Recently, our insurance agency has been working with a lot of vending machine businesses, so we figured it be a good topic to discuss to help other vending machine business owners.
There are three main insurance policies you need for a vending machine business:
General Liability: to cover your business in the case of (all these are only examples); your machine falls on somebody, the product (food or other) causes harm to somebody, your soda machine spills water and causes somebody to trip and fall, etc.
Commercial Auto Insurance: covers you while you are driving to refill your machines or install your machines. Remember, your personal auto policy almost always excludes commercial use, so don’t rely on your personal auto policy because your insurance company may deny your claim.
Workers Compensation: Covers your employees in case they get hurt while working. Examples; they carry a heavy vending machine and hurt their back, they have a car accident and get hurt (your commercial auto insurance may have minimal coverage for this, but definitely not enough), or the employee simply gets hurt and he happened to be working. Generally, if the injury can be somehow linked to the job, workers compensation laws apply.
Property Insurance: To protect your machines from theft or any other type of loss.
Cost: Generally, if your sales are around $100,000 or less, your general liability premium should range between $400-$500 per year. Commercial auto will vary greatly depending on the type of vehicle and your driver’s driving record. Workers compensation will also vary greatly depending how many workers, but it may range between 3-5% of wages (this is only a guess).
Finding an insurance policy for your vending machine business should be relatively easy. You may come across a few difficulties if your machines sell ice cream or other easily perishable items. Also, it is more difficult to insure a business who has their vending machines outdoors.
Contact us, Olivares & Ziegler Insurance Group, LLC if you have any questions or to get an instant quote. We can be reached at 512-454-7799. Go to http://www.boundinsurance.com/get-freebusinessquote.php to get a free business insurance quote. Thank you for reading.