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Insurance?


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I have a tendency to overdo everything. Ha. Most know I'm a newbie. Just landed my first two accounts this week. I'm now wrapping up all the loose ends- insurance coverage. From research it appears a basic general liability coverage is the best.

Is that the case? Veterans- what did you do as you grew? I plan on only 3 locations this year, doubling to 6 by end of 2017.

Thanks in advance for any advice!!

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Liability insurance is important, especially if your business structure is sole proprietor.  Remember the story a few weeks ago about the kid (thief) who got his arm stuck in a drink machine for several hours until the fire dept got him out?  Well, if the parents feel like suing, a good liability policy will defend you.  The good news is, it's not expensive for vending, and usually based on annual sales amount.  You need to shop around tho, when I was starting the price differences were pretty amazing between agencies and insurers.  It's nice to be able to tell a prospective location you are insured, and some will request proof of insurance.  Your agent will usually provide a standard proof of insurance form for you directly to the location when you request it (usually at no extra charge).   If you want a referral, I will be glad to provide the info for my agent, but I don't know if they write policies outside of Florida....

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Great feedback thank you. I have a friend who is a broker so working through him. Just wanted to make sure I wasn't over killing it with everything. Definitely know and see the value in being properly insured. Thanks again!

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In vending you need two types of insurance and many miss this. You need a GL (general liability) policy which covers you if someone gets hurt by you, your equipment, etc. You also need a completed products policy (the one many people miss) which covers if someone gets sick or dies and the food comes into play. GL is not going to cover you completely like many think. You need the completed products to cover the actual food and drink portion. Also some accounts even require certain insurances for your vehicles.

 

Some insurance companies do not offer the completed products and it needs to be bought together with GL from one company. 

 

Just fyi, insurance is not overkill it is a necessary evil for any legitimate business to have. 

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NAMA (National Automatic Merchandising Association) has suggested insurance companies that offer policies designed for vendors.  Plus you can get some credit on the premium if you become a member.  Once you get a certificate of insurance you can just copy it and put it in your sales binder.  Companies wanting your insurance certificate almost always want proof of Workers Comp coverage too.  It can get complicated with larger companies but well worth the extra paperwork.

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Good tip on the completed products insurance, I will have to talk to my agent.  Smartvend, it's always nice to have a friend in the business, but remember he can only quote rates from the companies he represents.  My first GL quote was 1,200 for 1MM coverage, but I found another insurer that wrote it for 600.  Big difference! 

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I use State Farm and I think my premium this year was $325 for the $1mm policy.

State Farm here in Louisiana told me they don't write policy here?

 

Been using state farm for years for auto insurance.

 

Time for change!

 

cajun 

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