General liability insurance requirements
What coverage you need and why locations ask for a COI.
Why do you need General Liability Insurance?
General liability insurance protects your vending business from claims of bodily injury or property damage. For example, if a machine tips over and injures someone, or if a machine leaks and damages the location's floor, this insurance covers the legal and repair costs.
Typical Coverage Limits
Most commercial locations will require you to carry a minimum of $1,000,000 per occurrence / $2,000,000 aggregate in general liability coverage. Some larger corporate facilities, schools, or government buildings may require $2M/$4M limits.
What is a COI?
A Certificate of Insurance (COI) is a document provided by your insurance agent that proves you have active coverage. When you sign a contract with a new location, they will almost always ask for a COI.
Additional Insured
Many locations will require you to list them as an "Additional Insured" on your policy. This means your insurance will cover them if they are sued because of something your machine did. You simply email your insurance agent with the location's name and address, and they will generate a customized COI for that location.
Cost Expectation
For a standard vending business with 1-10 machines, general liability insurance typically costs between $300 and $600 per year, depending on your state and coverage limits.