As food trucks continue to gain popularity, there is a growing need for food truck insurance policies to protect these mobile businesses. There are several types of coverage that every food truck owner should have before they start serving the hungry masses.
In this article, the Home Media Reviews team will examine the coverage that food truck owners need to protect their mobile restaurant investment. Since you will need to work with an auto insurance company to cover your food truck, we also looked at Best car insurance Service providers to help you make the best decision for your needs.
Food Truck Insurance Overview
As a combination of car and work, food trucks have unique insurance needs. Your personal car insurance policy does not cover a vehicle that is being used for commercial purposes, which is why you need extra protection if you plan to operate a food truck. To protect your mobile restaurant, you will need a file Commercial car insurance Coverage of policy and public liability.
Commercial auto insurance covers the car and any devices or equipment attached to it permanently. Besides a commercial auto policy, food truck operators need a business owner’s policy. This usually includes the following types of coverage:
- bodily injury liability: This pays for medical expenses of third parties after an accident has occurred.
- Liability for property damage: In the event of an accident at fault, this coverage pays compensation for damages to the vehicles and property of third parties.
- medical payments: This type of coverage, known as MedPay, pays for your medical expenses in the event you have an accident.
- Uninsured/Uninsured DriverThis covers medical bills and property damage from accidents caused by drivers without adequate coverage.
These types of coverage are just the beginning when it comes to food truck insurance. If you have employees, you will need workers compensation insurance to help with medical costs if people are injured on the job. It’s also a good idea to consider a Business Owners Policy (BOP), which combines coverage for major property and responsibilities into one insurance policy.
Specialized coverage options for food trucks
Not all food trucks are created equal. Some vendors, such as ice cream trucks, sell prepackaged items, while larger concession trucks have grills or pans on board. Fortunately, some insurance providers offer custom coverage options to suit the needs of food truck owners. This specialist insurance policy options include, but are not limited to, the following:
- Equipment breakdown: When covered equipment or appliances fails, this type of policy helps compensate for damages and loss of income.
- damage: In the event of equipment failure or power outage, damage insurance covers the cost of unusable food items.
- contaminated food: If your food service is shut down due to contamination, this type of policy will help stop work and any necessary equipment repairs.
- Restaurant Responsibility: This type of coverage can help with any property damage or injury that your business causes to clients, such as medical costs if a client develops food poisoning after visiting your truck.
- Restaurant property insuranceCommercial property coverage: This business property coverage provides protection for commercial property that suffers physical damage due to a covered event. For example, it will come in handy if a grease fire damages your food truck exhaust hood or additional secured pieces of essential equipment.
Food truck insurance cost
The cost of food cart insurance varies according to the type of food being sold, the equipment attached to the vehicle, your location, and the types of coverage you need. As with personal policies, the best way to find cheap commercial auto insurance is to Compare insurance rates from multiple providers.
Although costs will vary, food truck business owners can expect to pay between $2,500 and $4,500 per year for coverage on average. These estimates combine commercial auto insurance and general liability insurance. Your actual cost will depend on factors such as the amount of coverage you need, the type of truck you operate and the deductible you choose.
Recommended Food Truck Insurance Providers
There is no shortage of options when it comes to commercial insurance and commercial auto coverage. Our team recommends Geico, Progressive, and Farmers Insurance because these insurance agencies offer a wide range of affordable coverage options.
*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.
#1 Geico: Affordable to most drivers
Best Financial Rating from AM: A++
Better Business Bureau (BBB) Rating: A +
As one of the big names in the auto insurance industry, Geico combines a strong reputation for customer service with high industry ratings from AM Best and BBB. When it comes to auto insurance coverage, they are known for their affordable prices and quality coverage for many types of drivers.
The popular provider also offers a range of commercial auto insurance products that can be suitable for food truck owners. From restaurant insurance to worker comp coverage, find the coverage you need for your mobile business with Geico.
Read on: Geico تأمين Insurance Review
#2 Progressive: Low rates for high-risk drivers
It comes to business insurance needs, the company offers tailored coverage for small businesses.
For food trucks in particular, this ranges from essential commercial auto insurance and professional liability insurance to coverage for equipment damage and customer illness. The insurance company also offers savings opportunities that food truck owners may qualify for, such as discounts for work experience and collection policies.
Read on: Progressive Insurance Review
#3 Farmers Insurance: Food Truck Dedicated Cover
Best Financial Rating from AM: a
BBB . Rating: a
Farmers Insurance has a reputation for excellent customer service and offers a wide range of coverage options. The company’s restaurant business insurance products are a great option for food truck owners. Its range of options provides coverage for everything from customer illness to vandalism. You can also purchase additional coverage for food contamination, spoilage, and equipment failure.
Read on: Farmers Insurance Review
Food Truck Insurance: Conclusion
Your food business is important, and you want to make sure you find the best provider for your unique food truck insurance needs. Insurance companies that offer high-quality auto and business liability coverage at affordable rates will be well suited. Our team recommends reaching out to several providers to get free quotes so you can compare your options to find the best option for you.
Food Truck Insurance: FAQ
Because consumers rely on us to provide objective and accurate information, we’ve created a comprehensive rating system to craft our ratings for the best auto insurance companies. We have collected data from dozens of auto insurance providers to rank companies according to a wide range of rating factors. The end result was an overall rating for each provider, with the insurance companies that scored the most points at the top of the list.
Here are the factors our ratings take into account:
- Cost (30% of the total degree)Estimates of auto insurance rates generated by Quad Information Services and discount opportunities have been taken into account.
- Coverage (30% of the total score)Companies that offer a variety of options for insurance coverage are more likely to meet consumer needs.
- Reputation (15% of all scores): Our research team considered market share, ratings from industry experts, and years in business when giving this result.
- Availability (10% of the total score)Car insurance companies with the highest availability in the country and few eligibility requirements scored the highest in this category.
- Customer Experience (15% of the total score): This score is based on the volume of complaints reported by NAIC and customer satisfaction ratings reported by JD Power. We have also taken into consideration the responsiveness, friendliness and assistance of each insurance company’s customer service team based on our shopper analysis.
* Accuracy of data at time of publication.
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