Food Cart Insurance: Guide & Quotes from $11

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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: What is It?

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.

Food Cart Insurance: Is It Crucial to Have One?

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

Food Cart Insurance Policies: What Type Does My Food Cart Business Need?

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

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.

Worker's Compensation Insurance

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.

Commercial Property Insurance

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 for Food Businesses

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

Hot Dog Cart Insurance

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. 

Coffee Cart 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. 

Ice Cream Truck Insurance

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

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. 

A Breakdown of Food Business Insurance Cost

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.

For further reference, here’s another table showing the pricing of the best food cart business insurance companies.