Do I Need Insurance For My Vending Machine Business

Although “vending machine insurance” is not a standalone product, you have the option to acquire various types of coverage, such as general liability and commercial property insurance, to safeguard your vending machine business.

Given that vending machines can be placed in diverse locations, it is essential to assess the risk factors associated with each site, including local crime rates and weather conditions.

Keep in mind that every vending machine carries liability exposure, regardless of whether it dispenses food, electronics, or toys.

Familiarize yourself with your insurance responsibilities and available options, and carefully evaluate the cost of obtaining adequate coverage.

Insurance Coverage For Vending Machine Business
Do I need insurance for my vending machine business: Photo source (Reddit)

Is Insurance Required To Run a Vending Machine Business?

While there is no federal mandate compelling vending machine businesses to carry insurance, specific requirements may exist depending on the nature of your vending machine business and its location.

If your employees use vehicles to transport vending machines and inventory, you’ll need commercial auto insurance.

What Types of Insurance Should a Vending Machine Operator Consider?

While you can never go wrong with the broad coverage afforded by having a business owners policy, other insurance types like product liability and equipment breakdown insurance can provide your vending machine business more comprehensive protection.

See below for the various insurance plans you can get along with the monthly cost for each insurance type.

General Liability

  • Monthly Rate: $30[1]
  • Protects business from personal injury or property damage claims.
  • Coverage includes incidents like customer injuries on premises or misleading advertising claims.
  • Additional coverage through an umbrella policy is optional.

Commercial Property

  • Monthly Rate: $25 to $100+[2]
  • Covers costs of repairing or replacing business items damaged due to break-ins, robbery, or vandalism.

Business Interruption

  • Monthly Rate: $50 to $150[3]
  • Protects against lost revenue during temporary closure due to covered perils.
  • Covers expenses like leases, taxes, payroll, and relocation.

Business Owners Policy (BOP)

  • Monthly Rate: $261[4]
  • Comprehensive package combining liability, property, and business interruption insurance.

Product Liability

  • Monthly Rate: $99[5]
  • Covers legal responsibility for injuries or damages caused by products.
  • Example: Coverage for injuries caused by a vending machine dispensed item.

Equipment Breakdown

  • Monthly Rate: $67[6]
  • Covers sudden mechanical or electrical breakdowns, essential for vending machine business.

Employment Practices Liability

  • Monthly Rate: $67 to $250[7]
  • Protects against claims related to labor law violations, like wrongful termination or discrimination.

Professional Liability

  • Monthly Rate: $18[8]
  • Covers claims related to negligence, misrepresentation, and incorrect advice.

Cyber Liability

  • Monthly Rate: $25 to $100[9]
  • Provides coverage for data breaches and cyber-related losses.
  • Essential for businesses accepting card payments.

Commercial Auto

  • Monthly Rate: $75 to $200+[10]
  • Offers liability coverage and protection against physical damage for vehicles used for business purposes.

Also read: Is EMC Insurance Going Out Of Business

Inland Marine Insurance

  • Monthly Rate: $61[11]
  • Covers vending machines during transport or temporary storage at locations other than the primary business address.

Workers’ Compensation

  • Monthly Rate: $70[12]
  • Provides financial protection for employee injuries on the job.

Commercial Crime

  • Monthly Rate: $54 to $208[13]
  • Protects against losses caused by theft, fraud, forgery, and other crimes by employees or third parties.

How Much Does Vending Machine Insurance Cost?

Vending machine insurance, covering general liability and commercial property, may cost around $564 annually.

Rates vary based on additional coverage like equipment breakdown and cyber liability.

Workers compensation adds $840 per year.

Location influences costs, with high-crime areas leading to higher property claim likelihood. A history of prior claims usually raises premiums.

How Do I Insure My Vending Machine Business?

Here are the steps to buy insurance for a vending machine business:

  1. Identify the risks: Since vending machines are particularly vulnerable to theft, vandalism and advertising liability, considering coverage for general liability and commercial property would be a good starting point.
  2. Research insurance options: Look for insurance providers that specialize in vending machine business insurance as they are more likely to be familiar with specific risks within the vending machine industry.
  3. Obtain quotes: Compare the quotes and select the provider that offers the best coverage at the most affordable price.
  4. Purchase insurance: Be sure to read and understand the policy documents to ensure you have the coverage you need.
  5. Review your coverage annually: Your business and its risks can change over time so you may need to either increase or expand your coverage. In addition, you should shop around regularly to ensure you’re getting the best price possible.


Do I need vending machine insurance?

Usually not required unless employing workers; recommended for liability and physical damage coverage.

What risks do vending machine operators face?

Beware of high-crime locations; adjust property insurance. For food/drink machines, conduct quality checks to reduce health liability.

Is cyber liability good for businesses that accept credit cards?

Beneficial for protection against skimming devices; covers breach-related costs like fraudulent charges, card replacement, fines, etc.

Why do vending machines need insurance?

Essential for equipment breakdown and commercial property coverage against damage by vandals or thieves.

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