The food truck is a very unique form of business indeed. It’s a great innovation and a true display of entrepreneurship, but it also comes with a great deal of risk which goes beyond those a traditional restaurant. When looking for insurance, food truck owners have to consider both the coverage for their truck and the restaurant business. A lot can happen in this challenging industry from issues with the food to issues with the vehicle. That’s why food truck business insurance is such a helpful safeguard.
Frequently Asked Questions:
So what does Food Truck Insurance actually cover?
The type of food truck you operate may affect the type of insurance policy for you, but a lot of the basics are covered. Food Truck Insurance usually entails.
- Personal Liability Coverage : this means that medical payments should an injury due to your business (and not necessarily related to the vehicle) can be covered if you are found legally responsible for the injury, as well as for possible lawsuits brought up.
- Commercial Vehicle Insurance: this covers damages related to the vehicle and is usually required in states like Washington in order to operate a food truck. This insurance itself covers a wide array of areas from bodily harm to medical payments. Commercial Vehicle Insurance should also be noted as distinctly different from Personal Vehicle Insurance due to some higher risks involved in operating a Commercial Vehicle.
- Property Damage Insurance: This covers damage caused by the truck in an accident. A food truck operator should also remember that because he has equipment on board his truck, he may need to spend a little more on this. Insurance for the equipment such as the stove, refrigerator or freezer can be obtained under this and is highly recommended to safeguard your food truck. The equipment involved in the restaurant side of the business is usually not attached to the Commercial Vehicle Insurance, so this coverage is crucial.
- Workers Compensation: This covers employees working on the food truck and can cover possible injuries incurred while working or operating the truck.
Are there discounts I can obtain?
Yes, there are usually discounts for the different insurances involved. This is especially true if you are an experienced food truck business with a solid enough history of operation.
Why isn’t one type of insurance enough to cover my food truck?
The answer is because of how multi-dimensional this type of business is. Most states view food trucks as restaurants so, as a food truck operator, you are a subject to a number of regulations that, if you are found to have violated, are not covered by a normal vehicular insurance. There are also a number of modified equipments most insurance providers do not include under their normal coverage. This being said, the fact remains that you are driving a vehicle and must still be protected from the regular risks that may occur that are not covered by insurances other than Vehicular Insurance.
This all said, insurance agents can help you determine what kind of policy can work for you-just be willing to inquire and you can get a deal that will suit you well.