Food Truck Insurance From A To Z
Melbourne, Fla.—Yes, Food Trucks are having a momentum, now that during the pandemic people have gotten more used to order nice food just for pick up, and food trucks in Florida, and here in the Space Coast, offer a great variety of options.
The higher the demand, the more entrepreneurs are willing to jump into the trend. As part of your business plan, it is important to keep an eye on budget, implement great marketing strategies making sure you can track your return on investment, and learn about the types of insurance that are required to keep your business afloat, in order to protect your investment.
Businesses that commonly need food truck insurance include:
Mobile food trucks
Lunch trucks
Catering trucks
Concession trucks
Vending trucks
Ice cream trucks
To give you a general idea, the following types of insurance coverage are recommended for food truck businesses in Florida.
1. General Liability Insurance
Food truck general liability insurance is necessary to protect your mobile business from incidents and accidents involving third parties when the truck is open for business and is stationary.
General Liability Coverage:
Product-related lawsuits such as those involving food borne illnesses, food poisoning, burns from hot food, cuts from glassware or metal utensils, and contaminated food with debris or allergens.
Premise-related lawsuits including customer slip and falls on pavement, or sitting water around your food truck, as well as any other injuries to customers or passers-by on your premise.
Advertising lawsuits, such as personal injury, libel, and slander in marketing campaigns (intentional or unintentional).
Property damage lawsuits and fines involving damage caused to someone else’s building or property by your truck.
Legal fees and representation in court if you do get sued, regardless of the outcome.
It does not cover employee-related incidents, auto accidents, incidents while your truck is in motion from one location to another.
Keep in mind that vendors, landlords, and commissary kitchens are likely to require you to have a minimum of a $1,000,000 general liability policy to do business together, and be listed as an additional insured on your policy.
2. Commercial Auto Insurance
Commercial auto insurance is required for all vehicles used for business purposes to protect from liabilities and damage in transit. The policies included in commercial auto insurance protect your vehicle from physical damage to the unit and items permanently attached to your vehicle by bolts, plumbing, and gas lines.
Commercial Auto Coverage:
Collision coverage (damage to the vehicle and permanently fixed items resulting from a collision with a barrier or other vehicle).
Liability coverage (Injuries to others while the vehicle is in motion, damage caused to property while in transit).
Comprehensive coverage (Not-at-fault incidents including theft, fire, vandalism, nature, and weather-related damage).
It does not cover injuries and damage caused by your vehicle while stationary.
3. Contents Insurance
Contents insurance covers the items that are in your food truck but not permanently fixed to the unit.
Contents insurance is often labeled as contents coverage insurance or business property insurance. Business owners have the option to choose between an actual cash value policy (which would provide the cost of the product minus depreciation) and replacement cost value (which covers the cost of a new product). Replacement policies will come with a higher premium than actual cash policies.
Contents Insurance Coverage:
Damage to items caused in a collision
Vandalized items
Stolen items
Items that are not stored in the truck
Items damaged by weather or fire
It does not cover any items fixed to the truck.
It is important to pair commercial auto insurance with contents coverage to ensure that all of your food truck belongings are protected by your insurance.
4. Workers’ Compensation Insurance
Workers’ compensation is needed to protect your employees with wages and medical benefits if they get ill or injured at work.
Workers’ Comp Coverage:
Employee slip and falls on the job.
Employee job-related illnesses.
Employee medical care, expenses, medication, and rehabilitation if they were to get hurt on the job.
Employee long-term or permanent disability payments.
Death benefits to family members of employees that experience a work-related death.
It does not cover liabilities involving customers, or non-work related injuries or illnesses.
Workers' compensation is a legal requirement by OSHA in most states for food trucks and is highly recommended in the remaining states to ensure that your business is fully protected.
Contact one of our local commercial/truck insurance agents to find out what options are available for your trucking and transportation business in the Palm Bay area, and help you start saving on the protections needed to keep it always afloat. Melbourne Truck Insurance has the products and underwriting experience that meet the insurance needs of your business.
Give us a call for a FREE consultation (321) 329-5556, at Melbourne Truck Insurance.
OSCAR PACHECO
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Trucking Specialist
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