5 food truck operator insurance coverages

07/18/2018

Have you ever attended an event and surprise, your favorite restaurant has a food truck there? Food trucks offer the ability to bring food directly to customers and the flexibility to attend popular events with a hungry audience. However, with that increased flexibility comes some important risks worth considering, and determining the right insurance policy can be a little tricky.

Here are some risks worth planning for as a food truck operator:

  1. General liability - Yes, the food is delicious but the tools it takes to make this food can be dangerous. Stoves, ovens and knives on wheels can pose serious risk. General liability coverage protects you from issues with your food, personal injury, advertising injury such as slander, and property damage to others. General liability insurance covers legal fees which may arise as well.
  2. Workers comp - We hope that your food truck is successful and with that success you will need employees. Workers compensation coverage is required in many states in order to obtain a food truck operations license and for good reason – workers comp pays for employee wage replacement and medical benefits if they are injured on the job.
  3. Property damage insurance - A ding here or there is bound to happen while driving a truck around and parking it on streets every day. Property damage insurance protects your food truck from collision, theft, fire, and vandalism. Assets covered by property damage insurance are separated into two categories – the truck and bolted down equipment, and everything not attached to the truck.
  4. Contents coverage - A non-essential but valuable policy to obtain, contents coverage insures items that aren’t permanently attached to the truck, such as cooking materials.
  5. Auto liability - Last, but certainly not least, auto liability coverage is a policy which protects you from financial liability in the event of an auto accident which takes place while your truck is moving. Incidents that occur while your truck is parked and operating fall under the categorization of general coverage.

Additional Coverages

There’s no such thing as being too prepared, so food truck operators may want to opt-in to additional coverages, such as food spoilage protection, umbrella insurance, or personal loss policies. None of these are essential, but can help provide some extra peace of mind.

Food trucks can inject new life into a restaurant looking to expand its customer base. While this could take business to new heights, the right insurance is essential to a successful operation, and Westfield can help find the right plan for you to bring a whole new meaning to “fast food”.