Liabilities?

[jpvending]

Have a friend who thought her husband's office might be open to a machine. The husband asked management and they turned it down because they said they didn't want the liability if the machine was broken into or stolen. It is a construction office so there are a lot of people in and out of the office.

I told her that, unfortunately, I had to consider that a cost of doing business and that I expected a certain amount of my machines to either be damaged or disappear. I told her if the office really wanted one, that I'd be willing to sign an agreement saying I didn't hold them responsible as long as they took reasonable precautions (ie not placing the machine outside the building).

Have any of you had this issue? Is my response a good one? Usually I get the 'we don't have space' or 'you need to call corporate'. This was a new one for me. It'd be a great location if I could get it.

[allstar2200]

My personal thought is if you have to go through all that for a location, its not meant to be and the machine may "disappear" because they are not responsible.

[Pitstopped]

In my experience, when a manager or owner is worried about theft or damage there is a reason. They are almost always right, and the machine will probably get broken or stolen very quickly. I used to run honor boxes and when the owner/manager told me "theft will probably be a problem here" I didn't listen. I almost always ended up removing that box, because I lost money there. I learned they usually know best and pass on the very risky locations.

[Davis Caroline]

1) Buy insurance.

2) Tell location you have insurance and they have no liability if something happened.

3) Place machine in new location.

[PerformaVending]

Insurance will safeguard you from this. I wouldn't pass an easy location without at least trying it.

[Jax Snacks]

Insurance? How can buying insurance get this this machine located in this situation? The location simply wants to void of any costs due to theft or vandalism. Just because they ask for it, doesn't mean it (theft/vandals) will happen. The location is (usually) just covering all the bases and doing their due diligence - especially corporate locations with many bean counters. Just like hotels have signs in their parking lots stating they are not responsible for auto thefts and break-in's, doesn't mean you will not stay there. So to parallel the argument, just because a location will not be "responsible", doesn't mean you should not place a machine there. But in this case, simply give the location a signed document stating that they are not responsible for theft or vandalism to the equipment. Sure there can be situations where theft has happened before and that has triggered the location owner to ask for this. But equipment safety is a judgment call of the vendor IMO and must be dealt with on a case-by-case basis and past activities are just a part of that equation.

And what type of insurance and/or liabilities are you guys talking about? Insuring bulk equipment against theft or vandalism is just one particular type of insurance and usually not worth the premium costs compared to the cost of replacing or repairing the bulk equipment. Very few bulk vendors have this type of insurance and IMO is a waste of money. Note that I am focusing on bulk and not electronic equipment where such insurance may be feasible in some cases - but the crane, coin pusher and video guys can chime in on that. Basically, most bulk operators are self insured when it comes to their equipment.

The other type of insurance is liability taken against you, the vendor. A general liability policy will cover you against law suits. Things like a kid choking on a gumball or toy, someone getting sick eating your (stale) candy, someone chipping a tooth on a rock-hard stale gumball or a machine falling on kid playing around and hurting themselves. IMO, general liability against law suits is the better insurance to have. Now in the context of the original posting, this type of liability has nothing to do with what this location wanted, but just trying to break down the various insurance options and where to wisely spend money on insurance.

Just trying to be a bit more specific with "insurance thing" since there are multiple situations to deal with.

[Davis Caroline]

Only saying to have insurance, (I don't even care what kind)... so that you have a response to the location.

Granted the insurance doesn't mean crap, but the location doesn't know that and 90% of the time that is enough of an answer.

I agree a signed document releasing the location from liability would be a good next step.

[rdendy]

Also prepare a simple statement that says you take full responsibility for the equipment, servicing and maintenance and that they assume no liability for your equipment should also suffice if that is truly all they care about.

[musser]

When you get responses from a location like that they are just trying to say no gracefully. They usually really mean it. Insurance? no way, premiums on vending theft will cost you more than the equipment is worth. (Newbies re read Jax Snacks post).And, the possibilty exists that the location knows its people and the machine will become a target for abuse. Don't spend time on these places, if they want it they want it and don't think about negatives, if they are looking for downsides don't waste the time.