Food trucks are a growing industry. The benefits are pretty clear. If you operate in a big city with expensive real estate, owning a truck instead of operating out of a restaurant immediately eliminates a considerable expense. Additionally, mobility allows you to meet your customers where they are. But with these benefits, of course, comes new risks. You are constantly transporting your supplies and equipment. If your truck breaks down and needs repairs, you can not bring in any income while you wait for the work to be complete. And that is on top of the normal risks of serving food to customers. To protect yourself against these potential scenarios, among plenty of others, you need a comprehensive food truck insurance policy.

In this guide, we have assembled key pieces of information and factors you need to consider in your search for the right insurance. After reading it, you should have enough knowledge of food truck insurance cost to feel secure in your decision.

We Cover in This Guide

• How much does food truck insurance cost?

• What is food truck insurance?

• What does food truck insurance cover/not cover?

• Benefits and risks

• Tips for buying

• Types of insurance you may need

• FAQ

• Summary

How Much Does Food Truck Insurance Cost?

Food truck insurance costs range from $40 to $300 per month depending on your provider, coverage, risks, income, equipment, and operations. The following are some examples of typical policies, including their prices and what coverage they include.

• Basic coverage (Essential protection for your business): $40 per month for general liability insurance
• Standard coverage (Basic plus protection for product liabilities): $100 per month for general liability insurance + product liability insurance
• Professional coverage (Standard plus protection for auto accidents in your truck): $299 per month for general liability insurance + product liability insurance + commercial auto insurance

If these plans do not cover your company’s risks, most insurers will allow you to add supplemental policies for your individual specifications.

What is Food Truck Insurance?

As a food truck owner, you face the risks of two types of businesses: commercial vehicles and restaurants. That means that in addition to concerns about the customers who eat your food, you also have to rely on the operation of your vehicle to provide your service. Getting into an accident not only could result in potential liabilities, it can also leave you unable to operate for a considerable amount of time. Fortunately, food truck insurance is a policy designed for the particular potential liabilities and risks involved in this industry. It is essential for anyone even thinking about operating a food truck to acquire insurance before hitting the town.

What Does Food Truck Insurance Cover/Not Cover?

There are countless scenarios that could lead to a claim when operating a food truck. They can include:

• Causing damage or injuries while driving your vehicle

• Illegally operating in a certain location

• A customer getting food poisoning

These potential liabilities and others that fall into the following categories are covered under typical food truck insurance policies:

• Third-party injuries

• Third-party property damage

• Personal injury

• Products and completed operations

• Accidental food contamination

• Product defects

• Flawed advertising

• Third-party injury and property damage from accidents involving your truck

• Physical damage and collision to your vehicle

There are some risks that are not included in these common policies. Including:

• Employee injury and illness

• Damage, theft, or breakdown of your equipment and assets; either at your primary location or during transit

• Lost income over extended periods of time

Check with your provider to see if you are able to add additional insurance to their typical packages.

Benefits and Risks

In addition to protecting your business against the risks of food truck operations, insurance also provides countless other benefits.

• Complying with regulations: Many states and cities require insurance in order to get a business license. Your provider will make sure whatever coverage you purchase will meet these requirements.

• Protecting business assets:Damage to your own equipment or causing injury or harm to a third party can potentially wipe out your earnings and destroy your business. Food truck insurance provides essential protection from these risks.

• Cover legal expenses: If a customer, third party, or employee sues you, you are protected from the costs of fighting the lawsuit and the damage if you are found liable.

• Peace of mind: ​Knowing that your business is covered in case something goes wrong allows you and your employees to focus on providing the best service for your customers instead of being overly preoccupied with things outside your control.

Tips for Buying

When considering food truck insurance cost, consider the following suggestions before making your final decision:

• Work with an independent insurance agent who will help direct you toward providers with the best rates and the most experience covering food truck businesses.

• Take a good look at your business model, considering your operations, employees, equipment, and assets, to identify potential risks.

• Premiums tend to vary considerably between insurers. You should compare quotes from at least three insurance companies to find the best rates and coverage.

• Providers will often discount your premiums when you combine certain key coverages. Check with your insurer to see if their offers align with your needs.

Types of Insurance You May Need

• General Liability Insurance: Covers third-party bodily injuries, property damage, and other related claims that occur during your operations.

• Product Liability Insurance: This is the coverage that protects you if a customer gets sick from eating your food.

• Commercial Auto Insurance: Protects your business from liabilities related to damages and injuries that occur while driving your truck.

• Commercial Property Insurance: Covers damage, breakdown, and theft of business property, assets, and equipment from covered scenarios.

• Workers’ Compensation Insurance: Pays for medical expenses, rehab, and lost wages for employees who get sick or injured while working on your truck.

FAQ

- How do I protect my assets while we are driving to a location?

Consider inland marine insurance. It covers your property while it is being transported from one covered location to another.

- Do I need workers’ compensation insurance?

Depending on your location, it may be mandatory. If you employ at least two people, most states require you to have a certain amount of coverage.

- What is a BOP?

BOP is an acronym for a business owner policy. It is an insurance package that combines essential coverage for most companies. A common example is general liability and commercial property insurance.

Summary

Food truck insurance protects your business from the various risks involved in your daily operations. By understanding food truck insurance costs and determining your potential liabilities, you can feel secure that your policy covers all your needs and that your business will be safe in the event of an accident or other incident.