What is the best insurance coverage for ATM machines and how much does it cost? Here are 5 trusted insurance policies you can choose from. When you purchase an ATM machine or start an ATM business, you have a very wonderful opportunity to generate a healthy passive income. The trade-off, however, is that wherever you store large quantities of cash (like an ATM), that place becomes a potential target for theft.
Any ATM machine not owned by a bank is not subject to FDIC protection, so if your machine is burglarized, damaged or stolen; it is up to you to cover your losses. This is why ATM insurance is always critical to cover any ATM machines you own.
Note that if you keep your ATM machine inside your own brick-and-mortar business, you might believe it is covered by your business insurance—but that is not always true, and even if it is covered, it might not cover everything.
Also, if you run and maintain ATM machines off-site or in standalone locations, they more or less aren’t covered at all. ATM insurance tends to reduce the risk of loss in these situations, and the cost of the premium is an easily managed business expense.
This insurance policy works pretty much the same as any other coverage you might maintain on your home or your business. You acquire adequate insurance to substantially cover loss for each machine you own, and your premium is based on how much coverage you need any add-ons you want and any specific risks you need to mitigate.
Have it in mind that the terms of ATM coverage can differ widely according to the issuing company and how much you’re willing to pay. Also note that some policies are far-reaching, covering everything from stolen cash to employee dishonesty to physical damage. Some policies may cover only the cash inside the machine and not the machine itself. For the greatest peace of mind, look for ATM insurance that provides robust coverage for any/all of the following:
- Burglary: cash stolen from the ATM itself
- Mysterious disappearance: For when the entire ATM is somehow removed
- Physical damage or property loss: covers repairs or replacement of the ATM itself
- Robbery: if you or your employee is/are robbed while servicing the machine
- Employee dishonesty: covers you if an employee steals cash from the machine while servicing it.
It is imperative to understand that some policies will cover these issues extensively, while some will offer certain types of coverage as add-ons or riders—and some things may not be covered at all. Always read the coverage “fine print” thoroughly before agreeing to buy the insurance. An ATM business needs several types of insurance for full coverage. In addition to standard insurance policies, there are some ATM-specific policies available;
What are the Best Insurance Policy for ATM Machine in 2021?
Table of Content
General Liability Insurance
The most common and comprehensive type of policy business owners invest in is general liability insurance (or CGL). Although ATM businesses aren’t legally required to carry general liability insurance, operating without it is extremely risky.
If your business is sued, you could end up facing fees totalling hundreds of thousands of dollars (or more). For instance, 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 a liquor shelf at a convenience store.
The general liability policy would likely cover the replacement cost for the owner’s property. Having a sufficient CGL policy in place to help compensate for these damages is the only way to prevent this type of event from devastating your business.
Commercial Auto Insurance
Have it in mind that maintaining ATM machines requires you and/or your employees to spend considerable time on the road. Therefore, all vehicles that are used for business purposes are meant 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
Also note that all 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 mandated by the laws of your state. Note that 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.
Don’t undermine the probability that 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
Although the cost of insurance may seem high for a brand new business, it is ideal 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. Also, although insurance may not entirely protect your business, certain exceptions may be written directly into your policy, and some perils may be entirely uninsurable. Be sure to discuss the scope of your policy in-depth with your agent to avoid being blindsided by holes in your coverage.