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What Types of Insurance Does an ATM Business Need?

What Types of Insurance Does an ATM Business Need?

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What Types of Insurance Does an ATM Business Need?

ATM Business Insurance Quotes

Costs for business insurance can vary greatly, and getting insurance quotes from multiple companies is recommended in order to get the best pricing.

Coverwallet and Hiscox offer easy business insurance quotes at affordable prices.

What Types of Insurance Does an ATM Business Need?

ATMs provide quick cash to customers in favorable places, such as stadiums, fairgrounds, malls, and convenience stores. ATM businesses benefit from placing their machines in strategic locations that can turn a profit through regular customer use.

However, through regular use, the ATMs are exposed to losses and liabilities resulting in costly repairs. So, getting the right types of coverage is an essential aspect of a business plan. It protects the business from financial hardships that follow claims.

Related: Guide to starting an ATM business

What Are Some Risks for an ATM Business?

An ATM business will have several exposures to perils that put the business at risk of lawsuits and losses. Some of the risk exposures include the following incidents:

  • Damage or theft of ATMs
  • Car accidents
  • Customer injuries or damages
  • Theft of cash
  • Loss of business

Damage or Theft of ATMs

Damage to the ATMs is one of the more significant loss risks since they are expensive to replace and hold large sums of money. Damage can happen for various reasons, but theft and attempted theft are the more common reasons why ATMs sustain damage. Although the machines are built with anti-theft designs, attempted thefts leave the machine damaged. Additionally, ATMs in low-security areas are at an increased risk of damage or theft.

Car Accidents

Car accidents are a risk for ATM businesses with employees who drive to service, install, and maintain the ATMs. For example, drivers will go to various locations to install new machines and service existing machines. Adverse driving conditions can increase the risk of automobile accidents (i.e., poor weather, low visibility, traffic, driver fatigue, and driving in unfamiliar locations).

Aside from accident-related damage, business-owned vehicles may be damaged due to falling objects, theft, and vandalism. Further, some ATM businesses utilize armored vehicles. As a result, these specialty vehicles are targets for thefts and robberies. Unfortunately, non-accident damages can lead to costly repairs, putting financial strain on a business.

Customer Injuries or Damages

Customers and vendors who come onsite can be injured from slips, trips, or falls. In addition to onsite injuries, there is a risk of lawsuits occurring offsite at the various ATM locations. One potential liability is a lawsuit arising because the machine is inaccessible and does not comply with disability laws.

Also, employees who carry firearms while servicing machines increase the risk of potentially costly lawsuits occurring if the firearm is used. Another damage risk is an ATM electrical short that causes a fire in the building where it is stored. When the ATM causes the fire, the business may be responsible for property damages and injuries.

Theft of Cash

For many retailers and businesses, their inventory is physical items and goods. For an ATM business, its inventory is cash, which is a target for theft. Of course, the ATM protects the money inside; however, cash is lost in other ways. For example, employees may be tempted to steal. Embezzlement, fraud, and robbery can also occur during transport when employees move cash between machines.

Additionally, fraud or theft of the entire machine results in a cash loss. Not only does an ATM hold thousands of dollars in cash, but the machines themselves are valuable and, thereby, expensive to repair. As such, any damage to the machine, theft, or fraud puts the business at risk of losing money.

Loss of Business

ATM businesses frequently compete for customers, so any downtime means the business loses valuable customers and suffers damage to its reputation. Interruptions put the business at extreme risk of revenue losses and can happen from downtimes, malfunctions, damage, or closure of the ATM’s location. For example, an ATM located in a closed mall will be unreachable to customers, resulting in a financial loss. A loss of business is particularly harmful during peak seasons such as holidays and vacation times.

Hiscox.com

What Types of Insurance Should an ATM Business Consider?

Although many layers of risk exist for an ATM business, various types of insurance policies can protect the business. Some of the insurance policies that ATM businesses should consider include the following:

  • Inland marine
  • Automobile insurance
  • General liability
  • Crime insurance
  • Business interruption

Inland Marine Insurance

Inland marine insurance is a policy that covers expensive equipment offsite. This policy is valuable for ATM businesses since its equipment (the ATMs) is spread out in various locations. The inland marine policy covers these expensive machines with a line of coverage called an equipment floater. This coverage protects the ATMs in transit and offsite against perils such as theft, damage, loss, and breakage.

An inland marine policy covers other types of equipment as well. For example, tools and equipment used in the maintenance and installation of ATMs are also at risk of damage or theft, but an equipment floater covers the tools.

Automobile Insurance

Automobile insurance covers company-owned vehicles for their liability and physical damage. In addition, commercial automobile insurance offers valuable coverage for specialty vehicles, such as armored vans. The two core coverages in an automobile policy are liability coverage and physical damage coverage. First, the policy has liability coverage to protect the business from lawsuits following an at-fault accident. It covers the injured party’s medical bills, settlements, and property damage repairs.

The other core coverage is physical damage coverage, which insures business-owned vehicles for damages. For example, the insurance policy covers the company vehicle’s repairs in an at-fault accident. Additionally, physical damage covers non-accident related damages occurring from incidents such as:

  • Wind
  • Hail
  • Theft
  • Vandalism
  • Falling objects

General Liability Insurance

General liability insurance covers bodily injury and property damage claims. Specifically, premises and operations liability covers claims that occur on business property or because of the business’s operations. For example, this policy insures onsite customer injuries (i.e., slips and falls).

Additionally, this general liability policy covers lawsuits resulting from customer use of the ATMs. Some examples of liability claims are robbery injuries and ATMs being noncompliant with disability laws. Liability insurance is a key policy to include in an insurance portfolio since lawsuits can quickly become expensive. A general liability insurance policy protects the business from financial hardships following an incident and will cover claim expenses, including:

  • Medical bill coverage
  • Property damage repairs
  • Legal defense costs
  • Settlements

Crime Insurance

A crime insurance policy is designed to protect a business’s cash. Other lines of insurance, like property insurance, do not offer coverage for cash. However, cash is the “inventory” for ATM businesses, so ATM insurance is important to protect the business’s inventory and revenue.

A crime insurance policy covers cash against perils such as:

  • Employee dishonesty
  • Embezzlement
  • Fraud
  • Theft

Business Interruption Insurance

Business interruption insurance offers coverage for periods of unplanned interruptions. For instance, losses that render ATMs unusable mean the company loses valuable income. Since ATM businesses depend on steady customers, interruptions put the business’s regular income at risk. Fortunately, coverage is available with a business interruption policy that protects the business from monetary losses following an interruption and covers several expenses, including:

  • Replacement income
  • Payment on regular bills and loans
  • Cost of temporary relocations

How Much Does business Insurance Cost for an ATM Business?

Insurance costs for an ATM business will depend on the business’s needs. For instance, an ATM business with many machines spread across a wide service area will likely have more employees driving greater distances to maintain the machines. As a result, an ATM business with these needs will have significant coverage limits to protect the business’s risks.

Insurance companies look at various factors to determine the cost of insurance. For example, the insurance company will consider:
– The number of ATM machines needing coverage
– The number and value of company-owned vehicles
– Any specialty vehicles, such as armored vans
– ATM installation and appropriate anti-theft measures
– Whether or not accessibility standards have met disability law requirements
– Any current or recent lawsuits or insurance claims

A well-rounded atm insurance package is the best way to protect a business from financial harm following an accident or claim. Each insurance company offers different discounts and packages, meaning the cost can vary from one company to another. The best way to determine the cost of insurance is to contact several companies for a quote and compare their coverages, prices, and benefits.

What Types of Insurance Does an ATM Business Need?

What Types of Insurance Does an ATM Business Need?

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