Why do food trucks need insurance?
In addition to workers’ comp and commercial auto insurance, venues may require food trucks to carry general liability coverage. Having the right insurance helps you meet contract requirements, prepare for unexpected challenges, and avoid significant out-of-pocket costs after an accident.
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What business insurance do you need for a food truck?
These policies cover the most common business risks of food trucks.
Business owner’s policy
A BOP bundles general liability coverage and commercial property insurance in one plan. It’s often one of the most economical options for a food truck.
- Customer injuries
- Damage to business property
- Business interruption incidents
Workers’ compensation insurance
Most states require workers' comp for food trailers and food trucks that have employees. It also protects sole proprietors from work injury costs that health insurance might deny.
- Employee medical expenses
- Disability benefits
- Legal costs from work injuries
General liability insurance
A general liability policy covers basic food truck risks, such as an alleged claim of food poisoning. It may be required by a venue owner or event organizer.
- Slip-and-fall accidents
- Damaged customer property
- Product liability coverage
Commercial auto insurance
A commercial auto policy covers medical bills and property damage in an accident involving your food truck. It also covers weather damage, theft, and vandalism of your food truck.
- Physical damage and collision coverage
- Injuries caused to another person
- Repairs due to vandalism or weather
Liquor liability insurance
This policy covers the cost of property damage and bodily injury caused by an intoxicated patron, as well as a food truck's related legal fees.
- Injuries from alcohol-impaired customers
- Property damage from intoxicated patrons
- Legal fees for liquor liability lawsuits
Cyber insurance
Cyber liability helps food trucks recover from cyberattacks and data breaches. It's recommended for any business that stores customer information.
- Data breach notification costs
- Fraud monitoring services
- Cyber extortion payments
Does my food truck need commercial auto insurance?
Food trucks that purchase commercial auto insurance often:
- Have a vehicle titled to their business
- Drive to and from worksites
- Carry supplies, equipment, or products used for work
- Transport employees
- Rely on delivery drivers or couriers
Check the laws in your state to see when coverage is required.
How much is food truck insurance?
A food truck with only a few employees will pay less for commercial insurance than a larger business.
Average food truck insurance costs include:
- General liability: $37 per month
- Workers' comp: $46 per month
- Commercial auto: $209 per month
Food truck insurance costs depend on several factors, including your scope of operations, history of claims, and driving records.
What factors affect food truck insurance costs?
Insurers typically consider several factors during the underwriting process when determining your insurance premium, including:
- Food services offered: The type of food you prepare and serve can affect your insurance costs. Businesses that use deep fryers, grills, open flames, or other higher-risk cooking methods may face a higher risk of fires, burns, and other accidents.
- Food truck equipment and property: The value and type of your cooking equipment, appliances, tools, inventory, and other business property can influence your rates. More expensive equipment and property may require higher limits, which can increase your property coverage costs.
- Where your business operates: Your location can affect insurance costs based on factors such as local claims history, weather risks, crime rates, and other hazards. Operating in multiple locations or traveling to different events may also affect your coverage needs.
- Business income: Your annual revenue can influence how much you pay for coverage. Higher-revenue businesses can have greater exposure to potential losses and may need higher coverage limits to adequately protect their operations.
- Policy limits and deductibles: The amount of coverage you purchase affects your premium. Higher policy limits generally cost more, while choosing a higher deductible can lower your premium but means you'll pay more out of pocket when filing a covered claim.
- Number of employees: The size of your workforce can affect insurance costs, particularly for workers' compensation coverage. Having more employees generally means greater exposure to workplace injuries and may result in higher premiums.
- Employee driving records: If employees drive your food truck or other business vehicles, insurers may consider their driving histories when determining commercial auto rates. Traffic violations, vehicle accidents, and other driving incidents can increase your risk and potentially raise your premium.
- Risk management and safety: Insurers may consider the steps you take to prevent accidents, injuries, fires, and other losses. Employee safety training, regular equipment maintenance, fire prevention measures, and safe driving practices can help reduce your business's risk.
- Claims history: Your history of filing claims can affect your rates. Businesses with frequent or costly claims may be viewed as higher risk and could pay more for coverage, while a history with few or no claims may help keep premiums lower.
How do I get food truck insurance?
It's easy to get food truck insurance policies if you have your company information on hand. Our application will ask for basic facts about your business, such as revenue and number of employees. You can buy a policy online and get a certificate of insurance (COI) with Insureon in three easy steps:
- Complete a free online application.
- Compare insurance quotes and choose policies.
- Pay for your policy and download a certificate.
Insureon's licensed insurance agents work with top-rated U.S. providers to find the right insurance coverage for your food truck, whether you work independently or hire employees.
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FAQs about commercial food truck insurance
Review answers to the most common questions about food truck insurance requirements, coverage options, and ways to protect your business.
Do I need a license or permit to run a food truck?
Most food truck businesses need several licenses and permits before they can legally operate. Requirements vary by state, county, and city, but food truck owners often need the following:
- Business license
- Food service and handling license
- Mobile food vendor permit
- Catering license and permit
- Health department permit
- Fire safety permit
Depending on where you operate, you may also need permits for specific events, parking locations, or alcohol sales. Before launching your business, check with your local government and health department to determine which licenses and permits apply to your food truck.
Why do food trucks need general liability insurance?
Food trucks interact with customers, vendors, property managers, and event organizers every day, creating numerous opportunities for third-party claims. General liability insurance can help cover legal costs, medical expenses, and settlements if your business is responsible for third-party bodily injury, property damage, or advertising injuries.
Examples of covered incidents may include:
- A customer trips over an extension cord near your truck.
- Your employee accidentally damages a venue's property while setting up.
- A sign or piece of equipment falls and injures a bystander.
- Your business faces a lawsuit over alleged advertising-related harm.
While general liability coverage isn't typically required by law, many venues, festivals, and events require proof of coverage before allowing food trucks to operate on their property.
Do I need mobile food truck insurance for festivals or events?
Many festivals, fairs, farmers markets, and special events require mobile food businesses to carry general liability insurance and provide a certificate of insurance (COI) before participating. Event organizers may request proof of coverage weeks before an event begins.
In some cases, organizers may also require:
- Additional insured status on your policy
- Higher liability limits
- Coverage that remains active throughout the event
Beyond liability protection, food truck owners should also consider commercial property coverage or a business personal property (BPP) policy (which can be added to general liability coverage as an endorsement) for equipment, inventory, and supplies.
For movable items that travel between locations, a key policy for food truck operators is tools and equipment coverage, which is also called inland marine.
Insureon can help you obtain a certificate of insurance quickly, making it even easier to meet event requirements.
Does food truck liability insurance cover a food trailer?
Coverage depends on how your business is set up. An all-in-one food truck combines the vehicle and cooking operation into a single unit, while a food trailer is typically a separate structure towed by another vehicle.
A business liability policy may cover third-party claims arising from your business operations, but it may not automatically cover physical damage to a detached food trailer. In many cases, the trailer may need separate coverage or an endorsement added to an existing policy.
If you operate a food trailer, you'll generally need:
- Commercial auto insurance for the vehicle towing the trailer
- Coverage for the trailer itself
- Property coverage for equipment, inventory, and supplies inside the trailer
Our licensed insurance agents can help you determine whether endorsements or separate policies are needed to fully protect your setup.
What other types of insurance does a food truck need?
Depending on your operations, additional insurance policies may help protect your food truck business from financial losses, including:
- Business interruption insurance: Also called business income coverage, this policy helps replace income, lost wages, and ongoing expenses if your food truck must temporarily stop operating because of a covered property claim.
- Equipment breakdown insurance: Helps pay to repair or replace covered business and kitchen equipment that suffers a mechanical or electrical failure, such as refrigerators, freezers, generators, or cooking equipment.
- Food spoilage coverage: Helps cover the cost of perishable food and ingredients that spoil because of a covered event, such as a power outage, refrigeration failure, or equipment breakdown. Some insurers also refer to this as perishable foods in transit coverage.
- Food contamination coverage: Helps with expenses related to contaminated food products, including disposal costs, cleanup expenses, and certain business recovery costs.
- Product liability coverage: Often included in a general liability policy's products-completed operations coverage, this insurance helps cover claims of food-related illness, injury, or property damage.
- Professional liability insurance: Also called errors and omissions (E&O) insurance, this coverage may benefit food trucks that provide catering services, event planning, or other professional services. It helps cover claims involving professional mistakes, missed deadlines, or failure to deliver contracted services.
- Employment practices liability insurance (EPLI): Helps cover employment-related claims involving wrongful termination, discrimination, harassment, retaliation, and other workplace allegations.
How do I lower the cost of food truck insurance?
There are several ways food truck, vending truck, and ice cream truck owners may be able to reduce insurance costs while maintaining the right amount of coverage.
Start by comparing quotes from multiple insurance companies through Insureon's online application. If you're unsure which policies are right for your business, our licensed insurance agents can help you find affordable coverage that fits your needs and budget.
You may also be able to lower your insurance costs by:
- Implementing food safety and sanitation procedures
- Providing driver safety training for employees who operate the truck
- Maintaining cooking equipment, generators, and refrigeration systems
- Installing and regularly inspecting fire suppression equipment
- Choosing higher deductibles when appropriate
- Bundling multiple policies with the same insurer
- Maintaining a claims-free history
Working with an insurance marketplace like Insureon allows food truck owners to compare coverage options from multiple top-rated carriers and find policies that fit their risk profile and budget.
Most food truck businesses can get a certificate of insurance (COI) within 24 hours after submitting an application, making it easier to meet venue, festival, and event insurance requirements.
The average costs on this page were derived from our data on small business owners in the food truck field who purchased policies through Insureon. Most of our customers have less than five employees, annual revenue ranging from around $50,000 to more than $200,000, and five years or less in business.