Food trucks, which once appeared to be a passing fad, have now become a mainstay in cities across the United States.
From tacos to rice bowls, there's no denying that this mobile food concept is a genius way of reaching wide audiences with relatively low overhead costs. However, one thing that is worth investing in as an aspiring business owner in this niche is food truck insurance.
As of 2020, IBIS World reports that there are 24,564 food truck businesses in the country. This number has been climbing at an average of 7.9% annually for the past five years. It is clear that this business model is proven to work, but for first-timers, the process of ironing out the nitty-gritty details of business operations may be a little overwhelming, and this may include securing food truck insurance.
Food truck insurance goes beyond your average commercial truck insurance policy. While food truck owners do need to insure the food trailers and trucks they will be using for their business, they also need to consider getting coverage for factors that are specific to the nature of their business.
Read on to learn more about what a food truck insurance policy covers, and what you can do as a business owner to make sure that your mobile food business will be a success.
| Policy | Premium Cost | Coverage Amount | Deductible |
| General Liability Insurance | $300 - $800 | $1,000,000 | $0 |
| Contents Insurance | $300 - $1,000 | $25,000 | $500 |
| Workers’ Compensation Insurance | $1,000 - $1,500 | $1,000,000 | $0 |
| Commercial Auto Insurance | $1,500 - $3,000 | $250,000 | $500 |
Every insurer has its own technique of assessing how much your food truck insurance costs. Many of the factors they evaluate are features of your business, such as:
Other factors that may affect the cost are the choices you make with regards to your coverage, such as:
Legally, food truck insurance is required to ensure that you can even operate at all in the state. An insurance policy for your food truck business offers protection for your assets and business property, and you may find comfort in knowing that insurance carriers will take care of attorney's fees on your behalf.
Moreover, these policies protect both your employees as well as your customers. Food truck insurance is designed specifically for these types of vehicles, therefore owners will not have to pay unnecessary fees. This type of insurance can even protect other businesses such as ice cream trucks, food carts, and other concessionaires.
We have collated some of the best food truck insurance providers, to help you narrow down your decision.
Progressive Commercial offers customizable coverage options to fit your particular business needs. Business owners of mobile food, catering, lunch, ice cream, concession, and vending trucks can personalize their policies by choosing among different benefits and coverages that reflect on the value of their truck, its equipment, and the foods that they sell.
Interested individuals can place a call or start a quote online for free. Some qualified customers may even be eligible for cost-saving auto discounts.
Strong Tie Insurance has a wide range of insurance products for all types of trucks. Their experienced team operates on a hands-on approach, ensuring that whichever type of liability coverage you opt for will allow you to manage risks and reduce your liabilities in the process.
The company has been in the industry for over fifteen years and is now considered a leading insurance provider, so you know that you are in great hands. Since they are a smaller company, they are extremely dedicated and attentive to clients' individual needs, with agents who are available 24/7 in case of emergency.
Trusted Choice employs independent agents who scope out the best coverage options in your zip code. These experts work closely with you to assess your needs to determine which food truck coverage policy matches you best.
As they are well-versed in various businesses as well as insurance policies, you can find comfort in knowing that they will advise you on the most appropriate coverage for your unique needs. They also simplify their explanations of technical jargon so that anyone who is new to the industry understands what is in store for them.
For those who are looking for a quick and affordable, yet quality option, CommercialInsurance.net is a great choice. They are an online referral service who partner with upwards of 200 different agencies and carriers to find the policy and coverage meant for you. After submitting the necessary information, you may be able to have your desired policy in a span of thirty minutes.
CommercialInsurance.net works with numerous people, and this means that you can have quotes with the lowest premiums from different carriers. Company representatives will walk you through the entire process, and even higher risk businesses will find the products that offer sufficient security.
Catered to smaller companies of less than ten people, Hiscox may be the best provider for those who are new to the food truck business. If you are a food truck owner whose personal home address is also your business address, you may be able to get as much as 5% off of your premium.
Hiscox's general liability insurance coverage has a minimum premium of $350 annually. One caveat is that the company outsources for other important policies. However, if you begin as a one-man operation, Hiscox can work with you as you grow your business to new heights.
Commercial auto insurance is used for business vehicles, but food truck insurance extends to cover other areas that owners of these trucks need to secure. With food truck insurance, you can create your own package or bundle of policies that will cover common incidents, damages, and injuries related to the field.
Anything else you'd like to know? Check out our FAQs!
Any food truck business owner needs insurance specific to their business, to make sure that they have protection for property damage, workers compensation, equipment, and many other factors.
Costs of food truck insurance may be rather arbitrary because they may be influenced by various things. These are some factors that may impact your insurance quote, rate, or cost:
1. The type of vehicles used—such as trucks or trailers
2. How long you have been in the business as a food truck owner
3. Number of food trucks or businesses owned
4. Annual coverage and policy limit
5.Type of foods or products sold
Policies may be priced at an average of $300 to $800 annually, but this may be the bare minimum. The likelihood is that you may spend thousands. Prices will increase depending on the risks involved, together with the value of equipment, among other factors.
Most insurance providers can give you a free quote so that you know how much to budget. It is also best to consult with a professional for more information.
General liability insurance protects the food truck business from financial liabilities that may arise from accidents or damages that affect the third party.
Product liability insurance offers an additional layer of protection where general liability insurance may fall short, for claims related to illness which may be common in the food truck business.
Business owners policy combines general liability insurance with business property insurance, with pricing at a discounted rate.
Commercial auto insurance is the basic form of coverage for food trucks, lunch trucks, food trailers, or any vehicle used for business purposes. The purpose of this is to provide coverage for bodily injury liability, property damage, collisions, personal injury, theft, vandalism, and uninsured motorists.
Workers' compensation offers protection for employees of your food truck if they become sick or injured while on the job.
Commercial property insurance covers the contents of your vehicle, such as equipment, important documents, or other materials.
Commercial umbrella insurance allows food truck owners to expand their insurance coverage limits if their existing policies are lacking.
Owning food trucks comes with many risks and liabilities, from illness to injury and property damage. Food truck insurance is a type of business insurance that owners of these vehicles must purchase in order to protect themselves from potential lawsuits and the like, and ensure continuity in their operations.
Have you found the food truck business insurance policy that works for you? Is there anything you want to ask? Contact Assured Standard today!
If you want to learn more about the ins and outs of commercial truck insurance, take a look at one of our articles about it to learn more.
Whether you're serving up meals in a food truck or hauling loads in a dump truck, we've got the right insurance for you. Click here to explore our Dump Truck Insurance options!
