Understanding Vending Machine Insurance
Vending machine insurance can cost $564 per year for a policy that includes general liability insurance and commercial property insurance. Of course, actual rates will vary and will increase if you add other useful coverage options like insurance for mechanical equipment breakdowns and cyber liability.
If you own the space used to manufacture, house, or stock your vending machines, you’ll need commercial property insurance to protect your inventory. This insurance will help you repair or replace broken inventory due to vandalism, bad weather, or fires.
Vending machine businesses face a variety of risks, including theft, property damage, and lawsuits related to your products. Some insurance policies may be required by state laws or client contracts.
On average, vending machine businesses in America spend between $500-$1,200 per year for $1 million in general liability coverage.
Business Management and Risks
Regardless of your vending machine business size, you probably have an endless to-do list every day: from purchasing stock to maintaining the machines to managing the inventory and restocking the machines.
Vending machine business owners can land their vending machines in the right places, but you need to understand the market to play the game right. We’ll give you some background information.
Insurance Needs and Options
Vending machine insurance is a specialized insurance policy designed to protect from the unique risks that vending machine business owners face. The vending machine industry is booming and expected to reach over $25 billion value by 2027, according to Allied Market Research.
Since vending machines are often located on property the vending machine operator doesn’t own, the property owner may require to see a valid certificate of insurance (COI), which is proof of business insurance. With the technological improvements made on vending machines, spending has become even easier.
To help you protect your vending machine business, you should consider getting a collision or claim policy from a reputable company. If you are a vending business owner who has invested a great deal of time and money in the equipment that you have purchased, then it is important that you take the time to find a reputable company.
Product Liability insurance provides protection for when your vending machine business is responsible for putting a defective product in the vending machine that caused injury to the customer who bought it.
“A vending machine contract is essential to protect both parties involved in the transaction. It outlines the terms of the lease, including rental terms, payment structure, maintenance responsibilities, insurance, and liability.” Choosing the right vending machine contract template can save time and ensure that all necessary elements are included.
Property insurance covers damage to physical property – including both the structure (if you own it) where the vending machine is located and the actual equipment itself (the vending machine). General Liability Insurance – Bodily Injury Coverage: Protects if someone gets injured around one of your machines; pays medical expenses related directly to their injury. – Property Damage Coverage: Covers costs associated with repairs/replacements if something happens like one topples over onto a parked vehicle.