Food Trucks Are Unique Businesses With Specialized Insurance Coverage Needs.
Discover if you are overpaying for car insurance below.
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Food Trucks Are Unique Businesses With Specialized Insurance Coverage Needs.
Discover if you are overpaying for car insurance below.
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As food trucks continue to gain in popularity, there’s an ever-greater need for food truck insurance policies to protect these mobile businesses. There are several types of coverage that every food truck proprietor should have before they begin serving the hungry masses.
In this article, we at the MarketWatch Guides Team will examine the coverage food truck owners need to protect their mobile restaurant investments. Since you’ll need to work with an auto insurer to cover your food truck, we’ve also researched the best car insurance providers to help you make the best decision for your needs.
As a combination of a vehicle and a business, food trucks have unique insurance needs. A personal auto insurance policy doesn’t cover a vehicle that’s being used for business purposes, which is why you need extra protection if you plan to operate a food truck. To safeguard your mobile restaurant, you’ll need a commercial auto insurance policy and general liability coverage.
Commercial auto insurance covers a vehicle and any permanently attached appliances or equipment. Along with a commercial auto policy, food truck operators need a business owners policy. This typically includes the following types of coverage:
These coverage types are just the beginning when it comes to food truck insurance. If you have employees, you’ll need workers compensation insurance to help with medical costs if people are injured on the job. It’s also a good idea to look into a business owners policy (BOP), which combines the major property and liability coverages into one insurance policy.
Not all food trucks are the same. Some vendors, like ice cream trucks, sell prepackaged items, while large concession vans have grills or fryers on board. Thankfully, some insurance providers offer customized coverage options to suit food truck owners’ needs. These specialized insurance policy options include, but are not limited to, the following:
The cost of food truck insurance varies according to the type of food being sold, the equipment attached to the vehicle, your location and the types of coverage you need. As with personal policies, the best way to find cheap commercial auto insurance is to compare insurance quotes from multiple providers.
Although costs will vary, food truck business owners can expect to pay anywhere between $2,500 and $4,500 per year for coverage on average. These estimates combine commercial auto and general liability insurance. Your actual cost will depend on factors like how much coverage you need, what type of truck you operate and the deductible you choose.
There’s no shortage of options when it comes to business insurance and commercial auto coverage. Our team recommends Geico, Progressive and Farmers Insurance because these insurance agencies offer a wealth of coverage options at affordable prices.
Food Truck Insurance Provider | Overall Rating | Coverage Rating | Cost Rating |
---|---|---|---|
1. Geico | 9.1 | 8.4 | 9.1 |
2. Progressive | 9.0 | 9.5 | 7.8 |
3. Farmers Insurance | 8.6 | 9.0 | 7.4 |
*Ratings are determined by our editorial review team. Learn more about our scoring methodology below.
AM Best Financial Strength Rating: A++
Better Business Bureau (BBB) Rating: A+
As one of the big names in the auto insurance industry, Geico combines a strong reputation for customer service with high industry ratings from AM Best and the BBB. When it comes to auto insurance coverage, it’s known for its affordable rates and quality coverage for many types of drivers.
The popular provider also offers a host of commercial auto insurance products that can be a good fit for food truck owners. From restaurant insurance to workers comp coverage, you can find the coverage you need for your mobile business with Geico.
Keep reading: Geico insurance review
When it comes to commercial insurance needs, the company offers customized coverage for small businesses.
For food trucks in particular, this ranges from necessary commercial auto and professional liability insurance to coverage for equipment damage and customer illness. The insurance carrier also offers savings opportunities that food truck owners may qualify for, such as discounts for business experience and bundling policies.
Keep reading: Progressive insurance review
AM Best Financial Strength Rating: A
BBB Rating: A
Farmers Insurance has a reputation for excellent customer service and offers a wide range of coverage options. The company’s restaurant business insurance products are a great choice for food truck owners. Its range of options offers coverage for everything from customer illness to vandalism. You can also purchase additional coverage for food contamination, spoilage and equipment breakdowns.
Keep reading: Farmers Insurance review
Your food business is important, and you want to ensure that you find the best provider for your unique food truck insurance needs. Insurers that offer quality auto and business liability coverage at affordable rates will be a good fit. Our team recommends reaching out to multiple providers for free quotes so you can compare your options to find the best choice for you.
According to Business News Daily, the food truck industry is more competitive than ever. Operating this unique type of small business can be lucrative if you offer something different to attract customers. Just be sure you understand the startup costs and regulations that come with operating a mobile food truck or food trailer.
Long hours, heavy competition and zoning restrictions are common challenges for food vendors. Doing your homework on market conditions and local ordinances will help you make the most of your food truck business.
Food truck business owners can expect to pay an average of between $2,500 and $4,500 annually for coverage, although that number will vary greatly depending on a variety of factors. These estimates combine commercial auto and a general liability policy, but there are likely other coverage options you will want to consider as well.
Because consumers rely on us to provide objective and accurate information, we created a comprehensive rating system to formulate our rankings of the best car insurance companies. We collected data on dozens of auto insurance providers to grade the companies on a wide range of ranking factors. The end result was an overall rating for each provider, with the insurers that scored the most points topping the list.
Here are the factors our ratings take into account:
Our credentials:
*Data accurate at time of publication.