Make sure your food truck business stays in gear.
But what is food truck insurance and how can it help?
Owning a food truck can be a great way to get started in the food service business.
In addition to low investment and overhead, food trucks also allow you to experiment with different locations, giving potential customers plenty of opportunities to become loyal fans.
Yet even though food trucks minimize some of the financial risks of opening a restaurant, they are not completely risk-free. Thankfully, there’s food truck insurance.
Let’s take a closer look at how the right commercial insurance policies can protect your business.
What Is Food Truck Insurance?
There is no single policy labeled “food truck insurance.” Rather, it’s a collection of commercial policies designed to address the specific needs of food truck owners.
In addition to the same issues that affect restaurant owners, some of the unique risks posed by food trucks are:
- Mobility – Having a restaurant that’s always on the go means that your business is vulnerable to driving-related risks, such as accidents and vehicle theft.
- Location – Where your business is located has a huge effect on insurance premiums. But unlike a typical restaurant, a food truck’s location can vary from day to day.
- Compact Working Space – Food trucks tend to have a much smaller interior than a typical restaurant, which can make injuries more likely.
- Business Interruption – Since food trucks are dependent on the truck itself for business, any downtime due to repairs or maintenance can lead to significant loss of income.
- Customized Equipment – Food trucks often rely on customized equipment designed to work in a smaller space. (Pizza oven on wheels, anyone?)
Food truck insurance gives you a way to protect your small business from these risks.
Food Truck Insurance Coverage Options
Food trucks aren’t just businesses—they’re vehicles, too.
That means your insurance coverage has to work double-duty, protecting you from the risks of both the road and the kitchen. To truly protect your livelihood, you need more than commercial auto coverage and a BOP.
Here are some of the types of insurance policies you need to consider to protect your food truck business.
- Commercial Auto Insurance – Running a restaurant on wheels? A commercial auto policy will provide protection against things like theft, collisions, and weather-related disasters.
- Commercial Property Insurance – This type of policy covers damage to tangible business property, like kitchen equipment.
- General Liability Insurance – An essential policy for any business owner, general liability insurance covers third-party injuries (such as food poisoning), property damage, and legal fees if you’re sued due to a covered loss.
- Business Interruption Insurance – If you need to close due to a covered loss, business interruption coverage will reimburse you for that lost income, helping you cover payroll and other necessary expenses.
- Business Owner’s Policy (BOP) – BOPs are made up of three essential types of coverage, commercial property insurance, general liability insurance, and business interruption insurance.
- Food Spoilage Coverage – Did a hurricane knock out your refrigeration? This policy covers the cost of replacing that spoiled food.
- Workers’ Compensation Insurance – Workers’ comp covers medical bills and lost wages for employees injured on the job. (If you have four or more employees, workers’ comp coverage is required.)
- Inland Marine Insurance – Inland marine insurance covers property damage (to things other than your vehicle) that occurs while you’re transporting them.
- Liquor Liability Insurance – If you serve any kind of alcohol from your food truck, this type of policy helps protect against risks posed by intoxicated customers.
- Commercial Umbrella Insurance – Umbrella insurance extends your existing liability coverage by raising your policy limit and/or covering a wider variety of claims.
Keep in mind that this is only a portion of the types of policies available to you. Your independent insurance agent can discuss your options more fully to help you build a network of food vendor insurance that addresses your needs, goals, and risk tolerance.
What Does Food Truck Insurance Cost?
It depends. While we’d love to give you a flat number, there are too many variables for any blog post to give a one-size-fits-all price. However, understanding the factors that influence your premium can help you estimate your costs and prepare accordingly.
Here are the biggest things that affect the cost of food truck insurance:
- Insurance Coverage – The type and amount of coverage you choose will significantly impact your premium. Every commercial policy comes with its own costs. Higher limits and lower deductibles generally mean higher premiums.
- Menu & Equipment – What you serve—and how you cook it—matters. High-risk items like seafood or anything deep-fried can increase premiums due to a higher chance of food poisoning or equipment-related fires. Specialized equipment like grills, fryers, or refrigeration units can also affect your rate.
- Location & Operating Radius – Even though you’re mobile, where you park matters. Operating in high-traffic areas, multiple cities, or special events may require additional documentation (including adding additional insureds) which can affect your overall cost.
- Claims History – Insurance carriers take your track record seriously. A clean history can help lower your costs, while previous claims may lead to higher premiums—especially if they involve property damage, injuries, or legal fees.
- State & Legal Requirements – Each state—and sometimes local municipalities—may have specific insurance requirements for food trucks. These mandatory coverages will also influence your total cost.
Ultimately, the best way to find out what your food truck insurance will cost is to talk to an independent agent who can compare quotes from multiple carriers and tailor a plan to your business.
Get Cooking With Harry Levine Insurance
Owning a successful food truck requires more than a stand-out menu or great customer service—it involves protecting yourself against the large number of risks that can threaten your income.
At Harry Levine Insurance, we’re no stranger to the food business. Our offices are located in the heart of Orlando’s “Restaurant Row” and we are proud to consider some of the area’s best eateries as our clients.
Whether you’re just starting out or looking for replacement coverage, our friendly agents can provide you with quotes from a variety of insurance companies to help you find the coverage that’s right for you.
Call today or visit our website for a free quote.
