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Top 5 Reasons Why You Need Food Truck Insurance


Starting a food truck business is an opportunity that can earn business owners about $300,000 a year. The money you make at your business can disappear just as quickly without obtaining food truck insurance.

Some business owners may find business insurance to be a waste of money, but this is far from the truth. Keep reading to learn why having truck insurance will profit your business and employees in the long run.


1. You Are Protected from Liability

The most common businesses that need to obtain insurance include catering trucks, vending trucks, lunch trucks, ice cream trucks, concession trucks, craft beverage trucks, and mobile food trucks.


Sometimes things go wrong and accidents can happen outside of your control. When that happens, having liability insurance will protect you. It works as a financial security net against claims.


For example, having liability truck insurance will assist you when a person claims to be ill from the food you make. They may claim they contracted a foodborne illness. Another type of legal liability that may occur is when a customer claims injury after eating hot food.


Obtaining general liability coverage can also help your business from reputational harm. This occurs when a person states that you have violated copyright laws.

The price you can expect to pay for general liability insurance varies. Nonetheless, you can get as much as a $1-3 million policy limit.


There are millions of scenarios you may encounter that could mean dealing with a nasty lawsuit. Liability insurance is an excellent buffer against lawsuits and often offers the best settlements.


2. There Is Workers' Compensation Available

Did you know that your employees aren't covered under general liability? This is because they are a part of business operations. In the event a worker gets hurt on the job, having workers' compensation may pay lost wages and medical fees.


Workers' compensation will also help workers who get ill while getting exposed to harmful allergens or chemicals at work. You will also be able to provide continual ongoing care for those workers. You could also cover funeral costs, disability, and ongoing care when you need it.


Adding workers' compensation as part of your insurance may save your trucking business from potential lawsuits an injured worker may file.


An employee may choose to open a claim due to cuts, punctures, bruises, scrapes, falls, burns, and injuries due to heavy lifting.


3. Your Assets Are Safe

Aside from the truck, your trucking business will have assets you want to protect. Obtaining product liability insurance is the way to go. Having trucking insurance for kitchen equipment such as food, a stove, pots and pans, and machines.


Such inventory is often part of your startup expenses and would be costly to replace out-of-pocket. Food supplies are an important aspect of running your business. You may lose profit the longer you go without certain products that help run your trucking business seamlessly.


The great thing with insurance is that it will possibly help in replacing those items. Sometimes assets may break down during operation or general wear-and-tear. Trucking insurance may make the process of replacing these items easier.


A similar situation can occur in the event of theft. Trucking insurance is the perfect risk management tool that helps to ensure the money you spend does not become a loss.


4. You Meet Minimum Law Requirements with Insurance

Chances are if you have a food truck you have to drive on the road. Having trucking insurance will ensure you meet minimum law requirements. Even if you have no plans to travel often with the truck, you should have insurance.


The minimum coverage you will need varies by state, but the amount of coverage will depend on how much your truck weighs. For example, if you have a food truck that weighs 25,000 to 30,000 pounds, it will require at least a $50,000 policy that includes both body liability and property damage insurance.


There are also other options you can add to build coverage to keep your assets safe.

  • Comprehensive

  • Collision

  • Underinsured and uninsured motorist

Keep in mind that your trucking business is mobile. There is always the potential of accidents occurring on the road. There is also the potential for inanimate objects or the weather destroying your truck or valuables.


5. There Is Growth for Opportunity

Ensuring your trucking business has insurance may also open more doors for you than you think. You will have a better chance of partnering with dozens of events, restaurants, or commissary kitchens that otherwise may not have agreed to work with you.

Being insured makes you look more trustworthy and reliable, especially during unfortunate events. Trucking businesses often rent out space to serve or make food.

As a vendor, you will likely want to move your truck from one location to the next. For these cases, you should have street food insurance.


Many organizers who rent out space prefer to work with a food trucking company that is insured. Taking this step will cover both you and the places you rent, making you a desirable long-time partner. After all, the last thing you want is to be unable to cover damages to the property or space that you use.


Finding the Best Food Truck Insurance for Your Business

Protecting your workers and the products you own at your business are major factors you should never go without food truck insurance. In the event of an issue such as injury or damages, the insurance you have may help you during these complex situations.


Finding a food truck insurance company that carries all the factors you need to have to upkeep your business is crucial. You want to work with a carrier that takes your coverage needs into consideration. Contact us and we can help you customize what you need when choosing business insurance.

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