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Do You Need Insurance for Food Trucks?


According to Food Truck Nation, for you to obtain the required permits, legal compliance, and licensing, you will probably spend a little over $28,000 to get your food truck legally on the road.


In addition to these requirements, you do need to invest in food truck insurance.

You risk experiencing huge amounts of loss or completely running down your business without securing insurance for your food truck. Read on to learn the cost of food truck insurance, what insurance you will need, and the best insurance for food trucks.


Businesses That Need Insurance for Food Trucks

You’ll need more than just car and simple business insurance policies. Specialized insurance for your food truck is the best way to go.


Below is a list of businesses that commonly need food truck insurance:

  • Mobile food trucks

  • Catering trucks

  • Ice-cream trucks

  • Concession trucks

  • Vending trucks

How Much is Insurance for a Food Truck?

On average, you are likely to spend between $2,000 to $4,000 in food truck insurance per year. The different coverage options will influence the insurance cost you choose from your insurance provider.


Below are several factors that will influence the cost of your food truck insurance.

  1. Size of Your Business: Your business turnover will affect the cost of your food truck insurance. Generally, a prominent business will incur higher charges.

  2. Your Neighborhood: The crime rate, traffic, and road conditions in the area where you operate your business will impact the cost of your food truck insurance.

  3. Equipment Value: The higher the costs of your equipment, the higher your insurance premium will be.

  4. Employee Payroll: The number of employees working in your food truck business and the amount of money you pay them will impact the cost of food truck insurance.

  5. State Policies: Different states or cities have varying requirements in their permits and licenses, which will affect the cost of insurance. You can contact us to find out more about Carolina’s prices.

What Insurance Do I Need for a Food Truck?

You will need to make sure you have coverage from fire, theft, damage, loss of revenue, and employee injury.


To protect your business or food truck from these potential issues, you will require the following business insurance types.


General Liability Insurance for Food Trucks

The General Liability Insurance protects your business if a third party is involved in any incident or accident while your food truck is stationary and open for business. The cost of General Liability insurance ranges from $300 to $800.


The insurance covers:

  • Lawsuits arising from your product and services, including contaminated food, foodborne diseases, burns from hot food, and cuts from utensils

  • Any injuries to passersby or customers when in your premises, for instance, slips and falls

  • Damages that your food truck causes to someone else's property

  • Any legal fees arising from lawsuits

Workers’ Compensation Insurance

Workers’ Compensation insurance is among the requirements for most states; it costs roughly between $1,000 and $1,500.


The insurance covers:

  • Employee injury during work from slips and falls

  • Medical coverage that consists of treatment, medication, and rehabilitation for employees who got hurt or sick due to work

  • Long-term and permanent disability payments to employees

  • Death benefits to family members of an employee who died while at work or due to work-related injuries

Commercial Auto Insurance

All vehicles used for business purposes need Commercial Auto Insurance. The insurance covers your business truck from all liabilities and damages while it is in transit. The Commercial Auto Insurance cost ranges from $1,500 to $3,000.

The insurance covers:

  • Damage to your food truck resulting from a collision with another vehicle or barrier

  • Damage to any property or people while your food truck is in transit

  • Comprehensive coverage of incidents such as theft, vandalism, fire, and those caused by natural disasters

Sometimes, businesses opt for personal auto policies. Find out from your insurance provider if a personal auto policy will be viable for your food truck insurance.


Although it is safe to invest in insurance, you should also proactively safeguard your business. It is better to avoid incidents than for insurance to compensate you.


One way of doing this is involving your employees, training them to be careful while working, and attending to clients. Additionally, make an effort to remove any objects that may cause accidents to your employees or other third parties from your work premises.


Property Insurance

Due to the increased costs, you need proper coverage for the cost of the custom build-out on your truck or trailer. Typically, auto insurance is paid out actual cash value, so you will need to search for coverage options to protect your additional equipment and build-out investment. Equipment breakdown is another key coverage on the property side. You’re relying on the equipment to serve your customers, and generate revenue. Equipment breakdown could be the key coverage to save you from great financial distress in the event of an equipment malfunction.

How to Get the Best Food Truck Insurance

There are so many insurance companies that offer food truck insurance. However, to get the best food truck insurance, you will need to do as follows;


Carry Out Research

Find out what the authorities in your area require from your insurance. Inquire about the coverage options and their costs from insurance companies. You can also ask other food truck owners in the area to discover their preferential insurance company and the available coverage options.


Do a Business Assessment

Note the value of your assets, payroll records, food truck registration number, the truck driver's license, and any other item that the insurance provider might need. Having all your data in order will make it easier for insurance providers to comprehend your needs and provide an accurate quote.


Request Quotes

Hand out the data you earlier compiled to different insurance providers and ask for quotes. Try asking three to five insurance providers in your area to get a rough idea of the available options.


Review the Quotes

Compare the quotes you receive from the different service providers and then choose one that meets all your food truck insurance requirements and budget. Make sure you don’t just compare costs, but the coverage, too.


Assess Your Insurance

As you run your business, ensure that you and your employees follow all safety protocols. Keep track of the different policies to determine which is overvalued or undervalued and request an adjustment during renewal. You are required to renew your insurance either annually or biannually.


Where Can I Get Food Truck Insurance?

Sometimes, insurance companies have reasonable offers in specific policy coverage. You may decide to use multiple insurance companies to buy the different policies or get all the insurance coverage from one insurance provider.


Some insurance providers offer a discount for clients who have decided to get a bundle of policies from them, such as covering all the policies needed or insurance for food trucks.


One of the best food truck insurance providers is us at Central Carolina Insurance Agency. Check out our other articles. Read up on what we can do for you. Then, get a free quote from us for your insurance policy.

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