What insurance does a food truck need?

There’s no doubt that a food truck is a great addition to any business. Whether it’s for fundraising, brand awareness, or to be a restaurant on wheels, food trucks are popping up all over the place. But operating a food truck requires insurance.

A food truck business is a new and exciting undertaking. One day you’re dreaming of owning a food truck, and the next you’re open for business. This transition can be an exciting yet stressful one. Before hitting the road you’ll need to make sure you’re properly insured. Auto insurance is required, but there are other policies to consider.

General Liability Insurance

General liability insurance is an important coverage for all businesses, including trucking companies. It protects truck drivers and the companies they work for from damage, injury, and loss caused by motor vehicle collisions. This insurance is particularly important to trucking companies because so much of their business is on the road.

General liability insurance isn’t all about your own truck, though. It protects your business from any lawsuits that come from an accident or property damage you cause. For example, if you cause an accident that injures someone or damages their property, your liability coverage would pay for the compensation. That’s why it is so important to make sure you have enough coverage.

Worker’s Compensation

If you have been injured at work, you probably already know that your worker’s compensation benefits cover all medical expenses and lost time from work, but what else is covered under worker’s comp? Depending on your state, you may be eligible for additional compensation.

If you work in the U.S., you are probably required to carry workers’ comp insurance. Workers’ comp is a form of insurance that protects you if you suffer a workplace injury or illness. Workers’ comp covers medical expenses, lost wages, and other special benefits.

Commercial Truck Insurance

An insurance policy that covers people who want to drive large vehicles such as semi trucks, dump trucks, and garbage trucks. Commercial truck insurance usually costs more than personal auto insurance because it covers riskier driving and a larger vehicle. Truckers’ insurance may cover more than just accidents. For example, if an individual is driving a commercial truck when they are injured or killed, their insurance company may pay for the expenses related to the accident, including hospital bills, funeral costs, and lost wages.

Commercial truck insurance is one area in which you really get what you pay for. If you’re new to the trucking industry, you probably assume that all insurance coverage is the same and you simply pick the policy that best fits your situation. However, not all policies are the same—and you’ll want to make sure you choose a policy that has the right coverages to meet your needs.

Umbrella Insurance

Umbrella Insurance protects you from accidents and liability claims that exceed the limits on your business and personal insurance. In other words, it’s extra insurance. For $5,000, $10,000, $20,000, or $50,000 of additional coverage, you can protect yourself from lawsuits. Most homeowners, auto, and umbrella policies allow for this coverage. However, there are some situations (and some policies) where additional umbrella insurance may not be (or may not be allowed).

Umbrella insurance is additional coverage over your primary auto, home or motorcycle policy. It’s designed to protect you from extreme or unusual expenses that your regular insurance policy wouldn’t cover. An umbrella policy kicks in after you’ve exhausted the liability limits on your other policies.

In conclusion, just like standard insurance, the insurance for a food truck covers liability, property, and cargo. However, the insurance for a food truck also needs to cover its drivers as it is not considered a commercial property. This insurance makes sure that the drivers are protected while they are driving, loading and unloading, as well as through their sleep.

The food truck insurance market is large and evolving rapidly. Food trucks may be small and high-value, but they offer a lot of exposure, especially to theft, so businesses should review their coverage carefully.

Posted in cmi.