Vending machines offer a potentially lucrative opportunity for business owners and entrepreneurs.
Data suggests a single food or beverage vending machine earns an average of up to $400 per month, and one in eight vending machines brings in more than $1,000 monthly. According to IBIS World, Canada’s vending machine operators industry was worth more than $293 million in 2023.
How lucrative it is for you depends on several factors, such as the type of machines, the products they offer, and their locations. For example, a vending machine located in a large, busy fitness centre stocked with energy and protein drinks and healthy snacks, or a machine located in a transit or train station that serves hot coffee, tea, and other beverages for people on the go is likely to ring up consistent sales month-over-month.
But you also need to protect your business’s money, reputation, and investment in your vending machines. That means getting a customized vending machine insurance policy if something goes wrong.
And what can go wrong? Plenty! Let’s look at what a vending machine insurance policy includes and what liability risks vending businesses face:
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What Does a Customized Vending Machine Insurance Policy Include?
What a customized insurance policy for your vending machine business includes depends on several factors about your company. Most policies of this type include:
- General liability insurance to cover third-party bodily injury or property damage claims.
- Product liability insurance to protect you against claims alleging third-party bodily injuries or property damage from the items you sell.
- Equipment breakdown insurance to pay to repair or replace your vending machines if damaged by an internal mechanical failure or electrical malfunction.
- Commercial auto insurance for your business vehicle if it’s involved in an auto accident.
- Commercial property insurance to pay for damages and losses to your business property, contents, and inventory because of fire, water damage, a natural disaster, theft or vandalism.
- Cyber liability insurance to cover your costs from the financial impacts of a data breach or cyber-attack.
- Commercial crime insurance to cover losses due to internal theft and theft of cash if funds go missing while in transit with a delivery driver or armoured car company.
4 Liability Risks Vending Machine Operators Face
Vending machine operators and suppliers face many liability and legal risks. Here are four of the most common:
- Product Liability
Vending machine operators may be liable for injuries or illnesses caused by defective or contaminated products sold through their machines.
- Theft and Vandalism
Vandalism and theft are always a threat to vending machines that can result in financial losses for operators.
- Machine Breakdowns
If a vending machine malfunctions and fails to dispense products properly due to a mechanical or electrical malfunction, operators face loss of income and potentially costly repair or replacement bills.
- Third-Party Bodily Injuries
Customers may sustain injuries while using vending machines, such as getting fingers caught in the dispensing mechanism or if the machine tips over and falls on top of them. You can be liable for injuries from unsafe or defective machine design, maintenance, or operation.
How to Get Vending Machine Business Insurance Today
Get the low-cost vending machine insurance policy you need from Zensurance.
Fill out our online application for a free quote. Our knowledgeable brokers will customize the policy to suit your unique needs, advise you on what coverage limits you should have and what exclusions may apply, and issue you a certificate of insurance in 24 hours or less.
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