Are You Protected if Your Vending Machine Business Gets Sued?
Vending machines businesses can be sued for selling contaminated products. A lawsuit against your vending machine business could also result from a customer getting injured after tripping over a cord from one of your machines. Does your vending machine business have liability insurance to protect you against lawsuits?
Vending machine liability insurance is the cornerstone of your vending machine insurance package to financially protect you against legal claims.
Western Financial Group, a 100% Canadian company, can help you navigate your business, car, home, and boat insurance during this period of economic uncertainty.
Did you know? Western has a partnership with the Canadian Automatic Merchandising Association (CAMA)
Western Financial Group partners with the Canadian Automatic Merchandising Association (CAMA) to provide members with a specialized business insurance program, which offers best-in-class coverage and significant value-added services.
Speak to your Western business insurance expert about how the CAMA program can benefit your coffee services or vending machine business.
What is vending machine insurance?
Vending machine insurance helps protects vending machine operators against the risks that come with owning and operating vending machines.
You can face threats like vandalism, defective products, or vending machines that don’t always work. An insurance package for vending and coffee services protects you from these threats with liability insurance as the building block.
What businesses should have vending machine insurance?
The following vending machine businesses need this type of insurance:
- Coffee vending machines
- Snack food vending machines
- Beverage vending machines
- Customized products vending machines
- Ice cream and frozen products vending machines
- Toys and trinkets vending machines
Is your vending machine business in a school, office, bus or train station, or airport?
Insurance for your vending machine business can vary depending on your vending location and the types of coverage you need.
How much will my vending machine insurance package cost?
What is the insurance cost for vending machine businesses? These factors will influence the cost:
- Type of products sold
- Years of experience
- Annual revenue
- Number of employees
- Past claims
Liability insurance is the building block of your commercial insurance for your vending machine business.
What business liability coverages do you need?
Commercial general liability (CGL) insurance
A customer or supplier could be injured getting a product from your vending machine, stocking your vending machine, or tripping over a cord from your vending machine.
If you were sued, CGL insurance would help cover the legal costs to defend the claim against your vending machine business in court, as well as costs to cover damages to compensate third parties whether you win or lose your case.
What does commercial general liability insurance help cover?
- Injury to a third party who is not your employee
- Damage to someone’s property
- Damage to rented property
- Medical bills if someone is injured
- Legal costs and settlement costs of liability lawsuits filed against you
- Liability lawsuits related to slander and libel
Product liability insurance
Your vending machine business could end up selling defective or contaminated products and you could be held liable.
Product liability insurance helps protect you against liability claims and lawsuits arising from the products you sell and distribute.
It also protects your vending business from design, manufacturing, or marketing defects, such as incorrect labelling and safety warnings.
Cyber liability insurance
If you store online financial data or take digital payments for your vending machine business, you must protect this information and can be held liable if you don’t.
If your computer system is hacked, cybercriminals can sell the information. Without cyber insurance, you will have to pay out of your pocket for the cost of restoring your computer system. You may also be liable for damages to third parties whose information has been stolen and you may have to pay for notification expenses to inform the affected customers.
How can business owners save on their insurance with Western?
Western Financial Group helps Canadian business owners save on their insurance with the following:
- Bundle and save: They’re generally available when you bundle liability, commercial auto, and property insurance.
- Multiple quotes to suit your needs: Western is a national insurance broker that partners with Canada’s leading insurers. We’ll get you multiple business insurance quotes to suit your needs and to help you save money.
- Cost: Depends on factors such as services provided, location and size, deductibles, revenue, and any past claims
What other types of insurance do vending machine operators need?
Inland marine insurance
Inland marine insurance provides coverage for property and equipment that is shipped by land, such as on a truck or by rail. Your vending machine products such as food and soft drinks could be spoiled due to an accident, theft, or damage to equipment. This insurance coverage reimburses the cost of goods and products that are damaged during transit.
Commercial auto insurance
If you use a car or truck to deliver vending machines and stock to your clients, you will need commercial car insurance. Your personal car or truck insurance usually won’t cover your vending or coffee services business.
Commercial property insurance
Commercial property insurance for vending machines can cover losses due to fire or lightning, including removing property to protect it from further damage. You can also include vandalism and malicious mischief as part of your commercial property insurance package.
Equipment breakdown coverage
Equipment breakdown insurance coverage for vending machines covers the costs of repairing or replacing equipment that suffers a sudden or accidental mechanical or electrical breakdown, due to an insured peril.
Commercial crime insurance
Your vending machines hold your products and money. Commercial crime insurance helps protect you against certain types of losses that are not covered by a standard commercial property policy, such as: employee theft, credit, debit or automated teller, counterfeit money, or fraud.
Business interruption insurance
Business interruption insurance supports you when your vending machine business can’t operate due to a covered loss. This type of insurance can be the difference between recovering from a loss and closing permanently.
There are many losses that can force your business to shut down. Some examples include:
- Damage to your equipment from fire or vandalism
- A major reduction in revenue due to a client/supplier facing losses of their own
- A disruption in your supply chain
Business interruption insurance can help with these expenses:
- Payroll
- Rent
- Utilities
- Property taxes
- Alarm monitoring
- Relocation of your business
A vending machine insurance package helps protect you from these claims
One of your vending machines has been vandalized. Commercial property insurance typically covers vandalism.
New vending machines are being shipped to a client’s location, but the truck transporting them gets into an accident and the machines are damaged. The carrier transporting your vending machines did not insure them. Marine inland insurance provides coverage for property and equipment, such as your vending machines, which are shipped by land.
Western makes insurance easy
We get multiple insurance quotes for you to choose from and give you policy coverage options that suit your business’s specific needs at the right price for you. Get a free quote!
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5 FAQs
Why is liability insurance important for a vending machine business?
Liability insurance helps financially protect vending machine operators from lawsuits or claims arising from customer injuries, property damage, or product-related harm caused by the machine or its contents. Ask a Western Financial Group business insurance expert about the liability insurance you need for your vending machine business.
How much does vending machine insurance cost?
There isn’t a set price, but typical annual insurance premiums can range from $300 to $1,000 per machine for coverage, depending on the number, location, and type of machines that need insurance.
Does vending machine insurance cover theft, vandalism, and damage?
Yes, it does. Property and commercial crime policies can help pay for repairs, replacements, or lost cash and product inventory due to theft, vandalism, fire, or weather damage.
Is cyber liability insurance coverage needed for vending machines that accept card payments?
As cashless payments become more popular, cyber liability insurance protects vending machine businesses from financial loss due to data breaches and cyberattacks.
Are there insurance discounts for vending machine operators?
Some commercial insurance providers can offer bundled policies such as Business Owner’s Policy (BOP), which combines property and general liability, often at discounted rates for multi-policy holders. Ask a Western Financial Group business insurance expert about discounts for which your vending machine business could qualify.
