Risk Management In Vending Business

When you think about reducing your business costs and enhancing the profitability, the first step is always cutting down on expenses. What many vending machine operators ignore is the ability to increase returns by effective risk management programs. If you are able to minimize the risks involved in this business, there will be a significant improvement in your business performance.

One of the fastest rising costs for vending operators today is that of worker’s compensation insurance. If you plan and implement an effective and aggressive management program, these costs can be successfully controlled.

Another rising issue of concern is the high number of highway deaths in the automatic merchandising industry. The market environment with medical costs, losses, investment income and wages-replacement rates is difficult to comprehend and makes the net result complex and unclear. Moreover, the worker’s compensation programs differ from state to state.

To understand the workers’ compensation program and its elements, we can classify the cost components involved in it as direct and indirect costs. Basically, the various costs included are as follows:

1. premiums
2. rates
3. corporate culture
4. expense modifications

And programs such as:

1. hiring
2. training
3. accountability
4. return to work

All these factors contribute to the risk management of your vending business. The best way to control risk and minimize costs is to implement an effective risk management program.

It is your responsibility to safeguard all your employees against potential work related injuries. This makes insurance an imperative factor of workers compensation program and is often a large part of any enterprise’s cost. You cannot ignore this element because there will be serious consequences in case of any injury to a worker who is not covered by insurance. Even though the penalties vary from state to state, the common ones include:

• Fine
• Imprisonment
• Lawsuits
• higher benefit costs for employees
• cease work order

Your Planet Antares vending business success is not just about cost cutting and increasing profits. It means better operations and productivity and that will be possible in a good work environment with proper safety measures for all employees.