Setting up a food truck business can be exciting. But don’t forget to protect your investment with food truck insurance. It helps recoup your losses in case of damages to the truck, equipment, or injuries to your customers or workers.
There are different types of insurance plans. It’s best to learn about them to get the right one for your business. Otherwise, you may risk spending thousands of dollars to cover damage and put out your business entirely. Continue reading this post to understand more about food truck insurance plans.
Types of Food Truck Insurance Plans
You have different food truck insurance plans to choose from. It’s crucial to understand which plan is best suited for you based on the risk associated with your food truck business. Here are some of the types of food truck insurance plans you must have:
General Liability Insurance
General liability insurance protects your food truck business from any incidents or accidents involving a third party when the truck is stationed at a specific place. It covers the following liabilities:
- Product-related liabilities caused by food poisoning, burns, cuts from your utensils, and contaminated food.
- Premises-related liabilities such as customer slips and falls due to water around the truck, ice, or pavements.
- Advertising liabilities, such as slandering campaigns, libel, and personal injury
Commercial Car Insurance
Every vehicle should have commercial car insurance. A food truck car insurance covers all liabilities associated with the truck. This includes physical damage to the truck and comprehensive coverage for not-at-fault incidences such as nature, vandalism, and fire.
Commercial Property Insurance
This food truck insurance covers sales, equipment, food, pans, pots, and utensils. It will cover anything in your food truck business that’s not attached to it, such as theft, flood, and nature.
Your general liability coverage doesn’t cover your employees, since they are members of your business operation. Therefore, you must secure workers’ compensation to cover liabilities such as injuries incurred while on the job. This coverage is mandatory in some states and can protect your business if an injured employee files a lawsuit against you.
Content Insurance Plan
This type of food truck insurance plan covers items in the food truck that are not permanently fixed. It’s often labeled as business property insurance. You can choose between the actual cash value and replacement cost value policies. Actual cash value covers the cost of a product minus its depreciation value. Replacement cost value covers the cost of buying new products.
This truck insurance covers stolen items, damaged items in a collision, vandalized items, and items damaged by nature.
Set Up Your Food Truck Business with Legion Food Trucks
Securing food truck insurance can help you protect it from future liabilities. However, you must be knowledgeable of the plans at your disposal to choose options that are best for you.
Legion Food Trucks is a leading food truck manufacturing company ready to serve you. We do more than build trucks, we help our customers build their businesses. That means helping with licensing, permits, financing, and even insurance plans. Contact us today, and let’s help you establish your food truck business.