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Vending Machine Insurance: Cost, Liability & Quotes From $11

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Do you own or plan to start a vending machine business? Probably, every day sees you contending with an endless to-do list, from buying goods to maintaining your machines and managing your employees. 

 

It's not surprising for you to forget how devastating an unfortunate event can be. Something bad might happen, if not now then soon. And so, it’s a good idea to insure those vending machines. 

 

Our discussion for today will discuss what is vending machine insurance, how much it costs, and more. 


Also read: Food Truck Business Insurance: Cost, Overview & Quotes From $5

Why You Need a Vending Machine Operators Insurance

Risks haunt vending machine operators like you. You have to rent other people's property to house your machines.

Risks haunt vending machine operators like you. You'll be dealing with employees, customers, equipment, products, and more. And if something bad happens, you become indemnified to pay. A lot could go wrong. Here are a few examples:

  • A vending machine could injure a customer

  • Your snacks, candy, or drinks could expire and result in food poisoning

  • Your business location may experience a power outage, causing a loss of perishable foods

  • A worker could get injured while fixing one of your vending machines

  • Your vending machine gets stolen or damaged

  • A supply-chain issue happened and now you’re vending machine is out of products customers can buy


Don't let the above risks prevent you from venturing into this lucrative business. With the right vending machine business insurance, you can stay safe from these risks, save money, and keep your reputation intact.


Also read: Food Cart Insurance: Guide & Quotes from $11


Vending Machine Liability Insurance

Your vending machine might be making money right now and everything seems secure. But still, don't forget to get coverage against risks - you don't want your good fortune to be short-lived.

Even the most basic coverage will help a lot. And for vending machines, the first line of defense is vending machine liability insurance comprising of general liability policy with product liability coverage.

Also read: Pizza Delivery Insurance: Cost, Liability & Quotes From $5


General Liability Insurance

General liability insurance is the most common and highly recommended cover for any business. While it's not a legal requirement, it protects you against legal actions and loss of money if an unfortunate event occurs. It covers:

  • Third-party injury - Your vending machine suddenly experienced faulty electrical wiring. As a result, a customer currently using it got electrocuted momentarily and fainted

  • Third-party property damage - Upon getting electrocuted, the customer dropped their phone and it got broken as a result. You’re being asked to pay for what was damaged.

  • Advertising and personal injury - Your vending machine's graphics copied the elements found in other vending machines owned by another individual. At the same time, the aggrieved person also accused you of stating defamatory remarks to interrupt his business

The food in your machine could expire and cause illness to the consumer. A basic general liability won’t cover this. That’s why they decided to add product liability insurance to it, which will cover the person's medical bills, settlements, and any legal fee in the event of food poisoning.

By the way, some carriers don’t offer general liability insurance with products liability coverage. And so, if you get insured by such carriers, ask if you can endorse stand-alone products liability insurance to your existing general liability coverage.

Cyber Liability Insurance

Can customers pay for your vending machine using a credit card or a mobile wallet such as Paypal or Venmo? The thing is, even though the feature is very convenient, it might also lead to data leaks if someone gains access to the vending machines’ system.


You might get sued if someone does manage to breach your vending machine and get the data of customers who transacted using their credit cards or mobile wallets. If you’re worried about this exposure, then get cyber liability insurance.


Cyber liability insurance shoulders costs if affected parties file a claim against you. The policy will help you pay legal fees and settlements. Cyber liability insurance offers $1 million in coverage for vending machine businesses.

Commercial Umbrella Liability Insurance

In a serious lawsuit, your general liability insurance may hit the ceiling. Here's where commercial umbrella liability insurance comes in to provide additional coverage. For instance, if a court case costs $100,000 but the general liability insurance only compensates you $50,000, the umbrella policy could be your savior and cover the extra $50,000.


Also read: Ice Cream Business Insurance for Shops, Trucks & Vans


Commercial Auto Insurance for Vending Machine Business

Do you use your personal car to transport business stock, goods, or workers? In this case, decide to get commercial auto insurance.

There’s no problem if you decide to continue getting covered with personal car insurance. However, once the carrier finds out that you’re using your personal car to restock the vending machine or collect earnings, your premiums might suddenly spike. Furthermore, coverage isn’t comprehensive either.

Commercial auto insurance offers the best coverage since it offers protection such as auto liability coverage, physical damage coverage, and personal accident coverage.

Auto liability insurance will help you pay third-party personal injuries or property damage in the event that you caused an accident while driving to the location where your vending machines are installed.

Personal accident coverage will help pay for emergency medical treatment and hospital bills if you got injured after the accident. If you have passengers, then this policy will cover them too.

Physical damage coverage will take care of the damages to your vehicle. This policy comes in two forms; collision coverage and comprehensive coverage. Collision coverage takes care of damage after you’ve collided with a vehicle or object while driving, hence the name.

Collision physical damage coverage won’t take care of costs if your car got damaged because of theft, vandalism, hail, a falling branch, lightning, arson, and other named perils. Covering these things is the job of comprehensive physical damage coverage.

Let’s say you want to deliver a vending machine to another location. However, your car is an SUV and it can’t be used for the job you want to do. And so, you rented a pickup truck to transport the vending machine. Will your commercial auto provide coverage to the rented vehicle? The answer is no.

Your basic commercial auto insurance only covers the auto you own. That’s why if you want to get coverage for a rented vehicle, then consider getting hired & non-owned auto insurance. This is either a stand-alone policy that offers the same policies included in commercial auto insurance or an endorsement of your commercial auto insurance.


Also read: Vendor Liability Insurance: Cost & Quotes From $5


Workers' Compensation Insurance for Vending Machine Employees

Do you employ people to maintain or restock the vending machine? If this is the case, consider getting workers compensation insurance. Workers compensation insurance pays your employees if they get injured while working.


So when do you get workers compensation insurance? It depends on the location. There are states that require you to get workers comp the moment you employ 1 individual. Others, on the other hand, require you to get workers comp the moment 2, 3, or 5 people are working for you.


What specific things does workers compensation insurance cover? How workers comp insurance works differ from state to state. But generally, workers compensation insurance will help you pay:

  • Employee emergency treatment

  • Employee hospital bills

  • Employee medication

  • In case of death, workers comp will help you provide death benefits to the deceased spouse and children

  • Rehabilitation (if needed)


The amount of insurance money you’ll get from workers comp also varies from state to state. In general, workers comp pays two-thirds of the injured employee’s weekly average wage. Benefits last from three-seven years or until the employee is strong enough to work again.


Also read: Concession Insurance for Stands & Trailers


Vending Machine Business Employee Dishonesty Insurance

Your employees can steal from you or vandalize the vending machines. If any of the two happen, you’ll suffer losses. And so, don’t forget to get employee dishonesty insurance.


To get employee dishonesty insurance, you’ll have to purchase crime insurance. However, it’s also possible to find carriers that offer employee dishonesty insurance as a stand-alone policy.


So what does employee dishonesty insurance cover? If you decide to purchase this policy, you’ll get covered against:

  • Employee theft or destruction of money or the vending machines

  • Fraudulent transactions

  • Forgery and alteration of your business’s financial documents

  • Fraudulent manipulation of your vending machines (e.g. the employee accessed your vending machine’s memory and gained access to credit card data and other sensitive information

  • Social engineering fraud


Employee dishonesty insurance takes effect in two ways:

  • If availed as a “loss discovered” policy, employee dishonesty insurance will pay losses resulting from an employee crime that happened during the policy’s duration, regardless of when the crime took place

  • If availed as a “loss sustained” policy, employee dishonesty insurance will only pay if you file a claim during the time the crime took place. In a nutshell, a “loss sustained” employee dishonesty coverage won’t cover undiscovered crimes in the past


Commercial Property Insurance for Vending Machine Businesses

Do you own a space used to stock, house, or manufacture the vending machines? Let commercial property insurance safeguard your inventory. Policies included in commercial property insurance for vending machine businesses are:

  • Rented premises coverage

  • Stocks and content coverage

  • Business equipment coverage

Are you renting a property to place a vending machine? If so, don’t think twice about including rented premises coverage in your commercial property insurance. It will be very helpful. Here’s an example:

One night the store where you installed your vending machine flared up, leaving nothing behind. Upon investigating the cause of the fire, the authorities discovered that your vending machine is the one to blame. The owner of the building is now asking you to reimburse his loss.

Your vending machine can’t make money without the products inside it. Know that you can cover the products inside the vending machine with insurance. Specifically, through a stocks and contents coverage. Should your equipment burst in flames or be vandalized and the goods inside become unsellable, you can use stocks and content coverage to recover losses.

Business equipment coverage allows you to recover losses if your vending machine got damaged because of fire, theft, vandalism, faulty wiring, and other named perils. Through business equipment coverage, you can get the vending machine repaired or replaced at the minimum cost or no cost at all.


Property In Transit Insurance for Vending Machine Businesses

Do you keep moving your vending machines from place to place? Your commercial auto insurance won’t cover damage to your vending machines should they get damaged during the trip. And so, decide to get property in transit insurance.

Property in transit insurance is a stand-alone coverage or inclusion in business commercial property insurance. But note that no matter how it’s offered, the policy functions the same way. Property insurance for vending machine covers:

  • While driving, the vending machine unloaded from the vehicle and got damaged

  • The vending machine got lost while in transit

  • The vending machine caught fire while in transit

  • You got involved in a vehicular accident and the vending machine got damaged as a result


Vending Machine Business Interruption Insurance

Let’s say your vending machines got utterly damaged. Since you don’t have the money to get it replaced, you went ahead and had it repaired. What’s tricky is that repairing the vending machine will take at least two months. This means that your business won’t produce revenues, and you might incur significant losses.

In such a case, there won’t be any problems if you purchased business interruption insurance. Business interruption policy shoulders bills, wages, loans, and other operational costs, while your vending machines are out of commission. With this policy ready and waiting, your vending machine business can keep losses at bay and recover quickly.


Vending Machine Business Owners Policy (BOP)

Check to see if your small business qualifies for a BOP. This coverage is a 3-in-1 policy. It combines these coverages:

  • Commercial property

  • General liability

  • Business interruption


It can be more expensive to take out each of the three policies separately. That's where BOP comes in to cover your business with necessary policies at a cheaper rate.


Commercial Umbrella Liability Insurance

In a serious lawsuit, your general liability insurance may hit the ceiling. Here's where commercial umbrella liability insurance comes in to provide additional coverage. For instance, if a court case costs $100,000 but the general liability insurance only compensates you $50,000, the umbrella policy could be your savior and cover the extra $50,000.


Airport Vending Machine Insurance

Those who install their vending machines at the airport can opt to get covered through specialized airport vending machine insurance. Policies included are:

  • General liability with products liability coverage

  • Commercial property insurance with equipment breakdown coverage



Vending Machine Insurance Cost

Diverse factors come into play in determining the cost of vending machine insurance coverage. The following are the most common determinants of vending machine insurance costs:

  • The number of machines you need to insure

  • The type of products you vend

  • The number of workers you have

  • Your business location

  • Your chosen policy limits and deductibles

  • Your chosen insurer


Luckily, vending insurance costs don't have to break your bank. On average, owners pay $62.5 a month or $750 a year for vending machine insurance offering a $1 million general liability policy.

To further give you an idea about the price of insurance for vending machines, here’s a table showing the rates of the best vending machine insurance companies:


Monthly Rates Annual Rates Best for
CoverWallet $49 $588 Vending machine insurance that bundles general liability and commercial property insurance into one tailored coverage
Hiscox $52 $624 Business insurance with generous policy limits that can serve as vending machine insurance, candy business insurance, etc.




Best Vending Machine Insurance Companies


CoverWallet Vending Machine Insurance


Pros

  • Allows you to compare vending machine insurance quotes

  • Offers its own vending machine insurance coverage by modifying the offers of its partners

  • Online certificate of insurance

Cons

  • CoverWallet's vending machine insurance is underwritten by third-party companies


CoverWallet , with its partners, crafted a tailored vending machine insurance product that bundles general liability and commercial property. Free certificate of insurance, fast online quotation, and easy policy management are the strongest points of CoverWallet’s insurance for vending machines.


Best for: Vending machine insurance that bundles general liability and commercial property insurance into one tailored coverage

Average cost: $49 per month

Our rating: 10/10




Hiscox Insurance


Pros

  • Offers generous policy limits starting from $1 million up to $5 million

Cons

  • Doesn’t underwrite a specialized vending machine insurance


Hiscox doesn’t have an insurance product tailored for vending machines. Nonetheless, since the company insures a wide range of businesses, you can still get covered.


There are two options for getting insured with this company ; (1) insure your vending machines through Hiscox’s portable equipment insurance (2) qualify for retail insurance. By choosing to work with Hiscox, you’ll enjoy generous policy limits plus risk management services.


Best for: Business insurance with generous policy limits that can serve as vending machine insurance, candy business insurance, etc.

Average cost: $52 per month

Our rating: 9/10

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