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:
- What Is Vending Machine Manufacturers Insurance?
- How Much Does Vending Machine Manufacturers Insurance Cost?
- Why Do Vending Machine Manufacturers Need Insurance?
- What Type Of Insurance Do Vending Machine Manufacturers Need?
- What Does Vending Machine Manufacturers Insurance Cover & Pay For?
What Is Vending Machine Manufacturers Insurance?
Vending machine manufacturers insurance is a type of insurance designed specifically for companies that manufacture vending machines. This insurance covers the company against various risks associated with the production and sale of vending machines, such as liability for any damage or injury caused by a malfunctioning machine, protection against theft or damage to machines during transport, and protection against loss of revenue due to machine downtime. The insurance policy may also include coverage for any legal costs incurred in the event of a lawsuit.
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.
What Does Vending Machine Manufacturers Insurance Cover & Pay For?
Vending machine manufacturers can face various lawsuits due to a number of reasons, including product liability, personal injury, property damage, and contract disputes. Insurance can provide critical protection in such instances, helping manufacturers to handle the financial burden associated with legal proceedings. Here are a few examples:
Product Liability: If a vending machine malfunctions or is found to have a manufacturing defect that results in harm or loss to a user, the manufacturer may face a product liability lawsuit. A customer might claim the vending machine caused physical injury, for instance, by dispensing an item in a manner that caused harm. In such a case, product liability insurance can cover the legal costs, settlements, and any court-ordered judgments related to the claim.
Personal Injury: In another scenario, if a vending machine tips over and injures a customer, a personal injury lawsuit could follow. This could be due to faulty design or inadequate instructions regarding the proper installation and anchoring of the machine. Here, general liability insurance, which typically includes coverage for bodily injury, could step in to cover the legal expenses, medical costs for the injured party, and any damages awarded.
Property Damage: Suppose a vending machine causes property damage, such as a machine leaking and causing water damage to a client's premises. The client might sue the manufacturer for the cost of repairs. Commercial general liability insurance would typically cover these costs, including legal defense, and any settlements or judgments.
Contract Disputes: If a vending machine manufacturer fails to deliver on the terms of a contract with a client or business partner, they might face a lawsuit for breach of contract. A lawsuit like this might involve claims of late delivery, non-delivery, or supplying machines that do not meet the agreed-upon specifications. In such cases, professional liability insurance (also known as errors and omissions insurance) could cover the legal costs and any awarded damages associated with the breach of contract.
Each of these insurance types provides a financial safety net for vending machine manufacturers, allowing them to continue their operations even in the face of potentially costly legal actions. It's important to note that the specifics of what each policy covers can vary, and manufacturers should work closely with their insurance providers to ensure they have the coverage they need.
Commercial Insurance And Business Industry Classification
- SIC CODE: 3581 Automatic Vending Machines
- NAICS CODE: 333318 Other Commercial and Service Industry Machine Manufacturing
- Suggested Workers Compensation Code(s): 3559 Machine Manufacturing - Confection
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.
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.
- 3D Printing
- Audio & Video Equipment
- Auto Parts
- Bottling Plants
- 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
- Dairies & Creameries
- Down And Feather Products
- Dry Ice
- Dyes & Pigments
- Electronic Toys & Games
- Exercise Equipment
- Farm Equipment
- Feed & Grain
- Flavoring Extracts
- Frozen Foods
- Fruit Juice
- Fur Garment
- Garage Door
- Gypsum Products
- Ice Cream
- Industrial Equipment
- Iron & Steel Foundries
- Lawn Mowers
- Leather Apparel
- Leather Goods
- 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
- Psychedelic Drugs
- 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
- Vegetable Juice
- Vending Machines
- Wire Rope
- Wood Furniture
- Writing Instruments
- Specialty Manufacturing
- Specialty Product Liability
The manufacturing industry is a vital part of the economy and plays a significant role in the production of goods and services. However, it is also an industry that is prone to risks and accidents, which can result in costly damages and lawsuits. Therefore, it is essential for businesses in the manufacturing industry to have insurance to protect them against potential losses.
Business insurance can cover a wide range of risks, including property damage, liability, and worker injuries. For instance, if a fire were to break out in a manufacturing facility and destroy equipment or inventory, commercial insurance could cover the costs of replacing or repairing the damages. Similarly, if a worker were to be injured on the job, business insurance could cover medical expenses and lost wages.
In addition to protecting against physical damages, insurance can also provide financial protection against legal liabilities. If a customer were to sue a manufacturing business for a faulty product, the commercial insurance could cover the costs of legal fees and settlements.
Overall, insurance is essential for the manufacturing industry as it helps to mitigate risks and protect against unexpected costs. Without it, businesses in the industry could face financial ruin in the event of an accident or lawsuit.
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.