Do I Need Insurance For My Food Truck?

There’s no doubt about it, food trucks are the craze. Who remembers being 16 years old and working a summer job? During lunch, you would make your way over to a food truck for a bologna and cheese or, if you were feeling adventurous, a burrito. These days, you can make your way down to a food truck event and enjoy everything from sushi and Indian curries to vegan delights and Texas Style BBQ. There is no doubt the food truck has come a long way and offers even the most discriminating foodie a variety of gourmet delights.

As this business segment continues to grow, so will the need for the insurance industry to adapt and offer these modern entrepreneurs advice and protection for their business. Food truck owners and operators have many unique concerns when looking for insurance protection. Since the food truck industry is really a niche all to its own, food truck owners will find themselves best served by aligning with an independent insurance broker like Lawley, that understands and specializes in their business. As with any insurance coverage you can always cut corners to save a few bucks, however the results of doing that can be catastrophic to a small food truck business. Simply put, without the right coverage you may find yourself out of the business pretty fast.

We want to have a good understanding of your operation so we can help provide the right coverage. Here are few things that may be scrutinized about your food truck operation when determining both your eligibility and pricing for insurance coverage.

Experience
In the words of the late great Jimi Hendrix, “are you experienced?” Experience matters a lot to insurance companies. Any company that understands the food truck business also understands this business has a lot of new startup operations and many have been in business less than three years. This does not mean if you’re starting a new operation you won’t be able to find adequate coverage, but it will matter what your prior experience has been. If your background has been several years working in the restaurant or catering industry, then you’re off to a good start but be ready to share your background in detail. If you’re not coming from the food service industry, we will need to understand your career change, business plan, and available resources in much greater detail. If you’re an experienced operator, then a review of your prior loss history, if any, will be conducted.

Mobility
It’s a pretty simple theory, but the more you’re on the road the more chance you have for an accident. It’s expected your truck will be on the move but exposure for a truck moving three times a week will differ greatly from one moving three times a day. We will want to have a good understanding of your operation from your preparation practices to hours and locations.

Your Truck
We will need to know the condition of, cost of, and special equipment associated with your truck or trailer. Will you be using propane? Do you have a proper ANSUL (fire suppression) system? What other items are permanently attached to your truck?

Operations
We will need to know as much as possible about your day-to-day operations to determine whether or not certain coverages are needed. Some questions you may be asked include:

• Are you operating just as a food truck or are you also catering?
• Will you be serving alcohol or are you interested in expanding to offer it? You may need liquor liability.
• Are you accepting cash? Are you protected in the event of a robbery?
• If you suffer a loss, how long will you be able to last with the loss of your business income? How soon would you be able to be up and running again?
• Will you have a home office or other location for a business office or commissary to prepare food? What are your exposures at these locations?
• Will you have staff or bring on extra help as needed, and will that require workers’ compensation insurance?
• What other requirements or limits will a certain event holder or venue require? Will there be an umbrella, workers’ comp or additional insured requirement that will need to be addressed?
• How much could you afford to financially deal with a food contamination or spoilage issue?

Check with us at Lawley to see what services we can offer to you. From quick turn arounds on certificates to exploring all of your needs in detail, we are here for you. Contact us today!