Food Truck Insurance

Insurance 101 for Food Trucks

Congrats! You took the plunge and started your own food truck business. Whether you come from a restaurant background or food was always a hobby of yours, it’s a big decision and great opportunity. One of the last things that you may think about, or have to address, is the dreaded insurance policy.

As a food truck operator your business has unique insurance needs. Alliance Insurance Services has developed some helpful items to make sure you are properly protected and can focus on your food truck, not your insurance policy!

What Coverage Do I Need?

Depending on where you operate (MD, VA, DC) you may have different requirements, but we have listed what all food trucks, regardless of location, will need in their insurance portfolio.
 

  • Auto Liability
    • Your food truck is most likely equipped with a propane tank and other flammables. As such, an accident could easily cause a great deal of damage.
    • We recommend $1,000,000 in liability (this is standard for a commercial policy).
  • General Liability
    • Setting up shop at a venue? If so, they are going to require that you have General Liability protection. Standard limits are $1M/occurrence and $2M/aggregate. This coverage provides protection for any 3rd party property damage (back into a building) or bodily injury (food sickness) that you are responsible for.
    • This is also important as often you are preparing food offsite to be served from your truck. Additionally, if you are doing catering jobs you will need this coverage.
  • Property
    • Some insurance carriers can cover your improvements made to your vehicle on their auto policy, but you may need a separate property policy for that. This also covers any property you are responsible for at your commercial kitchen.
  • Vehicle Improvements/Alterations
    • You may end up spending anywhere from $20,000-$75,000 outfitting your truck with the proper equipment to operate. Make sure you insure for that value in case your vehicle is totaled.
  • Workers Compensation
    • Necessary to cover any injuries your employees may have on the job, part time or full time. In the state of VA it is required if you have 3 or more employees (including yourself). In DC and MD it is required for all companies with 1 employee.

What Else Should I Consider?

The following coverage may not be required, but should certainly be considered for your operations.
 

  • Loss of Income
    • Would you be negatively impacted if your food truck was down for repairs following a claim? If so, you will want to make sure you have income replacement to help during that down time.
  • Commercial Umbrella
    • Sits atop all of your underlying policies in the case you are involved in a major claim.

If Interested in a Quote, Please Let Me Know!

Paul Dunstan
Account Executive
Alliance Insurance Services
Office: (202) 558-6026
Cell: (703) 915-1201
Email Paul