don't want to go out of pocket for
anything more than the minimum
that they have to purchase. Then
something like a water line breaks
or someone steals their vending
machine. Then I have to explain to
them that their policy doesn't cover
those instances. That's the most
diffcult conversation to have with
clients, when they decide to cut cor-
ners not pay premiums and then they
need help that we can't provide."
Other recommendations
There are many types of insurance
for business owners. Although prop-
erty coverage, liability coverage and
automobile coverage are the most
common and necessary types of
business insurance, there are several
other types that are recommended.
Disability insurance, health insur-
ance, life insurance and workers'
compensation are a few other recom-
mended coverage options operators
should look into.
Soto and Devine both recom -
mend that operators think of the
worst possible scenario for their
business when deciding on insur -
ance: a company partner dies, a
child has an allergic reaction to a
mislabeled homemade product in a
machine, a broken water line foods
a building foor. Then they should
ask themselves if they feel fully cov-
ered in that situation. If the answer
is 'no' or 'I'm not sure,' it's time to
speak with an agent.
Insuring credit card data
One type of insurance coverage that operators need to take into consid-
eration is cyber liability insurance. If a machine accepts credit cards, the
machine's operator is responsible for maintaining customers' credit card
information in a safe and secure way. "Skimmers that are on ATMs can
also be put on vending machines," said Ted Devine, chief executive offcer
of Insureon. "A person can swipe their card thinking they're using the ma-
chine's credit-payment option, but then their data can get transferred to a
cybercriminal somewhere. When the cops track down the source of the data
breach to your vending machine, you could be on the hook for providing
credit monitoring services, paying state fnes and more."
36 Automatic Merchandiser VendingMarketWatch.com April 2014
I N S U R A N C E
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