How much does food truck insurance cost?
Top business insurance policies for food trucks and their cost
Here are the top insurance policies purchased by food trucks and their average monthly costs:
- Business owner's policy (BOP): $96 per month
- General liability insurance: $37 per month
- Workers' compensation insurance: $46 per month
- Liquor liability insurance: $64 per month
- Commercial auto insurance: $209 per month
- Cyber insurance: $129 per month
Our figures are sourced from the median cost of policies purchased by Insureon food truck customers. The median better estimates what your business is likely to pay because it excludes outlier high and low premiums.
Business owner’s policy
Food truck operators pay an average of $96 per month, or $1,147 annually, for a business owner’s policy (BOP).
A BOP bundles general liability insurance with property coverage, usually at a discounted rate. This policy often includes insurance endorsements, such as business interruption insurance or equipment breakdown coverage.
This is the average business owner's policy for food truck owners who buy from Insureon:
Insurance premium: $96 per month
Policy limit: $1 million per occurrence, $2 million aggregate
Deductible: $1,000
The cost of a business owner's policy is determined by your food truck business's location, operations, and value of business property. Food truck businesses with high-value kitchen equipment and furnishings tend to pay higher premiums.
Not all food truck owners qualify for a business owner’s policy. Check with your Insureon agent to find out if your food truck business is eligible.
General liability insurance
Food trucks pay an average of $37 per month, or $440 annually, for general liability insurance. This policy protects food trucks against customer bodily injuries and property damage, along with advertising injuries.
Insureon’s licensed agents typically recommend purchasing a business owner’s policy, which is an insurance package that bundles general liability coverage with commercial property insurance at a discounted rate. A BOP protects both your own business property and against common third-party risks.
This is the average general liability policy for food truck owners who buy from Insureon:
Insurance premium: $37 per month
Policy limit: $1 million per occurrence, $2 million aggregate
Learn more about how your insurance premium is calculated, cost information, and how to save money on your general liability coverage.
Workers’ compensation insurance
The average cost of workers’ compensation insurance is $46 per month for a food truck, or $550 annually. The cost of a policy varies significantly depending on the state, your business operations, and the number of employees.
Workers’ compensation insurance is required in almost every state for food trucks with employees. This coverage helps pay medical costs and lost income for employees who are injured on the job. Most policies include employer’s liability insurance, which protects food truck business owners against lawsuits related to workplace injuries.
Because health insurance plans can deny claims and medical bills for injuries related to your job, workers' compensation coverage is also recommended for sole proprietors.
The cost of workers' comp depends on several factors, primarily the size of your staff and their occupational risks. You can save money on workers' comp coverage by classifying your workers correctly and implementing a risk management plan to minimize work-related injuries.
Liquor liability insurance
The average cost of a liquor liability insurance policy for a food and beverage business like a food truck is $64 per month, or $769 annually.
This type of insurance protects food trucks from liability claims related to serving alcohol. In some jurisdictions, your food truck business might need liquor liability coverage in order to obtain a liquor license.
This is the average liquor liability policy for food business owners who buy from Insureon:
Insurance premium: $64 per month
Policy limit: $1 million per occurrence, $2 million aggregate
What's more, many states have dram shop laws that hold a business liable for any damages caused by intoxicated customers who were served by your staff. This can make this coverage all the more important to protect businesses against the expensive legal fees and other financial losses from an incident.
Learn how to save money on your policy, which coverage options to choose, and how liquor liability costs are calculated.
Commercial auto insurance
The average cost of a commercial auto policy is $209 per month for food service businesses like food trucks, or $2,509 annually.
This insurance covers medical expenses related to injuries and property damage costs if someone driving your food truck is held liable for an accident. It also covers vehicle theft, vandalism, and damage caused by weather.
Most states require this type of insurance for food trucks and other vehicles owned by a business. For personal, rented, and leased vehicles used for work purposes, look to hired and non-owned auto insurance (HNOA) instead.
The cost of commercial car insurance depends on several factors, including the policy limits you choose, claims history, the number and value of your vehicles, and the driving records of anyone permitted to drive. Learn how insurers calculate your premium and how to save money on commercial auto coverage.
Cyber insurance
Small businesses pay an average of $129 per month, or $1,552 annually, for cyber insurance. You might also see this policy called cyber liability insurance or cybersecurity insurance.
Cyber insurance helps food concession businesses recover financially after a data breach or cyberattack. It can help pay for customer notification costs, fraud monitoring services, and other costs necessitated by state data breach laws.
The cost of cyber insurance depends on the amount of personal information handled by your food truck company, such as customer credit card numbers, along with the number of employees who can access that information.
How are food truck insurance costs calculated?
Food truck business insurance coverage costs are determined by several factors. While underwriting your policy, insurance companies will consider the following when calculating insurance rates:
- The types of food and beverages served: Food trucks may see elevated premiums if they offer higher-risk products or services, such as alcoholic beverages, compared to trucks that only serve soft drinks.
- Business property and food truck equipment: Food trucks that operate with higher-value vehicles or equipment are likely to see higher premiums. Also, any items that are frequently used could cost more to insure than items that are used less often.
- Location: If your food truck operates in an area that is more prone to natural disasters, increased foot traffic, or high crime rates, you may have to pay higher insurance costs than a truck located in an area where these factors are less present.
- Number of employees: If your food truck has several employees on staff, you could see increased insurance costs, as there are more opportunities for accidents to happen or for potential damage to occur to property around the area where the truck is stationed.
- Business size and revenue: Insurance companies might assume a food truck that is making more money will also see increased customer exposure, which can generate higher premiums.
- Coverage limits and deductibles: Food trucks with higher coverage limits and lower deductibles on their insurance policies will typically see their premium costs increase, while lower limits and a higher deductible can help keep their rates lower.
- Type of business operation: A small food truck operated by one person may not have to pay as much for insurance as a food truck with several staff members.
- Types of insurance coverage purchased: Some policies are required for food trucks to obtain licensing or local permits. These required policies often are needed to cover more expensive accidents and lawsuits, and tend to cost more than other basic coverages. Optional add-ons like food spoilage insurance and equipment breakdown coverage will also increase your premium.
- Claims history: A food truck operator with a lengthy list of previous insurance claims will likely pay more for insurance than a truck owner with no claims history.
How do I get food truck insurance?
Insureon can help food trailers, restaurants, food vendors, and other food businesses find affordable insurance coverage, whether you work independently or hire employees.
To get started, all you need is your business information on hand. Our insurance application will ask for basic facts about your business, such as revenue and number of employees. Then, you can buy a policy online with Insureon in three easy steps:
- Fill out a free online application with details about your business.
- Compare free quotes from top-rated U.S. insurance carriers.
- Select a policy and pay the premium to begin coverage.
Our licensed insurance agents are available to answer questions about your food truck insurance costs, state insurance requirements, and the best types of coverage for your specific insurance needs.
Once you've bought the food truck insurance policies you need, you can download a certificate of insurance (COI) for proof of coverage. Most small business owners can get insured within 24 hours of applying for quotes.
What our customers are saying
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.
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