Vending Machine Manufacturers Insurance Policy Information
Vending Machine Manufacturers Insurance. Vending machines are impressive cabinets that house inner tanks with coiled feeding systems that dispense a product once a consumer inserts payment.
While most people are bound to think of vending machines as purely modern inventions, in truth, the first mechanical vending machine was invented as far back as the 19th century. Today's vending machines feature electronic as well as mechanical components, and some can accept bank cards.
Vending machine manufacturers produce vending equipment of all sizes, from small machines that are mounted on restroom walls to large freestanding machines located in public areas.
The vending machine consists of external housing and internal workings, which usually include a coin acceptor to receive and verify the amount deposited, a coin changer to return change, and chutes, racks, or trays for storage, display, and delivery of the product.
Vending machines may be strictly mechanical (operated by pull rods and levers), electronic or computerized. Many now include computerized validators to accept paper currency or credit cards. The range of products sold includes beverages, newspapers, personal hygiene items, snacks, stamps, toys, and trinkets.
Some provide change for larger denominations, while others are used for payment in parking lots. While some machines have refrigeration equipment to cool or preserve soft drinks, sandwiches, or similar products, others contain heating elements to deliver hot beverages.
Operations include cutting, shearing and forming or welding sheets metal into cabinets for housing the internal functioning parts and vended items. The manufacturer can make the internal assemblies or can purchase them pre-made from another manufacturer and simply assemble the final product.
The manufacture of vending machines is a complex process. Raw materials like steel, plastic, and polyurethane foam form the physical foundation, while skilled engineers do the design work and complex manufacturing equipment is used in the production of vending machines.
With vending machines offering an ever-increasing buffet of both food and non-food products, including toys and pharmaceutical products, manufacturers in this industry can be extremely successful.
They also, however, have to contend with the reality that worst-case scenarios do not always remain theoretical. That is why equipping themselves with outstanding vending machine manufacturers insurance coverage is essential. To learn more about what that may entail, read on.
Vending machine manufacturers insurance protects your manufacturing business from lawsuits with rates as low as $57/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked vending machine manufacturing insurance questions:
- How Much Does Vending Machine Manufacturers Insurance Cost?
- Why Do Vending Machine Manufacturers Need Insurance?
- What Type Of Insurance Do Vending Machine Manufacturers Need?
How Much Does Vending Machine Manufacturers Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small vending machine manufacturing businesses ranges from $57 to $79 per month based on location, size, revenue, claims history and more.
Why Do Vending Machine Manufacturers Need Insurance?
Some states legally require certain forms of insurance, while lenders almost always do the same. The prime reason to invest in a comprehensive insurance plan, however, is to ensure the continued success of your company.
Vending machine manufacturers are vulnerable to a range of potentially disastrous risks, both of the kind that can impact any commercial venture and the type specific to manufacture.
Without the right insurance, a theft, act of vandalism, or natural disaster like an earthquake or wildfire could leave your company with massive costs as you attempt to recover. Not only would you be solely responsible for repairing the damage, but your business would also likely lose revenue due to production interruptions. Insurance can help with both.
Without the right insurance, an employee who is injured on the job can still hold you responsible - but the costs would come out of your pocket. Should a vending machine you produced malfunction due to an error on your side, this can potentially lead to financial loss for the purchaser as well as physical injury for the user.
In both cases, lawsuits can wreak havoc on your financial health unless you have the right liability coverage.
In short, companies that make vending machines need to be insured for the simple reason that accidents and other unforeseen circumstances happen. When they do, adequate vending machine manufacturers insurance coverage is your best bet at a fast recovery.
What Type Of Insurance Do Vending Machine Manufacturers Need?
Many factors influence the types of insurance that best protect an individual manufacturer from most risks; your facility's location, your production output, the types of products to be sold in the vending machines you make, and the number of workers you employ are merely examples.
Because the process of obtaining the best insurance is challenging, you are advised to talk your exact needs through with an experienced commercial insurance broker. Some of the most important types of vending machine manufacturers insurance include:
- Commercial Property: This types of insurance serves to protect you from financial loss resulting from damage to your physical assets - your facility and its contents. In case of events like fire, theft, and vandalism, it helps cover the repair and replacement costs.
- Commercial General Liability: Designed to help you cover costs associated with third party property damage and physical injury claims, this type of vending machine manufacturers insurance is an essential part of your legal defense strategy. One scenario it would help with, for instance, is an employee damaging a wall on a third party property while delivering a vending machine.
- Product Liability: This type of liability insurance specifically protects you from financial loss caused by third party injury and property damage claims relating to vending machines you produced. Should vending machine malfunction and offer contents without payment, for example, the costs of any lawsuit that may follow would (partially) be covered.
- Workers' Compensation: In all fields, including yours, employees can suffer accidents and sustain injuries at work. This type of insurance covers their medical expenses and any lost wages.
It is important to be aware that these are simply examples of the kinds of vending machine manufacturers insurance needed; to review your own unique requirements, consult a commercial insurance broker who understands your field.
Vending Machine Manufacturing's Risks & Exposures
Premises liability exposures are normally low as access by visitors is limited. If the manufacturer conducts tours or has a showroom or retail outlet, visitors may be injured by slips, trips, falls, or flying debris. Storage in the open presents an attractive nuisance hazard unless the yard is fenced to prevent unauthorized access, with proper lighting and warnings.
Dust, fire or explosion, fumes, and noise may affect adjacent properties. If the manufacturer performs the retail delivery or installation, there may be frequent small property damage claims.
Products liability exposure varies from low to high depending on the size and type of machine and its intended use. The machine should be designed and manufactured to eliminate, as much as possible, the ability of purchasers to insert their fingers into the vending machine.
Larger machines should be designed to eliminate the possibility of tipping over and injuring or killing a purchaser. Injuries can also arise from burns from liquids heated at high temperatures, contamination of food or personal hygiene items, failure of refrigeration, faulty wiring, or sharp edges.
Environmental impairment exposures are generally moderate due to possible contamination of ground, air, and water from the disposal of flammable or toxic lubricants, solvents, paints, and metal shavings. Storage and disposal procedures must adhere to all EPA and other regulatory standards.
Workers compensation exposures may be moderate to high. Injuries from production machinery are common, as are burns, cuts, puncture wounds, slips, trips, falls, back injuries from lifting during production, delivery, or installation, eye injuries from flying debris, metal shavings, and dust, hearing loss from noise, and repetitive motion losses. Workstations should be ergonomically designed.
Amputations can occur from working with machinery. The high volume required for production schedules may lead workers to remove guards on the machinery, or to postpone maintenance and repair to increase production. Hazards from machinery, especially cutting devices, may increase in the absence of necessary protective coverings, including eye and hand protection, and guards on the machinery.
Workers should not be allowed to remove guards to increase production. Welding operations, especially in the absence of the necessary protective coverings that include face and hand protection, can be a major exposure. Flammable liquids and chemicals can irritate the skin, eyes, and lungs. Exposure to chemicals, dust, and paints can result in chemical burns and eye, skin, and lung irritation.
Workers should be aware of the toxic nature of any chemical and should be made fully aware of the need to watch for early signs and symptoms of problems. Drivers of forklifts and vehicles may be injured in accidents.
Property exposures consist of an office, shop, and a yard or warehouse for storage of raw materials and finished vending machines. Ignition sources include electrical wiring, heating, and cooling equipment, production machinery, and the build-up of metal dust from the cutting and sanding that can cause fire and explosion. The risk increases in the absence of proper dust collection systems, ventilation, and adequate disposal procedures.
Paints, lubricants, degreasers, and solvents can be flammable and must be adequately separated and stored away from other operations. Spray-painting operations can cause a fire unless carried out in spray booths with explosion-proof electrical components.
If the manufacturer works on or makes the internal working assemblies, an additional exposure exists from soldering, wiring, and related processes. Welding should be done away from combustibles.
Vending machines may be targets for theft. Appropriate security controls should be taken including physical barriers to prevent entrance to the premises after hours and an alarm system that reports directly to a central station or the police department.
There can be a significant business income and extra expense exposure, depending on the amount of time required to restore operations.
Equipment breakdown exposures include malfunctioning production equipment, ventilation and dust collection systems, electrical control panels and other apparatus. A lengthy breakdown to production machinery could result in a severe loss, both direct and under time element.
Crime exposure comes from employee dishonesty and theft if the finished vending machines are high in demand. Employees may act alone or in collusion with outsiders in stealing money, raw materials, or finished stock. Background checks should be conducted on all employees.
There must be a separation of duties between persons handling deposits and disbursements and handling bank statements. The manufacturer should have security methods in place to prevent theft.
Inland marine exposures include accounts receivable if the manufacturer offers credit, computers (which may include computer-run production equipment), contractors' equipment for forklifts, exhibitions, goods in transit and valuable papers and records for customers' and suppliers' information. The major causes of loss are fire, water damage, theft, collision, and upset.
Since the machines can be bulky and top-heavy, tie-down procedures are important if delivered in an open trailer. If the manufacturer offers repair or refitting services, there may be a significant bailee customers exposure. If the manufacturer installs machines, there may be an installation exposure.
Commercial auto exposure may be high if the manufacturer picks up raw materials or delivers finished vending machines to customers. Some types of vending machines are very top-heavy and bulky. Proper loading and tie-down procedures are essential to prevent overturn and /or release during shipment. Manufacturers generally have private passenger fleets used by sales representatives.
There should be written procedures regarding the private use of these vehicles by others. Drivers should have an appropriate license and an acceptable MVR. All vehicles must be well maintained with documentation kept in a central location.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3581 Automatic Vending Machines
- NAICS CODE: 333318 Other Commercial and Service Industry Machine Manufacturing
- Suggested ISO General Liability Code(s): 59915
- Suggested Workers Compensation Code(s): 3559
Description for 3581: Automatic Vending Machines
Division D: Manufacturing | Major Group 35: Industrial And Commercial Machinery And Computer Equipment | Industry Group 358: Refrigeration And Service Industry Machinery
3581 Automatic Vending Machines: Establishments primarily engaged in manufacturing automatic vending machines and coin-operated mechanisms for such machines.
- Locks, coin-operated
- Mechanisms for coin-operated machines
- Merchandising machines, automatic
- Vending machines for merchandise: coin-operated
Vending Machine Manufacturers Insurance - The Bottom Line
Not every vending machine manufacturers insurance policy offers the same coverage and cost. You can discover if your business has the best fit insurance policies by talking to an experienced commercial insurance broker.
Often they are able to save you on premiums and offer you better policy options than you currently have.
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.
Additional Resources For Manufacturing Insurance
Learn all about manufacturing insurance. Manufacturers face many unique risks such as product libility and/or product recall exposures due to the nature of their business operations.
- Audio & Video Equipment
- Auto Parts
- Brooms & Brushes
- Camping Equipment
- Canned Fruit & Vegetables
- Canvas Products
- CBD Oil And Hemp
- Clock & Watch
- Commercial Air Conditioning
- Commercial Electronics
- Communications Equipment
- Construction Equipment
- Cork Products
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Fur Garment
- Garage Door
- Gypsum Products
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Lighting & Wiring
- Lumber & Wood Products
- Machine Shop
- Major Electrical Appliances
- Marijuana Products
- Mattresses & Box Springs
- Metal & Plastic Furniture
- Metal Heat Treating
- Metal Toys
- Musical Instruments
- Nonferrous Foundries
- Ornamental Metalwork
- Paper & Allied Products
- Pet Food
- Plastic & Rubber Toys
- Plastic Goods
- Plastics Molding, Forming & Extruding
- Product Liability
- Pulp & Paper Mills
- Residential Air Conditioning & Heating
- Rubber Goods
- Sawmills & Planing Mills
- Screw Machine Products
- Sheet Metal
- Soap & Detergent
- Small Electrical Appliances
- Sporting Goods
- Stone Products
- Textiles Finishing & Coating
- Tool & Die Shops
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
For manufacturers, having the proper coverage is very important. You will need Products/Completed Operations Liability Coverage to protect you against injuries or property damage cause my the products you make or sell.
Manufacturing is an extremely broad category that includes countless potential hazards and exposures in virtually all coverage areas. Because of this, every individual manufacturer is unique and a specific risk survey of every operation is advisable.
The basic insurance needs for every class of business or operation includes property coverage for buildings, machinery and equipment, as well as for raw stock and finished products.
Liability insurance for premises exposures is important but products liability insurance presents greater concerns so these exposures and coverage needs must be evaluated carefully.
In addition, protection for injuries to workers, environmental coverages and automobile insurance are priority items.
What does the insured does that could result in a covered loss? The insuring agreement only requires that the insured be legally obligated to pay damages for injury to others or damage to their property included within the products-completed operations hazard covered by the insurance.
Because of this, every product manufactured and completed operation exposure for each named insured must be determined, described and evaluated to be certain that each represents acceptable exposures, or are acceptable classes of business to the insurance company providing coverage.
Once the extent of all business activities and operations is determined, the process of identifying hazards begins. The first step in the process is completely listing and describing all current products being manufactured and projects being worked on.
The next step is obtaining the same information for discontinued products and completed projects for the past five to 10 years, depending on the products or projects involved. This should include an explanation of why the products were discontinued. If some completed projects were of a different type than those currently being worked on, an explanation is in order, including whether the insured may resume them in the future.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income with Extra Expense, Equipment Breakdown, Employee Dishonesty, Accounts Receivable, Computers, Goods in Transit, Valuable Papers and Records, General Liability, Employee Benefits Liability, Environmental Impairment Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Flood, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.