Food Truck Insurance: Keep Rolling

Food trucks have given the food industry world a whole new makeover. The brick-and-mortar way of operating restaurants has shifted to delivering food on-the-go. According to IBIS World, over 24,500 food trucks were operating in the U.S. in 2020. Because of the increase in sales, businesses need food truck insurance to protect themselves from financial dangers. Food truck insurance makes sure that your mobile business stays on the road even when third-party liabilities, employee injuries, and fire hazards happen. 

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Food trucks are vulnerable to numerous risks, such as:

  • Vehicle risks
  • Operator risks
  • Liability risks
  • Food spoilage and fire hazard risks

Who Needs Food Truck Insurance?

Food truck insurance is a must for all businesses who have ventured to a mobile way of providing their services. While operating a food truck, you as an owner need to be prepared for the risks. Here are some businesses that commonly need food truck liability insurance are:

  • Lunch trucks
  • Catering trucks
  • Vending trucks
  • Ice cream trucks
  • Concession trucks
  • Mobile food trucks

What Policies Cover Food Truck Insurance?

For a food truck business, it is important to realize what additional policies are required. Here are some of the policies that it covers:

Business Owners Policy

business owners policy (BOP) combines commercial property, business interruption insurance, and general liability insurance into one plan. The combination of the three allows a BOP to cover different claims against liabilities such as property damage, customer injuries, theft, and vandalism. A BOP is often more affordable than buying each policy separately.

what is food truck insurance

Workers Compensation Insurance

Workers compensation insurance covers employee claims for injuries and illnesses due to their job, such as lost wages and medical bills. Except for Texas, this policy is made mandatory coverage in all states.

When it comes to the food industry, tiny mishaps are unavoidable. For example, in a rush to serve a dish, a hot pot tumbles and burns your employee’s leg. As a result, your workers compensation insurance will kick in and help cover their medical bills.

Thus, adding this to your food truck insurance is essential.

Commercial Auto Insurance

Commercial auto insurance makes sure to cover the medical bills, cost of property damage, and possible lawsuits caused during an accident. Therefore, this policy is a necessity for food truck businesses that own a vehicle.

Commercial Property Insurance

Commercial property insurance helps cover losses incurred by your business’ assets. In any event, when there is damage to your costly kitchen equipment, that could temporarily derail your business. Thus, as a food truck owner you need commercial property insurance to protect your investment in the equipment that runs your business.

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Commercial General Liability Insurance

Commercial general liability insurance serves to cover property damage or bodily injury claims that arise because of accidents.

According to CNBC, an elderly woman sued McDonald’s in 1992 after spilling hot coffee on herself. The coffee was so hot, it caused third-degree burns and she needed numerous surgeries. When you are in the restaurant business, if you want to avoid covering for such third-party claims out of your pocket, you need to opt for a CGL policy. You can even add commercial cyber liability insurance as an endorsement to your CGL policy to protect your customers’ sensitive information, such as credit card information.

Commercial Umbrella Insurance

Commercial umbrella insurance offers to provide extra limits or extends liability coverages when the primary liability policies such as commercial auto, commercial property, and general liability fail to fully cover against third-party claims.

For example, the compartment sink in your food truck falls off, destroying all your perishable stock and other valuables in your truck. When your commercial property insurance isn’t enough to cover the amount of the property damage, your umbrella policy swoops in to clean up the remaining cost incurred.

Product Liability Insurance

Product liability insurance helps cover costs for illnesses, property damages, and injuries caused by defective products sold by a business. Hence, this policy applies to all businesses that manufacture or sell products. In a news report by ABC, Heinz was fined a $2.25 million lawsuit due to a misleading marketing campaign. Their toddler snacks were marketed as healthy and made of fruit and vegetables when in reality it was a sugar-laden product.


How Much Does Food Truck Insurance Cost?

Food truck insurance considers several factors in determining the premium. These include:

  • Risks of the food truck
  • Value of business equipment and property
  • Services offered by the food truck
  • Revenue of business
  • Location of business
  • Number of employees and payroll
  • Policies coverage amount
  • Deductibles

Find an agent near you and get started on your insurance journey today!

Has this article been helpful to you? Leave a comment below and share your thoughts with us.


Is Food Truck insurance expensive?

No, food truck insurance is affordable and customizable to your needs. In fact, you can decrease your premium by increasing your deductible and declining coverages that your business does not need. 

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