Understanding the Basics of Vending Machine Insurance
Whether you are a small business with a couple of coin operated candy machines, offering snack machines in the staff lounge for employees or operating an arcade full of coin operated entertainment machines, vending machine insurance is a crucial component for financial protection.
How Do I Protect against Loss and Damages?
Commercial general liability coverage is a type of vending machine insurance that protects against injury or loss that could occur on or off the premises. Make sure you have no fault medical coverage as well as fire legal liability included as further protection against accidents resulting from your negligence. Commercial property coverage is needed to cover damages to your building and its contents whether you own or lease the space. For a higher premium, you can get additional protection through the “special form” that is all-risk comprehensive property coverage.
What about Faulty Vending Products?
Check to make sure that your vending machine insurance policy includes coverage for product liability. This is especially necessary if you are operating vending machines that dispense food items because it will protect you financially if a consumer becomes sick after eating tainted or expired products from your machine. Product liability can also cover you if a child swallows a small part on a prize they received from your machine. This type of policy should provide coverage for the alleged victim’s medical and legal costs as well as any damages if you are liable.
What if my Equipment Malfunctions?
Vending machines by nature are vulnerable to breakdown, so the next thing to consider is equipment breakdown coverage to provide protection against machine malfunction. If your vending machine includes a refrigerated unit, be sure to include additional coverage in the event of a malfunction that results in inventory spoilage. Some insurers require strict upkeep of insured vending machines so make sure you fully understand your responsibility and document maintenance schedules as required to avoid denied claims.
How do I Deal with Employee Theft?
If needed, consider employee dishonesty coverage that can help reimburse loss in the event that one of your employees steals from you or vandalizes your inventory, vending machines or building. In addition, check to make sure your policy includes adequate protection against burglary and theft from anyone else too. Remember that many insurance companies will require that you file criminal charges in order for loss coverage to kick into effect. Maintain adequate inventory lists in order to aid in recovery efforts if something does occur.
What Else is should I Know?
Check with your insurance agent to make sure that any vending machines located off site are covered. Tools and inventory that you transport back and forth usually falls under inland marine floater policy that you can ask your agent to add to your vending machine insurance package. Hired and Non-owned auto coverage will provide coverage for leased vehicles and for employee cars that used for business purposes. In most cases, both types work together to protect your vehicles and is not a replacement for employees carrying their own individual auto insurance.
In addition, use enhanced security including vending machine cameras, high-tempered glass, well-lit reception areas, and good maintenance schedules to reduce liability claims. Always work with an agent who specializes in vending machine insurance and can help you get the best coverage at a competitive rate.