insurance Coverages Should Vending Machine Owners Consider?
Operating vending machines can be a great way to start your own business with relatively little overhead and modest out of pocket start-up costs. But you shouldn’t skimp on your vending machine insurance, or your lucrative dream could be short-lived. In the following section we share some risk factors you may face and the coverages you should consider.
General Liability Insurance
Every business owner should obtain a general liability insurance policy. Though not legally required, it covers you in the case of:
- Bodily injury & medical payments: If your machine tips on, electrocutes, or otherwise hurts a customer this policy can cover costs.
- Property damage: You’ll have coverage if your vending machine causes a short in the electrical and causes a power outage or if it is tipped while being moved into place and breaks a window.
- Legal defense if sued: If personal or property injury is incurred, general liability will help cover defense attorney costs.
- Personal and advertising injury: This offers protection if you make false claims in advertising or use someone’s logo without permission.
Products Liability Insurance
Product Liability Insurance—sometimes called ‘Products and Completed Operations Coverage—is an important piece of your coverage. Even if you’ve done everything right, the stock in your vending machines could expire and make someone ill. If your insurance policy covers food spoilage, this will help with damages incurred.
Cyber Liability Insurance
You might think, “Why would I need something like cyber liability coverage?”. But if your vending machines accept credit or debit cards, the potential for cyber theft of customer data might exist. An unfortunately popular scam is called “skimming”. This is where someone adds a skimmer to your credit card scanner that can read and obtain credit card numbers, names, pin numbers, etc.
The damages in situations like that can be considerable. The vending machine operator is held liable—not the bank. Especially if your vending machine business is not adhering to the latest standards for EMV chips. You will be liable for any charges, including the cost of credit monitoring or court expenses.
Commercial Auto Insurance
If you own a vehicle that is solely operated to transport vending machines and other goods for business purposes you need commercial auto insurance.
Hired and Non-Owned Auto
This policy applies both to rented vehicles and a personal car used in the course of business. If a collision occurs, medical payments and repair to the other parties vehicle is covered.
Inland Marine Insurance
This covers damage to your vending machines and other equipment or tools while in transport that wouldn’t be covered by your auto insurance.
Workers’ Compensation Insurance
In every state but Texas you’re required to hold Workers’ Comp for employees (although in some states it’s only required if you have 3 or more employees). It covers medical costs if vending machine operators become ill or are injured on the job. It also protects you if said employee were to sue for damages.
If someone breaks into your vending machine and stills products contained within or otherwise vandalizes your property this will cover the cost of repair and replacement.
Business Interruption Insurance
If your vending machines are damaged in transport, stolen, vandalized, or the property you use to store the machines and products is compromised—business interruption coverage helps cover operating expenses and wages until fully operational again.
How Much Does Vending Machine Insurance Cost?
Just like any personal insurance coverage, different variables affect the price of vending machine insurance. Some insurances offer policies as low as $39 monthly. The average cost range is quite high, anywhere between $500-$1,100 per year.
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These are only a few of the areas that need to be considered when planning the risk management strategy for your business and insurance coverage. Speaking to a professional who is well acquainted with the exposures common to a vending machine business is crucial, and will help provide you with a strong foundation for your business.
Vending machine ownership and operation is a great way to fuel your entrepreneurial spirit–but the right insurance can be part of the plan that gives it a long healthy life. Call us today at 1-877-907-5267 to check insurance rates and get the best quote for your business.