I recently started a small business with a couple of vending machines placed in different locations around town. As I’m navigating through the setup process, I’ve come across the term “vending machine insurance” quite a few times. I’m trying to make sure I’m fully covered in case anything goes wrong, but I’m not exactly sure what vending machine insurance entails.
Has anyone here had experience with vending machine insurance? What specific aspects or types of coverage should I be looking for? For instance, does it cover theft, vandalism, or damage due to accidents? Are there any exclusions or fine print I should be aware of?
Also, if anyone could share their experiences with specific insurance providers or policies, that would be incredibly helpful. Is there a go-to company that offers the best coverage and customer service for this type of insurance? Or perhaps any red flags or companies to avoid?
Thanks in advance for any advice or insights you can share. I really want to make sure I’m making an informed decision and protecting my investment as best as I can!
The answer is: that it depends. If the location where you’re placing the machines doesn’t require liability insurance in the contract, you don’t have to get it. However, I still recommend you do, and here’s why.
The primary purpose of having an LLC is to shield you from risk. For instance, if your vending machine is poorly installed and falls on someone, they can only sue your LLC. Without an LLC, they could sue you personally and potentially take everything you have.
Creating an LLC costs about $200, depending on the state you’re in, and it is well worth the protection it provides. It also opens up many business opportunities, such as saving on taxes. I suggest you form an LLC, get a business card, and start writing off tax expenses.
Vending machine insurance provides crucial coverage for various risks depending on the type of coverage that you take.
Types of Coverage
General liability insurance: This covers third-party injuries and property damage. For example, if a customer injures themselves while using your vending machine, this insurance can cover medical expenses and legal fees.
Commercial property insurance: This protects your vending machines from risks like theft, vandalism, and damage due to accidents or natural disasters.
Business interruption insurance: If your vending machines are damaged and you lose income while they are being repaired or replaced, this insurance can help cover the lost income.
Product liability insurance: This covers claims related to the products sold through your vending machines, such as food poisoning or allergic reactions.
Cyber liability insurance: If your vending machines handle credit card transactions, this insurance can protect against data breaches and cyberattacks.
You can consult with an insurance expert to know which cover will best cover your needs.