Automatic Merchandiser serves the business management, marketing, technology and product information needs of its readers including vending operators, coffee service operators, product brokers, and product and equipment distributors in print.
Issue link: http://automaticmerchandiser.epubxp.com/i/288030
The fne print Every vending company is differ- ent, and each company will have its own insurance priorities. No matter which insurance provider a company obtains, it is impor- tant to know the fne print of all coverage. Every operator can ask themselves, "Do I know my insurer's procedures in the event of a company emergency? Do I have add-ons, endorsements or riders to my policies? Do I know specifcally what my insurance covers?" In the event of a weather or fre related catastrophe, some compa- nies, like State Farm, will do replace- ment cost coverage rather than actual cash value. "If your building burned down to the ground, how much would it cost to replace every- thing that was in it?" asked Soto. "I leave it up to the business owner to tell me what they want to insure for. You can go as low as $5,000 and you can go as high as $150,000 or higher." However, not all insurance companies have the same process when it comes to handling accidents and it is the operator's responsibility to make sure he or she is covered. Many times, operators don't know the fne print of their cover- age, and that includes the possibility of being over-insured. Don't cut corners Some insurance companies give cli- ents a policy with coverage that may never be used, while other compa- nies offer a standard policy with the option of purchasing additional cov- erages that tailor the policy to each client's needs such as the endorse- ments or riders previously listed. One of the biggest mistakes Soto sees is when operators come to her for insurance simply because another business is requiring they have it, not because they believe they may actually need it. "They'll get the minimum policy and they 5 mistakes vendors make with insurance When it comes to choosing insurance, mistakes are common. Ted Devine, chief executive offcer of Insureon, lists the most common insurance mis- takes vending operators make: • Not insuring the vending machine, especially if it's leased. You may only be contractually required to have general liability insurance, but adding property is pretty easy and affordable, and it can save a lot of money and hassle in the event of damage to the machine. • Not disclosing all of the products you sell in your machine to your insur- ance provider. Cigarette vendors and hot beverage vendors have vastly dif- ferent exposures than candy vendors. If the foods you sell can spoil, there might be some additional liabilities. It's just really important to disclose all the products sold in your machines. Otherwise, if you have to make a claim and it turns out your policy doesn't cover incidents related to that product, you're on your own to cover the costs. • Not monitoring and maintaining machines. We all know the saying "a stitch in time saves nine," and it's so true with machine maintenance — just like car maintenance. A little upkeep can prevent a lot of expensive breakdowns. • Not contacting the insurance provider right away when a claim incident or potential claim incident happens. It's important to remember that you don't have to wait for a lawsuit to contact your insurance company. The minute you hear that someone tripped on a machine's power cord, it's smart to give your insurance provider a call. The truth is that most people won't sue over these types of incidents, but when someone does, it's going to be a lot harder to convince your insurance provider to cover the claim if the trigger- ing incident happened three months ago and they never heard about it. • Choosing a deductible that's too high. It can be tempting to go with a higher-deductible policy because those policies usually come with lower premiums each month. But if you can't comfortably afford your deductible in the event an incident occurs, you're going to be fnancially strapped even though you have insurance coverage. The deductible shouldn't be more than you can afford — period. To determine what that amount is, talk to your agent. Core insurance policies Additional recommended insurance policies Insurance Business property Business liability Disability Health Cyber liability Commercial auto Life Workers' compensation 34 Automatic Merchandiser VendingMarketWatch.com April 2014 I N S U R A N C E autm_32-37_0414Insurance_F.indd 34 3/21/14 12:11 PM