Vending Insurance

[Rickmann08]

First, has anyone here ever heard of Vendsoft Business Insurance? 

Second, I may have just landed my second location in an apartment but from the details of the insurance they want me to have I don't think I will make a profit. According to them I need: 

1. Workers’ Compensation in accordance with the laws of the state in which the work will be conducted; 

2. Employer’s liability in an amount not less than $1,000,000. 

3. Comprehensive General Liability insurance on an occurrence form with at least the following limits: 

1. $1,000,000 each occurrence 
2. $2,000,000 General Aggregate per project 
3. $2,000,000 Products/Completed Operations Aggregate 
4. $1,000,000 Personal and Advertising Injury 

Coverage should include: 

• Premises/Operation 
• Products/Completed Operations 
• Contractual Liability 
• Independent Contractors 

4. Comprehensive Automobile Liability coverage for all owned, hired and non-owned vehicles with limits of at least $1,000,000 combined single limit each occurrence. 

5. Excess liability (umbrella) insurance with limits of at least $5,000,000. 

Does this sound like a lot just for one machine? 

[Vendo Mike]

Sounds like they want to be a gov't entity rather than an apartment complex.  I would let them handle their own vending or do without.  If it's not profitable, it's a waste of your time.  You're not in the business of jumping through excessive hoops to break even at best.

[Rickmann08]

So I'm not crazy. This is an insane amount that they are asking for just for one machine correct?

[Vendo Mike]

I'm just a tech / sales guy that works for a vending mfg.  I'm not an operator so I don't know what insurance is generally expected but I believe it's well below $5M.   If it's a very upscale building and their concern is that your 1 machine will burn it all down then at least you know where the numbers are coming from.  

All that said, apartment complexes are among the highest rate of vandalism and damage to vending equipment.   This means that you'll pay a lot for insurance and the headaches of dealing with this gatekeeper only to spend a bunch of time repairing your machine rather than recovering your ROI.

[Rickmann08]

Thank you for your input... it really helps!

 

[AZVendor]

Yeah, it's all bull crap from them.  I wouldn't even consider a location where those requirements trumped good service at reasonable prices.

[Rickmann08]

I totally agree. I am going to have a word with them. I think its only because they are a large group of apartment complex's. If I score this first deal I can work on 2 other complex's that will ned a total of 10 additional machines.