Food trucks are quickly growing in popularity within the food industry, but a lot of food truck operators (and even some insurance agents) aren’t sure what type of insurance coverage is needed. If something goes wrong and food truck insurance coverage is inadequate, even the most successful food truck will find themselves out of business.
Generally, a mobile food truck should be covered by comprehensive Auto Liability, especially considering the size of the vehicle and the amount of flammables on board. Collision and Comprehensive coverage will protect against accidents, fires, vandalism, and similar losses, and General Liability is needed to cover bodily injury and property damage that aren’t auto or accident related, such as food poisoning and slip and fall claims. Additionally, Property coverage will protect the expensive equipment inside the truck that isn’t covered by the standard auto policy.
Food trucks with employees also require Workers’ Compensation, and this is something often overlooked by truck owners and agents. Neglecting to carry Workers’ Comp can result in significant fines and attorney fees, even if the truck only employs family members. Liquor Liability is necessary if the food truck serves alcohol to customers.
Finally, many venues require high General Liability insurance, often more than 1 million dollars, so it makes sense to add a Liability Umbrella Policy to bump coverage to at least 2 million dollars. It’s important to check local requirements and to determine what each individual venue needs before signing up for any food truck insurance policy.
Have questions about insuring a food truck, restaurant or other property? Give IPOA a call at 877-653-4762.
