Do you have the Right Vending Insurance?

Whether you are a seasoned Antares vending operator or new to vending, the vending business carries a certain amount of liability that operators need to protect themselves against. Operators can be properly insured without overspending. They just need to be reasonably informed about what coverage’s they need.

First and foremost, Antares operators must realize that they cannot depend on personal auto and homeowner’s insurance for their business needs. Operators will need to consult with an insurance professional in determining the amount of coverage they will need to cover their business assets.

Insurance and risk management

Insurance is a contract under which one undertakes to pay or indemnify another for loss from certain specified contingencies or perils. Risk management is the practice of protecting an organization from financial loss by identifying, analyzing and controlling risk at the lowest possible cost. The four ways of managing risk are by transferring it, assuming it, reducing it or eliminating it.

Disability insurance

What will you and your family do if you are injured, sick or gone? This is where risk management comes into play because you will need a written contingency plan. You should get insurance coverage short term and long term disability for your Antares business. You should have a written plan for how your business operations will continue if you are out of the picture for a period of time. You should also plan for what will happen incase you exit the business in the event of a catastrophe.

The loss of all your Antares vending machines at one go, would present a significant financial hardship. Of course the possibility of this taking place is quite remote. In case of loss exposure of your Antares vending machine, it would be best to “manage the risk” rather than transferring the risk of financial loss to your insurance company.

Treat vandalism and damage as a cost of doing business as opposed to trading premium dollars and claiming dollars from your insurance company.

Remember, the best approach is to manage the risk and fund small losses with internal funds and also rely on external funds (i.e. insurance) for the significant losses.