To Insure or Not to Insure…

By Vito | February 8, 2011

During my days of owning and running my ATM business in Los Angeles I often pondered whether or not to insure my company owned ATM machines.  Initially, as a small operator, I assumed the costs would be too great and that ultimately I’d be better off without the added expense.

At a certain point however, the business grew, and I began to search for insurance carriers specializing in coverage for ATM machines, but had no success finding any!  I had heard through different sources that Lloyd’s of London was the main underwriter in the industry, but could not seem to find an agent here in the US through which to buy a policy.  One day, I received a marketing letter from a company called Marshall & Sterling offering me ATM insurance.  Who would have known that those random letters actually worked!  So, I spoke to their agent, found out some pricing, and ultimately signed on with them.

So, the golden question is, how much does it cost to insure an ATM machine/ year?  About $150 per machine per year, not bad I thought.  There is a catch, however.  Their minimum policy was about $1,500, so it only made sense if you have about 10 machines or more.  So, the bad news is that if you’re just starting up and only have a handful of machines it doesn’t make economic sense to get yourself a policy.  But once you grow, it’s definitely something worth considering.  There was a $1,000 deductible, but if stolen both the machine and cash were covered.  How much cash you choose to insure per machine is up to you, you can determine this but of course this affects your pricing.

Many clients to whom I sold a machine also asked about insurance.  If you offer to cover them under your policy you could easily charge them a bit more (i.e. $200 – $250 per machine) and help yourself recoup some of your yearly insurance costs.  Of course, there may be other companies out there and it’s worth exploring.  If anybody else out there has had success stories with other ATM insurers we’d love to hear your comments below.

Topics: Insurance | 1 Comment »

One Response to “To Insure or Not to Insure…”

  1. Terry Eckert
    8:47 am on January 11th, 2014

    would like to hear others experiences.

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