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Food Truck Insurance (Rates & Requirements)

Things to Remember

  • Food truck insurance should include general liability, worker’s compensation, and commercial auto.
  • Other forms of coverage to consider include business auto physical damage and property insurance.
  • Many top companies offer insurance for food trucks, including Progressive and Nationwide.

If you’ve recently invested in a food truck or are considering purchasing one, it’s important to consider food truck insurance. Food truck insurance differs from normal automobile insurance in that food trucks require different considerations.

Food truck businesses have employees, so worker’s compensation insurance is required. Liabilities that come with food service should be covered by your insurance. That being said, it is important to be aware of the different types of auto insurance coverage.

There are many companies that offer food truck insurance, including well-known auto insurance companies like Progressive. It is important to not only compare rates but the coverages each company offers.

If you are trying to buy food truck insurance, be sure to read our guide below. Find the best rates by using our helpful comparison tool above.

Table of Contents

What does food truck insurance cover?

The exact policies included in food truck insurance can vary based on the company; however, most insurance companies will offer a form of both commercial auto and general liability.

Commercial auto insurance is a form of insurance that covers vehicles used for commercial businesses. These types of policies can help cover damages made to your vehicle in the event of an accident.

Commercial auto insurance has many similarities to personal car insurance as it can also include collision and comprehensive coverage. Both collision and comprehensive coverage can be very helpful if you are in an at-fault accident.

Another important type of coverage to have when operating any type of business is worker’s compensation insurance. Worker’s compensation pays for medical bills and any lost wages an employee might experience after having an accident at work.

As with any job, accidents can happen while working in a food truck, including burns from an oven, lacerations from utensils, and slips inside the truck. This is why worker’s compensation insurance is essential to protect both yourself and your employees.

As for general liability, this covers things in which you might be liable, including injuries to customers and more. Other types of coverage you might want to consider include business auto physical damage, property insurance, and umbrella insurance.

Working with food means a customer could get sick at some point, and you will want to be covered in this situation, which is why it’s important to have general liability insurance.

How much is food truck insurance?

As with opening any business, starting a food truck business can accrue many costs. After buying a truck and all the equipment you need to operate, insurance can seem like a painful added expense, but insurance is not only legally necessary, it can also come in handy in many situations.

Food truck insurance costs can differ based on many factors including where you live, your truck’s property value, and the number of employees you have on staff. The amount of coverage you purchase can also greatly affect insurance rates.

All this being said, food truck insurance rates seem to be around $200-$300 per month. Comparing rates from different companies is the best way to find affordable food truck insurance.

It is also important to be aware of the auto insurance laws in your state. The NAIC provides a list of insurance websites by state.

Which companies offer food truck insurance?

There are plenty of insurance companies offering food truck insurance, but finding the right one can be a bit of a challenge. When looking for the perfect insurance company, it is important to not only compare rates but also check which companies have the best financial ratings and customer reviews.

Companies that currently offer food truck insurance include Progressive, the Food Liability Insurance Program, GEICO, State Farm, Farmers Insurance, Liberty Mutual, Nationwide, and more.

The great thing about using a more well-known company for food truck insurance is you might be able to bundle it with a policy for your personal vehicle.

With most auto insurance policies, bundling can result in discounts. For other common discounts offered by top companies, check out the chart below.

Common Auto Insurance Discounts Offered by Insurance Companies

Vehicle DiscountsDriver/Customer DiscountsPersonal Discounts
Active Disabling DeviceClaim FreeEmergency Deployment
Adaptive Cruise ControlContinuous CoverageFamily Legacy
Adaptive HeadlightsDefensive DriverFamily Plan
Anti-lock BrakesDriver's EducationFederal Employee
Audible AlarmDriving Device/AppFurther Education
Automatic BrakingEarly SigningGood Student
Blind Spot WarningFull PaymentHomeowner
Daytime Running LightsGood CreditLife Insurance
Economy VehicleLoyaltyMarried
Electronic Stability ControlMultiple PoliciesMembership/Group
Farm/Ranch VehicleMultiple VehiclesMilitary
Forward Collision WarningNew Customer/New PlanNew Address
Garaging/StoringOccasional OperatorNew Graduate
Green/Hyrbid VehicleOnline ShopperNon-smoker/Non-drinker
Lane Departure WarningOn-time PaymentsOccupation
Newer VehiclePaperless/Auto BillingRecent Retirees
Passive RestraintPaperless DocumentsStable Residence
Utility VehicleRoadside AssistanceStudent Away
Vehicle RecoverySafe DriverStudent or Alumni
VIN EtchingSeat Belt UseVolunteer

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As you can see, there are many ways you can save money on auto insurance. Food truck insurance quotes can be received by contacting an agent from any of the above companies.

Should I get mechanical and equipment breakdown insurance?

One of the biggest and most expensive things a vehicle owner can experience is a mechanical breakdown. This can be even worse for a food truck owner as you may find yourself unable to move the truck for days and end up stuck with a huge mechanic’s bill.

Mechanical breakdown insurance can help cover the repairs required to get your vehicle running again.

Equipment breakdown insurance can come in handy if one of your essential pieces of equipment suddenly breaks down. For a food truck, the breakdown of any piece of equipment can cause a loss of profits.

Depending on where you get equipment breakdown insurance, it can cover many different pieces of equipment, including generators, stoves, appliances, and more.

That being said, some find the cost of mechanical and equipment breakdown insurance to not be worth it and would rather pay for repairs out of pocket. Costs can depend on many factors, including where you live.

Bottom Line

Food trucks have become extremely popular over the years, which means there are more insurance companies offering food truck insurance. There are many considerations to make when deciding on a company, including your exact needs and wants.

Explore some of the top companies that offer food truck insurance and see if their policies match your needs. While most basic forms of food truck insurance come with general liability, worker’s compensation, and commercial auto, you may also want to consider other forms of coverage.

If you are a food delivery person needing to know about your auto insurance options, be sure to check out our piece on food delivery car insurance.

Having insurance is legally required for vehicles, including food trucks. Looking for the perfect food truck insurance car insurance company doesn’t have to take forever, though. Use our comparison tool today to easily compare rates from top companies.

References:

  1. https://content.naic.org/state_web_map.htm

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