Vending Machine Insurance

Vending Machine Business Insurance in Ontario 

Running a retail business is a lot of work, no matter how you look at it, but it simplifies the process when you can stay behind the scenes and let machines take care of the customer transactions. That doesn't mean vending machine owners can sit back and watch the income roll in. Owning a vending machine business doesn't prevent you from being exposed to some severe liability and property damage risks. In some cases, the risk level may be even higher than in a traditional shop because you're not there to monitor what's happening between your machines and customers. The solution to transferring that risk is to have the right vending machine insurance in Ontario. Vending business owners can count on the expert insurance brokers at Morison Insurance for a package of insurance coverage that addresses the potential risks in this type of business venture.  

What is Vending Machine Insurance? 

Vending machine insurance is a type of business insurance package that is specifically designed to handle the kinds of liability and property risks that come along with owning and operating vending machines of any sort. It can be broken down into a wide range of different coverages that fall into two general categories: those intended to address liability risks, which are situations that can prompt someone to bring legal action against you in court for a variety of reasons, and property risks, in which your business property is damaged, destroyed, stolen, vandalized or breaks down and must be repaired or replaced. With the right coverage for your vending machine business insurance, you can expect to receive insurance compensation to deal with the costs associated with those situations. You don't have to suffer significant financial setbacks by paying out of pocket for them.  

Who Should Have Vending Machine Insurance in Ontario? 

Whether you're an independent vending machine owner or run a franchise or chain that includes vending machines as one aspect of your business, having the right insurance on your side is essential. That consists of all types of vending machines, from simple snack and beverage dispensers to machines that produce made-to-order goods or machines that vend non-edible items. 

What Types of Insurance Are Available for Vending Machine Insurance? 

To ensure comprehensive protection for your commercial property and other assets, it is crucial to have vending machine insurance policies that are specifically tailored to your needs. To safeguard your equipment and inventory and even secure coverage for business interruption and income, it is essential to collaborate with experienced and licensed brokers like the exceptional team at Morison Insurance. Our dedicated professionals will go above and beyond to provide you with the most suitable coverage available, granting you peace of mind knowing that your business is fully protected.  

The qualified brokers at Morison Insurance will actively listen to your unique requirements and work with you to develop the right vending machine insurance quote. Our aim is to safeguard you, your assets, and your employees from a wide array of risks. Here are some essential types of coverage that should be incorporated into your vending machine business insurance policies, as well as optional coverages that provide immense value and are highly recommended.  

Commercial General Liability Insurance 

Every business needs commercial general liability (CGL) insurance as it is essential for protecting against potential lawsuits linked to bodily injury or property damage to third parties. CGL insurance is also crucial for scenarios involving liability due to advertising injury. No matter how careful you are, situations that result in physical injury or damage can happen to anyone.  

For example, you could be restocking a vending machine in the lobby of a busy building when someone trips over your box of products and injures themself. Suppose that person decides to sue you for third-party bodily injury. In that case, your commercial general liability insurance will ensure that your insurance carrier provides you with the necessary funds to cover litigation and settlement costs up to the coverage limits specified in your vending machine insurance policy. It's important to remember that even if you're found not liable in court, having insurance coverage is essential to address legal expenses such as attorney fees, court fees, legal mediation, and other associated costs. 

Product Liability Insurance 

Product liability insurance is a specialized type of commercial general liability coverage that applies to litigation related to bodily injury or property damage caused by the products you sell. It's an essential part of a vending machine insurance policy. If your machines vend fresh products such as sandwiches, for example, there's potential for your customers to contract food poisoning from the product for a variety of reasons. It could be that the food was contaminated when it was made, it remained in the machine for too long, or the machine didn't keep it cold enough to prevent spoilage. Even if you're vending non-edible items, there's a potential for injury—a toy that's not adequately labelled as a choking hazard, for example, could prompt a situation that results in a product liability claim on your vending machine business insurance.  

Commercial Cyber Liability Insurance 

It may seem odd at first that you would need cyber liability insurance as part of your vending machine insurance package, but most businesses conduct at least some business electronically, which leaves them vulnerable to the possibility of a cyber-attack or data breach. Suppose you have vending machines with cashless payment options such as credit cards. In that case, a criminal can skim your customers' credit card information directly from the machine and use it fraudulently. Since you are responsible for that information while it is stored in your machine, that kind of activity could result in you being sued, and in that event, you can expect your cyber liability coverage to cover expenses such as legal fees and settlement costs up to your policy limits.  

Commercial cyber insurance may also offer you some coverage for expenses such as notifying customers of a data breach or recovering stolen information. Business owners in Ontario have a legal obligation to establish a comprehensive plan that ensures timely notification of customers or clients in the unfortunate event of a privacy data breach. It is important to note that the legal notification process can cost significantly more than what many business owners suspect.  

Commercial Auto Insurance 

As a vending machine operator, you naturally must travel from location to location to restock and maintain your machines. It's no secret that any vehicle on the road in Ontario must have auto insurance coverage. Still, some people don't realize that their personal vehicle also qualifies as a business vehicle if it's used for business purposes and must be covered by commercial auto insurance rather than just personal vehicle insurance. Suppose you are involved in a collision while you are using your vehicle for commercial reasons. In that case, your personal auto insurance will not cover you entirely or at all, so it's essential to ensure you have the right type of coverage for the activities you use the vehicle.  

Commercial Property Insurance 

Your vending machines may or may not be located on your own commercial property. Still, the most common scenario is that they are situated in other businesses and public spaces that have contracted you to provide a service. That doesn't mean you don't have any commercial property to worry about, as you still need space to store goods before they are stocked in the machines, along with equipment to maintain the machines and, in some cases, the machines themselves while they are out of use.  

Whether you have a dedicated commercial space for those purposes or use part of it, such as your home garage, to store those items, it must be covered with commercial property insurance. Should something such as a fire, natural disaster or theft occur to destroy your commercial equipment and stock, the commercial property insurance portion of your vending machine insurance would provide you with the funds necessary to take care of replacement, as well as the repair or restoration of the physical building or portion of the building that is being used for commercial purposes.  

Employee Theft Insurance 

It is uncomfortable to consider that the employees we trust to conduct their work with honesty and reliability may not always live up to these expectations. However, the unfortunate reality is that such incidents do occur. Employee theft coverage aims to provide financial support if an employee commits theft against the business owner. That being said, for owners of vending machine businesses who send employees to other commercial properties unaccompanied, it is crucial to include an extension in their vending machine insurance that broadens employee theft coverage to situations where an employee steals from a client.  

Legal Expenses Insurance 

With legal expenses insurance, you can get direct access to legal professionals or expert advice on business matters. This coverage allows you to ask quick questions and gain a legal perspective on various business issues, ranging from client contracts to employment matters and beyond. The most significant advantage of having legal expenses coverage included in your vending machine insurance package for your business is the ability to receive legal advice via a hotline without needing to file an insurance claim. This not only keeps your premiums affordable but also ensures a claims-free status, all while providing the assistance you require to propel your business toward success.  

Additional Types of Vending Machine Insurance Coverage 

• Equipment Breakdown Insurance  
• Business Interruption Insurance  
• Commercial Crime Insurance  
• Inland Marine Insurance  
• Commercial Umbrella Insurance  

Is Vending Machine Business Insurance Really Necessary? 

While most types of business insurance are optional in Ontario, except for commercial auto insurance, it is crucial to note that operating a retail business without insurance is not realistic, even if the government does not require vending machine insurance in Ontario. Many entrepreneurs may believe they can escape the necessity for insurance, but these expectations are far from practical. No one can foresee every mistake, prevent every mishap, or anticipate every dishonest individual. Moreover, numerous unforeseen circumstances can arise that are entirely beyond one's control. Most business owners don't have hundreds of thousands, or even millions, of dollars available to cover unexpected expenses such as a lawsuit, so vending machine insurance is necessary to prevent financial losses.  

But there's more to it than that. Many commercial property owners and suppliers will simply refuse to contract with you if you cannot produce a certificate of insurance that lists the correct types of coverage in the proper amounts. That means not having vending machine insurance coverage could seriously hinder your ability to operate your business productively and profitably. 

Where Can I Get a Vending Machine Insurance Quote in Ontario? 

Get in touch with the expert insurance brokers at Morison Insurance right away. Our reliable team has the skill and experience to tailor the perfect vending machine business insurance coverage for you. This will give you the freedom to run your business without worrying about any potential mishaps. At Morison Insurance, our priority is our clients, not the insurance companies. This ensures that we always put your best interests first, providing you with the peace of mind that comes with robust financial protection. Rest assured that we will go above and beyond to ensure you have the right vending machine insurance coverage, custom-tailored to meet your needs. Reach out to our team of experienced brokers today at 1-800-463-8074 for a vending machine insurance quote or to discover how our insurance solutions can help your business thrive.  

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.