Food Truck Insurance: What To Know & How To Save (2024)
Are you interested in opening a food truck? We have a quick, easy guide to the types of food truck insurance you need to keep your small business running smoothly. Your food truck will need several types of insurance including commercial car insurance, liability insurance, property insurance, and worker’s compensation. To keep your costs low, consider bundling as many as possible with the same provider.
Read moreFree Auto Insurance Comparison
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- If you operate a food truck, you will need several types of insurance coverage
- These types of coverage include commercial car insurance as well as liability insurance for your small business and more
- To save money, you can bundle as many of these policies as possible with one company
Food trucks are becoming more and more popular all over the country. If you are thinking about joining the craze, here’s some must-have information about food truck insurance coverage.
Like any other truck out there, food trucks must have some type of coverage to operate. So, in this article, we’ll take a look at some of the best insurance companies that can provide those coverage options and meet your needs.
However, as they are also businesses on wheels, just a commercial auto policy won’t do it. Keep reading to learn more about all the insurance coverage types you need to protect your food truck business.
Why doesn’t my personal car insurance cover my food truck?
While delivery jobs may seem like easy money, they actually render most personal car insurance policies useless. The reason? If you are using your car for non-personal tasks, your personal coverage is no longer active.
This means that if you were to get into an accident while working, you would be on the hook for every penny of damages and medical bills. Not your employer. You.
Before you consider taking that risk, after all, you are a great driver, right? Well, consider that in 2016 alone, police recorded over 7 million accidents. The reality is, getting into an accident while driving is more a matter of when not an if. So why gamble with possible thousands of dollars in car repairs and medical bills?
Instead, what you will need to look into is a commercial car insurance policy.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
Secured with SHA-256 Encryption
What type of insurance does a food truck need?
So how do you keep your personal car covered when you turn it into a food deliver car or truck? The answer is simple; commercial car insurance.
You may have heard of commercial car insurance before, usually referring to fleet vehicles. Those are the cars with a company logo painted over the doors. However, other types of commercial car insurance are better suited to food delivery jobs. The two most common options are rideshare add-ons and full commercial policies.
Each of those things is going to require its own insurance. Here’s the essential list:
Commercial car insurance
Any commercial vehicle is required to have commercial food delivery insurance. Food trucks are no different, whether they travel or not.
These commercial insurance policies will cover accidents and any resulting damage or injuries.
General commercial liability insurance
One of the essential insurance types to protect your business is commercial liability coverage. This type of food truck coverage protects you in the event of things like food poisoning, non-employee injuries, and legal fees.
This is especially important because The Bureau of Labor Statistics reports that injuries and illnesses occur more frequently in specialty foodservice locations than traditional restaurants.
Commercial property insurance
This type of insurance protects everything inside your truck or trailer. From food supplies equipment. These are very important to protect against damage and theft
Employee compensation insurance
This insurance may be optional if you don’t employ anyone beyond yourself, but not always. You want to check local laws and requirements to make sure you are within regulation.
Whether your food truck is an all-in-one kitchen or hauling a trailer of supplies, each of these types of insurances will allow your business to keep running even if things go wrong.
Is commercial car insurance affordable?
That depends on which type of insurance you are able to get. If you purchase a whole commercial policy separate from your existing personal policy, average rates run anywhere from $60 to $250 per month.
This can sometimes be an unreasonable amount to pay, depending on how much you make working deliveries.
If you can get a rideshare add-on to your personal policy, the cost is much lower. Add-ons are generally less than $20 a month and are just folded into your existing monthly premium.
The only downside to add-ons is that they are not available everywhere. The best way to find out if you can get one is to contact your insurance agent or go online to view your policy.
Where can you get food truck insurance?
Many companies will offer commercial auto insurance, but you may have to search around to find companies that will provide all four types of insurance you need at once.
The larger insurance companies are generally going to provide most if not all of these policies and bundle them for an additional discount.
One example would be GEICO commercial auto. GEICO commercial auto insurance is a popular choice for auto insurance. The company also offers business insurance, including those listed above.
Many other big names, including Progressive, Farmers, State Farm, and others, will also provide some form of business coverage in addition to commercial auto insurance.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
Secured with SHA-256 Encryption
How much will it cost?
The cost of commercial insurance for your food truck is going to depend on many internal factors.
These factors range from how large your truck is, what type of food you serve, the value of your equipment and products, and other details about your business.
Because of this, it is crucial to shop around when you set out to ensure your food truck.
Get quotes from multiple companies and compare not only the price but the coverage that each one provides. Compare large companies like Farmers vs GEICO or Allstate vs Progressive.
When it comes to running your food truck, you can’t afford to cut corners, so take the time to talk to experts and ensure you and your business are protected.
Ready to look at local insurance quotes? Enter your ZIP code below to compare companies in your area.
Food Truck Insurance Case Studies: Examples of Comprehensive Coverage
Case Study 1: The Street Grill Food Truck
The Street Grill is a popular food truck that specializes in gourmet burgers and sandwiches. The owners, Mark and Sarah, wanted to ensure that their business was adequately protected with the right insurance coverage.
They decided to bundle their commercial car insurance, liability insurance, property insurance, and worker’s compensation with the same insurance provider. By doing so, they were able to save on insurance costs while having comprehensive coverage for their food truck business.
Case Study 2: Tasty Tacos on Wheels
Tasty Tacos on Wheels is a mobile food business that serves delicious tacos at various locations. The owners, Juan and Maria, understood the importance of having the right insurance coverage to protect their business. They opted for a commercial car insurance policy to cover their food truck during transit.
Additionally, they obtained general commercial liability insurance to safeguard their business against food-related incidents and non-employee injuries. With the right insurance in place, Tasty Tacos on Wheels could operate with peace of mind.
Case Study 3: The Rolling Bakery
The Rolling Bakery is a food truck that specializes in fresh pastries and desserts. The owner, Lisa, recognized the need for comprehensive insurance coverage for her mobile bakery. She secured commercial car insurance to protect her food truck, along with commercial property insurance to safeguard her valuable baking equipment and supplies.
Lisa also opted for employee compensation insurance to ensure compliance with local regulations. By having the right insurance coverage, The Rolling Bakery could continue operating smoothly, even in the face of unexpected events.
Frequently Asked Questions
Why do food trucks need insurance?
Food trucks face unique risks associated with operating a mobile food business. Insurance coverage protects against potential liabilities such as accidents, property damage, foodborne illnesses, equipment breakdown, theft, and other unforeseen events.
What types of insurance should food truck owners consider?
Food truck owners should consider several types of insurance coverage, including:
- General Liability Insurance: Protects against third-party bodily injury or property damage claims.
- Commercial Auto Insurance: Covers accidents and damages to your food truck or other vehicles.
- Property Insurance: Provides coverage for your food truck, equipment, and inventory.
- Workers’ Compensation Insurance: Required if you have employees, it covers medical expenses and lost wages for work-related injuries or illnesses.
- Product Liability Insurance: Protects against claims arising from foodborne illnesses or injuries caused by your food products.
- Umbrella Insurance: Offers additional liability coverage above the limits of your other policies.
How much does food truck insurance cost?
The cost of food truck insurance depends on various factors such as location, coverage limits, type of cuisine, value of equipment, and your claims history. Premiums can range from a few hundred to several thousand dollars per year. It’s best to obtain quotes from multiple insurance providers to compare rates and coverage options.
Are there any specific regulations or requirements for food truck insurance?
Regulations and requirements for food truck insurance can vary by location. In general, most cities and states require food truck owners to carry liability insurance. Additionally, some venues, events, or festivals may have specific insurance requirements for participation. It’s essential to research and comply with local regulations to ensure you have the appropriate coverage.
How can food truck owners save money on insurance?
Here are a few tips to help food truck owners save money on insurance:
- Shop around: Obtain quotes from multiple insurance providers to compare rates and coverage options.
- Bundle policies: Some insurers offer discounts if you purchase multiple policies (e.g., general liability and commercial auto) from them.
- Increase deductibles: Choosing a higher deductible can lower your premiums, but be sure you can afford the deductible if you need to make a claim.
- Maintain a good claims history: Building a good claims history can help lower your premiums over time.
- Implement safety measures: Installing security systems, fire extinguishers, and training employees in safety protocols can potentially reduce insurance costs.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
Secured with SHA-256 Encryption
Michelle Robbins
Licensed Insurance Agent
Michelle Robbins has been a licensed insurance agent for over 13 years. Her career began in the real estate industry, supporting local realtors with title Insurance. After several years, Michelle shifted to real estate home warranty insurance, where she managed a territory of over 100 miles of real estate professionals. Later, Agent Robbins obtained more licensing and experience serving families a...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.