Food Truck Insurance: What To Know & How To Save (2024)

Food trucks are becoming more and more popular all over the country. If you are thinking about joining the craze, here’s some must-have information about food truck insurance coverage.

Like any other truck out there, food trucks must have some type of coverage to operate. So, in this article, we’ll take a look at some of the best insurance companies that can provide those coverage options and meet your needs.

However, as they are also businesses on wheels, just a commercial auto policy won’t do it. Keep reading to learn more about all the insurance coverage types you need to protect your food truck business.

Why doesn’t my personal car insurance cover my food truck?

While delivery jobs may seem like easy money, they actually render most personal car insurance policies useless. The reason? If you are using your car for non-personal tasks, your personal coverage is no longer active.

This means that if you were to get into an accident while working, you would be on the hook for every penny of damages and medical bills. Not your employer. You.

Before you consider taking that risk, after all, you are a great driver, right? Well, consider that in 2016 alone, police recorded over 7 million accidents. The reality is, getting into an accident while driving is more a matter of when not an if. So why gamble with possible thousands of dollars in car repairs and medical bills?

Instead, what you will need to look into is a commercial car insurance policy.

What type of insurance does a food truck need?

So how do you keep your personal car covered when you turn it into a food deliver car or truck? The answer is simple; commercial car insurance.

You may have heard of commercial car insurance before, usually referring to fleet vehicles. Those are the cars with a company logo painted over the doors. However, other types of commercial car insurance are better suited to food delivery jobs. The two most common options are rideshare add-ons and full commercial policies.

Each of those things is going to require its own insurance. Here’s the essential list:

Commercial car insurance

Any commercial vehicle is required to have commercial food delivery insurance. Food trucks are no different, whether they travel or not.

These commercial insurance policies will cover accidents and any resulting damage or injuries.

General commercial liability insurance

One of the essential insurance types to protect your business is commercial liability coverage. This type of food truck coverage protects you in the event of things like food poisoning, non-employee injuries, and legal fees.

This is especially important because The Bureau of Labor Statistics reports that injuries and illnesses occur more frequently in specialty foodservice locations than traditional restaurants.

Commercial property insurance

This type of insurance protects everything inside your truck or trailer. From food supplies equipment. These are very important to protect against damage and theft

Employee compensation insurance

This insurance may be optional if you don’t employ anyone beyond yourself, but not always. You want to check local laws and requirements to make sure you are within regulation.

Whether your food truck is an all-in-one kitchen or hauling a trailer of supplies, each of these types of insurances will allow your business to keep running even if things go wrong.

Is commercial car insurance affordable?

That depends on which type of insurance you are able to get. If you purchase a whole commercial policy separate from your existing personal policy, average rates run anywhere from $60 to $250 per month.

This can sometimes be an unreasonable amount to pay, depending on how much you make working deliveries.

If you can get a rideshare add-on to your personal policy, the cost is much lower. Add-ons are generally less than $20 a month and are just folded into your existing monthly premium.

The only downside to add-ons is that they are not available everywhere. The best way to find out if you can get one is to contact your insurance agent or go online to view your policy.

Where can you get food truck insurance?

Many companies will offer commercial auto insurance, but you may have to search around to find companies that will provide all four types of insurance you need at once.

The larger insurance companies are generally going to provide most if not all of these policies and bundle them for an additional discount.

One example would be GEICO commercial auto. GEICO commercial auto insurance is a popular choice for auto insurance. The company also offers business insurance, including those listed above.

Many other big names, including Progressive, Farmers, State Farm, and others, will also provide some form of business coverage in addition to commercial auto insurance.

How much will it cost?

The cost of commercial insurance for your food truck is going to depend on many internal factors.

These factors range from how large your truck is, what type of food you serve, the value of your equipment and products, and other details about your business.

Because of this, it is crucial to shop around when you set out to ensure your food truck.

Get quotes from multiple companies and compare not only the price but the coverage that each one provides. Compare large companies like Farmers vs GEICO or Allstate vs Progressive.

When it comes to running your food truck, you can’t afford to cut corners, so take the time to talk to experts and ensure you and your business are protected.

Ready to look at local insurance quotes? Enter your ZIP code below to compare companies in your area.

Food Truck Insurance Case Studies: Examples of Comprehensive Coverage

Case Study 1: The Street Grill Food Truck

The Street Grill is a popular food truck that specializes in gourmet burgers and sandwiches. The owners, Mark and Sarah, wanted to ensure that their business was adequately protected with the right insurance coverage.

They decided to bundle their commercial car insurance, liability insurance, property insurance, and worker’s compensation with the same insurance provider. By doing so, they were able to save on insurance costs while having comprehensive coverage for their food truck business.

Case Study 2: Tasty Tacos on Wheels

Tasty Tacos on Wheels is a mobile food business that serves delicious tacos at various locations. The owners, Juan and Maria, understood the importance of having the right insurance coverage to protect their business. They opted for a commercial car insurance policy to cover their food truck during transit.

Additionally, they obtained general commercial liability insurance to safeguard their business against food-related incidents and non-employee injuries. With the right insurance in place, Tasty Tacos on Wheels could operate with peace of mind.

Case Study 3: The Rolling Bakery

The Rolling Bakery is a food truck that specializes in fresh pastries and desserts. The owner, Lisa, recognized the need for comprehensive insurance coverage for her mobile bakery. She secured commercial car insurance to protect her food truck, along with commercial property insurance to safeguard her valuable baking equipment and supplies.

Lisa also opted for employee compensation insurance to ensure compliance with local regulations. By having the right insurance coverage, The Rolling Bakery could continue operating smoothly, even in the face of unexpected events.