1. Do I need insurance for my vending machine business?
You might be thinking “my vending machines are not placed outside, I’m safe”, but the risk of vandalism exists as no machine is safe when placed in a public space. And while the risk is somewhat minimal, you might suffer from another undesired and unpredictable event such as machine breakdown, credit card fraud, and so on.
You might find yourself liable for things you have a hard time to imagine. People can sue you for various reasons that might or might not sound reasonable to you.
If you’d like to get a good night sleep and have the time and energy to focus on your vending machine business rather than (il)legitimate customer claims, it probably does make sense to insure your business.
2. What vending machine business insurance options are there on the market?
There are 2 critical insurance policies for any vending machine business to have: property and general liability.
a) General commercial liability
The General Commercial Liability insurance covers your vending operations in the case of a client getting hurt while using your machine, a product in the machine causing harm to somebody, someone tripping over leakage and falls etc. General liability also protects you if you get sued for things like causing physical damage to someone or someone’s property, using someone else’s trademark without permission, making false claims in advertising and so forth.
If any of this happens, the liability coverage will take care of your customer’s medical bills and protect you from any further obligation towards him/her. What’s more, it’s not uncommon for building owners and location managers to require vending machine operators to own and show proof of liability insurance. In other words, if you’d like to be competitive and secure the location you fancy, the general liability insurance is a must-have for you.
This type of insurance is incredibly important to have. Even if it’s not your fault, if someone else thinks it is, that person can sue you. Liability insurance helps you cover the cost of a lawsuit—and if you are found to be negligent, the insurance will also cover what you did wrong.
b) Property insurance
Property insurance helps protect your business assets (property and equipment) from theft, damage or any type of loss:
What your insurance premium should be (that is, how much you should pay for your coverage) depends to some extent on the type of machines you own, as well as on the location where you are planning to place them. Some insurance providers combine property and general liability in a single policy named Business Owner’s Policy. Combining a few policies from a single insurance services provider guarantees you a discount, too.
3. How do I insure my vending machine business and how much does it cost?
If you’d rather focus on your vending machine business instead of doing thorough research on what type of insurance package your business needs, it’s important to find someone, a subject matter expert, whom you can trust to provide advice and insight into the topic. An insurance agent or broker can help make the process less stressful and time-consuming.
As you can imagine, the cost can greatly vary and is mostly dependent on your turnover. If your vending machine business sales are around $100k or less/year, your general liability premium should be in the range of $400-600. There are insurers who’d offer the option to add additional coverage for each machine you own for an additional premium.
4. What should you watch out for when insuring your vending machine business?
Just like with everything, when selecting an insurance policy (or a package of policies), be sure to make yourself familiar with the nitty-gritty details such as what the procedures are in the event of an emergency, what exactly the policy covers, etc. In other words, read the fine print. Many times, vending machine business owners simply don’t invest enough time to select the right insurance policy which may result in expensive mistakes.
MyPPE Vending recommends The Hartford as this is who we use to insure our owned and operated MyPPE Vending Machines that we operate throughout South Florida.
Sr. Associate Underwriter
Direct Sales Underwriter
* MyPPE Vending is in no way associated or compensated for this referral