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What Does Food Truck Insurance Cost?

legionfoodtrucks - September 28, 2022 - 0 comments

Just like any other business, food truck insurance costs can prove to be a challenge when setting up this business. Various factors determine the cost of food truck insurance. Identifying and learning these factors is crucial to running your business efficiently. 

Continue reading this post to learn everything you need to know about food truck insurance costs. 

Factors that Determine Your Food Truck Insurance Cost 

Various factors can influence how much you should pay for your food truck insurance. Here are some of these factors.

  • Location: Your location plays a significant role in your food truck insurance cost. Some states are way safer than others, making the food insurance cost more affordable than others. 
  • Driving record: Like any other automobile insurance cover, your insurer will look out for your driving record to determine how much you will pay for your food truck insurance. 
  • Status of your truck: The model, make, and age of your food truck influence how much you should pay for its insurance. 
  • Type of food you’re dealing with: The way to prepare and deliver your food determines how much you’ll be paying for your food truck insurance. Selling pre packed food costs less than preparing food from the truck as your customers wait. 
  • Credit score: Despite the possibility of getting finance for a food truck with bad credit, those with good credit are more likely to get cheaper insurance.
  • Area of operation: How far you drive your truck during operation determines how much you’ll pay your food insurance. The food truck insurance cost will be lower if you position your truck at a specific spot without too much movement. 
  • The policy you’ve chosen: Some policies are a bit higher than others, depending on their provisions. Choose a policy that’s best suited for your nature of operations and budget. 

6 Common Food Truck Permits You Need To Start Your Business CTA

What Does Food Truck Insurance Cover? 

Food truck insurance costs differ according to the policies that you choose. It’s crucial to understand what it covers to determine whether your policy of choice suits your business. Here’s what most food truck insurance would cover:

  • General liability to the business from incidences that may hold you liable, such as contaminated food and illness. 
  • Commercial auto insurance to cover damages incurred by the truck and its equipment 
  • Workers’ compensation insurance to protect your employees if they’re injured or fall ill while on the job 
  • Insurance to protect individual appliances in the food truck

Food Truck Insurance Cost 

Every insurer has specific costs for food truck insurance. Insurance companies usually differ in the factors that determine how much your food truck insurance will cost. However, most insurance companies expect food truck owners to pay a minimum of $2,300 for their commercial auto insurance and $1,260 for basic business owners’ policy. Other estimates include:

  • A minimum of $300 per year for business insurance 
  • A minimum of $1,600 for workers’ compensation 
  • A minimum of $960 for general liability 

 Expand Your Food Truck Business with Legion Food Truck

Now that you understand your food truck insurance cost, it’s crucial to have a food truck to help you get the best out of your business. Legion Food Trucks builds food trucks that meet our customers’ concepts and budgets. 

Once you’ve made your concept from our online tool, our team of experts will contact you to understand your needs better and create the food truck of your dreams. If you wish to learn more about our services, please feel free to contact us

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