Commercial Insurance for Food Trucks

When you think about starting your own business, operating a food truck might cross your mind. After all, it looks relatively easy at first glance. You will need to purchase a van, install cooking equipment, then start serving your specialties at locations around town.
However, you may be forgetting one key component – business insurance. Due to the recent popularity of food trucks, many cities are requiring you to be licensed to operate. Not having a license can result in high fines. Furthermore, if a customer gets sick from your food or alleges food poisoning, you may need to pay out-of-pocket for legal and settlement fees. Along with these factors, you also need to consider what you would do if someone damaged your truck or if you were involved in an accident on the way to an event.
So, as you’re planning to start your own food truck business, consider the following types of coverage:
General Liability: When receiving your food truck license, most cities require you to have general liability, either as a separate policy or a Business Owner’s Policy (BOP). This coverage can assist with costs related to bodily injury and damage to parts of your business, including any signs, computers or kitchen equipment used. Without general liability, you could be barred from setting up at the local farmers’ market or festival.
Commercial Auto: Another key policy to get your food truck license, commercial auto assists you in an accident or when you cause damage to someone else’s property. You also get a higher level of coverage for accident-related medical expenses and your policy protects you in the event of an accident with an uninsured or under-insured motorist.
Product Liability: Even though you have no permanent place of business, you still offer a service and a product. As a result, customers can allege your food wasn’t up-to-par or caused food poisoning. You also might have to fend off allegations of false advertising related to your menu or signage. In all cases, a lawsuit can amount to high legal fees that could put you out of business.
Property Insurance: What happens if damage occurs to the area where you set up your truck? For instance, cooking oil leaks and forms a puddle on the ground, your truck accidentally dents a barrier or any supplies you toss get blown out of the trash can and violate litter laws. Be prepared with this policy, but keep in mind that property insurance doesn’t cover damage to your actual truck. A commercial auto policy is designed for this purpose.
Inland Marine: A large part of your business involves transporting equipment to a location – or even multiple ones in a single day! While you might not travel a great distance, you’re still moving expensive kitchen equipment and ingredients around town. Having inland marine coverage – a policy covering supplies in transport – is essential.
Workers’ Compensation: How many people work in your food truck? As you become more successful, you may consider opening up a fleet of food trucks, all of which employ multiple full-time workers. In these instances, because you have a staff, your state expects workers’ compensation coverage in the event of an on-the-job injury.
Do you operate a food truck in Connecticut? Make sure you have the right insurance coverage to get licensed and run your business. To learn about your options, give us a call at 203.439.2815.