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 restaurant 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 insurance policies can protect your finances and your livelihood.
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 – 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 business from these risks.
Food Truck Insurance Coverage Options
When people think about insurance, they usually think about how to protect against injuries and property damage. But business owners must think beyond these concerns in order to adequately protect their business.
Here are some of the types of insurance policies you need to consider to protect your food truck business.
Commercial Auto Insurance – A food truck is more than a restaurant; it’s also a vehicle. A commercial auto policy will provide protection against things like theft, collisions, and weather-related disasters.
Commercial Property Insurance – This type of policy provides physical damage coverage for things like kitchen equipment.
General Liability Insurance – An essential policy for any business owner, general liability insurance helps protect your eatery against injury and property damage you may cause to a third party.
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 truck insurance that addresses your needs, goals, and risk tolerance.
What Is the Cost of Food Truck Insurance?
While it can be comforting to know exactly what to expect when it comes to your insurance costs, it simply isn’t possible for a blog post to accurately predict your premium amount.
The truth is that there are a variety of factors that will affect the cost of food truck insurance, including:
Insurance Coverage – The type of policies you have, your policy limits, and your deductible will all have an affect on your premium amount.
Menu – The type of food you serve is a major factor in the cost of your insurance. Risker, more expensive food (such as seafood) tend to cause higher premiums.
Location – Your location is one of many things that affect small business insurance costs. And while a food truck’s location varies from day to day, the areas you frequent will have an affect on your insurance.
Claims History – Like any other type of insurance, a long history of claims tends to result in higher premiums.
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.
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