Food Truck Insurance Requirements

If you are going to work out of a food truck, one of the steps in preparing to launch your business is to shop for a suitable insurance policy.

This article is going to introduce you to the basics of food truck insurance: what it is, why it is important, what to look for in your coverage, and top recommended food truck insurance companies.

What is Food Truck Insurance?

Food truck insurance is a type of insurance that is designed especially for vendors who operate out of trucks or carts.

It is a type of food liability insurance, but it differs from the type you would purchase for a static restaurant.

Food truck businesses face risks that other foodservice businesses do not:

• A truck is a vehicle. It travels on the road, has parts that can break down, could be involved with automotive accidents, and so forth. None of this is applicable to a restaurant that stays in one place.
• At times, a food truck vendor may choose to park in locations that are considered high-risk areas (i.e. unsafe neighborhoods).
• The food truck is a small, enclosed environment for food preparation. The nature of working in such tight quarters can increase certain risks with respect to fire, etc.

Why Do You Need Special Insurance for Your Food Truck?

Here are some reasons food truck insurance is important:

• You will not be able to effectively operate a food truck business without it. To park in a particular space, for example, you will need to deal with a landlord, who will require that you be insured. If you want to attend an event in your truck, the event organizer will likewise will have minimum insurance requirements.

• Protect your business in case someone is injured working in the food truck, a customer gets sick eating food you prepared, or so forth.

• Cover the cost of damage to your food truck.

• Protect not only your food truck, but the space you are renting.

There are always a lot of variables involved with running any food service business, but when you operate out of a food truck, that is even more true. A simple change in location from one day to the next could present you with a whole new set of risk factors you did not face the day before. So, it is vital to have quality coverage that is versatile enough to protect you in a wide range of circumstances.

What Should Your Food Truck Insurance Policy Cover?

As with any other type of insurance you might shop for, not all food truck insurance policies are equal. It is important to select a policy that at a minimum provides you with the following:

• General liability coverage: This is a broad type of coverage for your food truck business that covers injuries to customers, damage to property, and even copyright infringement. Solid general liability coverage is the foundation of any quality food business insurance policy.

• Product liability coverage: This type of coverage extends to the products you sell. So, if a customer is injured by a hot drink, gets food poisoning, or has an allergy attack, this coverage will kick in.

• Inland marine coverage: Another term for this type of coverage is “equipment breakdown insurance.” If a fire, theft, or breakdown of your equipment necessitates repair or replacement, this coverage will help.

• Rental damage coverage: What happens if a space you are renting for your food truck is damaged in some way while you are occupying it? You will need coverage for this scenario.

• Workers’ compensation: You need this type of coverage for your employees if they get sick or injured on the job.

If the food truck is a vehicle you drive, you will need to cover it with a commercial auto insurance policy.

If, on the other hand, you tow the cart you are working out of, you will need two things: a commercial auto insurance policy for the vehicle you are driving and a trailer endorsement for the food trailer itself.

Be sure to check the details of the endorsement carefully to make sure it offers extensive enough coverage for your needs. Do not forget to add the endorsement!

Best Food Truck Insurance in 2022

Now that you know more about what you need in terms of food truck insurance coverage, we can take a look at a few insurance options worth considering.

FLIP

https://www.fliprogram.com/

Our top recommendation for insuring your food truck is to purchase a policy through the Food Liability Insurance Program (FLIP). This company can cover you anywhere in the US.

Unlike many competing insurance providers, FLIP is focused exclusively on the needs of food business owners. That means they have far more specialized knowledge of the risks and liabilities that can arise operating a food service business. As such, they are able to offer some of the most comprehensive coverage around.

Food truck insurance policies at FLIP start at $299 per year. FLIP offers all the types of coverage we discussed above, including general liability and product liability up to $2 million, inland marine coverage with an aggregate limit of $10,000, damage to premises rented with an aggregated limit of $300,000, and workers compensation insurance with an aggregate limit of $300,000. There is zero liability deductible.

Additionally, you can get an endorsement for your trailer from FLIP.

FLIP food truck insurance is a great choice for anyone working out of a truck or trailer, but is especially suitable for those who attend farmers markets and other events. When setting up at events, you might have to list “additional insured” parties, i.e. venue owners or event organizers.

FLIP makes it ridiculously fast and easy to add these additional insureds to your policy, and you can add as many as you want. Other insurance companies sometimes place restrictions on how many you can add.

Best For:

FLIP has impressed us with the quality and comprehensiveness of its coverage, its unlimited additional insureds, and the transparency of its website and offerings. To top it all off, their pricing is fair and competitive. That makes the Food Liability Insurance Program our #1 recommendation overall.

Progressive Commercial

https://www.progressivecommercial.com/

Our next recommendation is Progressive Commercial. You are almost certainly already familiar with Progressive, as this is a major nationwide insurance company that provides policies for cars and homes.

Through Progressive, you can put together a customized policy that includes commercial auto, general liability, and workers’ compensation coverage.

The coverage that Progressive offers does take care of a lot, but you probably noticed that FLIP provides types of coverage that go beyond what Progressive policies can do for you. So, if you buy a policy from Progressive, you might need to find additional coverage elsewhere to fill in the gaps.

The good thing about working with Progressive is that they are generous with discounts—especially for longstanding, loyal customers.

Progressive lets you bundle together policies for additional savings. So, if you are already a Progressive customer, it might be worth checking if you can bundle and save by adding a food insurance policy.

Best For:

If you want to be able to bundle your food truck insurance policy with other insurance policies from a major nationwide provider, Progressive is a good option.

Insure My Food Truck

https://www.insuremyfoodtruck.com/

What this business does is clear from its name. Insure My Food Truck is a company devoted wholly to insuring food trucks.

That means that as with FLIP, you are working with a company that knows the business inside and out. Your policy will be highly specialized to your needs.

Insure My Food Truck does not offer a lot of information on their site regarding their offerings, so you do need to request a quote to find out their policy details. That said, the company offers extended hours for making claims, and has a strong reputation for providing excellent customer support.

Best For:

If you want to work with a company that specializes exclusively in insurance for food truck businesses, it is hard to beat Insure My Food Truck. This company also is a good choice if you are looking for top-notch customer service.

Insure My Food

https://insuremyfood.com/

Insure My Food has a similar name to Insure My Food Truck, but it is an entirely different company. Actually, it is a brand of the Paprocki Insurance Agency. Policies are available for food trucks, food trailers, food vendors, food carts, and other foodservice businesses. There is no liability deductible and no cost if you need to tack on additional insureds.

As with Insure My Food Truck, this company requires you to request a quote if you want detailed information on policies.

Best For:

We would recommend Insure My Food as a “runner-up” after FLIP for the best overall food truck insurance. But Insure My Food is not as clear about its policy details on its website as FLIP. So, FLIP still emerges as the winner.

Get the Coverage You Need for Your Food Truck Business Now

If you are ready to find the food truck insurance policy you need to protect your business, we can help you save with one simple call or click . For comprehensive coverage from a company that knows the foodservice industry inside and out, we recommend you get at least 3 different quotes.