Liability Insurance

[Mooman333]

How many of you carry liability insurance? I currently don't have any and have about 5 old DN 501s.

I am trying to figure out where to get insurance coverage... State Farm couldn't help me out and said they would refer me to someone and they never did.

I would hate to think of a compressor (or electronics, who knows) catching on fire and burning down a $2 millon dollar facility...

What company do you have insurance through, how much coverage, and what is the cost per year?

[Nick SDL]

http://vendiscuss.net/index.php?/topic/6745-how-did-you-get-your-liability-insurance/page__hl__%2Bliability+%2Binsurance__fromsearch__1

[Dennis23]

I always used a independant agent. I'm not an insurance expert but any independant agent should be able to help.

[mission vending]

How many of you carry liability insurance? I currently don't have any and have about 5 old DN 501s.

I am trying to figure out where to get insurance coverage... State Farm couldn't help me out and said they would refer me to someone and they never did.

I would hate to think of a compressor (or electronics, who knows) catching on fire and burning down a $2 millon dollar facility...

What company do you have insurance through, how much coverage, and what is the cost per year?

There are many different opinions to be had about having liability insurance. I currently have a 4M liability policy (its required by some of my customers). Costs me about 2K a year.

My take on the situation is this. By definition insurance is paying someone to accept the risk of loss. So the next question is; what do you have to lose? Do you have a significant net worth that needs protection? If not, then you probably don't "need" it for that reason.

Do any of your accounts require it? Given that you have 5 machines a general liability poilcy will run you several hundred dollars, probably around 500. Do the machines make enough to make paying that worthwhile?

In my case I did not get a liability policy until I was grossing over 400K and a new customer required it. Up til that point I really did not have anything that was worth taking in the unlikely event that something actually did happen. The worst thing that would have happened to me is that I would have been subject to a lawsuit, eventual judgement and forced into bankruptcy. You can't be imprisioned over a civil matter.

That said, if you can afford it, I would encourage you to do so.

[sphincorp]

The Hartford group does great liability... which you will need when you want to get an Apt. building or any other commercial property

...sure you will get away without it for awhile, until they ask, or another co. tries to steal ur stop

... stating that 'they are fully insured"

....or until they have to pay you for some maint., which you will have to be a vendor , and have insurance......

[Mooman333]

There are many different opinions to be had about having liability insurance. I currently have a 4M liability policy (its required by some of my customers). Costs me about 2K a year.

My take on the situation is this. By definition insurance is paying someone to accept the risk of loss. So the next question is; what do you have to lose? Do you have a significant net worth that needs protection? If not, then you probably don't "need" it for that reason.

Do any of your accounts require it? Given that you have 5 machines a general liability poilcy will run you several hundred dollars, probably around 500. Do the machines make enough to make paying that worthwhile?

In my case I did not get a liability policy until I was grossing over 400K and a new customer required it. Up til that point I really did not have anything that was worth taking in the unlikely event that something actually did happen. The worst thing that would have happened to me is that I would have been subject to a lawsuit, eventual judgement and forced into bankruptcy. You can't be imprisioned over a civil matter.

That said, if you can afford it, I would encourage you to do so.

Seems like it would be hard to afford the insurance with the few machines i have, and still have a reason to do the vending. I have some machines at some expensive buildings (manufacturing). I have just been cringing at the what ifs. I don't have any net worth (under $30K), I just repaid my student loans, but i would hate to think of being sued for 2+ million dollars and loosing the little that i do have... what then? This is all especially true since it is just a fun hobby for me and the income is basically irrelevant in my life at this point. It will be a different story if i decide to expand.

Am i just worrying to much?? How dangerous are these old machines (probably early 90's)... I guess i really don't know what could cause a compressor to catch fire... or the likely hood. I would assume very rarely.

[Vendors Tech]

I have never heard of a machine catching fire and burning down the building. Not saying it hasn't happened, but its NOT common. IF that ever happened, I would say 50% of the time it would be the fault of the location, not yours. If you have power problems such as that, they probably will have to come from a problem in the system of the building. Machines themselves don't generally have electrical problems bad enough to cause fires.

[mission vending]

I have never heard of a machine catching fire and burning down the building. Not saying it hasn't happened, but its NOT common. IF that ever happened, I would say 50% of the time it would be the fault of the location, not yours. If you have power problems such as that, they probably will have to come from a problem in the system of the building. Machines themselves don't generally have electrical problems bad enough to cause fires.

It can and does happen, but you are right, it is a pretty rare occurrence.

http://vendiscuss.net/index.php?/topic/8547-vending-machine-starts-fire-in-hotel/page__hl__%2Bvending+%2Bmachine+%2Bfire__fromsearch__1

@Mooman, if it was me, and I was in your shoes at one point, I really wouldn't worry about it.