Do you need insurance coverage for your food business? list the 7 best insurance policies for your food business and their prices.
Insurance is one of the most important things to consider when starting a business, especially a highly accident-prone business like a catering truck. Many restaurant truck owners have lost thousands of dollars over the years because they made the mistake of saving on insurance coverage.
To purchase the best insurance coverage for their truck, the catering truck owner should take the time to find an agent who will help them obtain proper coverage and understand their coverage limits.
Most food transportation companies will need more than one type of insurance coverage, including commercial vehicle insurance and general liability depending on the type of food they sell and the routes they take. , which suggests that it is not safe for a grocery truck. have only one type of insurance coverage, even if it is umbrella insurance.
Below are the very important insurance premiums food trucks need for transportation, their cost and how to get them.
7 Important Insurance Coverages Your Food Truck Should Have
- Commercial vehicle insurance
The greatest risk of high liability claims is not with the food you serve, but with the truck moving along the road. You want to make sure that you are insured against personal injury or property damage to others if you are involved in an accident while driving from one place to another.
Commercial vehicle insurance is required to drive a catering truck, and coverage is similar to personal auto insurance. However, there are important differences in the areas of coverage limitations, exceptions, and eligibility. These differences are due to the fact that commercial vehicles run a higher risk of damage and liability than personal vehicles.
A commercial vehicle insurance policy can include several types of coverage that can cover different types of risks and liabilities, including:
- material damage
- medical payments
- Protection against injuries
- Uninsured / insufficiently insured motorist
- Complete (non-collision damage)
Navigating trucks through traffic jams and parking lots can be tricky, and crashes, from a slight wing turn to a major crash, are common. Repairing a restoration truck can also be expensive, especially if it takes a long time, and these are the expensive types of risks that must be covered to get a good utility vehicle insurance policy.
It’s important to remember that automatic liability applies as soon as you start driving. Once you’ve parked and opened your doors, your liability coverage takes over.
When your insurer gets your auto insurance quote, they’ll need a list of your drivers so they can check each of their MVRs themselves. If you have the wrong driver, most competing insurance companies will ask you for one, after which you will have no choice but to use an insurance company that charges you arm and leg fees for cover the driver.
To avoid this situation, be sure to check the person’s MVR before hiring them. or let him drive your food truck. Require all potential drivers to contact the Department of Motor Vehicles or the Secretary of State and obtain a copy of their MVR. In the past 36 months, no potential driver should have had more than;
- One traffic violation and two accidents
- Two traffic violations and one accident
- Three Violation of traffic rules and accidents
- None of your drivers should have a severe motor impairment (such as driving under the influence, a suspended license, or an automatic felony conviction).
2. Shared responsibility
General liability protects you from legal action against you for bodily injury or property damage to third parties. It is important to remember that this does not apply to injuries involving vehicles or workers. This coverage includes protection against your products (food), premises (slips and falls), personal injury / advertising (defamation and defamation) and property damage to others.
The best part about liability insurance is that it also covers legal costs to defend against the claims mentioned above, even if it feels you are not at fault. Not only is it good coverage in a world that is easily contentious. It is often necessary to do business with most owners, suppliers, and kitchen commissioners, as they will ask you to list them as additional insurance on your policy.
The total industry coverage limits are $ 1 million per incident (per claim) and $ 2 million cumulative (for total claims per year). Here are some examples of risks associated with a food truck business that may cover shared responsibilities:
- Food poisoning
- allergic disease
- slip and fall injury
- Legal fees
General liability insurance for your food truck may be the most important insurance you purchase. Almost any activity involving vehicles and people can result in injury. Add the kitchen and customers to the mix and you have a potential recipe for disaster.
3. Worker’s compensation
Workers’ compensation provides replacement wages and medical benefits to workers if they are injured. Many states require food trucks to transport workers’ computers. This insurance covers the financial risk linked to work accidents and occupational diseases.
Basic insurance against accidents at work covers lost wages and medical costs. Some policies even cover legal fees. Workers’ compensation covers a range of risks to your employees while driving, preparing and serving food, including:
- Vehicle-related injuries
- Slip and fall
- Equipment burns
- Smoke inhalation
This insurance is designed to cover the health costs and lost wages of employees. Workers’ compensation insurance can also cover death benefits if an employee is killed on the job, and it can protect employers from workplace injury lawsuits.
4. Property damage insurance
Property damage insurance protects businesses against collisions, theft, fire and vandalism. Asset coverage in the insurance world is divided into two categories: the truck and the equipment attached to it, and anything not attached to the truck.
Home insurance for your motorized truck will be required for the equipment connected to the truck. truck, some of which may include:
- rotisserie for grilling
- deep fryer
- Extraction hood
A typical motorized truck can easily charge over $ 9,000 in equipment costs. But in most cases, this equipment is not subject to the commercial vehicle policy. An unexpected invoice to replace all the necessary equipment can unexpectedly slow down your business. Therefore, a good property insurance policy is recommended, although not mandatory.
5. Cover for truck or trailer
Property coverage for a truck or trailer may be subject to a comprehensive collision and / or inland waterway policy. These guidelines are designed to help protect your food truck and accessories (“attached” means bolt, water or gas). Coverage includes loss of property damage due to collision, vandalism, theft or other covered damage.
The amount covered should cover the cost of replacing the vehicle, although most collision damage is not a total loss. If you don’t know the market value of food trucks, you should expect to pay up to $ 50,000 per truck and you will need to cover that cost with collision insurance.
6. Content coverage
The equipment connected to your delivery van can be expensive to replace, but it is also integral to the continued operation and success of your food truck business. Covering the contents protects items that are not attached to your food truck or food trailer.
These are all items that can fall if you tip your truck over or items that weren’t stored in the truck. Since automotive regulations do not apply to equipment that is not secured (by bolt, plumbing, or gas) to a truck or trailer, a separate cover is required to secure these items.
This often overlooked coverage can be added to the use of domestic marine insurance or coverage for goods in transit. Coverage includes property damage caused by collision, vandalism, theft or other covered damage. Many people make the mistake of assuming that their auto insurance policy will automatically cover equipment that is not permanently attached to the truck.
For property insurance, you can also opt to insure the actual cost of the equipment, which will be less than the replacement cost, depending on the age and usage of your equipment.
7. Additional coverage
One insurance topic that many new food truck owners are unaware of is the need to obtain additional insurance certificates. Additional insured is the term for a person, company or other legal person who has benefited from the same insurance coverage as the insured (food truck).
Most property owners and event planners need this documentation when they invite food trucks to private property for a food truck event. In some cases, if you attend a city or county-owned event, the government agency will also ask you to be included as an additional insured.
Basically, a place or event protects against any personal injury or property damage that your business may cause during your event. Some insurance companies charge between $ 25 and $ 100 per certificate, which can lead to significant hidden costs if you attend multiple events throughout the year.
- Medical insurance
- Kitchen insurance
- General disability insurance
- Group insurance for business owners
How much does insurance cost for a typical food truck?
- Commercial vehicle insurance can cost anywhere from $ 1,274 to $ 3,148. Its policy limit varies depending on the vehicle and the insurance coverage.
- Total liability can cost anywhere from $ 500 to $ 602, and its political cap is $ 2 million
- Business owners (total property coverage) are typically around $ 509-1209. Its political cap is $ 2 million and its deductible is $ 250.
- Workers’ compensation ranges from $ 1,436 to $ 2,490. The policy cap is approximately $ 1 million.
- The content of coverage is generally based on the value of the content you are carrying in your truck. If all of your equipment costs $ 20,000 to replace, you will need $ 20,000 in property insurance.
Where to get the best food truck insurance
Since food carts have gained incredible popularity in recent years, many insurance companies now offer all the insurance options needed to manage a food truck. You can even get discounts for using all of these policies at the same company, just like insuring your car and your home.
But it’s important to understand that you don’t have to have these policies with the same company. To make the best decisions for your business, you may need better coverage that is not offered by a business that implements your other policies, or there may be a cheaper option with the same amount of coverage in. another business.
The main thing to consider is that you have options, researching stores with as many companies as possible is the only way to find the best coverage at the lowest prices. There are two main ways to purchase RV food insurance:
- Insurance agent . You can contact the insurance agent directly. If you go directly to an insurance company, you will likely be working with an agent who represents that agency. Make sure you receive offers from at least three agencies before accepting any of them.
- Insurance broker: When you work with a broker, they do most of the work for you. A broker can help you buy multiple national insurers and guide you to the best coverage at the most competitive price. Many food truck owners choose to use brokers.
Make sure you do your homework and choose the provider that has the best combination of coverage and cost to meet your needs, not necessarily the lowest premiums. You need to focus more on the cost of insurance than the cost.
Additionally, insurance agents should be helpful and informative and not be overly eager to close the sale.Once you have purchased grocery truck insurance, make sure you have easy access to your certificate. liability insurance (proof of your insurance) which may be requested. sites, suppliers and customers as soon as possible.
Types of businesses that need insurance for grocery trucks
Most businesses that serve food or drink from a mobile truck, cart, or trailer should consider insuring a grocery cart. Here are a few examples of businesses that might need this type of insurance:
- Foodie trucks
- Ice creams and bikes
- Hot dog and hamburger carts
- Dealers who go to festivals, carnivals and fairs
- Restaurants that have food trucks
Not only do these businesses often need food policies to protect themselves from the risks they face, but they also often need coverage to secure contracts. Without adequate coverage, it can be difficult for vendors to obtain permits from municipal governments or festival venues.
10 Factors That Can Affect Food Truck Insurance Premiums
- Your location . Where you live influences the price of your insurance. Some states are safer for travel and therefore more accessible.
- Your driver’s license . Your insurance agent will review your driver’s record to determine your price. Fewer accidents mean cheaper insurance.
- Your truck – the age, make, model and total value of your vehicle will be factored into your costs.
- Your food . The way you prepare your food matters too. Industrial catering vehicles (ICV), which sell only prepackaged food, are cheaper to insure than mobile food preparation machines (MFPV), which prepare food while waiting for customers.
- Your Equipment – Your agent will also be interested in the type of kitchen equipment you are carrying in your truck. Some pieces of equipment are often stolen, while others increase the likelihood of fires.
- Your credit . Food truck owners with good credit can often get cheap insurance.
- The area of your presence . The distance traveled by your food truck or trailer also affects actuarial tables.
- The number of employees you employ : This factor will directly affect the amount of compensation of your employees.
- Deductibles : transfers from a higher deductible to lower premiums. Just make sure you have enough money to cover the deductible.
- Amount of coverage . If you choose minimum coverage, the premiums will generally be lower. Likewise, and vice versa, higher coverage amounts mean higher premiums.
How to reduce the cost of food truck insurance
Starting a food truck business can be quite expensive, and you don’t really need any additional costs, especially when they can be avoided. This is the reason why you should look for ways to reduce the cost of your premiums. Below are ways to reduce the number of insurance offers presented to you by insurance companies.
- Applying for Package Coverage: There are certain insurance coverages that all food truck vendors should have, such as motor vehicle liability, food liability for restaurant obligations, liquor liability if you serve food. ‘alcohol. All of these insurance coverages must be combined through a single insurance agent.
- Choose high deductibles: One way to lower your premium is to use high deductibles. It is one of the riskiest ways to save money. If you were to have an accident, you could end up paying more in the long run than you could save.
- Pay annually: Your insurance agent will give you the option of spreading your payments month-to-month or making a large deposit up front. If you have the funds, it’s usually best to pay up front. This can reduce up to 20% of your total bill.
- Take a look: the best way to save money on food insurance is to compare multiple prices at the same time.