Commercial Auto Insurance For Food Trucks – Historically, the food truck industry grows about two percent each year. That is sure to pick up in the next year or two as many food entrepreneurs look towards food mobility as an alternative to physical locations.
Depending on the type of food truck you operate, there may be different types of insurance requirements and considerations. For example, a food truck with commercial equipment may need a different type of coverage than an ice cream truck.
Commercial Auto Insurance For Food Trucks
While you may be able to bundle the different types of coverage you need, in many circumstances you’ll need to put together different policies to ensure you have the most comprehensive coverage for your business and your own financial protection.
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Choosing the right types of insurance you need for your business can be tricky, and not all of them are necessary for your unique situation.
As a food truck owner, your first insurance option is to search for a specific food truck insurance policy.
What is food truck insurance? A food truck insurance policy protects you from any claims that may be made against the day-to-day operations of your business. This could include anything from potential injury, damage, general liability, or illness, which is particularly important when serving food.
Finding ways to protect your business from unfortunate events is crucial because, according to the claim, you could face significant financial loss without proper coverage. Remember to do your research and make sure the company you buy a policy from is reputable.
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An easy way to test this is to ask if they offer free additional secured services (everyone should say yes).
Since the foundation of your business rests on your ability to sell food or beverages from a vehicle, commercial auto insurance is one of the most important types of protection you should have.
Remember that it can vary from state to state, but in most circumstances, you will be required to carry a certain amount of insurance, even if you are not cooking or preparing food in your vehicle.
A commercial auto policy will insure your business vehicle, similar to how auto insurance protects your personal vehicle. It is important to differentiate between the two because a personal auto insurance policy will not cover damage to a vehicle that is used for business purposes.
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Like auto policies, commercial auto insurance is made up of different components within the policy to protect your vehicle from certain events. Here are some of the components of a typical commercial auto policy:
Collision Coverage – Collision coverage will pay for physical damage caused to your vehicle in an accident if it hits someone else or you are hit. This type of coverage is generally required if you are financing or leasing the vehicle.
Comprehensive coverage: Comprehensive coverage will pay for damages outside of an accident for things like theft, fire, natural disasters, or vandalism.
Liability Coverage: Liability covers bodily harm and property damage to others if you are in an accident and found at fault. This component of a commercial auto policy will protect you financially from a lawsuit and will also pay for various items, such as accrued medical costs for the other party in the accident.
A Car For Commercial Purposes. Stock Illustration
Additional Coverage: Most companies will offer additional coverage options and add-ons, such as auto rental reimbursement, towing coverage, underinsured or uninsured motorist coverage, and loan or lease gap coverage.
While a commercial auto will protect your vehicle from damage, commercial property insurance will protect the contents inside your actual vehicle from damage. This could include your everyday equipment, such as commercial stoves, point-of-sale systems, food, or utensils.
This type of coverage protects your contents from damage or loss caused by unforeseen events such as theft, natural disasters, or fire.
If you have one or more employees, you will need some form of workers’ compensation insurance for your food truck. Most states will require this type of coverage, as it protects you if one of your workers is injured or becomes ill on the job. This can help you pay for your workers’ immediate and ongoing medical bills and lost wages. If you have employer liability coverage as a component of your workers’ compensation policy, you will also be covered for legal fees and settlement costs if the employee decides to sue as a result of your injury or illness.
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Although life insurance may not be a legal requirement for your business, it is important to have as a safeguard in both your professional and personal life. Life insurance provides income replacement if you die unexpectedly. If your food truck provides a source of income that your family depends on, it’s important to get a term life insurance policy.
A term life insurance policy is beneficial to small business owners because it costs substantially less each month than a whole life insurance policy. You can customize the length of time you need coverage based on the financial state of your business. Also, this type of insurance is particularly important if you used family assets to support your food truck business.
Disability insurance for business owners can be a bit tricky to secure at times, however it is often worth investing the extra time to ensure that both your business finances and personal finances do not suffer in an unforeseen event.
If you are injured and unable to operate your food truck, having some form of coverage is essential. A long-term disability insurance policy pays you income replacement each month if you have sustained an injury or permanent disability.
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Maybe this is your first experience as a business owner or maybe you’ve had a business before, but this will be your first food truck. In either case, it’s important to understand that financial planning is a necessary part of ensuring the future success of your food truck, and how choosing the right type of insurance coverage plays a big part in this equation. Beyond workers’ compensation to protect your employees and commercial auto to cover your food truck, places may require you to carry general liability insurance. But a comprehensive business protection plan isn’t just about meeting requirements, it’s also about giving your business mobility and freedom to grow. Having the right insurance shows that you are prepared for challenges and could save you money if an accident occurs.
A BOP bundles general liability coverage and commercial property insurance into one plan. It is often one of the most affordable options for a food truck.
Most states require workers’ compensation for food trailers and food trucks that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
A general liability policy covers basic food truck risks, such as a suspected food poisoning claim. It may be required by the venue owner or event organizer.
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A commercial auto policy covers medical bills and property damage in an accident involving your food truck. It also covers weather damage, theft, and vandalism of your food truck.
This policy covers the cost of property damage and bodily injury caused by an intoxicated customer, as well as legal fees associated with a food truck.
This policy helps food trucks recover from cyberattacks and data breaches. It is recommended for any business that stores customer information.
A food truck with only a few employees will pay less for business insurance than a larger business.
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It’s easy to get food truck insurance policies if you have your business information handy. Our app will ask you for basic data about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance in three easy steps:
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“Raynaldo did a quick job. I told him what he needed and finally got an insurance certificate in a matter of hours.”
“The response time was almost immediate. The options they gave me were based on the needs of my company. I received the policy in record time.” We compare rates from major companies to find the best price and coverage for your company vehicles.
Our agents work directly with companies like Nationwide and Progressive to ensure you get the lowest premiums on a commercial auto policy for your business.
All states require you to have commercial auto coverage if your business owns or leases vehicles. Commercial auto policies cover:
Food Truck Insurance: General Liability, Workers’ Comp, Auto & More
Commercial auto insurance typically provides coverage for liability, medical expenses for injuries to occupants, uninsured or underinsured motorists, and physical damage loss to your commercial automobiles.
Commercial auto insurance is required for vehicles that are used for a business, carry a
