Food trucks are exposed to a range of potential risks because they’re multi-faceted businesses. In order to mitigate many of the risks that food trucks face, food truck insurance policies offer a variety of coverage options. Here are some of the more common coverages that you may want to make sure your food truck policy has.
What Coverages Should Be Included in My Food Truck Insurance Policy?
General Liability Insurance
General liability insurance is a basic protection that many businesses need and is widely available through food cart insurance policies. The coverage normally protects against so-called “slip and fall accidents,” as well as libel, slander and false advertising claims.
All of these are protections that your food truck would likely benefit from having. Even though your truck may not have a large facility, customers could still trip over an extension cord and vendors might slip on a step when going into your truck. Both incidents might result in a slip and fall accident that general liability insurance may cover. As far as libel, slander and false advertising claims go, a business of any size can be exposed to these potentially expensive suits.
Commercial Auto Insurance
If you own a food truck that goes on public roads, you probably need a food truck insurance policy that includes commercial auto insurance. Most states have minimum coverage requirements for all vehicles that are taken on public roads, and not meeting these minimum requirements could result in serious penalties. Failing to get a policy would also likely leave your truck dangerously unprotected if you were ever in an accident.
Commercial Property Insurance
If you have a cart or trailer that itself isn’t taken on public roads, a commercial property policy may be needed to protect your cart or trailer. These policies are frequently included in other types of package policies to protect buildings and land, but they can also sometimes be purchased as part of a food cart policy to insure equipment like a cart or trailer.
In some cases, it can be wise to get commercial property insurance even if you have a truck that’s insured via an auto policy. Including property insurance in a food cart insurance policy is occasionally the most affordable way to purchase coverage for expensive equipment that’s stored in a truck but not permanently part of the vehicle.
Inland Marine Insurance
Should you decide to include commercial property insurance in your food cart insurance policy, then it’s probably also a good idea to consider getting inland marine insurance. This insurance typically protects equipment and inventory while it’s being transported between locations. For food trucks and carts that set up at different locations, such protection can be essential.
Product Liability Insurance
Product liability insurance usually covers injuries, illnesses and property damage that are caused by defective products sold by a business. For food-service businesses, these incidents are commonly illnesses that get spread by improperly handled food. Since improper handling anywhere along the supply chain can result in illnesses, this is a coverage to consider no matter how carefully you wash your hands and follow other protocols.
Liquor Liability Insurance
Liquor liability insurance is a specialized coverage that generally extends protection to alcohol-related incidents. Businesses that serve alcohol typically purchase this policy, and you may be legally required to get this coverage if you want to apply for a liquor license.
Find the Right Food Truck Insurance Coverages
For help finding the right combination of insurance coverages for your food truck, contact the independent insurance agents at World Insurance Associates. Our specialized team has helped many owners find food truck insurance policies that are tailored to their specific needs, and we’re ready to assist you.