How food truck insurance protects your business
Everybody loves a food truck! You can see it in their eyes as they walk up and excitedly scan the menu to see what tasty items are available. That enthusiasm is why many restaurateurs choose to have a mobile operation. However, these businesses face several types of risks, which is why food truck insurance is essential.
Having the necessary coverage from a trustworthy provider enables you to stay focused on creating and serving your specialties without worrying about financial risks. Small business insurance from biBerk lets you pursue your culinary passion, knowing you’re protected from unforeseen challenges.
What is the appropriate insurance for a food truck? What does food truck insurance cost? This article answers these and other crucial questions for food truck owners and operators. Read on to learn more.
Insurance for food truck businesses: essential policies
The insurance you need as a food truck owner will vary based on factors like the state and local laws where you are, your cooking methods, whether you serve alcohol, and others. However, most businesses in this industry need some or all of the following types of food truck or food cart insurance:
- General liability insurance. Food truck liability insurance is an excellent foundation for a food service business’s financial protection. With standard coverage and endorsements, it can address a wide range of risks, from customer injuries and property damage to liquor liability, employee benefits liability, and so-called “advertising injuries.” For example, imagine a customer slips on a spilled drink near your ordering window, breaks their wrist, and sues your business. General liability insurance from biBerk can respond to that lawsuit. Similarly, if someone claims that they got food poisoning from your food truck, your general liability policy can cover their medical expenses and your legal fees from the incident. In short, general liability insurance provides a wide range of protection, so it’s a must-have policy for food trucks.
- Workers’ compensation insurance. States typically mandate workers’ compensation insurance for companies with employees. So, it’s crucial to understand if your business is required to have this type of coverage. If you operate without it, your business might face fines, penalties, and other consequences. Workers’ compensation insurance can pay for an employee’s medical bills if they’re hurt in a work-related incident. For instance, if a team member suffers a deep cut while preparing food and needs stitches and medication, your workers’ comp policy can cover those costs. Your policy can also pay a portion of lost wages while an employee recovers from an injury.
- Commercial auto insurance. Unlike a personal auto insurance policy, commercial auto insurance from biBerk protects vehicles used for business purposes. Your policy can cover you if you’re at fault in an auto accident, paying the other party’s medical and vehicle repair costs if they sue your business. It can also pay to repair your food truck. That’s true for collisions but also specified events like theft, vandalism, and others. Let’s say you’re parking your food truck and back into an event attendee’s car, causing damage to their vehicle that will cost $1,500 to repair. Your commercial auto policy may pay that expense.
- Business owners policy. Also called property & liability insurance, a BOP conveniently combines general liability coverage with protection for your business property. That includes assets not permanently attached to your truck, like tables and chairs, canopies, etc. Plus, you can purchase add-ons for things like food spoilage and equipment breakdown.
- Cyber insurance. This insurance is purchased as an add-on to a general liability policy or a BOP. It protects your business if someone steals sensitive information (customer credit card numbers, for example) and uses it to commit fraud or is likely to. With cyberattacks continually rising, cyber insurance is increasingly important.
- Umbrella insurance. This policy provides an added layer of financial protection. It can cover (up to its limit) claims that exceed the limits of another biBerk liability policy.
What does food truck insurance cost?
Your cost for food truck insurance will depend on the size of your operation, your claims history, and other factors. You can get instant online business insurance quotes to find out what you’ll pay for the policies you need. Many owners are surprised at how affordable insurance for a food truck is. Often, a policy can deliver hundreds of thousands of dollars in protection (or more) for just hundreds annually.
Insurance for food trucks: a powerful value proposition
Without food truck insurance, a single incident—customer injury, food contamination issue, vehicle accident, etc.—can result in a huge financial burden for a business owner. Sadly, the cost is sometimes so high that it forces a food truck out of business.
It’s a different story for food truck owners who carry adequate business insurance. With the right policies and coverage limits, you can enjoy several benefits. Most importantly, you get financial security for your business. Business insurance protects your assets and finances from the potentially high cost of lawsuits and property damage.
Being properly insured also keeps you in compliance with state and local laws. As a result, you avoid fines and penalties. Just as importantly, you avoid the headaches that come with learning you have violated rules and hustling to comply with them.
Carrying the right insurance also demonstrates your credibility and professionalism to event organizers, other vendors, and your customers. If an incident occurs and your insurer responds promptly to your claim, it reflects well on your business.
Finally, having the food truck insurance you need to protect your business provides you with tremendous peace of mind. Operating a food truck can be stressful, with a neverending list of to-do items. When you purchase food truck insurance online from biBerk, your coverage can be active as early as the next day, and you can check that critical item off your list.
Get the best food truck insurance for your business.
Who provides the best food truck insurance? Many business owners find that our policies are ideal for their needs and that our direct sales approach saves them time and money.
By cutting out the middleman, biBerk provides streamlined service, expert support, and savings of up to 20%. With fast online quotes, instant coverage, and easy claims handling, we make business insurance simple, reliable, and accessible for food truck businesses.