Food truck insurance is a term for policies that cover your truck, property, equipment, employees, and liability. Food truck insurance costs vary depending on many factors, beginning with your truck: the type of vehicle, its age, and the value of equipment installed in it.
Additionally, the total price will depend on the policies you purchase. The most basic policies any food truck needs are commercial auto and general liability, and these typically start at $3,000 annually and increase with added coverages and risk.
If you’re looking for affordable food truck insurance, then check out Food Liability Insurance Program (FLIP). It offers general liability insurance for food trucks, food carts, and food vendors with a policy that starts at $25.92 a month. You can get a policy online in minutes.
How Much Does Food Truck Insurance Cost?
You should expect to pay a minimum of $2,500 for commercial auto and around $1,500 annually for a basic business owner’s policy (BOP). The BOP is a policy that combines two coverages: your property and liability.
Policy | Annual Premium | Estimate Coverage | Amount Deductible |
|---|---|---|---|
Commercial Auto | $2,500–4,200 | $500,000 | $1,000 |
General Liability | $385–$1,900 | $1 million per occurrence; $2 million aggregate | $0 |
Business Property | $300–$550 | $25,000 | $500 |
Business Owner’s Policy (BOP) | $840–$2,500 | $300,000 property; $1 million per occurrence liability | $1,000 for property |
What Can Affect Food Truck Insurance Costs?
Insurers have a standard method for calculating your premium, which is how much food truck insurance will cost for your business. Many factors go into it, such as:
- Vehicle: What is your truck’s year, make, and model? Do you have a trailer?
- Drivers: How many people drive the vehicle?
- Driving record: Any tickets or claims in your driving history?
- Equipment: What is the value of the equipment installed in the truck?
- Mileage: How many miles a day do you drive?
Beyond your food truck, the insurer will want to know about your business in general. It may ask about your:
- Building: Do you have a kitchen or storage unit?
- Employees: How many employees do you have?
- Liquor sales: Do you serve liquor, and if so, how much of your revenue is from alcohol?
- Property value: What is the value of your property?
Finally, it will assess risk exposure by asking questions like:
- Violations: Any health department violations?
- Claims: Any liability claims in the last three to five years?
- Entertainment: Do you serve at festivals or concerts?
After answering all the required assessment questions, you will then select coverage:
- Coverage amounts: A higher limit usually results in a higher premium, while a lower limit often results in a lower premium.
- Deductible: Deductibles are like co-pays—the higher the deductible, the lower the premium.
- Additional insureds: Sometimes, clients will request they be added as insured to your policy; some companies do this for free. Others charge a fee of around $100 per request.
Food Truck Insurance Coverage
The most common food truck insurance policies include commercial auto, commercial property, general liability, BOP, and workers’ compensation.
Coverage | What It Is |
|---|---|
Commercial Auto | Covers property damage and bodily injury for accidents that are determined to be your fault |
Commercial Property | Covers damage to business-owned assets, such as building, equipment, and inventory |
General Liability | Covers third-party claims for bodily injury, property damage, and advertising injury |
BOP | Is a combination (think bundle) of general liability, commercial property and, usually, lost business income expense |
Workers’ Compensation | Covers employees’ medical bills and lost wages after a work-related illness or injury |
Commercial auto insurance is essential for any business that uses vehicles. Odds are, you are also required by law to carry it, as nearly every state requires minimum liability coverage on a vehicle. For the few states that do not require you to carry insurance, you must demonstrate your financial ability to cover a loss yourself.
Beyond the minimum liability, as a food truck owner, you should consider:
- Collision: This is first-party coverage, meaning it covers your property. This policy covers damage to your vehicle from a collision with anything other than an animal.
- Comprehensive: This is a first-party coverage for losses other than collisions, such as theft, hail, or fire. This also includes any impact with an animal.
- Uninsured/underinsured motorist: If you’re injured in a loss by an at-fault driver who either is uninsured or has minimum liability limits, then this covers medical expenses, lost wages, pain, and suffering.
For food trucks, it is important to remember that commercial auto will only cover whatever is permanently attached to your vehicle. Visually, think of it like this: if you flip your truck upside down, then whatever falls out would fall under the commercial property category—such as your pots, pans, and food. If you have a building where you cook, prep, or store food, then this is an insurance policy you should consider.
Once you park and start serving food, anything that happens to a customer for which you are responsible falls under general liability insurance. The policy also covers legal fees if the claim ends up in court.
Many insurers will offer inland marine insurance as an insurance endorsement for food truck vendors with general liability. This is a great way to cover the tools and equipment you use in your job and travel around with in a vehicle.
A BOP is a policy package containing general liability and commercial property and, usually, business lost income too. If you visit an insurance website and try to get separate quotes, then they will likely recommend one quote for a BOP. Bundling these two policies usually results in some premium savings too.
Nearly every state in the United States requires a business with employees to provide workers’ compensation insurance. This covers the cost of medical bills, treatment, and lost wages for an employee injured while working. It can also protect employers from lawsuits over workplace injuries.
Many food trucks are run by sole proprietors or a family. This doesn’t mean that workers’ comp isn’t still required or that there are no options for workers’ comp. Some insurers offer self-employed workers’ comp insurance policies, and some states will classify family members as employees who must be covered. It is important to check your local state requirements to ensure you are in compliance.
How To Buy Food Truck Business Insurance
When you’re ready to buy food truck insurance, you can work with
- An agent: The agent works for a carrier to help facilitate a sale.
- A broker: A broker will work with multiple carriers to help find you coverage.
- Food truck insurance companies: Representatives can identify your unique risks and needs. Visit a company’s website or contact a local agent to get a quote started.
Frequently Asked Questions (FAQs)
Since food truck insurance isn’t one single policy, the answer isn’t straightforward. Commercial auto liability insurance is required. Beyond that, if you have employees, odds are you will have to offer workers’ comp. Just as importantly, many venues where you want to park your truck will ask for proof of insurance before letting you work there.
A certificate of insurance (COI), or proof of insurance, is a one-page document that shows that you have active insurance. Usually, this is used to produce proof of liability coverage. For food trucks, event managers, or even business owners where you park in their parking lot will request a COI before letting you operate on their premises.
Like any insurance policy, food truck insurance has certain exclusions. One of the most common is intentional acts or criminal acts coverage. For example, if you get angry with a customer and intentionally undercook their food, a resulting claim would not be covered. Likewise, if you steal food supplies from another vendor for your truck, this criminal act would not be covered. Beyond that, the specifics of your policy will dictate what is and isn’t covered.
Keep in mind that your policy will only cover what it is designed to cover. So a general liability policy will not cover food truck employees who are injured on the job—that type of coverage falls under a workers’ comp policy.
Bottom Line
The food truck industry is growing, and demand for the correct type of insurance comes with that growth. There are many risks to consider when you put a kitchen and restaurant on wheels and serve food in a public space—so it’s best to be prepared to ensure that your business can operate without worry.
FLIP is a specialty insurance program specifically designed with food trucks and food vendors in mind. It offers the core policies a food truck needs, with generous limits at a very affordable rate. In just minutes, you can get a quote and purchase a policy online.
