If you're operating a food cart, you may encounter risks. Examples are disgruntled customers, equipment damage, and lawsuits. That’s why you need to understand what food cart insurance is and why you need it.
The right carrier will give the most useful coverage at the lowest rates and will make your business become less vulnerable to unforeseen disasters.
Here’s a guide that will discuss mobile food cart insurance, the cost of food cart insurance, and the best food cart insurance companies.
Food cart insurance is a liability insurance plan to safeguard food cart businesses from the hefty costs of claims. Food cart operators encounter many risks. These issues could range from customers getting sick to slip and fall accidents.
Food cart insurance reduces out-of-pocket costs you may need to pay if your business faces a liability claim. It creates financial protection that enables you to operate your food cart at peace.
Is there a need for mobile food cart insurance? The answer is affirmative. The choice of food cart insurance policy to purchase depends on the risk you want to mitigate and how much you are willing to pay for protection. Here are some of the benefits associated with having a food cart business insurance:
Protects your business, especially small businesses
Keeps your food cart business running
Boosts your credibility
Safeguards your staff/team/clients
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Several risks are associated with the mobile food cart industry. We recommend the following insurance policies for a mobile food cart business:
Food cart liability insurance is the general, public or product liability insurance for food cart businesses. It is different from commercial auto insurance. For example, if you caused an accident and dealt damage to a vehicle or a pedestrian, a food cart liability insurance will cover any resulting claims.
General liability insurance is ideal for street food businesses because it can cover a wide range of events. These include compensation claims a customer or pedestrian makes for damages.
If you sold spoiled food to a customer or didn’t follow proper food preparation, product liability insurance will protect your business against claims.
Almost every American state require businesses to get worker's compensation insurance to take care of staff. Employees who sustain an injury whilst working in your food cart business might ask for compensation. If ever this does happen and you have workers comp insurance, you can pay for the employees’ lost income and reimburse medical costs.
Think of the cost of appliances and equipment you bought for your food cart business. Protect these against fire, hail, storm, vandalism, or theft. So how do you get protection for appliances and equipment? Commercial property insurance is the policy that helps.
With commercial property insurance, you can get money if ever the food cart or the food preparation equipment and appliances get damaged. This policy will even pay if ever your business operation is interrupted.
Commercial auto insurance is a vital coverage for food businesses. Be it a trailer , food truck, or van , this policy will safeguard your vehicle . Besides, it will also protect the food preparation equipment inside the automobile. Commercial auto insurance covers:
Bodily injury liability coverage - takes care of your responsibility to pay third parties after causing injuries
Property damage liability coverage - takes care of your responsibility to pay third parties upon damaging their personal belongings
Personal injury coverage - takes care of your own injuries caused by an accident
Collision insurance coverage - to protect your cart if a crash occurs
Uninsured motorist coverage - protects you and your food truck during collisions with an underinsured or uninsured driver
A specialized hot dog cart insurance or hot dog stand insurance is a liability only insurance product - meaning that it only includes general liability insurance and other related policies protecting the policyholder from costly client claims. Consider getting stand-alone commercial insurance policies if you decide to insure your hot dog cart using this instead of generalized food cart insurance or mobile food vendor insurance.
Food carts selling coffee beverages can opt to get a specialized coffee cart insurance offering general liability insurance with a $2 million limit, product liability insurance with a $2 million limit, inland marine insurance with a $10,000 limit, and cyber liability insurance with a $100,000 limit.
Mobile ice cream shops and other related businesses will do better with ice cream truck insurance . Typically, policies included in this insurance product are commercial auto liability insurance, general liability insurance, physical damage coverage, and uninsured/underinsured motorist coverage.
Food concession trailer insurance is best suited for those running food concession trailers and concession stands. Policies included are general liability, products and completed operations, products liability, commercial auto, and commercial property insurance.
On average, food cart business insurance costs $45 a month or $540 a year for a $1 million general liability policy. But know that pricing depends on the types of coverage you plan to get. Look at the table showing the average cost of specific policies food cart businesses usually get.
| Monthly Cost | Yearly Cost |
---|---|---|
Commercial property insurance | $62 | $744 |
Commercial auto insurance | $75 | $900 |
Workers compensation insurance | $58 | $696 |
Equipment breakdown insurance | $25 | $300 |
General liability insurance | $45 | $540 |
For further reference, here’s another table showing the pricing of the best food cart business insurance companies.
| Cost per Month | Cost per Year | Best for |
---|---|---|---|
CoverWallet | $25 | $300 | Food cart insurance quote comparison online |
Thimble | $42 | $504 | Short term insurance for food cart businesses |
State Farm | $58 | $696 | Customizable food cart business insurance |
Progressive | $65 | $780 | Business owner’s policy for food carts |
Get all the best quotes from leading providers in a click of a button!
Many food business insurance companies are available in states that offer food cart business insurance. As a food cart business owner, it is necessary to:
Compare food business insurance quotes
Understand the type of insurance that's suitable for your food cart business
Get different deals
Ensure you identify cheap food business insurance rates for your food cart business from the best insurance companies.
Below are the most popular food cart business insurance providers.
Offers 24/7 claims filing
Experienced representatives
Allows customers to compare food cart insurance quotes from several companies for competitive pricing
Not a food business insurance provider
CoverWallet compiles the quotes of different food cart insurance companies so you can get the best coverage at an affordable rate. With CoverWallet, compare the quotes of different companies and choose which fits your needs best.
Best for : Food cart insurance quotes comparison online
Average cost : $25
Our rating : 10/10
Provides short term insurance policies for food cart businesses for events
Only offers the basic policies food cart businesses need
Food cart businesses looking for short-term coverage should try Thimble’s food vendor insurance. This insurance product covers food carts, concession trailers, concession stands, and other related businesses. Coverage can be purchased by the hour, day, or week. Policies included are general liability insurance with products liability or products and completed operations, and professional liability insurance.
Best for: Short term insurance for food cart businesses
Average cost: $42
Our rating: 10/10
Excellent customer service
Offers customizable food shop business
Filing a claim to State Farm can be stressful
State Farm insurance doesn't advertise specific food cart insurance. But it offers commercial auto and food shop insurance policies, which cover food cart businesses. State Farm commercial auto insurance coverages include:
Collision coverage
Auto liability insurance
Personal injury protection
On the other hand, State Farm food shop insurance offers:
Spoilage
Equipment breakdown
General liability
Employee dishonesty
Data breach and identity theft
Property coverage
Loss of income and food contamination
And more
Best for: Customizable food cart business insurance
Average cost : $58
Our rating: 9/10
Offers a comprehensive BOP for food cart businesses
Easy quotes
Expensive
Progressive food cart insurance offers a very comprehensive business owner’s policy for food cart businesses, which can be added with cyber insurance and workers comp for more protection. Note that this company also offers commercial auto insurance for food truck business with the minimum requirements mandated by state laws.
Best for : Business owner’s policy for food carts
Average cost : $65
Our rating: 8/10
If you want to get insurance for your food cart business, then conduct thorough research to know the different types of insurance policies available. But don’t stop there; compare quotes to find the one that really suits you.
Start comparing quotes by using our free online quote comparison tool. To start, click the “Get Quotes” button and provide some details.
Kasey Arey Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
This company gives you a price that was in place for a year and when you have to use it there is fine print were they can go back and charge you more. Would not recommend them to any one. Crooks
Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Had general liability and workers comp with amguard. Paid high premiums and yet still got audited every year and had to pay more. Was able to prove less risk the first two audits and disputed price down but none the less had to pay more just so I could renew coverage. Third time the audit ( based on what I paid my premium on ) was ridiculous and tried to prove that there was no increase in risk from what I paid for my premium. However they would not believe it and required I paid full audit amount in order to have redline removed. Basically you do what they say and pay whatever outlandish bill they come up with or they will make sure you can’t run your business anymore. ????
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
Avoid these SCAM ARTISTS! They don’t pay claims!!! Save yourself the trouble and money!
Felicia Broadus Insuranker
Policy Type: Business Insurance
Company name: Berkshire Hathaway GUARD Insurance Companies
They are the worst, my truck was hit in January 23 and the claim adjuster has not been out to this very day! They have every excuse in the book as to why. They have not been to the collision shop. PLEASE AVOID THESE SCAM ARTIST!
Dave Phillips Insuranker
Policy Type: Business Insurance
Company name: CoverWallet Business Insurance
Excellent platform for business insurance quote comparison online