How did you get your Liability insurance?

[NinnJinn]

2 weeks ago I stopped by my State Farm agent's office to inquire about costs of Liability insurance.  He said he would check into it.

I inquired about about being protected if someone tipped a machine onto them selves, a can exploded in their hand, or a machine shorted and burned the place down.  I also wanted coverage in case I decided to attempt to move a machine and damaged the property of the build owner.

Yesterday I stopped back by to check into it.  He said he talked to several underwritters and stated I had a "unique request"  They couldn't come up with a solution.  Something about foot traffic, and how much of a risk for a claim involved etc.

My agent said the only thing the underwritters came up with was treating it as outdoor property open to the public and for a $1million policy, I was looking at about $6-800/yr.

My agent said that the price seemed really high and suggested I search online for a company that specializes in vending machine liability insurance.  Or if a fellow vendor has insurance through State Farm to see how there's is setup and to let him know so he can give the info to the underwritters.  From what he said, there are different regions all across the US.

I have seen some say they had state farm insurance, So how is yours set up?  And others with different insurance please express who you have yours through etc.

I know, I am little and just getting started, but I like to plan ahead.

[mizugori]

statefarm is 327/yr for me, 1mil per incident 2mil per year coverage. its specifically called vending liability insurance.

*edit* also, I would try contacting other statefarm agents in your area, one of them will be able to figure it out. There are about a dozen statefarm offices within a 10 mile radius of me. if one can't figure it out, another one will want the commission badly enough to figure it out for you.

[lurtsman]

I spoke to country today, waiting for a call back. I told them what Kelly was listed as to make it easier for them to find.

[lurtsman]

Country has more questions--asking for a complete list of all locations I'll have machines at. If they find such a list, I'd love a copy of it.

Kelly did you find a way past this? They asked me for a great deal of personal information on the first call--I gave them everything except my social. They e-mailed me today to ask for the following:

    *  Exact list of locations where your vending machines will be placed (Business name, address)

    * Listing of your specific job duties (replenishing machines, cleaning, etc – anything you’d do on a normal basis)

    * Approximate gross annual sales, and approximate annual income you think you will be doing.

I don't even know the "address" of one tenth of my locations. I know the business name, and which city. That's enough for me to find it. How on earth do my duties with regard to refilling a machine determine anything? Hartford (who offered to start me at 350 and raise me to 400 in a few months) didn't ask for annual income, but I figure approx gross annual is a very reasonable request. How much I have officially left over after planning my expansions around the tax system seems like a useless tidbit. I can already predict that I will have a tiny profit to prove I'm a business. If I make too much, I'll buy a locator in December.

I'm talking to statefarm also. One of their agents has a good relationship with the location and they suggested him. He gave them a stack of his cards--with a print out of the most common policy he did. I figure I can drop the 10,000 equipment breakdown since it's under optional and....really.... I better be able to fix a bulk machine.

[lurtsman]

I've been speaking to country and to state farm.

Country says they are looking at about 215 to start, depending my credit score.

State Farm is looking at about 250 to start, and doesn't care about credit score.

I wish state farm would look at scores--it's a viable way to assess risk. The mall manager had a print out from a former state farm guy that had the prices start at 215. I liked the guy @ state farm more, if I can get prices similar, I think I will buy through him. I liked him more because of his experience and knowledge about how the location wanted things done... and he works an hour later. I worked 70 hours/week for 4 months. I like this guy's work ethic.

I'll update this thread more as a reference guide for what to expect when dealing with liability insurance.

[lurtsman]

I spoke to the agents again today. Country can do it for 218.

State farm sent me some detailed estimates--including if I picked up different malls in different zip codes and how those additions to my "additional insured" would change my rates. (The malls want to be listed on your insurance) They said it would start at 225. I figured it was worth an extra 7$ to deal with the guy that would research the rates for other malls I was considering going into. It looks like that was with the equipment breakdown coverage (which apparently every insurance company really likes to sell--if you are bulk, you do not want this. I don't know if even full line vendors want it.)

I decided to go with state farm. I liked how much the guy works.

I hope this thread helps people who are planning to buy liability insurance to understand the process.

To all vendors: Check if your policy has "breakdown coverage", and then decide if that is something you want. It runs 20-40$/year. This is generally your vandalism coverage, but there is a deductible first and they only cover the machine, not the product/cash in the machine. What are the odds of a single incident costing you more than 1000$ in damage. (I'm fine with a high deductible, I only really need the insurance to appease the larger accounts, and to protect me from leaches, err lawyers.

[NinnJinn]

and to protect me from leaches, err lawyers.

Wow lurtsman!  You are being rather nice towards the lawyers! I can think of 10 names I would like to call them!