Food trucks are a unique type of business, which means the food truck insurance you need to operate one must be just as unique. If you don’t have the right type and amount of insurance coverage for your food truck business, you could end up in seriously hot water financially and even legally. The good news is you can easily find a food truck insurance policy that works for you from one of the insurance providers mentioned below — so you can stick to cooking the food and keeping your customers happy.
Best Food Truck Insurance
Food truck insurance offers protection to business owners who operate food trucks. If you don’t have the proper commercial insurance for your food truck, you’re at risk of losing thousands of dollars in the event of an accident. You might even wind up ending your business before even getting it up and running without insurance in the event of theft or damage to the vehicle.
This type of insurance differs from your typical restaurant insurance because there are many different components of food trucks that aren’t found in other types of eateries For example, restaurants don’t typically need to think about buying auto insurance policies. However, you’ll need to look into this type of coverage with a food truck business because your entire business is contained inside an automobile.
Finding a good food truck insurance policy may take some searching in order to get the right type and amount of coverage for your wheeled business. There are many insurance providers that offer food truck insurance, but the following are some recommended options that you may want to consider.
Food Liability Insurance Program
The Food Liability Insurance Program (FLIP) is an online insurance program offering coverage specifically to those within the food industry. FLIP provides protection to bakers, farmers' markets, food distributors, and, of course, food truck owners and operators. They offer a number of options for product liability and general commercial coverage, but they do not offer insurance that’s not related to food (like auto insurance). This means that you’ll need to find auto insurance for your truck elsewhere.
One of FLIP’s most unique benefits is that its policies go into effect immediately after you complete your payment. Insurance coverage for food trucks is available from just $299 per year with aggregate limits of up to $2 million. FLIP also offers unlimited coverage for additional insureds, which can be useful for special events when you need to hire extra staff on a temporary basis.
Tivly helps to pair your food truck business with the best coverage they can find. They’re an insurance referral service, which means they don’t actually underwrite or even sell the insurance policies you’ll see on its platform. Even so, Tivly helps you find the best insurance plan quickly, ensuring that you can work with the carrier to purchase and bind your coverage in a timely manner.
This provider offers its services to all different types of commercial businesses, and they offer a wide range of general protections in each industry. Tivly can help connect your food truck business to a policy with general liability, commercial auto, property insurance, workers’ compensation and many other types of coverages that you may need. While Tivly does not specialize in food truck insurance, you’re likely to find exceptionally competitive policy pricing after you apply.
Insureon is an independent insurance marketplace that offers many different types of business insurance coverage. It allows you to compare several quotes from insurance companies in one place so you can get the best coverage and price possible for your business. All you have to do is fill out an application online to get multiple quotes on the insurance you need. Though Insureon also doesn’t focus on specializing in food truck insurance, it can help you find an affordable policy quickly and manage it online.
As a long-standing name in household insurance, Progressive provides insurance to various people and businesses — including food trucks. They offer a number of discounts and policies that can be customized to fit your needs, which can help ensure that you’re only paying for the coverage you need. Through Progressive, you can get protection through general liability coverage, commercial auto coverage, workers’ compensation and more entirely online. With just 1 quick application, you can have coverage from one of the most well-known insurers in the country protecting your food truck.
Insure My Food
Insure My Food works with insurance providers to help you find the best coverage for your business at the best price. Founded to offer its services to food trucks, food trailers and mobile food vendors, you can access coverage that is customized to what you need for your business.
Quotes can be easily accessed online, and you can apply in just a few minutes online as well. You can also call them to get a quote if you prefer to speak directly with a representative. In order to get more information on types of coverage and pricing you will need to get in touch with the platform’s customer service team. Thankfully, Insure My Food offers extended customer service hours as well as extended claims hours.
Types of Insurance Coverage a Food Truck Needs
When you purchase food truck insurance, you need to consider all of the potential types of damage that could prevent you from operating or making profits. You’ll also want to be sure that you have the coverage required by law in your area. Some of the insurance coverages a food truck may need include the following.
- General liability: General liability insurance coverage is a type of catch-all coverage that helps you pay for court-ordered judgments and legal defense costs if a customer or client sues you. For example, if a customer claims your business gave them food poisoning and sues you, general liability insurance would help you defend yourself and pay anything you’re ordered to.
- Commercial auto insurance: Your food truck is used for commercial purposes, which means that it is not protected by any personal car insurance policy you have. You must have commercial liability auto insurance at least equal to your state’s minimum coverage. You may also want to consider additional protections (like collision and comprehensive coverage) that are optional but provide value to you as the business owner.
- Workers’ compensation insurance: If you have at least 1 employee, you may be required to purchase workers’ compensation insurance. This type of protection helps employees pay for their medical bills and cover lost wages if they are hurt on the job. Depending on where you live, this coverage may be required as soon as you hire your first employee.
Speaking directly with an insurance agent in your area can help you better understand which coverages your business needs to operate safely and within the bounds of local laws.
Is Food Truck Insurance Required?
Yes — however, the types of coverage you’ll be required to have may vary depending on how your business operates and where you live. Every food truck owner must have a commercial auto insurance policy just like everyone who operates a personal motor vehicle on the road must have car insurance. If you’re leasing your food truck, you may also be required to maintain other types of coverage as a condition of your loan. Workers’ compensation requirements vary by state but may be required.
While every protection we’ve listed above isn’t required by law, you should take steps to safeguard your investment with extra types of food truck insurance. A general liability policy is a must-have, as it can protect you from financial stress in the event that you or an employee accidentally injures someone or damages property. As this is a common occurrence with motor vehicles, the importance of general liability insurance simply cannot be overstated. You may also want to consider auto insurance beyond your state’s minimums, as food trucks are more expensive and time-consuming to repair than a standard automobile.
How to Save Money on Food Truck Insurance
There are a few steps that you can take to lower the price you’ll pay for your food truck insurance policy, including the following.
- Drive safely around the clock: While you’re probably already operating your food truck with the utmost of care, you should also be careful in your personal vehicle. Collisions and claims on your personal auto insurance policy can increase what you pay for commercial insurance.
- Choose a higher deductible: Your insurance deductible is the amount of money that you’re responsible for paying before your insurance handles the remainder of a claim. When you choose a higher deductible, you enjoy lower monthly rates. Be sure that you’re choosing a deductible that you can cover—you never know when you might be involved in an accident.
- Install anti-theft devices: Just like with your personal vehicle, you can install security cameras and anti-theft devices in your food truck. These features deter thieves and vandals, which means that installing them in your truck lowers what you’ll pay for insurance.
Frequently Asked Questions
How profitable is a food truck business?
When done right, a food truck business can be quite profitable. The logistics of owning a food truck business can be intense and the margins may be fairly low, but most food truck business owners are in it for the passion. Carefully balancing your food and staff expenses can help you get the most out of your food truck business.
What are the risks of a food truck business?
There are many risks for a food truck business that can cost you serious money. Some of the most common examples include equipment damage, injuries to workers, auto accidents, food poisoning and a number of scenarios which could lead to lawsuits. Maintaining multiple types of insurance coverages can protect you against these risks.
Do I need liability insurance for a food truck bussiness?
Yes anytime you sell food to the public, you should be covered by liability insurance in case a customer becomes sick or injured from eating your food.
Benzinga crafted a specific methodology to rank commercial insurance. We prioritized carriers based on coverage options, specialized industries, customer service experience and how quickly and easily you're able to get insured including online tool usage. We also included commercial insurance quote aggregators in lists to make it easy and efficient to compare policy quotes and options. To see a comprehensive breakdown of our methodology, please visit see our Commerical Insurance Methodology page.