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Business property coverage is another necessary insurance to ensure main business aspects are cov- ered. Property insurance protects the machines in case of weather damage or power failure. Devine also points out that if an operator is leasing a machine, property insurance will cover replacements in the event that it breaks down or becomes ruined. Depending on the insurance pro- vider, general liability can be labeled under another name, such as busi- ness liability. Property insurance and liability coverage are oftentimes com- bined to create a "business owner's policy" or BOP. "Instead of paying full price, operators can get a dis- count because they are buying both at once," said Devine. "The BOP can also be customized with other types of coverages, like commercial auto." However, not all insurance compa- nies offer machine coverage in their standard BOPs. State Farm allows cli- ents to purchase its business policy with the option to add 'endorsements'. In the case of vending, operators can add an endorsement that would pro- vide coverage to vending machines, at a $250 deductible. Although many smaller busi- nesses don't choose this endorse- ment due to the price, Kelli Soto of Ralph Bettencourt at State Farm says that it can be useful for a large vending operation with hundreds of machines. The business liability policy for State Farm covers liability for bodily injury and content, also known as business property. How- ever, Soto noted that the liability pol- icy for State Farm won't necessarily cover the operator if a consumer gets sick from an item in a machine. It's important operators go through all of the possible liabilities with their insurance provider and ask if their current policy would cover certain lawsuits. Some companies' general liability insurance will cover acci- dents such as a consumer having an allergic reaction to a mislabeled product, but not all companies offer this coverage in their business own- er's policy. Commercial auto is necessary Besides business liability and prop- erty coverage, insurance providers recommend operators obtain auto insurance. If an operator is using his or her own personal vehicle to make deliveries, then purchasing commercial auto insurance is neces- sary. Personal automobile coverage differs from commercial coverage and most providers have an exclusion in their personal auto policies for com- mercial operations. This means if you're using your personal truck to make deliveries and you get into an accident, the claim could name your company, which isn't listed under your personal auto insurance. "The good news is that it's pretty easy to get a policy called Hired and Non-Owned Auto insurance (HNOA), which pro- vides coverage for a personal vehicle, i.e., one that's not owned by the busi- ness, used for business purposes," said Devine. "The HNOA policy can often be added as a rider to a business owner's policy." Soto at State Farm agrees that commercial auto insurance is critical for operators making deliveries. "We have high liability," said Soto. "If an employee is driving a truck with the company's logo on it and then rear- ends someone, that person might go after the company because they assume they make the "big bucks." We do a $1 million single limit with high deductibles on auto policies. I suggest that for any business." Soto also suggests that operators enroll in the commercial liability umbrella. Although this policy is optional, it allows operators to house both the business liability and auto insurance under one policy and gives clients an extra amount of coverage starting from $1 million up to $10 million. '' Instead of paying full price, operators can get a discount because they are buying both [property and liability] at once. '' April 2014 VendingMarketWatch.com Automatic Merchandiser 33 I N S U R A N C E Big or small, vending operators need to properly insure their businesses. Thinkstock autm_32-37_0414Insurance_F.indd 33 3/21/14 12:11 PM