Food truck insurance
Do you own a food truck business? Food trucks are all the rage right now, from a business owner’s perspective as well as a consumer. Food trucks can be a great business with less overhead than a restaurant, and the ability to go where the customers are. However, because of how unique your business is, you must make sure you hold the right insurance coverage to protect you, your business, and the vehicle you operate out of. You may be questioning if you need insurance on a food truck—the short answer is yes.
The Basic Coverages to Consider for Food Truck Insurance
Familiarizing yourself with some basic business insurance coverages can help you understand the process, and help you make choices that can protect your business on wheels. What insurance should you get? Keep reading to learn more.
General Liability Insurance: Also called “slip and fall” insurance, general liability insurance protects you in case of physical damages or injuries to third parties. Food-related illnesses can also fall under this coverage i.e. if you’re sued because of food poisoning that resulted from your product. This is the policy that you would use for covering legal costs and medical expenses.
Commercial Property Insurance: For any equipment contained within your food truck that is not permanently attached, you will need to obtain commercial property insurance. Deep fryers, ovens, grills and other products or goods within the vehicle will be protected from property damage.
Business Owners Policy: This business insurance policy combines general liability insurance and commercial property insurance, typically at a discounted rate. Sometimes other endorsements can be included. Check with your agent to see if it offers the coverage you need for your business.
Commercial Auto Insurance: You need to get commercial auto insurance that will cover collision and comprehensive in case of an accident and physical damage. This policy not only covers the food truck but also modifications and permanently attached equipment that help your business run.
Workers’ Compensation Insurance: If you hire employees to work in your mobile food truck, you need to consider workers’ compensation insurance. It is required by law in most states and helps cover medical costs and legal settlements in the case of employee illness or accident.
Additional Policies to Consider
Product Liability Insurance: Obviously, because you own a restaurant on wheels, you’re serving food products to your customers. While general liability insurance has some coverage for illness-related claims, consider product liability insurance if that coverage is not sufficient. For example, if you run a sushi truck, you may fall into a “high-risk” category and require more extensive coverage than general liability can offer.
Umbrella Insurance: Expanding your business doesn’t just mean offering new menu items or gaining access to a new venue; it can also mean that you should consider upping your food truck insurance coverage limits. This policy is designed to cover damages when they exceed the limits of your other policies.
What Types of Trucks are Covered?
Other than your stereotypical mobile food trucks, here are some other trucks that should get this coverage:
- Ice cream trucks
- Concession trucks
- Catering trucks
Do you Own a Food Truck or a Food Trailer?
If you own a food trailer, the tow vehicle must be covered under a commercial auto insurance policy. Because that coverage does not usually extend to trailers, you’ll need to have a specific endorsement written into your policy to cover comprehensive and collision while the trailer is being towed.
How Much Does Food Truck Insurance Cost?
Putting together a risk management plan that covers the basics as well as your individual needs is paramount to future success. Your budget, your goals, and your risks are all pertinent—so be prepared for questions about your annual income and other specifics when you discuss food truck insurance with your agent. What else might influence the cost of insurance for food trucks?
- Specific coverages you choose and associated policy limits
- The type of food/products that you sell in your food truck
- Whether or not you own multiple mobile food trucks
- How long you’ve been in business and claims history
- The type of truck you own (i.e. truck or trailer)
Food trucks insurance policies usually average between $300-$800 a year but varies depending on the options chosen and factors above. Connect with an insurance agent to find out the proper coverage you should get.
Get a FREE Food Truck Insurance Quote
A food truck is a great opportunity, and the correct insurance can help make it possible for your business to enjoy a long, healthy life. It’s important to find an insurance agent who understands the particulars of food truck insurance, whether your operation is brand new, or just undergoing changes.
Call us today at 1-877-907-5267 to speak with one of our insurance specialists about your food truck business insurance needs, or complete the form above to start the process of a quick, free, competitive quote–great coverage is just a phone call or mouse click away.