Independent Operators

A 5-step plan for determining food truck insurance coverage

Understanding the various insurance options in food truck operations is the first step to ensuring you've get the appropriate coverage. In this second part of our series on choosing the right insurance we offer a five-step approach and a look at typical insurance claims in the food truck industry.

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December 7, 2020 by Richard Traylor — Writer, WebstaurantStore

This is part two of a two-part series on insurance for food truck operations. Click here to read part one.

Insurance is a critical operations requirement for food truck operators and knowing costs and typces of insurance, as explained in part one, is the first step to ensuring your business is covered adequately.

Now, after you've designed your food truck business plan, you'll need to begin the search for finding the right food truck insurance and provider. Here's a five-step approach:

1. Research

Research what insurances are required in your state and township to legally operate a food truck. Visit insurance company websites to get an idea of the coverage options they offer. If possible, chat with other food truck owners in your area for advice on which insurance companies and coverage options they selected.

2. Do a business assessment

Compile a list of your assets with their value, payroll records, truck registration, and employee driving records. By gathering your important documents and records before you shop for insurance, you'll be able to get a more accurate quote to help you make your decision.

3. Get quotes

Reach out to various insurance providers with the same information and records to more easily compare direct quotes. You may want to check with 3-5 providers to get an idea of the options available in your area. You can also use a broker to contact providers for you and present the information in a way that is easy to understand and compare.

4. Review quotes and purchase

Layout the quotes side by side and choose the provider that provides you with the most coverage within your budget. Complete the insurance purchase with your intended provider.

5. Reassess at renewal

You'll need to renew your insurance policy either annually or semi-annually. In the period between purchasing and renewing your insurance, make sure that you and your staff are following safety protocols closely to keep your premium down. At renewal, bring up coverage needs or instances where your budget is overextended with your insurance agent to make adjustments to your policy.

The provider equation

Most insurance companies that provide auto insurance will have the policies required to protect your food truck business. It is important to explore a few provider options to ensure full coverage will be provided to you. You may receive a discount for bundling insurance policies with one company, but you can use multiple insurance companies to purchase different policies for your truck.

The following are some insurance providers that offer food truck insurance and quotes:

Progressive Commercial.
Farmers Insurance.
Insure My Food Truck.
Freeway Insurance.
Bolt Insurance Agency.

Here are answers to common questions food truck owners have before investing in insurance:

What are the most common food truck claims?

The following are the most common claims encountered by food truck owners:

Theft: Because food truck owners typically keep valuables and equipment on their trucks and trucks are typically left on the street overnight, they are a frequent target for break-ins and theft.
Fire: Since food trucks carry and use cooking equipment, they are more likely than other vehicles to be involved in a fire-related incident.

What Are the least common food truck claims?

The least common food truck claims have to do with foodborne illnesses and food poisoning, even though food is the main source of income for a food truck. It is important to still take food safety precautions to avoid insurance risks and illness among your customers.

Do food trucks and food trailers use the same insurance?

Food trucks and food trailers may have some insurance policies that overlap. Since a food trailer is towed by a vehicle, the trailer and vehicle will need to be separately insured while food trucks would only need one auto insurance policy for their vehicle. An extended commercial auto and property coverage is typically needed to ensure that food trailers are fully protected from collision damage and liabilities. Be sure to ask your provider for more information about how to protect your mobile food business properly.

How to keep food truck insurance premiums down

To keep food truck premiums down, your goal as a business owner should be to keep claims down. Here are some precautions you can take to keep your rate down:

Hire the best staff. Do background checks, request driving records, provide thorough training, and get your employees ServSafe Certified.
Implement safety and cleaning protocols. Ensure your truck is cleaned regularly to reduce pests and possible illnesses by providing clear rules and cleaning schedules along with safety tips.
Perform regular preventative maintenance. Check on your equipment regularly and perform repairs and cleaning on a daily, monthly, and quarterly schedule to make sure filters are clean, gas lines are clear, and oil is changed out.

Your food truck is important to you. Be sure that it is protected from liabilities, collisions, and other threats by covering it with comprehensive insurance to provide you with peace of mind and a successful business in the long run.

About Richard Traylor

Richard Traylor graduated from Temple University in the winter of 2014 with a degree in Strategic Communications. After graduating, he taught English in South Korea for two years, during which he was fortunate enough to travel and see the world. In October 2016, he returned home and started to work in SEO Content at Webstaurant Store. This blog previously ran on Webstaurant Store.

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