Everything You Need to Know About Food Truck Insurance

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Whether you're looking to pursue a new career path or you're a food truck veteran, insurance is essential to protecting your investment. With costly equipment and a crew working in tight quarters - often with sharp objects and hot surfaces - there will always be a level of risk involved with running a food truck. Fortunately, you can reduce your risk and protect the future of your business just by getting the right insurance coverage.

Our guide to food truck insurance walks you through how to insure a food truck and explores how different factors impact the cost of your insurance. Find out what coverage you need to continue satisfying cravings across Pennsylvania and Maryland.

How to insure a food truck:

Getting the right coverage is essential to keeping your business on the road, so we've broken down the essential coverages for food truck owners. Plus, we've also outlined additional coverage options that may apply to your business.

Insurance policies every food truck owner needs:

• Commercial auto insurance: First and foremost, your business is also a vehicle. That means you'll need a comprehensive auto policy to protect your business should you experience any collisions or accidents on the road. This coverage also protects your investment if your food truck is stolen or damaged in a storm.
• Commercial property insurance: Your truck or cart is just one of many high-value investments you make toward your business success. From refrigerators to the tablet you use to process orders, your food truck is full of expensive equipment. Commercial auto insurance alone may not cover the contents of your food truck, just the truck itself. Equipment could get stolen or damaged in a fire, so ensure it's covered with insurance.
• General liability insurance: Liability insurance is critical for business owners. If a customer falls ill or suffers an injury in which you're found to be liable, this coverage protects you from suffering financially.

Insurance policies you might need:

• Workers compensation insurance: If your business has any employees, workers' compensation insurance is a must. There are many risks involved with cooking, especially in tight quarters on a food truck. Workers' compensation protects you and your employees in the event of an injury. It can help cover medical costs and protect you from liability.
• Business income insurance: Food trucks are at risk for fire, car accidents, or other scenarios, which could leave your business temporarily out of commission. Business income insurance covers the revenue lost during this period. Most policies don't include business income insurance automatically. Instead, it has to be added as an endorsement.
• Equipment breakdown insurance: Running a food business puts equipment through lots of wear and tear, and a broken grill or other equipment can put you out of work. Take good care of your equipment, and add an extra layer of protection with this coverage. Although it won't cover breakdowns caused by operator error, it can protect you in the case of physical damage resulting from fire or similar situations.

Who needs food truck insurance?

These valuable insurance policies aren't reserved for food trucks alone. Whether you're running a gourmet kitchen on wheels or a catering business, these policies protect your hard work.

These businesses can benefit from food truck insurance:

• Food trucks
• Food carts
• Ice cream trucks
• Caterers
• Concessions sellers

How much does food truck insurance cost?

The cost to insure your food truck depends on a variety of factors. Insurance carriers take these factors into account:

• Value: Expect your carrier to consider the total value of equipment on board your food truck as well as the vehicle itself.
• Equipment: Different kinds of equipment are associated with different risks. For instance, fires are less likely on an ice cream truck than they are on a food truck outfitted with grills and fryers.
• Business size: The number of employees you have will impact the cost of your insurance. Plus, if you're fortunate enough to run multiple trucks for your business, that will factor in as well.
• Location: Where you take your food truck is another important factor, as it impacts what risks you're likely to encounter. While some neighborhoods have high rates of auto accidents, others are more susceptible to storms and weather events.

Each of these factors impacts what risks your business is most likely to be exposed to and ultimately the cost of your coverage. You can also choose to expand or reduce your coverage in certain areas depending on what level of risk you're comfortable with.

Get customized coverage for your food truck business.

Conduct a business review. Whether you're just getting started or you've been in the food business for a long time, it's essential to understand where your business stands right now. Ensure you know the value of your truck and the equipment on board, and be prepared to answer questions about neighborhoods you plan to serve, employee driving records and more.

Conduct an insurance review. Do your current policies cover what you need them to? Have you upgraded any equipment recently or hired new people? Anytime you make important changes to your business like this, it's important to take a look at your insurance coverage because your needs have probably changed.

Get a food truck insurance quote. As an independent insurance agent, we work with a variety of carriers to ensure you get coverage that matches your needs. Our agents will work with you to understand your business and your budget. Then, we'll provide you with a list of options from several top-rated carriers.

You work hard to build your business. Ensure it's covered with the best insurance policy for your needs.