What Insurance Does a Food Truck Need?

Businesses that commonly need food truck insurance include:

Mobile food trucks, lunch trucks, catering trucks, concession trucks, vending trucks, ice cream trucks and restaurants with food truck or food trailer operations.

Food trailer insurance costs varies because food truck businesses, and the risks they pose, also vary

There are factors that affect your rate, such as the type of foods you sell. A food truck that prepares grilled or fried foods can expect their rate to differ from a truck that sells prepackaged goods. The grills and fryers expose the business to additional risks.

Another example is the value of your truck and the equipment attached to it. For example, a food truck with $15,000 in attached equipment would justify a slightly higher rate than a food truck with $8,000 worth of attached equipment. The property of the truck is insured differently depending on if it is attached to the truck or if it is part of your inventory.

Basic food truck coverage includes:

Commercial Auto: An essential coverage for food trucks and trailers. Adding physical damage coverage to your policy not only protects your vehicle, but covers any permanently attached appliances and equipment.

General Liability: Protects your food truck business against financial liabilities that result from accidents for which you’re legally liable. This can include a customer becoming ill from contaminated food or being burned by hot food.

If you are participating in festivals, farmers markets or other events, the venue will require that you provide a certificate of insurance to show you have adequate insurance coverage.

Other coverages you might need:

Workers’ Compensation: Protects your employees who become injured or ill while at work. If you have employees, you probably need it.