Food Truck Insurance: Cost & Coverage
Nathan Weller is an Insurance Expert focusing on insurance for small business. He has 15 years experience in insurance operations, FNOL, and claims handling.
Food truck insurance includes policies that cover your truck, property, equipment, employees, and liability. Food truck insurance costs vary depending on many factors, which begin with your truck—such as the kind of vehicle it is, its age, and the value of equipment installed in it—and 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, typically, these can start at $4,000 annually and increase with added coverages and risk.
Because you may need multiple policies, an online broker like CoverWallet is a good idea. It’s one of our top-recommended business insurance brokers. Its advisors can help you determine the right coverage for your business and provide you with multiple free estimates in minutes.
Food Truck Insurance Cost by Policy
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 to 4,200 | $500,000 | $1,000 |
General Liability | $385 to $1,900 | $1 million per occurrence; $2 million aggregate | $0 |
Business Property | $300 to $550 | $25,000 | $500 |
BOP | $840 to $2,500 | $300,000 property $1 million per occurrence liability | $1,000 for property |
What Impacts Food Truck Insurance Premiums
Insurers have a standard way of calculating your premium. 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?
- Equipment: What’s 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’s 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’ll then select coverage:
- Coverage amounts: A higher or lower limit usually results in a higher or lower premium.
- Deductible: Deductibles are like copays—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 Policies Coverage
The most common food truck insurance policies include commercial auto, general liability, commercial property, BOP, and workers’ compensation.
Commercial Auto Insurance
This policy is essential for any business that uses vehicles. Odds are, you’re also required by law to carry it, as nearly every state requires minimum liability coverage on a vehicle. For the few states that don’t 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.
Commercial Property Insurance
Commercial auto only covers things that are permanently attached to your vehicle. If you flip it upside down, then whatever falls out is what would fall under the commercial property category—this could be your pots, pans, and food. If you have a building where you cook, prep, or store food, then this is an insurance policy that you should consider.
General Liability Insurance
Once you park and start serving food, anything that happens to a customer for which you’re responsible falls under general liability. The policy also covers legal fees if the claim ends up in court.
Business Owner’s Policy
A BOP is a policy package containing general liability and commercial property. If you visit an insurance website and try to get separate quotes, then they’ll likely recommend one quote for a BOP. Bundling these two policies usually results in some premium savings too.
Workers’ Compensation
Nearly every state in the US requires a business with employees to provide workers’ compensation. 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.
How To Buy Food Truck Insurance
To purchase food truck insurance, find a carrier that offers the policies you’ll need, and I recommend working with one of the top food truck insurance companies. Their representatives can identify your unique risks and needs. Visit a company’s website or contact a local agent to get a quote started.
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.
Finding the right insurance for your small business doesn’t have to be complicated. Reach out to CoverWallet to discover the options for coverage available and discuss any questions you may have with its experts. Free, no-obligation estimates are available within minutes.
