Food trucks have certainly become a booming business over the last several years. They seem to show up at every major event and are a common fixture in urban areas. In fact, food trucks grew an average rate of 7.9 percent per year from 2011 through 2016. However, combining food services with a commercial vehicle creates some interesting implications for how to insure such a business. So below we’ll look at what insurance food trucks need, how much food truck insurance costs, and recommend the 7 best food truck insurance companies for your consideration.
- Top 5 Providers of Food Truck Insurance
- What is Food Truck Insurance?
- What Kind of Insurance does a Food Truck Need?
- Who Needs Food Truck Insurance?
- How Much Does Food Truck Insurance Cost?
- How to Find Food Truck Insurance Quotes
Top 7 Providers of Food Truck Insurance
Since food trucks are a popular business to run, and because they require a wide variety of insurance types, it’s fairly easy to find food truck insurance from companies that specialize in these types of packages.
- Progressive Food Truck Insurance: Best commercial truck insurance
- CoverWallet: Best for Comparing Online Quotes
- Insurance Bee: Focusing on liability insurance
- Insure My Food Truck: Food truck-specific company
- Insure My Food: Specializing in the food business
- Freeway Insurance: Broad Coverage Type
- Simply Business: Best for knowledgeable agents and customer service
Progressive Food Truck Insurance: Best Commercial Truck Policies
Progressive Commercial is a well-known auto insurance company. They are also the biggest commercial truck insurance company. They are known for offering auto policies directly to consumers, not going through agents or brokers. They are the only truck insurance company that offers commercial truck insurance quotes online. It is super easy and fast to get a quote online with Progressive.
You can also get other insurance coverages that you need for your food truck such as general liability insurance or liquor liability coverage through Progressive Commercial agency. They work with several leading business insurance companies and will get you other coverages that you need for your food truck business.
CoverWallet: Best for Comparing Online Quotes
CoverWallet is a digital commercial insurance broker. They work with several leading business insurance companies such as Hiscox, Liberty Mutual, Nationwide, etc. just to name a few. They specialize in helping small businesses in a wide variety of industries to compare and buy business insurance online. Once you provide your personal and business information on their quote form, they will recommend you the right insurance coverage for your business and provide you with several quotes to choose from.
CoverWallet offers 4 levels of food truck insurance: Basic, Standard, Pro, and Custom suitable for different sizes of food truck business. A basic food truck insurance policy costs $39/ month and covers general liability only. A pro food truck insurance policy costs $299/ month and covers general liability, product liability, and commercial auto insurance.
If you are new to buying food truck insurance, you should spend 15-20 minutes to have a conversation with one of their agents to learn more about the potential risks your food truck business is exposed to and how to protect you and your business properly. Their agents are very knowledgeable and willing to explain everything thoroughly so that you can make the right decisions.
InsuranceBee: Focus on Liability Insurance
Insurance Bee specializes in liability insurance. As such, it has a page detailing this product for mobile food vendors. The drawback with this option is that the company only offers liability insurance, so you’ll have to look elsewhere for products like commercial auto insurance. Once you go into the quote process, you’ll find that the company’s policies are underwritten by Hiscox, a major and reputable small business insurer. The company allows you to apply for a policy right on the website.
Insure My Food Truck: Food Truck- Focused Insurance Company
If you’re looking for a company that specializes in food trucks directly, this is certainly an option. The company has been around since 2011. It covers a wide variety of insurance types for food trucks, like auto liability, auto physical damage, general liability, property coverage, worker’s compensation and even liability umbrella coverage. In order to get a quote, you must fill out a contact form and a rep tries to get back to you within the same day.
Insure My Food: Specializing in the food business
This company offers insurance for a wide variety of food businesses, food truck insurance being one of the products it offers. Some of the products mentioned are liability and property coverage. You can fill out an application online to get a quote.
Freeway Insurance: Broad Coverage Type
Freeway is an insurance agency, offering both personal and commercial lines of insurance. It provides products specific to food trucks. It offers the basics, like liability insurance or property damage. It also has lesser-offered types, like medical payment insurance. You can find a quote online. However, you have to agree to receive telemarketing calls.
Simply Business: Best for knowledgeable agents and customer service
Simply Business is another insurance agency specializing in small businesses. They work with several leading small business insurance companies and help you compare coverages and costs from these companies so that you can get the best coverages at the most affordable costs for your food truck business.
You can buy all coverages that you need for your food truck business through them. A benefit of working with Simply Business is that if you are new to food truck business, you can talk to their agents who are very knowledgeable in the small business insurance world and they can guide you through the process to make sure you have sufficient protection at the lowest cost.
What is Food Truck Insurance?
Food truck insurance simply designates the types of insurance you will need to carry if you run a food truck business. The most common types of insurance a food truck will need to look into are commercial auto and general liability.
For instance, if your food truck gets in an accident, commercial auto can cover the damages. Some plans even let you add physical damage to a policy so that you can protect the vehicle and any equipment and appliances that are permanent fixtures.
General liability is also necessary in the case of accidents that you’re liable for. For instance, if a customer gets burned from hot food, this type of insurance can cover you. From there, you may also need to carry other types of insurance, like worker’s compensation if you have employees.
As a food truck operator, in addition to the insurance types mentioned above, you might need product liability, which can protect you if the products you manufacture cause damages. You should also consider property insurance, which protects the equipment attached inside the truck you need to run your food truck business, and business interruption, which covers you in case your business is shut down for a while. Combining general liability, property insurance, and business interruption insurance, you can get all three bundled in one Business Owners Policy (BOP) insurance if your food truck business’s annual revenue is less than $1MM.
What Kind of Insurance Does a Food Truck Need?
Below are the business insurance policies that a food truck owner needs to have to protect the food truck business from risks:
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.
Who Needs Food Truck Insurance?
Food truck insurance can also cover a wide variety of food truck businesses. Below is the list of several different types of food trucks that should look into getting insured:
- Mobile food trucks
- Vending trucks
- Lunch trucks
- Catering trucks
- Ice cream trucks
- Concession trucks
Basically, if you sell food out of a vehicle, you should look into getting food truck insurance.
- >>MORE: How to Find Restaurant Insurance
- >>MORE: What is Food Trailer Insurance and Where to Find It?
How Much Does Food Truck Insurance Cost?
The average food truck insurance cost is $180 a month if you only have general liability and commercial truck insurance coverages. If you add occupational accident insurance or workers comp insurance, you will pay around $300-$400 a month.
These are just the averages. Your quotes will be different. Be sure to shop around with a few companies or work with a broker like Simply Business, CoverWallet, commercialinsurance.net, or Smart Financial to compare several quotes to find the cheapest one for you.
Learn more at how much food truck insurance costs
What factors affect the cost of food truck insurance?
The costs can vary based on a number of factors. A few examples include:
- How much insurance you choose to carry and which types
- What kind of limits and deductibles you choose on each insurance plan
- The size of your business, such as if you have multiple food trucks
- Whether you have employees and how many
- Insurance rate can vary by state and how populated your area is, since this can increase your risk
- Some insurance types are more expensive if you’ve had claims in the past
- What types of food you sell can affect cost: for instance, fried foods come with more of a risk for injury because of the hot oil involved
- How involved your equipment is, like if you have an expensive grill permanently attached to the truck
How to Find Food Truck Insurance Quotes
One way to find and compare food truck insurance quotes is through digital broker like CoverWallet. They offer bundled policies specifically designed for food truck business. This was the easiest way to get an idea of the costs, since many quote sites need specific driver’s license and vehicle information to provide a quote for a food truck.
CoverWallet outlines the different price ranges you can expect to pay for food truck insurance based on tiers. Each tier covers different types of insurance.
- Basic tier: general liability from $39 per month
- Standard tier: general liability + product liability from $99 per month
- Pro tier: general liability + product liability + commercial auto from $299 per month
- Custom tier: lets you add other types like worker’s compensation, property and business interruption, no set price given
As you can see, prices can fluctuate wildly depending on which insurance products you select.
Is FlIP Food Truck Insurance Good?
FLIP stands for Food Liability Insurance Program. As the name suggests, they focus on providing liability insurance for any food companies such as restaurants, bakers, bakeries, farmer markets, food manufacturers, caterers, and of course food truck business owners. Their food truck policy includes general liability insurance, product liability insurance, business property insurance, workers compensation insurance, and cyber liability insurance.
Depending on the size of your food truck business, you can determine which insurance to include in your food truck insurance policy. If you just want a simple policy, you can get their most basic food truck insurance policy which costs $299 a year, which is a bit more expensive than other options we recommend above.
One other disadvantage of the FLIP food truck insurance is that they don’t offer commercial auto insurance, which is one of the most important policies critically needed for food truck business.
If you are worried about the food liability that your food truck business is exposed to, you might want to give FLIP food truck insurance policy a look.
Do I need insurance to operate my food truck business?
Yes definitely. As you can see above, a food truck business is relatively complicated and carries several inherent risks. Anything can happen and without protection, it will ruin your business and finance. Getting a food truck insurance policy will protect you and your business when bad luck happens. You can easily compare quotes from several companies in one place with digital brokers like CoverWallet or Simply Business. A basic food truck insurance policy with CoverWallet costs $39/month only.
>>MORE: How to Get A Food Truck License
- Food truck insurance is an umbrella term that covers all the different types of insurance a food truck should carry. It’s most common for a food truck to have general liability and commercial auto insurance. From there, a food truck operator may need worker’s compensation. Other products are also options, like product liability, property insurance or business interruption insurance, as a few examples.
- Prices can vary drastically based on your operations and which products you select.
- When looking for food truck insurance, there are businesses that cater to food trucks specifically, or you can go with a more general business insurance company.