Your Guide to Food Truck Insurance

Looking to open a food truck business? Or perhaps you’re a well-established industry veteran looking to up your food truck insurance game? Whatever your situation, we can find the coverage you need to ensure your business’s longevity.

We’ve made insurance simple. Below, you’ll find an easy-to-follow guide to food truck insurance. You’ll practically be an by the end!


What Is Food Truck Insurance?

Food truck insurance is a specialized policy package designed to protect food truck owners against the associated risks. We help find you the best deals, so you can keep your food truck business running for years to come.


Top Three Food Truck Insurance Claims Scenarios

Here are some real-world examples where food truck insurance saves the day:


Example One: Food Poisoning Claim

One of your customers is hospitalized with food poisoning after dining at your food truck. So naturally, they decide to sue, but thankfully, your product liability insurance pays the medical and legal fees of $7,000.


Example Two: Flood Damage Claim

A local food temporarily closes your business by destroying your food truck. Your business interruption insurance covers your income loss while your truck is repaired, equalling $38,000.


Example Three: Faulty Wiring Claim

Damaged wiring destroys your food truck’s power source. Luckily, your equipment breakdown coverage gives you the money you need to buy a new $4,000 generator.


What Does Food Truck Insurance Cover?

Food truck insurance packages typically include a combination of the following policy types:

  • Commercial General Liability Insurance Coverage (CGL) — You’re protected from claims or lawsuits alleging third-party property damage and bodily injuries with this policy. Usually, it covers medical and legal fees, regardless of the lawsuit’s outcome. We recommend this policy to all businesses as it’s considered the commercial insurance “starting block.”
  • Commercial Auto Insurance Coverage — Your food truck is a commercial vehicle that you drive from site to site, so you need commercial auto insurance to cover you in the event of an accident. Personal vehicle insurance won’t cover any accidents that occur while using your automobile for business purposes. Also, if you plan to let your employees drive the truck, you must ensure they’re named on the policy.
  • Equipment Breakdown Insurance Coverage — This policy covers your food truck’s equipment. For instance, if the onboard oven breaks, the coverage provides the money you need to repair or replace the oven. But keep in mind that it won’t cover breakages due to external events, only internal problems (i.e., mechanical faults).
  • Business Interruption Insurance Coverage — If you’re forced to close your food truck temporarily, the policy covers your lost net income and overhead costs (i.e., electricity, employee wages, and rent). In light of recent events, it’s prudent to mention that it won’t cover pandemic-related closures! Feel free to give us a call on our toll-free number if you’d like to discuss business protection from pandemics.
  • Product Liability Insurance Coverage — Unbeknownst to most, product liability insurance extends to food and beverages. It covers the legal and medical costs of bodily injury due to a product you sell or serve.
  • Workers’ Compensation Insurance — If you have employees, don’t skip over workers’ compensation insurance. The policy protects you if an employee is hurt while on the job. It pays for the medical and rehab expenses, as well as court and legal fees.
  • Contents Insurance Coverage — Finally, contents coverage provides the money needed to repair or replace equipment, machinery, property and more due to various external events. Typically, policies cover fires, thefts, and vandalism.

Don’t know which insurance policies to pick? Don’t worry! Just fill in our secure form, and we’ll analyze your needs for you.


Do Food Truck Owners Need Insurance?

Yes! Serving and selling food, beverages, or both leave your business vulnerable to lawsuits and third-party claims. But with the proper insurance coverage, your food truck business won’t suffer as harshly during these less-than-perfect situations.


How Much Does Food Truck Insurance Cost?

For most small- to medium-sized food truck businesses, an average price is $700 to $800 per year for a standard liability policy. However, policy packages tend to start around $1,000 to $1,200.

Several factors influence the price of your premium, including:

  • Your years of experience — Insurers believe (and rightly so) that with experience comes fewer risks of making mistakes. Therefore, you’ll benefit from lower premiums if you’re a well-established food truck business.
  • The locations served by your food truck — Different areas carry different risk exposures. Locations prone to thefts or adverse weather hike up insurance prices.
  • Your annual and projected revenue — The more money you make, the more you have at stake if somebody claims against you.
  • Number of employees — A larger business has more opportunities to make mistakes, and therefore, your premiums increase.


Why Choose LiabilityCover for Your Food Truck Insurance Needs?

Here at LiabilityCover, we make it easy for food truck owners like you to obtain the insurance they need. Transparent communication and straightforward terms are our forté.

Over the years, we’ve established phenomenal relationships with countless licensed leading insurance providers in Canada. We can connect you with a broker or agent with specialist experience in the food truck industry.

The days of spending hours perusing insurance comparison sites are over. Just fill in our secure form and let us do the work.


Frequently Asked Questions


Is Liquor Liability Important for a Food Truck Business?

If you serve alcohol at your food truck, then yes, liquor liability is crucial.

You could be held liable if you give alcohol to somebody who causes an accident where alcohol is a contributing factor. Plus, you must ensure that you never serve liquor past the point of intoxication, which is very tricky to assess.

Liquor liability insurance policies pay for any damages and legal costs associated with the case.


Are Regular and Employee Thefts Covered Under Standard Crime Insurance Policies?

Regular theft isn’t covered under crime insurance. Instead, you’ll find it under your commercial property insurance policy.

On the other hand, employee theft is covered under crime insurance. The policy protects from employee theft of:

  • cash.
  • credit cards.
  • securities.

Ideally, you should purchase both policies to ensure protection from all sides.


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