Nationwide
$112/mo
Progressive
$123/mo
General
$91/mo
USAA
$25/mo
State Farm
$62/mo
Nationwide
Progressive
General
USAA
State Farm
Ambitious cooks can establish themselves without spending a lot of money by operating food trucks and carts, which continue to be a desirable alternative for those seeking quick, portable meals. For food truck owners who want to safeguard both their businesses and themselves, food truck insurance offers a more individualized approach.
The mobility of these trucks creates a special risk profile for insurance companies because, unlike brick-and-mortar restaurants, which are permanently parked, food trucks combine a high-risk foodservice environment with the liabilities of a mobile vehicle. When it comes to operating a mobile food service, dangers including fires, injuries from kitchen tools and equipment, food-borne infections, vandalism, and theft are genuine issues.
The following companies frequently require food truck insurance:
The following insurances are normally necessary for a food truck:
Commercial Auto Insurance: Your food truck will be safeguarded by commercial auto insurance from theft, vandalism, and damage. Additionally, it covers equipment and appliances with a permanent attachment. If the driver is at fault in an accident, it can also cover property damage and injury to third parties.
General Liability Insurance: This guards you and your company from financial responsibility for mishaps, food poisoning, etc.
The owner may choose to add riders or supplementary coverage with greater limits, as well as other types of insurance, such as workers' compensation and business interruption insurance, as well as an optional trailer endorsement, in addition to these two primary types of coverage.
The price of food truck insurance varies depending on a number of variables, such as the food truck's valuation, location, kind of coverage selected, type of food served, your own credit rating, and any previous insurance claims, among others. Depending on the level of coverage you select, you should be prepared to spend anywhere from $299 to more than $2,200 a year. You can finish up with several policies or just one with specialized coverage, additions, and riders.
Keep in mind that there are several expenses in addition to food truck insurance, such as buying or leasing the vehicle, paying for food, obtaining licenses, paying personnel, and more.
| Policy | Average Premium Estimate | Coverage Amount | Deductible |
|---|---|---|---|
| Commercial Auto | $2300 to $4200 | $1 million | $500 |
| General Liability | $960 to $1900 | $1 million per occurrence/2 million average | $0 |
| Business Property | $300 to $550 | $2500 | $500 |
| Workers' Compensation | $1600 to $3000 | N/A | $0 |
| BOP | Median Estimates at $1260 | $1 million per occurrence | $1000 |
Commercial auto: This coverage is crucial for food trailers and trucks. By including physical damage insurance in your policy, you may protect not just your car but also any permanently fixed appliances and pieces of equipment.
General Liability: Guards against monetary obligations that arise from mishaps for which you're legally responsible. Customers becoming sick from eating contaminated food or getting burned by heated food are two examples of this.
Workers' compensation: Protects your employees who are hurt or unwell at work with workers' compensation. Having staff means you presumably require it.
BOP: If one of your employees makes a claim against you for injuries sustained at work, you will be responsible for paying the legal expenses. Medical costs linked to workplace-related injuries sustained by your employees.
Best company overall: Food Liability Insurance Program
Best for quick coverage: CommercialInsurance.com
Best for comparison shopping: Insureon
Best for discounts: Progressive Commercial
Best customer service: Insure My Food Truck
| Company | Why we chose it | Standout feature |
|---|---|---|
| Food Liability Insurance Program | Respectable business with industry expertise in food trucks | Online chat service |
| CommercialInsurance.net | Typically, within an hour, receive coverage | Matches the best coverage for your insurance needs |
| Insureon | Simple to compare shops | For several quotes, one online application is sufficient. |
| Progressive Commercial | Extensive market experience and numerous discounts available | Reduction for prior industry experience |
| Insure My Food Truck | Centered on customer service and has a food truck focus | Possesses business knowledge and offers important news |
Business goods such as stoves, pots, pans, food, and even computing technology like point-of-sale systems would be covered by commercial property insurance. Property coverage would protect any equipment used for your business that is not fastened to the vehicle against risks, including fire, weather-related events, theft, and vandalism.
While a commercial auto policy includes liability protection, it only extends to damage incurred while the vehicle is in motion, such as when a pedestrian is hurt by a truck driver. Independent of auto liability, commercial general liability insurance covers harm incurred while conducting business. Even if you lost the lawsuit, your commercial liability coverage would pay for legal fees and representation if a client of your food truck business prosecuted you on the grounds that your food made them ill.
Commercial general liability plans do not cover employees because they are an integral component of the firm. Workers' compensation insurance covers medical costs and lost wages in the event that an employee is injured while on the job. Most firms are required by state law to have workers' compensation, which is a vital defense against any lawsuits brought by employees.
You'll need commercial insurance for the above-mentioned property, liability, and workers' compensation policies, as well as an endorsement to add coverage for the towed trailer to your business auto insurance policy for comprehensive and collision. If not, only the truck pulling the trailer will be covered by the business auto coverage, and the trailer itself would normally only be covered for liability. Your insurance company wouldn't pay for the property damage if the trailer was harmed while it was parked or during a collision.
When acquiring additional coverage, be cautious to verify with your insurer because the amount of liability coverage for the trailer may vary depending on factors such as weight (usually applicable for trailers weighing 2,000 pounds or less). For your own piece of mind, you should consider purchasing comprehensive and collision coverage.
Many insurance providers specialize in or offer insurance for mobile food businesses as a result of the popularity of food trucks. Due to the fact that commercial and business insurance plans are frequently the foundation of major insurance firms' portfolios, they provide a wide range of insurance alternatives for mobile eateries.
Consider getting a quote to bundle your current personal policy with your current business policy if you already have one with one of these insurance providers.
It's quite simple to use Way's food truck insurance estimates! To compare insurance rates from several businesses, visit our website. The best option is to choose the least expensive coverage offered by companies that offer insurance for food trucks. Do you still have any doubts about your ability to get a quote? Then have a conversation with a Way.com agent. They can help you find the best insurance for you at the lowest price!
The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.
Quotes are typically based on a full coverage policy average unless otherwise noted within the content.
These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com
Food Liability Insurance Program, CommercialInsurance.net, Insureon, Progressive Commercial, and Insure My Food Truck are the best providers of cheapest food truck insurance.
Here's the breakdown of the expenses of a food truck.
The truck cost: $20,000.
Food truck license: $20,000
Equipment and truck buildout: $45,000.
cash for at least three months' worth of expenses: $10,000
Other costs, such as insurance and legal fees for establishing the business: $5,000
The normal profit margin for a restaurant is between 3 and 5 percent; however, some earn as low as 0 and as much as 15 percent. Use the formula monthly sales x profit margin to determine your profit margin.
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