What Coverages Should My Food Truck Insurance Policy Have?

Jul 20, 2022

Commercial Truck Insurance

What Coverages Should My Food Truck Insurance Policy Have?

What would be a fun business to start on wheels? A food truck can serve your community and beyond. It will require plenty of money, with some of it going toward insurance. Here's a look at the coverage you need for a food truck insurance policy.

What Type of Insurance Do You Need for a Food Truck?

There are various types of insurance available for a food truck business. It's helpful to start with a standard business plan, which contains general liability insurance. This coverage pays for lawsuits, such as if someone is injured because of your vehicle. With a cart or trailer, you'll need commercial auto and commercial property insurance.

Here are some of the reasons food businesses carry general liability insurance:

  • Covers product-related lawsuits - due to food poisoning, burns, cuts, and other illnesses or injuries after consuming your company's food
  • Pays for advertising lawsuits - such as when a competitor complains your business has defamed them or used their trademarks without permission
  • Injuries near your food truck - covers customers who fall or suffer other injuries caused by your truck or business

Depending on your business, you may want to add various extensions to your policy. Inland marine insurance, for example, protects your equipment while in transit. If your business sells alcoholic beverages, you'll also need liquor liability insurance. This coverage protects against lawsuits in which someone is injured by one of your drunk customers.

Factors That Can Impact Food Truck Insurance Rate

Several factors can affect your monthly or annual insurance premium. Core factors include the size of your business, state laws, equipment value, and payroll data. Your decision on the amount of coverage you buy should be based on the company's risks of causing illness, injury, or losses to other people.

You can control various factors that affect insurance costs, starting with the amount of coverage you buy. A major consideration that directly impacts premium rates is where you do business with your food truck. Zip codes with high crime rates have higher insurance costs due to higher risks.

Another part of insurance you can control is your deductible, which is the amount you pay upfront when you file a claim. By raising this amount, you will lower your monthly payment.

Commercial Truck Insurance at Graystone

Every food truck business must evaluate its risks and cover them accordingly with specific insurance. Be aware that the most common claims associated with food trucks are theft and fire. Food poisoning is among the least common claims. At Graystone, we understand the coverage needed by all types of businesses, including food trucks.

One of the common questions we get is: what's the difference between a food truck and a food trailer when it comes to insurance? The answer is a vehicle with a trailer needs separate policies, while a food truck needs just one auto insurance plan. A major key to lowering your food truck premiums includes hiring drivers with good driving records. You should also emphasize safety standards and maintain the truck's condition.

Cover Your Truck with Graystone Insurance!

Taking food safety seriously is part of the key to running a successful food truck service. We know what it takes to provide the right coverage for your business. At Graystone Insurance Group, we offer customized insurance to fit your company's needs. Contact us today so we can help you find the right coverage for your food truck business.