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 food truck 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. But what do you need? How much does it cost? Keep reading to learn more.
What Should Be Included in a Food Truck Insurance Policy?
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?
General Liability Insurance: Also called “slip and fall” insurance, general liability insurance protects food truck owners in case of physical damages or injuries to third parties. Food-related illnesses can also fall under this liability 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.
Inland Marine Insurance: For any business equipment contained within your food truck that is not permanently attached, you will need to obtain inland marine insurance. Deep fryers, ovens, grills, and other products or goods within the vehicle will be protected from property damage if there's an accident or a fire. Make sure it includes coverage for business personal property.
Business Owners Policy (COP): This business insurance policy combines general liability insurance and business property insurance, typically at a discounted rate. Sometimes other endorsements can be included. Many insurance companies offer this coverage, so check with your agent to see if your food truck business qualifies for a BOP.
Commercial Auto Insurance: You need to get commercial auto insurance that will cover collision and comprehensive in case of an accident and physical damage to your car and someone else's. If you cause property damage it can also cover the cost to repair or replace someone's property. Commercial auto not only covers food trucks but also modifications and permanently attached equipment that helps 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 injury that occurs during business operations.
Additional Insurance Coverages to Consider
Food truck owners can also consider these insurance policies:
Product Liability Insurance: Because you own a restaurant on wheels, you’re serving food products to your customers. You're responsible for everything you pass through your service window. 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.
Commercial 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 Food Trucks are Covered?
Other than your stereotypical mobile food trucks, here are some other food trucks/food trailers that should get this coverage:
- Ice cream trucks
- Concession trucks
- Cupcake trucks
- Catering trucks
- Lunch trucks
Other food vendors or businesses may qualify for coverage, which is why we recommend speaking to an agent to determine the best route for your business.
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 food truck insurance that covers the basics as well as your individual needs is paramount to future success. As a food truck owner, your budget, your goals, and your risks are all pertinent—so be prepared to answer 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?
- The food truck coverage and policy limit you choose per year
- The type of food/products that you sell in your food truck
- Whether or not you own multiple food trucks/businesses
- How long you’ve been a food truck owner
- The type of food trucks you own (i.e. truck or trailer)
Food truck insurance policies usually average between $300-$800 per year but it varies depending on the options chosen and factors above. Many businesses don't obtain the necessary coverage to protect their business properly. For more information, connect with an insurance agent to find out the proper coverages 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 agents about your food truck business insurance needs. Or you can complete the form above to start the process of getting quick, free, competitive quotes.
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