Best Food Truck Insurance of 2022

Bryan Keith

Running a food truck business is like running a restaurant on wheels and there are many risk factors to consider for your business, from workplace injuries to customers accusing you of food poisoning. Food truck insurance can help protect your business against financial losses, medical expenses, and legal liability. We’ve evaluated the best food truck insurance providers based on coverage, financial stability, customer satisfaction, and overall quality.

Affordable plans and coverage provided within minutes

$2,000,000

Coverage Up To

$0 - $2,000

Deductibles

Overview

Next Insurance leverages AI technology to streamline the process to purchase insurance, track claims, and manage policies at no additional cost.

What we like

  • Affordable insurance plans
  • Customized coverage to fit your business
  • Get covered within minutes
  • Near instant access to proof of insurance
  • Quick and easy to process claims

What we don't

  • Not available in New York

Covers a wide range of industries

$2,000,000

Coverage Up To

$1,000+

Deductibles

Overview

Coverwallet began its journey in New York City in 2015 operating under the Aon Insurance banner. At Coverwallet, you can access everything you need to keep your company well-protected at an unbeatable price.

What we like

  • A skilled advisor to assist you
  • Free quotes from multiple insurance carriers
  • Covers low risk to even some high risk industries
  • Online account management

What we don't

  • No brick-and-mortar offices
  • Deductible costs

Customized solution to fit your business needs

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

With a 100-year history of insuring businesses, Hiscox is well-known across America and globally. With more than 500,000 small business customers, Hiscox is fully aware and trained in the unique risks a business can face.

What we like

  • Established insurance company
  • Dual auto insurance
  • Customizable insurance for over 180 industries
  • Deductibles starting at $0
  • Affordable rates

What we don't

  • Limited US offices
  • Coverage limited to $2 million online

Flexible coverage by the year, month, day, or by the job

$2,000,000

Coverage Up To

$0 - $10,000

Deductibles

Overview

Thimble provides business insurance that can be tailored to your business by the year, month, day, or even the job. At Thimble, the process to getting the right business insurance is simple, scalable, and flexible.

What we like

  • Scheduled coverage options
  • Coverage by the job available
  • Buy a policy online within minutes
  • No hidden fees
  • Affordable plans
  • Drone insurance

What we don't

  • Not available in New York

Tailored Amazon seller insurance

$1,000,000+

Coverage Up To

$100+

Deductibles

Overview

Spott will ensure that your policy coverage is tailored to your business while complying with Amazon’s Terms and Conditions. They also track changes to Amazon’s Terms and Conditions to identify potential issues with listings before a suspension.

What we like

  • Tailored eCommerce insurance
  • Liability insurance for Amazon sellers
  • Store Suspension coverage
  • Compares leading insurance carriers
  • Flexible coverage options and payment plans
  • Knowledgeable about Amazon’s rules and policies

What we don't

  • Limited physical offices

What is food truck insurance?  

If someone has food poisoning from the products served by your business or a customer has an accident while you’re operating equipment that causes severe burns, your food truck business could be held liable for legal and medical expenses. 

Food truck insurance can provide coverage for legal costs, medical bills, and reputational damage to your business. 

Who needs food truck insurance?

Businesses in the food truck industry including ice cream trucks, vending trucks, lunch trucks, and catering trucks should consider food truck insurance. 

What insurance do food truck businesses need?  

When taking out food truck insurance, it’s important to consider different types of coverage and policies to adequately cover your business for legal liability and potential financial losses.

The most common types of coverage for food truck businesses are:

General liability insurance

When you operate a food truck business, you could be held responsible for financial liabilities due to an accident or injury. General liability insurance can protect your business from basic risk factors such as food getting contaminated and causing sickness, or customer injuries. Many states can require general liability insurance to be in place before allowing you to operate a food truck business. 

Coverage for general liability insurance can include legal defense costs, settlement costs, third-party bodily injury, medical costs, third-party property damage, and protection against accusations of defamation, copyright infringement, and slander.

Common exclusions include employee benefits, commercial auto accidents, and professional errors and mistakes.

Workers’ compensation insurance

For many states, businesses that hire workers are legally required to have workers’ compensation insurance to help protect employees that get sick and injured while at work. For instance, an employee could get severely injured or burned while cooking, and the injuries could require urgent medical attention or time off to fully recover. As the chances of getting injured can be high when using kitchen equipment, you should take out adequate coverage to protect all workers.

Coverage for workers’ compensation insurance can include lost wages, medical expenses, benefits to families if an employee dies on the job, permanent injury benefits, and employer liability protection.

Common exclusions can include pre-existing medical conditions for employees, and coverage for executive officers and owners of the business.   

Commercial auto insurance

Taking out commercial auto insurance can protect your business from vandalism, theft, and damage to your food truck. In addition, if you’re driving your food truck and your vehicle is involved in a collision with another driver, food truck insurance can cover third-party medical expenses. 

Coverage for commercial auto insurance can include medical expenses, collision repairs, uninsured motorists, rental reimbursement if your truck is undergoing maintenance, legal fees, theft, and property damage. In addition, many insurers provide coverage for kitchen appliances that are permanently attached to the truck. 

Exclusions can include drivers under the age of 18 and passenger transportation businesses.  

Liquor liability insurance

If your food truck sells alcoholic beverages, someone who gets intoxicated could have an accident, get injured, hurt someone else, cause property damage, or need to go to the hospital. In some states, it is a requirement to have liquor liability insurance if you sell alcohol.

Policies for liquor liability insurance can provide coverage for injuries and property damage caused by an intoxicated person, and lawsuits that are bought against you.   

Exclusions can consist of underage drinking and incidents that occur without a liquor license.

What are the limits of food truck insurance?

Limits to food truck insurance can vary depending on the type of food truck business you own and the size of the business. Some policies can provide policy limits up to $1,000,000 per occurrence and other insurers may provide an aggregate policy limit. 

Policies with a per-occurrence limit cover you for a maximum amount per claim. An aggregate limit covers you for a maximum amount per policy period no matter how many claims you file.   

How much does food truck insurance cost?

How much you pay for food truck insurance can depend on the policies you choose, the value of your equipment, the number of workers employed, and the type of food truck business you operate. Polices premiums are likely to differ from one business to the next and it’s important to consider the unique risks to your business when comparing food truck insurance policies. 

On average general liability insurance policies can cost $45 per month and commercial auto insurance policies can cost $135 per month. 

Here are some factors that insurers will consider when providing a quote:

  • The number of workers: The more employees you hire for your food truck business, the more extensive your coverage will need to be for workers’ compensation insurance to protect your employees against injury and medical costs. 
  • Claims history: If your business has a high number of claims, this is likely to increase your insurance premium upon the renewal of your policy. 
  • Value of equipment: The price you pay for your commercial auto insurance could be impacted by the value of the equipment that is attached to the vehicle. 
  • Location: Some areas may have a higher cost of vehicle repairs and medical costs, which can increase the premium you pay for your commercial auto insurance. 
  • Coverage limits: With higher coverage limits, this can increase the premium of your policies.  
  • Type of vehicle: The type and age of your food truck vehicle can impact the premium you pay for commercial auto insurance. Newer food trucks may come with a higher premium as they are more valuable than older vehicles. 
  • The number of years in business: Businesses with more experienced owners and employees are likely to have lower premiums as they are less likely to make mistakes common to a new business owner. 
  • Revenue: If a large percentage of your sales come from selling alcohol, your food truck business is likely to require more extensive cover for liquor liability insurance.
  • Size of business: Larger food truck businesses are likely to have more customers and employees, therefore there is a greater risk of an accident. 

How to choose the best food truck insurance?

There’s no one-size-fits-all when it comes to buying your food truck insurance as coverage requirements will be dependent on your unique risk factors, the type and size of your food truck business, location, and value of the equipment. 

Here are some key factors to consider when shopping for food truck insurance policies:

  • Types of food services provided: The specific policies you take out can depend on the type of services provided and the risks associated. For instance, if your business is an ice cream truck that does not use cooking equipment, you may need less extensive coverage for commercial property insurance or workers’ compensation insurance. 
  • Read the fine print: All insurance policies come with exclusions and different coverage levels. Therefore, it’s important to read the terms and conditions before you take out a policy.