Why Insurance Matters

Insurance may not feel exciting, but it’s essential. Mike describes it as the safety cage protecting everything you’re about to build—from accidents to lawsuits.

There are four core reasons to get insured: liability protection, asset coverage, credibility with property managers, and future-proofing when hiring staff.

Without proper coverage, a single accident—like a machine tipping over or product spoilage—could escalate from inconvenience to financial disaster.

Core Coverage Types

Mike outlines the standard coverage lineup:

• General Liability: $2M per occurrence is standard; push back on $3M demands unless necessary.

• Property/Inland Marine: Insures each machine for its full replacement cost.

• Auto Liability: Required only if the vehicle is titled to your LLC.

• Workers Comp: Needed once you put someone on payroll.

These are not theoretical—Mike shares a real-world example where a forklift damaged one of his machines. Insurance made it a hiccup, not a catastrophe.

Implementation Strategy

Don’t purchase policies until you’ve secured a yes from a location. Otherwise, you’re spending money with no ROI. Always ask the property manager for exact wording and limits needed on the Certificate of Insurance (COI). This avoids costly reissues later. Start with general liability and asset coverage. Use providers like Next Insurance for fast quotes and digital COIs. Bundling through State Farm or Allstate may offer discounts.

Compliance Without Overpaying

Certificate of Insurance (COI) Management

A COI is a one-page summary listing your coverage and the certificate holder’s address. Most online portals let you generate and download these instantly.

If the manager requests their name or address on the COI, just update and resend. No need to overcomplicate—just adapt as needed.

Mike recommends storing a blank COI template in Google Drive and setting a 30-day renewal reminder on your calendar to stay ahead.

Best Practices for COIs

Ask every property manager this one key question:

“What exact address and certificate holder name do you need on the COI?”

That question alone prevents 90% of common COI issues.

This small habit ensures compliance, saves time, and builds trust with large property groups like Graystar, who require proper documentation.

With legal protections in place, you’re now positioned to operate with confidence and professionalism in any vending environment.