ATM Business Insurance
Getting insurance for your ATM business is essential.
ATM businesses need to be protected against things like claims of negligence, theft, personal injury, or fraud.
For example, one of your ATMs may be broken into, or an ATM could malfunction and cause financial loss to patrons.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for an ATM Business
General liability insurance is — generally speaking — one of the most important insurance policies for ATM businesses.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
In addition to general liability, there are several other insurance policies that are important to protecting your ATM business, such as:
- Commercial auto insurance
- Commercial property insurance
- Workers’ compensation insurance
- Crime insurance
For businesses looking to obtain insurance coverage, there are typically two options available:
- Traditional brick-and-mortar insurers: Includes some of the largest providers in the US, who are widely trusted due to their long history of providing insurance. They typically offer their policies through an insurance agent and operate out of a physical storefront.
- Online insurers: Alternatively, purely online-based providers utilize technology like AI instead of an insurance agent to offer quotes without an insurance agent. This typically means lower overheads (and therefore lower prices).
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Cost of General Liability Insurance
The average ATM business in America spends between $400-$700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for an ATM business to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for an ATM Business
Example 1: As you are removing an old ATM and replacing it with a new one, you lose control of the dolly and drop the ATM on the liquor shelves at a convenience store. The general liability policy would likely cover the replacement cost for the owner’s property.
Example 2: An ATM malfunctions and the person using the machine reaches into the cash dispenser to try and get his money. His hand gets stuck and he sustains an injury. The general liability insurance would likely cover the cost of treating the injury.
Example 3: Many of the property owners where you place ATMs may require you to carry general liability insurance before they will work with you. Having a policy will ensure that you can meet these requirements and serve as many locations as possible.
Other Types of Coverage ATM Businesses Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Auto Insurance
Maintaining ATM machines requires you and/or your employees to spend considerable time on the road. All vehicles that are used for business purposes are required to be covered by commercial auto insurance. Your commercial auto insurance policy will help to protect your company vehicles, employees, and others on the road.
Commercial Property Insurance
The tools you use to maintain your ATMs and the facility you keep to store your machines can be expensive to repair or replace—such as in the event of a fire. Commercial property insurance is designed to help you cover the costs of repair and replacement when your commercial property is damaged or destroyed.
Workers' Compensation Insurance
If you have any employees helping with your ATM business, workers’ compensation insurance will most likely be required by the laws of your state. When an employee gets hurt on the job and is unable to work, this type of insurance will cover the costs of helping the employee. Workers’ compensation not only helps you adhere to state law, but it also ensures that you do not have to pay expensive medical bills for employees hurt on the job out of pocket.
Crime Insurance
Your employees may be tempted to act in a criminal manner to take advantage of your ATM business. While you can do your best to hire honest employees and implement proper security measures, you cannot guarantee that you will not be the victim of crime. Crime insurance will likely help to cover some of the costs associated with such crimes, helping you to recover more quickly and get back to doing business.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your ATM business:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
ATM Business Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
It is important for your ATM business to obtain business insurance before getting started to make certain that it is at no point exposed to the main potential risks of this industry (e.g., theft, negligence, or fraud).
It is worth noting that your ATM business may be required by law to buy certain forms of insurance — particularly if you plan on having employees or company vehicles.
Not necessarily. Certain exceptions may be written directly into your ATM business insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.