Food trucks or lunch trucks are one of the most promising and highly profitable businesses in America. But still, understand that there are many exposures associated with owning one. Some examples are customer lawsuits, workplace accidents, equipment breakdowns, and temporary suspension of business operations.
Many insurance companies provide tailored food truck insurance. This is a policy that’s composed of different business insurance coverages purchased by other ventures such as restaurants, food carts, delis, cooking businesses, catering businesses, breweries, food delivery businesses, and ice cream shops.
This guide will take you through the intricacies of mobile food truck insurance. Know its inclusions, how much premiums cost, and where to get the best coverage at the most economical rates.
Liability insurance is a common inclusion in lunch truck insurance policies carriers underwrite for food truck owner-operators and companies. General liability insurance, public liability insurance, product liability insurance, and liquor liability insurance are the most popular food truck liability insurance coverages. Let’s discuss these ones by one.
Coverage for food trucks usually begins with general liability insurance. This food truck business insurance kicks in when a third party holds your business responsible for an accident. The language of general liability insurance for food truck includes the following perils:
Third-party personal injuries-Food truck general liability insurance will cover the treatment of other food vendors, customers, and other third parties who got injured due to your food truck’s business operations. Coverage applies on ambulance fees, surgeries, first aid fees, and other expenses
Third-party property damage-General liability insurance will provide funds you need to reimburse customers, vendors, and other third parties who had their phone, clothing, bag, and other personal effects damaged or broken due to your food truck’s business operations
Legal expenses-This commercial food truck insurance will take care of attorney fees, administrative costs, settlements, and other legal expenses if persons, who suffered personal injuries or property damage because of your food truck, decide to take things in a court of law
Note that just like the general liability insurance for pizza delivery businesses,juice bars, grocery stores, coffee shops, farmers markets, and bakeries, general liability insurance for food trucks and food trailers can be added with optional policies:
Advertising injury coverage-This optional food truck insurance coverage covers consultation fees, contingency fees, administrative costs, settlements, and other legal expenses if your food truck business is sued for slander, libel, copyright infringement, and other offenses considered as reputational or advertising harm
Rented premises liability coverage- If your food truck is renting a space and the space becomes damaged due to fire, rented premises liability coverage will help cover reimbursements if the property owner files a claim
Products and completed operations coverage-This food van insurance coverage is useful if your food truck business provides specialty services to customers. If a past customer decides to sue for personal injuries or property damage caused by a service your business provided, products and completed operations coverage will cover all of the associated expenses
We have to make it clear that general liability insurance doesn’t cover personal injury claims filed by employees, contractors, and other related business entities.
Public liability insurance is an alternative option if you think that general liability insurance is either obsolete or too expensive. This type of mobile food van insurance is cheaper than general liability insurance. But note that, unlike general liability, public liability insurance doesn’t offer advertising injury coverage, rented premises liability coverage, and products and completed operations coverage as additional protection. In other words, it only takes care of personal injury claims and property damage claims third parties file.
Despite public liability insurance being the cheaper, and perhaps, the most appropriate coverage for your food truck business, choose to get general liability insurance. General liability insurance is scalable, meaning that you can always decide to get more protection from it as your food truck business grows.
Your food truck business can also face claims filed because customers sustained allergies or food-borne illnesses due to poor food preparation or employee negligence. This exposure falls out of the scope of general liability insurance.
The food liability coverage that will give the protection you need is product liability insurance. This insurance, commonly useful for food vendors, concessionaires, and vending machine owners, will cover medical expenses of aggrieved third parties who got sick after eating the goods your food truck is selling. Additionally, you can also use product liability insurance to cover attorney fees, administrative costs, settlements, and other legal expenses.
Insurance companies sell product liability insurance as a stand-alone policy. However, this is also available as an additional coverage to general liability insurance.
Liquor liability insurance for liquor stores, bartenders, bars, distilleries, wineries, and wine retailers is available if your food truck is selling alcoholic drinks. When a customer accuses your business of overserving him or her with alcohol that resulted in property damage or personal injuries, liquor liability insurance will cover costs such as attorney fees, settlements, administrative costs, etc. Coverage also applies if your business served or allegedly served minors with alcoholic drinks.
Depending on your choice of carrier, liquor liability insurance is available as a stand-alone policy or an optional coverage to general liability insurance.
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Food truck auto insurance is what carriers call commercial auto insurance. Commercial auto insurance is a coverage for vehicles used for business purposes, in this case, the truck or van you’re using to sell food in different places. A typical commercial auto insurance for food trucks provides the following coverages:
Auto liability coverage-Your food truck might cause a vehicular accident. It will be very problematic if third parties got injured or had their property damaged as you’ll need to cover them. Auto liability coverage takes this burden off your shoulders. Particularly, it will cover the the treatment or reimbursement of third parties who incurred personal injuries or property damage due to an accident your food truck caused
Physical damage coverage-Your food truck will eventually incur damage due to frequent use. Of course, you have to keep it in tip-top shape or else customers won’t be enticed to buy. Cover your food truck’s parts repair or replacement by adding physical damage coverage, which is available as collision coverage or comprehensive coverage. Collision physical damage coverage will cover your food truck's parts repair or replacement if it incurs damage after hitting an object or another vehicle. Comprehensive physical damage coverage will take care of replacing or repairing your food truck’s parts if the damage is caused by fire, theft, vandalism, hail, windstorm, and other covered perils
Rental reimbursement coverage-Insurance companies will offer rental reimbursement coverage when you add physical damage coverage to commercial auto insurance. When you’re food truck is under repair and you need to hire another food truck, rental reimbursement coverage will recoup rental or lease expenses
Medical payments/personal injury protection-The function of medical payments coverage and personal injury protection coverage is to cover your food truck’s driver and passengers (if there are any) in case of vehicular accidents. Personal injury protection takes care of medical treatments, after hospital visits, lost income, compensation, and in case of death; funeral expenses. On the other hand, medical payments coverage is the least comprehensive because it only covers medical and funeral expenses. Ask your insurance company which of these two should be purchased in your state
There are a few things you need to remember about the coverages in commercial auto insurance. First, you can't use auto liability coverage to cover accidents your food truck caused due to its involvement in a criminal offense. Second, physical damage coverage doesn’t cover aftermarket parts. Also, it won’t take care of damage caused by rollovers.
You need to provide coverage for employees who got sick or injured due to your food truck’s business operations. Workers' compensation insurance shoulders this responsibility on your behalf. By having workers' compensation insurance, you avoid using personal funds or business funds to pay for the following:
Medical treatment/procedure-Accidents will happen while your food truck’s employee is working. As a result, your employee will sustain lacerations, cuts, burns, contusions, concussions, or other injuries. Work-related diseases might be contracted too. Workers' compensation insurance will cover the expenses for the surgeries, therapies, and other medical treatments/procedures needed so that your employee can fully heal.
Hospitalization-Workers compensation insurance will cover bills if your employee is admitted in a hospital for days, weeks, or months. That said, this insurance sees to it that your employee enjoys adequate medical attention upon sustaining a work-related injury or disease
Medication-Workers compensation insurance helps your employee buy the medicines needed to fully heal from a work-related injury or disease.
Rehabilitation-Your employee might suffer from the impairment of bodily functions upon sustaining a work-related injury or disease. He or she will need rehabilitation, as a result, to fully recover or at least adapt to the impairment. Workers' compensation insurance will cover rehab expenses. It will pay for therapist fees, rehabilitation equipment, and other related expenses
Lost income compensation-An injured or sick employee will request a leave to recuperate. As provided by law, your food truck business must cover lost wages. Workers' compensation insurance takes care of this. It provides a weekly allowance as compensation for lost income. This weekly allowance will be equal to two-thirds or 67% of the average weekly wage
Death benefits-Workers compensation insurance shoulders funeral expenses and gives financial aid to dependents if your food truck’s employee dies from a work-related injury or disease
Commercial property insurance is useful if you’re running a thriving food truck business with its own office and storage facility. The primary function of this insurance is to protect you against the following:
Building damage-Commercial property insurance will recoup losses if your food truck business’s office or storage facility becomes damaged due to fire, theft, vandalism, extreme weather, and other covered perils
Building destruction-When fire and extreme weather destroy your food truck business’s office or storage facility, commercial property insurance will provide the money you can use to cover reconstruction expenses
Aside from your food truck business’s office or storage facility, there are other business assets that need to be insured. And so, commercial property insurance has the following add-ons that provide enhanced protection:
Stocks and contents coverage-Stocks and contents coverage will recover financial losses if items inside your office or storage facility, not considered as tools or equipment, become lost or damaged due to fire, theft, vandalism, and other covered perils
Business equipment and tools coverage-Equipment and tools coverage will recoup losses if the cooking and food preparation equipment of your food truck business becomes damaged or lost while in the storage facility due to fire, theft, vandalism, and other covered perils. Note that this coverage doesn’t help if equipment and tools got lost or damaged while being used
Inland marine insurance is very useful for a food truck business. When equipment and other objects inside become lost or damaged while your food truck is traveling, inland marine insurance will cover losses.
Ingredients are perishable goods. When these become contaminated or spoiled due to equipment defects, power outages, or employee mistakes, expect your food truck business to incur a lot of losses. Food truck insurance carriers underwrite food contamination and spoilage insurance to cover this exposure.
So what does this insurance do? Food contamination and spoilage insurance will recoup the money you used for buying food ingredients that got spoiled or damaged due to the aforementioned reasons. Contamination due to pest infestation is covered or not covered depending on your choice of carrier.
Aside from recouping losses, food contamination and spoilage insurance will also take care of the cleaning or maintenance expenses for the contaminated equipment your food truck business is using to store, process, and prepare food.
Insurance companies sell tailored insurance for ice cream trucks. Coverages offered by ice cream truck insurance are general liability insurance, commercial auto insurance, commercial property insurance, and business interruption insurance.
General liability insurance for ice cream trucks covers bodily injuries and property damage. Commercial auto insurance has medical payments coverage, auto liability coverage, and physical damage coverage. Commercial property insurance covers the contents inside your ice cream truck.
A catering truck is different from a food truck. And so, insurance companies also underwrite catering truck insurance. Inclusions are general liability, commercial property, and commercial auto insurance for catering van and trucks. Catering van insurance cost is $41 per month or $492 per year. Factors that affect the cost of mobile catering van insurance are location, claims history, business experience, revenues, number of employees, and more.
Mobile coffee van insurance offers general liability, commercial property, and business interruption insurance to the policyholder. There’s also equipment breakdown coverage that protects the coffee preparation equipment installed inside the coffee van. For food cart vendors selling caffeinated drinks, insurance companies offer coffee cart insurance having general liability insurance with tools and equipment coverage.
Mobile food vending insurance for food vendors offers general liability insurance, equipment breakdown insurance, and commercial property insurance. Optional coverages are loss of income coverage and inland marine insurance.
Food truck insurance cost isn’t the same for all customers. But in general, food truck insurance average cost for a $1 million general liability coverage is $39.36 per month or $472.32 per year. Here’s a table showing the rates of the best food truck insurance companies so that you get a further idea about the cost of premiums.
|Cost per Month||Cost per Year||Best for|
|FLIP||$24.92||$299.04||Food truck insurance with trailer endorsement|
|Progressive||$26.25||$315||Food truck businesses looking to bundle commercial auto insurance with other business insurance policies|
|Geico||$38.75||$465||Commercial auto insurance for food trucks|
|CoverWallet||$44.25||$531||Food truck insurance quotes comparison online|
|Thimble||$45.88||$550.56||Food trucks looking for instant short-term coverage|
|Hiscox||$46.35||$556.2||Food truck insurance having worldwide coverage|
|NEXT||$49.09||$589.08||Food trucks looking for a business owner’s policy|
|State Farm||State Farm doesn’t state an average cost of its general liability coverage for food trucks. Contact an agent for an accurate estimate of rates||State Farm doesn’t state an average cost of its general liability coverage for food trucks. Contact an agent for an accurate estimate of rates||Food trucks looking for comprehensive food spoilage insurance|
Insurance companies consider many factors when figuring out your food truck insurance price. The most common determinants are location, business history, claims history, risk management programs, and number of employees.
So how do you get a cheap food truck insurance quote? One way to save costs is to pay premiums for the whole year instead of food truck insurance monthly premiums. Another method is to compare many insurance quote for food truck. By comparing quotes, you’ll get an idea of the rates and offers of numerous food truck insurance program. Start doing so here by clicking the “Get Quotes” button.
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Stop asking yourself, "where to get food truck insurance near me?".
The reviews below show the best options. Read to know the pros and cons of the best food truck insurance companies. You’ll also know their monthly rate for a $1 million general liability coverage.
Compare quotes online
Add clients or landlords as additional insured
Provides terrorism coverage
Policies are underwritten by other companies
CoverWallet’s food truck insurance provides four coverage options; general liability insurance with products and completed operations coverage, general liability with product liability insurance having food spoilage coverage, general liability insurance with product liability and commercial auto insurance, and finally, a custom plan. Note that CoverWallet has an online quotes comparison platform you can use to find other carriers selling tailored coverage for food trucks.
Best for: Food truck insurance quotes comparison online
Average cost: $44.25 per month
Our rating: 10/10
Get a quote online or through an agent
Has terrible customer reviews
Hiscox’s food truck insurance provides general liability insurance, commercial property insurance, and workers compensation insurance to the policyholder. More protection can be endorsed such as cyber liability insurance. The best thing about Hiscox’s food truck insurance is that it provides worldwide coverage and a limit exceeding $2 million.
Best for: Food truck insurance having worldwide coverage
Average cost: $46.35 per month
Our rating: 10/10
Dedicated custom limits
Available in all 50 states
Only covers food businesses
FLIP provides food truck insurance with dedicated custom limits. Also, this carrier allows you to add an unlimited number of additional insureds. Not only that but you can also get trailer endorsement.
Best for: Food truck insurance with trailer endorsement
Average cost: $24.92 per month
Our rating: 10/10
ACORD 25 certificate of insurance
Provides short-term coverage for food trucks
Customer service doesn’t have a phone number
Doesn’t cover food trucks with bartending services
Thimble’s tailored insurance for food trucks has general liability insurance and commercial property insurance as inclusions. It’s available as an annual or short-term policy that only lasts for days, hours, weeks, or months.
Best for: Food trucks looking for instant short-term coverage
Average cost: $45.88 per month
Our rating: 9/10
Live certificate of insurance
Easily seek the help of insurance agents when experiencing issues with your policies
NEXT’s food truck insurance comes in the form of a business owner’s policy having general liability insurance and workers compensation insurance. General liability insurance this carrier underwrites for food trucks comes with foodborne illness coverage. After purchasing a policy from NEXT, you’ll get a live certificate of insurance.
Best for: Food trucks looking for a business owner’s policy
Average cost: $49.09 per month
Our rating: 9/10
Bundle commercial auto insurance with general liability or other coverages from Progressive and get a 10% or 15% discount
In-house team of insurance adjusters
Claims filing isn’t straightforward
Doesn’t sell burger van insurance policies
Progressive food truck insurance offers general liability insurance and commercial auto insurance. Get this through Progressive Advantage Business Insurance Program so that you can also avail other useful policies such as workers' compensation insurance, professional liability insurance, cyber liability insurance, and more. Note that quotes for your food truck insurance Progressive can be availed via the company’s website or through agents.
Best for: Food truck businesses looking to bundle commercial auto insurance with other business insurance policies
Average cost: $26.25 per month
Our rating: 8/10
Work closely with agents when purchasing or managing State Farm food truck insurance coverage
Fast to respond to claims
You can only get business insurance quotes through State Farm agents
State Farm doesn’t sell tailored food truck insurance. But still, this company can cover you through its food shop insurance. Inclusions are general liability insurance, commercial property insurance, food spoilage insurance, equipment breakdown insurance, and employee dishonesty insurance.
Best for: Food trucks looking for comprehensive food spoilage insurance
Average cost: State Farm doesn’t state an average cost of its general liability coverage for food trucks. Contact an agent for an accurate estimate of rates
Our rating: 7/10
Provides online quotes so that you can get an estimate of your rates
Above-average customer reviews for its business insurance products
Doesn’t underwrite its own business insurance for food trucks
Geico offers small business insurance for food trucks. But note that insurance products you’ll buy from this company are underwritten by Geico’s partners. Geico food truck insurance has general liability, commercial property, workers' compensation, and other useful coverages. Note that you can add additional insureds while in the process of buying insurance from Geico.
Best for: Commercial auto insurance for food trucks
Average cost: $38.75 per month
Our rating: 7/10
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
It really can't get any better than this... wow