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Business auto and kitchen all rolled into one

To state the obvious, a food truck is a truck that serves food. Given that, here’s the coverage you need to
operate one without putting yourself or the public at risk.

Commercial auto insurance

First, you’ll need commercial auto liability insurance for any damage or injury you cause to others while
driving the truck. Since food trucks operate in crowded areas there is a risk someone or something could be
inadvertently hit by your truck.
Commercial auto policies include optional coverage for physical damage to the truck and any equipment
permanently installed in it, as well as fire, theft and vandalism coverage. A lender will most likely require this
coverage if you have to borrow money to purchase the vehicle.

General liability insurance

As for preparing and serving food, you’ll need general liability (GL) insurance (distinct from your auto liability
insurance). A GL policy will provide coverage for your legal defense and any damages assessed against you for
injuries caused by fires, hot oil, electric shocks or any other part of the food delivery process. The policy may
also cover you for claims that your food made someone sick, but you should double-check with your
insurance professional about the limits of coverage. Municipal business ordinances and health codes will most
likely require this coverage.
Other policies, such as workers’ compensation and environmental liability coverage, may be required as well.
Check with your insurance professional for guidance on state and local insurance requirements.

Commercial property insurance

You will need commercial property insurance for your equipment, food stocks and other business property
(paper goods, utensils, cleaners, signs, awnings, etc.) that are not permanently attached to the vehicle. This
coverage is usually bundled with the GL policy, but you may choose to do without it if you are willing to pay
for those losses out of pocket.

Equipment breakdown insurance

You should consider insurance for equipment breakdown. While commercial property insurance pays for
losses to your property from outside perils (fire, wind, theft, etc.), it does not cover losses to equipment that
arises from accidents or malfunctions within them. For that, you may need equipment breakdown coverage,
which would protect you from the economic consequences of a breakdown. You might want to toss food
spoilage onto the insurance grill, too (if your fridge malfunctions, you could be stuck replacing the food on
your own).
Commercial property and equipment breakdown policies provide options for covering lost income and extra
expenses if your property is damaged or you are barred from operating in the wake of a weather disaster or
violent event.

Cyber insurance

You’re probably using a mobile point-of-sale (POS or mPOS) system that takes customer payments, collects
data or sends receipts – and that means you’re transacting personally identifiable information (PII). If your
system gets hacked, you could be liable. Check with your insurance pro about the coverage and limits on your
GL policy.
Speak to your insurance professional for
custom coverage
Food trucks are becoming more and more popular and unless your food truck has an unusual level of risk,
you should have no trouble finding an insurance policy that can be customized just for your kind of mobile
food business.
Speak to your insurance professional, they can help create a policy that will cover everything you need to get
on the road!