A common way to buy insurance for a food truck is with a business owners policy (BOP). A BOP packages multiple insurance coverage types into one policy. A typical BOP includes general liability insurance, property insurance and business interruption insurance. There are also additional coverage types to customize your BOP insurance.
When you're buying food truck insurance, make sure to have your bases covered. For example, you're going to want the crucial liability and commercial property insurance. But you may also need commercial auto insurance and coverage for broken kitchen equipment and spoiled food.
Food truck business insurance needs can vary. You might have a full kitchen in a food truck and cook for large crowds at musical festivals, or you might sell pre-packaged ice cream outside local baseball games. No matter how you use a food truck, there are many coverage choices.
Basic food truck insurance coverage types
A business insurance agent can help you identify coverage that best suits your needs, but here are typical coverage types to consider.
Business general liability insurance – Covers the cost of a legal defense, settlements and judgments if you injure someone or cause damage to someone else's property. For example, if your large umbrella blows over and injures someone, that would be a liability claim.
Business interruption (also called business income) insurance – If a problem covered by the policy, such as a fire, forces you to temporarily close, this covers extra expenses until you can reopen.
Business property insurance – Covers business property such as ovens, grills and kitchen equipment. Problems covered include fire, explosions and vandalism.
Commercial auto insurance – Since a food truck is a restaurant on wheels, you'll need a commercial auto policy. This covers auto accidents that cause injuries or damage to someone's property. You might also consider collision insurance to fix your vehicle if it's damaged in an accident, as well as comprehensive insurance for problems like vehicle theft, vandalism, hail, falling objects and hitting an animal.
Workers compensation insurance – If an employee has a work-related injury or illness -- like a bad cut while chopping ingredients -- this pays medical costs and some lost wages.
Additional food truck insurance options
Business income from dependent properties – If your food truck depends on other businesses, such as someone to deliver fresh bread, and they are unable to deliver, that could affect your sales for the day. This coverage can help replace lost income.
Employment practices liability – Covers the business against claims that an employee's legal rights have been violated, including harassment, discrimination, wrongful termination and other issues.
Equipment breakdown coverage – It's likely your food truck relies on equipment such as grills, ovens and freezers. If one of them were to fail and you couldn't open for business, this pays to repair or replace the broken equipment as well as lost income due to business interruption.
Food contamination coverage – If your food truck is forced to close by a board of health or other government authority, this covers lost income and other costs, such as replacing contaminated food, cleaning the equipment, and advertising to help restore business reputation.
Product liability insurance – Covers your business if one of your products causes property damage, injury or illness, such as food poisoning.