kingschild Posted October 15, 2009 Share Posted October 15, 2009 Hi all, just wanted to know about insurance for the machines. Why is it needed, is it needed for 5 combo machines, who are some of the companies that are used? Also, can someone tell me about how commissions on coke machines work? I'm replacing one and want to figure out the commissions they were receiving based on what they're expecting from me. Thanks Link to comment Share on other sites More sharing options...
nosebreaker Posted October 15, 2009 Share Posted October 15, 2009 It's needed in case someone eats a bad snickers bar and sues you over it. I am not in the vending business per se, but I have a combo machine at my laundromat. I paid like $5 more per year to cover the vending machine on my mat insurance, plus I had to get a permit from the state ($3/yr). You should have insurance, I wouldn't expect to pay more than a couple hundred per year with 5 machines though. But I'm not in the biz per se... You mean if coke places a machine at your business and stocks it how much do they pay the business owner? Or do you mean how much should you pay the business owner for placing your machine at their business (10-30% is normal I believe)? Link to comment Share on other sites More sharing options...
mission vending Posted October 15, 2009 Share Posted October 15, 2009 Hi all, just wanted to know about insurance for the machines. Why is it needed, is it needed for 5 combo machines, who are some of the companies that are used? Also, can someone tell me about how commissions on coke machines work? I'm replacing one and want to figure out the commissions they were receiving based on what they're expecting from me. Thanks Some locations will require you to show proof of liability coverage in order to place the machine in their business. In case some is electrocuted using the machine, gets sick from something they bought, you plug into an outlet that their server is on and crash their system, etc. etc. I did not get liability insurance until I was in my 4th or 5th year in the business, did not feel that the cost was worth it. Once I went full time it was worth it to protect the business and my income. It's all about the risk level you are comfortable with. Those first few years when I did not have a large investment in the business my attitude was ...well if someone sues me I'll just hand them the keys and walk away from it. I also did not own enough other stuff that wouldn't be protected under homestead laws or BK laws to be afraid of losing it. If you have a significant net worth then you are a target in our litigious society and it would be highly recommended. Otherwise I feel it's more of a personal decision as to if and when you get it. As for now, I do have a 2M general instead of the more customary 1M due to a customers requirements and I pay about 350 a year for it. Find a nearby independent insurance agent the does property and casualty stuff and get him to shop it around for you. My .02 Link to comment Share on other sites More sharing options...
soco Posted October 16, 2009 Share Posted October 16, 2009 ... or form an LLC and handle it that way. Link to comment Share on other sites More sharing options...
nosebreaker Posted October 16, 2009 Share Posted October 16, 2009 ... or form an LLC and handle it that way. You should be doing this anyway! You want the insurance on top of this in my opinion, I've known people that formed a LLC, and got sued and lost because they "pierced the corporate veil" by mixing things between the company and their personal stuff. If you're going to be serious about this I'd get insurance! Link to comment Share on other sites More sharing options...
alyssamma Posted October 16, 2009 Share Posted October 16, 2009 King, there is a post here: http://vendiscuss.com/forum/index.php?topic=5975.0 that discusses LLCs and talks about whether or not you need them and whether or not you need insurance. If after reading this you still have Q, please ask. nosebreaker, can you give the specific example of an LLC having the corp shield pierced? I'm asking this because 1) LLCs aren't corps, they are companies, 2) The entire purpose of an LLC is to prevent its owners from being sued. Unless you don't run the LLC as an LLC (i.e., run the business from your personal bank account, pay your personal bills, etc.), an LLC offers the best protection against a lawsuit. "Piercing the corp shield" is, obviously, for corps Kevin Link to comment Share on other sites More sharing options...
kingschild Posted October 18, 2009 Author Share Posted October 18, 2009 Thanks for all your advice. BTW nose, my question was for coke paying the owner of the location. I'm still curious to know. Link to comment Share on other sites More sharing options...
nosebreaker Posted October 23, 2009 Share Posted October 23, 2009 alys, yes thats exactly it. He was mixing the funds, and the books weren't clear on what was what. Also using company stuff at his house, the list went on and on. They got sued, lost, and insurance denied it. kings, you mean coke paying the owner directly and not having you as a middleman? I don't know, but people here have said 10%-30% is common, 50% at high volume (very profitable) locations. Link to comment Share on other sites More sharing options...
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