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How Much Does Food Truck Insurance Cost? (2022 Rates)

Food trucks are synonymous with street fairs and festivals. Many communities now have food trucks dotting the landscape on a routine basis. There’s nothing quite like the business model of a food truck. Those in the food truck business need specific coverages that will cover both the business and the truck. 

How much does food truck insurance cost?

Food truck insurance costs vary, but you will need multiple kinds of insurance policies because your food truck is a mobile business. You’ll need policies for your business and policies for your truck. Policies for the company itself include general liability insurance and property insurance which can be combined under a business owner’s policy. 

Depending on your state, you might also need workers’ compensation insurance. Unless, of course, you work alone. However, most states require that you provide workers’ compensation insurance coverage if you have even one employee. 

For the truck, you will need a general liability policy that covers you against claims of customer injuries and customer property damage. A general liability policy also takes care of claims against your advertising policies. You can also add an endorsement to this policy to cover product liability, which will protect you against any claims related to your food quality. This portion of the policy will average about $560 a year or $45 a month.

Commercial truck insurance is also necessary for a food truck because you drive your business in different places. These policies can cover anything from theft, vandalism, and weather damage to injuries or property damage someone else experiences due to an accident with your truck. This portion of the policy can cost on average $1,620 a year or $135 monthly.

Below are the breakdowns of the cost of each coverage that you may need for your food truck:

Food truck coveragesAverage food truck insurance cost
General liability insurance$560 a year
Commercial truck insurance $1,620 a year
Occupational accident insurance if you hire independent contractors$1,200 a year for each contractor
Workers comp insurance if you hire full-time employees $2,500 a year for each employee

How much is the average food truck insurance cost per month?

As you can see above, food truck insurance can be quite expensive. The average food truck insurance cost is $180 a month if you only have general liability and commercial truck coverages.

If you also hire independent contractors, even just one, it will increase to $280 a month. If you hire full-time employee, even just one, the average food truck insurance cost will be $380 a month.

What factors affect food truck insurance costs?

There are several factors affecting the cost of food truck insurance. These are some of them.

The insurance provider

Your insurance provider will set their rates based on criteria set by the company. Because each company has its own policies and preferred coverages, each company has its own rates, and those can vary dramatically. 

The size of your business

The business portion of your insurance will have premiums based on how large or small your business is. Your customer base and your product offerings help determine your size. 

State policies

Each state has its own mandates for the kinds of coverage you must carry as a food truck operator. These mandates help determine the cost of your coverage as well because different coverages add to your cost.

Where you plan to operate

The neighborhood where you plan to set up your truck will affect your rates. Safer areas will garner better rates. Choosing to work street fairs can also increase your premiums.

Risks

If you are running a food truck, you are likely cooking inside the truck. That equipment brings with it risks. Those risks will affect your premiums. 

Equipment values

The value of your equipment will help to dictate the amount of coverage you need. That, in turn, will affect your premiums. 

The amount of coverage

Opting for fewer policies or lower coverage limits can help you keep your premium costs lower. Conversely, the more policies you have or the higher your coverage limits, the higher your premiums. 

Deductibles

Typically, you can secure lower premiums by having higher deductibles. You are assuming more of the financial risk if you need to file a claim. 

Your payroll

If you have employees, you’ll need workers’ compensation insurance. Your payroll and the duties your employees have will inform the premium costs for workers’ compensation policies. 

Cash value versus replacement cost

If you have replacement cost coverage on your business policy, you can expect to pay higher premiums. This is because replacement cost coverages don’t take depreciation into account when valuing your equipment. 

How to save money on food truck insurance?

Insurance cost is a high cost for any business. A food truck requires insurance to cover your business and your truck so that the cost can seem even higher. There are some ways to save money on your insurance costs. Here are some of them.

Compare rates from several providers

The best way to find the cheapest food truck insurance is to compare rates from several providers. Get quotes online from providers like Progressive is an easy way to obtain and compare quotes. The other way is to work with a reputable broker like Simply Business, CoverWallet, Commercialinsurance.net, or Smart Financial. These brokers will be able to get quotes from several companies that they work with and you can compare several quotes easily and conveniently to find the cheapest one for your food truck.

Have the best staff

Your staff can make or break your insurance policy premiums. Your food truck is your restaurant, but it has a smaller footprint and wheels, so you want to have a staff who can do their best work with little space or direction. Ensuring your employees have clean backgrounds, clean driving records, appropriate training, and ServSafe certification will help keep your premiums at a manageable level. 

Keep your truck well-maintained

Maintenance of the truck itself and maintenance of the cooking equipment is essential to having a successful food truck. Keeping both the truck and the cooking equipment well-maintained will help you prevent accidents both in the kitchen and on the road. Fewer accidents will mean fewer claims which will mean better pricing for insurance costs. 

Follow all safety and cleaning procedures

Create and adhere to cleaning and safety protocols. Follow all procedures set forth by governing agencies such as the local health department. Your policies should include daily, and weekly cleaning regimens, and every employee should know them and follow them unequivocally. 

Ask for a high deductible

You can save money on your premiums with higher deductibles because you agree to accept more of the financial risk associated with any accidents. If you maintain a clean driving record and adhere to safety protocols when operating your truck, a high deductible doesn’t have to illicit fear. 

Ask for bundled coverage

Ask your insurance to bundle the coverages you need to help you save money. Paying for individual coverages or paying different companies for parts of the coverage you need will cost you additional money in the long run. Some companies offer discounts when you bundle coverages. 

Who needs food truck insurance?

Anyone who owns a food truck needs food truck insurance. The truck owner is liable for anything that occurs during the operation of the truck. That includes any accidents around the truck and any illness resulting from eating the food you’ve prepared. Below are some typical food truck types that need food truck insurance:

  • Mobile food trucks
  • Vending trucks
  • Lunch trucks
  • Catering trucks
  • Ice cream trucks
  • Concession trucks 

What insurance coverages do food trucks need?

Below are the common coverages that food trucks need:

General liability insurance

General liability insurance covers you if someone trips over and causes bodily harm in your food truck. It also protects you from claims against your advertising policies. This is similar to trucking general liability insurance.

The great thing about general liability insurance is that it can be customized to fit with different types of small businesses. For a food truck business, an endorsement of product liability should be added to the policy to protect you against the claims related to your food quality. Learn more at the best general liability insurance companies.

Commercial truck insurance

If you run a food truck business, you must have this coverage, at least the primary trucking liability coverage. It is required by law in all 50 states. It pays for bodily injuries and property damages of the third party if the food truck runs into an accident and you are at fault. You can also add additional coverages to cover the reparation and replacement costs of the food truck itself. It is called trucking physical damage coverage.

Commercial property insurance

Commercial property insurance to cover equipment attached inside the truck that you need to run your food truck business, including an ipad or iphone that you use to process transactions. These are the essential assets that you need to run your food truck business. Even it is not required, you should consider having it. Learn more at the best commercial property insurance companies.

Liquor liability insurance

Liquor liability insurance covers the liability associated with selling liquor if you want to sell liquor from your food truck.

Workers’ compensation insurance

If you have additional full-time employees that work in the food truck with you, you must provide workers comp insurance to protect them in case they get injured or become ill at work. This coverage is required by law in all states, except Texas. This coverage is quite expensive for food truck employees since it is a combination or the two high-risk industries: trucking and restaurant. Make sure you shop around to find the cheapest quote if you buy this insurance. Learn more at the best workers comp insurance companies for truckers and the best workers comp insurance companies for restaurants.

Occupational accident insurance

Occupational accident insurance is similar to workers comp insurance, but it is mostly for independent contractors. It is a less comprehensive and lighter version of workers comp insurance, thus usually cheaper, about half of the workers comp insurance cost. Companies are not required by laws to provide workers comp insurance for independent contractors. They can provide occupational accident insurance to protect their contractor employees, especially in the trucking business. Learn more at the best occupational accident insurance for truckers.

Food truck insurance companies

When choosing a food truck insurance company, it’s essential to select a carrier who understands what is needed by the foodservice industry. Don’t let cost be your only consideration. You should also consider the coverages offered and how well they address your particular coverage needs. Here are seven best companies providing food truck insurance that we recommend.

Final thoughts

Anyone who owns a food truck needs to have insurance coverage for that food truck. Food truck coverage includes business insurance and automobile coverage for your restaurant on wheels. 

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