What is food truck insurance?
Food truck insurance is like a safety shield for businesses that serve food from trucks and trailers. It keeps them safe from problems like accidents, damage to their stuff, and people claiming they did something wrong. This insurance is really important because food trucks have their own challenges, like not having a lot of supplies and the chance of things going wrong while making and serving food.
Who needs food truck insurance?
People who run catering trucks, concession trucks, ice cream trucks, lunch trucks, mobile food trucks, and vending trucks need food truck insurance to safeguard their businesses, customers, and assets.
Types of insurance you may need
Food trucks are easily transportable and can differ in form and size, which shows their adaptability. Because they can easily go from place to place, food trucks can set up shop at different events and places, like festivals.
To make sure your food truck is protected with the right insurance, you’ll need different types of coverage that work together. Depending on your food truck business, you may need several types of insurance, such as:
General Liability Insurance
When you’re in the food and beverage business, the first insurance you’ll want is General Liability Coverage. This includes situations where a consumer is injured, their property is harmed, or there are problems with advertising. It is useful when dealing with contracts and can protect your small business from costly lawsuits.
Commercial Auto Insurance
Since food trucks travel a lot, accidents on the road can happen. If your truck gets damaged or someone gets hurt, Commercial Auto Coverage helps with legal bills and medical costs.
Business Property Coverage is like a bundle of protection. It combines general liability and property insurance. It helps when things like your equipment, food, or even your words (spoken or written) cause problems.
Workers’ Compensation Insurance
In a busy kitchen, accidents can happen like cuts and burns. If your employees get hurt, Workers’ Compensation Insurance helps with medical costs. Covers ambulance rides, doctor visits, lost wages, and ongoing costs like medicine.
Product Liability Insurance
If you plan to serve drinks with alcohol, even if customers bring their own, Liquor Liability Insurance is important. It covers you if someone gets hurt or something gets damaged because of alcohol. This kind of insurance is especially for those times when people have had too much to drink.
Commercial umbrella insurance gives you extra protection on top of your general liability insurance.
Not Covered by Food Truck Insurance
- Earthquakes: Food truck insurance often doesn’t include coverage for damages caused by earthquakes.
- Floods: Flood damage isn’t usually covered either. Given the mobile nature of food trucks, exposure to flood risk could be significant during heavy rains or flooding.
- Government Seizures: Instances where the government seizes your food truck may not be covered, highlighting the need to comply with regulations.
- Infectious Diseases: Insurance might not cover losses due to outbreaks of infectious diseases, a relevant consideration in the current health landscape.
- Intentional and Fraudulent Acts: Damages resulting from intentional harm or fraud may not fall under food truck insurance protection.
- Radioactive Fallouts: Insurance generally excludes damages from radioactive fallouts, which is a rare but potentially catastrophic event.
- War: Damage caused by war or war-related activities is usually not covered by standard policies.
Where can i get food truck insurance?
A good food truck insurance policy is like a mix of important ingredients that match the risks your business deals with. Insurance companies offer common types of business coverage that you can choose from to create your own policy.
Here are the list of small insurance companies:
- Westfield Insurance
- Utica First Insurance
- Tokio Marine
- State Farm
- Liberty Mutual
- The Hartford
- The Hanover
- Frankenmuth Insurance
- Farmers Insurance
- Erie Insurance
- Clear Blue Insurance Co.
- Cincinnati Insurance
- Berkshire Hathaway
- Auto-Owners Insurance
- AmTrust Financial
- American Family Insurance
What’s Included and Excluded in Food Truck Insurance?
Food truck insurance covers various situations that could lead to claims while running a food truck business, such as:
- Accidents causing damage or injuries while driving your food truck
- Operating in unauthorized locations
- Customers getting food poisoning
This type of insurance typically covers liabilities falling into these categories:
- Injuries to others (third-party injuries)
- Damage to others’ property (third-party property damage)
- Personal injury claims
- Problems with products and completed tasks
- Accidental food contamination
- Defects in products
- Issues arising from advertising
In additional, it usually covers accidents involving your food truck, like third-party injuries and property damage, as well as physical damage and collisions with your vehicle.
However, there are certain risks that are not usually included in standard policies, like:
- Injuries or illnesses to your employees
- Damage, theft, or breakdown of your equipment and assets, whether at your main location or while in transit
- Income loss for extended periods
You might be able to add extra insurance to your standard package. Make sure to ask your provider about these options.
Frequently Asked Questions
How is insurance cost calculated for food trucks?
Cost depends on factors like policy types, services provided, revenue, and more.
Does food truck insurance cover accidents on the road?
Yes, commercial auto insurance usually covers accidents while driving.
Can I get coverage for food-related illnesses?
Yes, product liability insurance can cover illnesses caused by the food you sell.
Food truck insurance keeps your business safe from different problems that can happen while you’re working. When you understand the price and what it protects, you can feel sure that your insurance will support you if something goes amiss, such as an accident.