While food trucks are free to travel to different locations to serve food, food truck insurance helps cover your risks while on the move.
Your food truck is still a vehicle.
Unlike a traditional restaurant that has a building to house its kitchen, your business is based on your food truck moving from location to location. Since you’re using the food truck for commercial purposes, it most likely won’t be covered under any personal auto insurance you may have. For that reason, you’ll want business auto insurance as part of your food truck insurance plan. This coverage can help protect you in case your food truck is involved in an accident. For example, it typically covers things like damages and medical costs that you’re liable for. Some policies can also cover events like vehicle theft and weather damage. And, if you add physical damage coverage, it can help protect any equipment or appliances that are permanently affixed to your food truck.
Traveling makes you unique and puts you at risk.
One of the great things about having a food truck is you aren’t tied down to a single area like a traditional restaurant. You can travel to festivals and different cities to reach a wider variety of customers. However, because you travel from place to place, standard commercial property insurance probably won’t provide all the protection you need. Since business auto insurance only covers your vehicle, you’ll want to consider inland marine insurance to protect the contents of your food truck. This policy is important to your food truck insurance plan since it provides coverage for your property while it’s in transit between locations. In other words, if it gets damaged by a covered event, you may be protected from a major loss. Here are some of the types of food trucks that may benefit from this type of policy:
- Catering Trucks
- Concession Trucks
- Ice Cream Trucks
- Mobile Food Trucks
- Vending Trucks
Your business is mobile and will likely travel from location to location for various jobs. If your truck is involved in a collision, you risk not just your ability to move your business where it needs to be but also the ability to operate at all. In addition to collisions, the truck is also at risk for theft, fire, vehicle breakdown, and electrical hazards.
Regardless of the size of your truck or your operation, personal auto insurance likely will not be enough. Once you operate your vehicle for commercial purposes, a business auto policy is necessary. Other factors, including the type of foods and beverages you’re serving as well as the equipment and property inside the truck, will also need to be considered.
In the event of a covered loss, most policies include coverage for the income you cannot collect. For example, if your truck is stolen or damaged and you can’t run your business, what will you do? Other concerns, such as supply chain issues, can also cause you to have to shut down temporarily.
Business income insurance may protect you in cases where you’re unable to operate your business. Be sure to consider contingent business income coverage to protect against losses caused by an inability to get the supplies you need due to shortages.
If your food truck offers alcohol, your business is at risk. If someone is over-served, you could be held responsible for damages or injuries that person causes while intoxicated.
A liquor liability policy may cover expenses related to legal defense costs, court fees, and civil or criminal damages that are the result of an incident involving alcohol.
Many factors can lead to food contamination or spoilage, including a power outage or an equipment failure. When this happens, the food must be discarded, which can result in financial loss.
This coverage may help cover the cost of replacement of the spoiled food. This coverage is commonly included in policies, but it’s important to confirm you have a sufficient limit and understand the covered perils.
Because your business travels from location to location, the standard commercial property insurance policy won’t provide all the coverage you need. And although you’ll have a commercial auto policy to cover your truck, it won’t necessarily provide enough protection for everything inside it.
Inland marine insurance offers protection for commercial property while it is in transit. If the contents of your truck, including equipment and inventory, are damaged while on the move, this type of policy can prevent significant financial loss. Common covered perils include collision, theft, and fire, but you’ll want to consult your policy for specifics.
On average, it’s estimated that three out of five businesses will be sued by their employees. While there is nothing you can do to prevent someone from filing a lawsuit, you can limit the costs of defending a legal claim with proper insurance coverage.
Obtain employment practice liability insurance (EPLI) to protect your business from alleged employment-related acts such as wrongful termination, failure to promote, discrimination, and sexual harassment.
The internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to large and small businesses alike. But with these benefits also come challenges, including protection of privacy, data, and the financial information of your customers.
Cyber liability insurance protects your business in the event of unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, extortion, accidental release of personal identifiable information, and resultant damage caused by a lost or stolen laptop or other mobile device. This coverage is quickly becoming more and more important as you embrace technology to help run your business.
Your food is your product, and if someone gets sick after eating at your truck, you can be held responsible. Even if your food was not the cause of someone’s illness, defending your business against the accusation can be costly.
Product liability can provide coverage that pays for legal fees and awarded settlements if you’re accused of or found liable for harm caused by your food. Although a general liability policy may offer some protection, a product liability policy may add an extra layer and peace of mind.
Your food truck offers easy access to cash, credit cards, and food. Employees can steal from you or a third party, such as a customer or vendor.
Employee theft coverage offers protection against financial losses due to dishonest or fraudulent actions by an employee. This coverage is sometimes referred to as employee dishonesty or crime insurance.
Equipment such as freezers, stoves, dishwashers, and air conditioning units are vital when running a food truck. If a power surge or mechanical failure results in equipment breakdown, your business can experience expensive repairs and lost income.
Make sure you maintain systems breakdown insurance, including business interruption and spoilage coverage, so that you can get your business up and running again without suffering financial setbacks.
Most fires are devastating. Besides the emotional impact, the physical damage to your home can be significant. If you lost your home to fire, do you have adequate insurance to replace your home and its contents? Remember, inflation rates on building materials and construction costs rarely track with real estate values. As a result, rebuilding a home can often cost significantly more than expected.
Make sure your homeowners policy contains replacement cost coverage with no cap. This protects you if the cost to reconstruct your home is higher than your current limit of coverage. And, be sure that your insurance includes rebuilding your home to code. Very often, local ordinances and building codes change over time, which may require additional costs.
When your home suffers damage due to an unexpected event, your personal property is also at risk. Furniture, appliances, clothing, electronics, and other personal items can also be damaged or destroyed.
Your homeowners insurance policy typically covers personal property, including the contents of your home and other personal items owned by you or family members who live with you. Make sure your homeowners policy includes replacement cost coverage for personal property so that you always receive the full cost to replace whatever item is damaged.
When there is substantial damage to your home due to unexpected events such as lightning, fire, or a storm, you may not be able to live in your home until it can be repaired or rebuilt–potentially incurring additional living expenses for lodging, food, and other daily needs.
Ensure that your homeowners insurance policy provides additional living expense or loss of use coverage to compensate you for the additional costs you incur for reasonable housing and living expenses if a covered event makes your house temporarily uninhabitable while it's being repaired or rebuilt.
Typically, there is a sublimit on homeowner insurance policies for valuable possessions, such as jewelry, furs, fine arts, and other collectibles.
Obtain a personal floater or schedule your valuable possessions to ensure you’ll have the money to replace them.
If a guest is injured while on your property, even when it’s due to a friendly game of baseball, you may be required to pay any medical expenses associated with their injury.
Your homeowners policy should include medical expenses coverage to take care of injuries and treatment - generally not of a serious nature. In the event a person is injured on your property and requires medical attention, you would be able to submit the injury-related medical expenses to your insurance carrier. Medical expenses are usually paid without a liability claim being filed against you.
In the unfortunate event that someone slips and falls while on your property, you and your family may be held liable for any injuries that result.
Your homeowners policy includes personal liability coverage to respond to incidents where injuries or damages occur to a third party where you may be deemed negligent. However, you should consider purchasing a personal umbrella or excess liability policy to provide additional coverage limits to protect your assets in case a lawsuit is brought against you.
The fun that comes with having a trampoline in your backyard can also be accompanied by serious risks, which may not be covered under your standard homeowners insurance policy since coverage varies from state to state and between insurance companies.
You should make sure your homeowners insurance policy covers your trampoline, as many insurance providers refuse to take on trampoline liability and exclude the item from coverage.
Young people are usually very active online. However, using social media and other sites can increase the possibility of them directly or indirectly damaging someone's reputation and exposing you, the parent, to a lawsuit.
Your homeowners insurance policy includes liability coverage for property damage caused by any member in the family, but likely does not cover rumors or statements that damage a reputation. You may need to seek additional coverage to include liability protection that covers personal injury or defamation.
You invite guests over for a pool party and one of your guests dives into the shallow end of the pool and is permanently injured. They hire a lawyer to represent them and after a long legal battle, you and your family are left financially responsible for their injuries. Do you have enough money in savings to cover your legal responsibilities as well as the legal defense costs?
An umbrella or excess liability policy increases your personal liability limits by adding protection over and above your current auto, boat, or homeowners policies-providing financial value and security. Excess liability insurance is available either by an endorsement to your homeowners policy or available as separate coverage.
You do not have to live near a body of water to suffer loss due to flooding. With the changing weather patterns and more damaging storms occurring around the globe, flood losses are becoming more common in places that are not normally prone to flood damage. Your homeowners policy does not cover damage from flood. Could your home be at risk?
Purchase a flood insurance policy to protect your home and covered contents from certain types of flood losses as designated by the National Flood Insurance Program. A flood policy is purchased as a separate policy through the federal program (NFIP) or through a servicing carrier known as a write your own carrier.
Owning a secondary home has the potential of increasing your liability exposures.
Be certain that you extend the liability coverage under your homeowners policy to include your secondary home. You should also consider including the secondary home under an excess liability or umbrella policy to provide for additional liability limits.
Collector or classic vehicles often have significant value and require special documentation and unique insurance coverage to ensure they are adequately protected. Even if stored on your property, they are typically not covered under your homeowners insurance.
Insure your collector cars with a specialized insurance company that focuses on and understands the unique nature of collector or classic cars and other vehicles.
If you are a connoisseur of wine, you know that it is susceptible to outside environmental exposures that can ruin it. If the collection is damaged, coverage from your homeowners policy is a possible recourse. However, the damage is only insurable if it is a covered cause of loss as outlined in your homeowners policy. A deductible would also apply.
If you have a sizable wine collection, you may want to consider scheduling the collection on your homeowners policy. Doing so expands your coverage and eliminates the deductible in case of a loss. You can also consider unique coverages for wine, such as for spoilage.
Whether entering from outside your home from a flood or from within your home’s plumbing system, water damage is the most common cause of loss to a home. Many policies exclude losses caused by backup of sewers and drains, and all unendorsed homeowner policies exclude damage caused by a flood.
Careful review is essential to protect your home and belongings from all sources of water damage. We recommend coverage solutions from insurance companies that include backup of sewers and drains. Also, identify cost efficient solutions to address the risk of flood damage in the first place.
Surprisingly, standard auto insurance does not cover personal property or contents stolen from your car.
Most homeowners policies offer an option to include off-premises theft coverage as an endorsement, which covers you for theft of your personal property away from your residence.
Get coverage for a variety of potential liabilities.
Life can throw your business into some crazy situations which is why it’s important to have the necessary coverage. For instance, let’s say you’re parked out in the sun on a hot summer day when a customer leans up against your truck and burns themselves. Or perhaps a customer has eaten one of your delicious lobster rolls but came down with food poisoning and thinks they got it from your food truck. You could be held liable for these situations and more. General liability insurance is an important part of your food truck insurance coverage as it may help you cover the costs of damages you’re liable for. It may also help cover the cost to defend yourself against such accusations.
Working with food involves special coverage.
You obviously don’t want your customers to get sick from eating your food, which is why you wouldn’t serve them anything potentially spoiled or contaminated. What happens if the power goes out and causes all the food in your fridge to spoil? What happens if your food is exposed to a contaminant? There’s special coverage you can add to your food truck insurance plan to help protect you. Spoilage insurance can help cover you if your food spoils from a covered event, such as a power outage or broken refrigerator. Food contamination shut down insurance can help protect you from lost income if you’re forced to close for contamination reasons. Some policies can even help cover the costs to help fix the issue.
Your food truck is just like any other business.
While a food truck is a unique way to house and run a business, it still needs some basic coverages as part of your food truck insurance policy. For example, if you have employees, you’ll want to get workers’ compensation insurance to help cover their expenses and lost wages in the event they get hurt while on the job. Since you work with a lot of expensive equipment that’s necessary to make your food, systems breakdown insurance can help cover the costs of repair and replacement in the event your equipment breaks. Additionally, because your business relies on traveling to locations, business interruption insurance can help cover lost income if you’re unable to operate your business—following a natural disaster is an example.
Are you ready to learn more about specialized food truck insurance coverage? Contact us today to discuss your insurance options.
Let’s Get Started
Food Truck Insurance Quote Request
"*" indicates required fields
Don’t like forms? Contact us at 203-304-9689 or email us.