Every atm business needs insurance. Knowing which type of insurance you need and the best place to get it is the next step.
This article will cover the main types of business insurance and help you find the best atm business insurance.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a ATM Business
The most common and comprehensive type of atm business insurance is general liability insurance. We recommend general liability insurance as your first line of defense against a variety of the most general and commonly occurring claims.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
While a atm business isn’t legally required to carry general liability insurance, operating without it is extremely risky. If your atm business is sued, you could face fees totaling hundreds of thousands of dollars (or more).
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 a atm business to other professional industries using the graph below:
Several factors will determine the price of your policy. These include your:
- 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.
Common Situations That General Liability Insurance May Cover for a 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.
Check out our review of the Best Small Business Insurance Companies.
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 other types of insurance all ATM businesses should obtain:
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.
In addition to the policies outlined above, there are a few other types of coverage your ATM business may require depending on certain aspects of your operations. Some of these might not apply to you, so be sure to ask your agent which policies are right for your business.
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.
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.
Business Insurance Is the Best Way to Protect Your Business
If you're starting a new business, then you need business insurance. It's as simple as that. The protection offered by an LLC will protect your personal assets, but your business's assets are still open to liability in the case of a lawsuit or other loss.
Be sure that everything you've built is safe by getting business insurance.
ATM Business Insurance FAQ
Can I buy business insurance online for my atm business?
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.
What is included in a business owner’s policy?
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.
What is the difference between business insurance and general liability insurance?
"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.
Do I need insurance before I start a atm business?
You should invest in business insurance coverage for your business before your first interaction with a customer. Although the cost of insurance may seem high for a brand new business, it’s best to be proactive when it comes to protecting your assets. After all, you can’t buy insurance to cover a loss that has already occurred.
Will insurance protect my atm business from everything?
Not necessarily. Certain exceptions may be written directly into your atm business insurance policy, and some perils may be entirely uninsurable.
Is general liability the same as business owners?
A general liability insurance policy covers only liability losses. A business owner's policy covers both liability and property losses.
How do I choose the best general liability insurance?
The best general liability coverage for your business really depends on the amount of coverage you’re comfortable with and how often you expect to file a claim. A relatively safe business with a very low risk of accident or legal liability could opt for lower premiums with higher deductibles.
However, if you are in an accident or injury-prone industry or are making advertising claims about the effectiveness of your service or product, you may wish to consider more extensive coverage. We recommend using a digital insurance provider like Next Insurance.
Do I need business insurance if I already have an LLC?
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.