By Alex Snotherly | July 16, 2019
FOOD TRUCK INSURANCE- 5 ITEMS EVERY FOOD TRUCK OWNER SHOULD CONSIDER
Pictured above: Food Truck: Jeffrey’s Grill ready to serve at Raleigh Brewing Company
Considering owning a Food Truck? Congratulations! That is a wonderful idea! For many, who desire to own their own restaurant business, a Food Truck can serve as an essential first step in understanding the ins and outs of the restaurant industry. By owning a Food Truck, an entrepreneur has the opportunity to reach customers in various different areas meanwhile spreading their brand name and for many, a Food Truck will serve as the first step in them owning a restaurant business before acquiring a brick and mortar location. Conversely, there are fellow existing restaurant owners that may wish to expand their businesses by offering Food Truck services as well. Whether you’re considering purchasing your first Food Truck or are an existing brick and mortar restaurant owner that is considering venturing into the Food Truck market, understanding Mobile Food Truck Insurance for your businesses will prove to be essential to your success in these specific operations. Below, Snotherly Insurance list 5 critical elements that all Food Truck Owners should be aware of when purchasing Food Truck Insurance and Food Trailer Insurance.
1. AUTOMOTIVE INSURANCE IS NOT ENOUGH!
Yes, you may own a moving automobile and in the state of North Carolina you are legally required to carry automotive insurance on this product. However, many companies may claim to offer Food Truck Insurance and by this term they only offer a standard Commercial Auto Insurance policy for your Food Truck. Although this specific type of insurance is essential (and legally required) for your Food Truck business, it performs the exact purpose as the Car Insurance policy you most likely have been carrying since you were the age of 16. It provides protection for the Mobile Food Automobile while being driven and offers the option of purchasing Comprehensive and Collision coverage to protect the physical truck as well. Food Truck Business Owners should also strive to purchase large limits of this Automobile Liability Insurance as the standard limits that can be found on most personal car insurance policies may not be sufficient protection for this operation. Snotherly Insurance recommends our customers carry limits of at least $500,000 to $1,000,000 of Food Truck Liability Insurance including the same Uninsured and Underinsured limits as well.
2. PROOFS OF INSURANCE
Charlie’s Kabobs on Wheels serving patrons at 2018 Raleigh Food Truck Rodeo in Raleigh
Once a Food Truck Business is in operation, a proof of insurance from your local insurance agency or insurance company can often serve as the golden ticket required for your Food Truck operation to serve in well-populated places. Food Truck Rodeos, college campuses, museums, outdoor festivals, local breweries and an array of other opportunities will most likely always require a Proof of Insurance from your Food Truck Business before you may be considered to operate on their premise. With that being said, it is ideal for any Food Truck operator to have an insurance agent or local agency that he/she can rely on to produce this specific document swiftly and appropriately to ensure that your operation does not miss out on selling and serving opportunities due to the failure to provide accurate documentation.
3. BUSINESS INSURANCE IS A MUST!
Queen Harris of Chick N Que Food Truck serving
As stated above. A simple Commercial Auto policy is not sufficient enough to protect all risks that come with owning and operating a Food Truck operation. In fact, all Food Truck Business Owners should have a General Liability Policy or Business Owners policy that protects their business from serving…well..you guessed it, FOOD! A Food Truck Liability policy can protect your business from not only the serving of food, but will provide protection from a variety of dangers that restaurants encounter such as injuring a patron, serving uncooked or unintended items in foods, coverage from fire, etc. Food Truck Liability Insurance can be purchased as a separate policy alongside a Commercial Auto Policy or many insurance companies may provide this coverage with the auto protection as a package. It is important to understand the differences between these two lines of insurance and confirm that your Food Truck operation has both in place.
4. PROPERTY INSURANCE-
Did you know many standard auto policies exclude property coverage for Food Trucks over a specific low limit? We actually learned this matter first hand, as one of our clients spent nearly $70,000 for kitchen equipment inside his Food Truck only to learn that his current Food Truck Insurance policy provided a maximum limit of only $10,000! In addition to kitchen equipment, this specific client had purchased many cosmetic extras including large speakers, an amplifier, and lights. Our clients’ situation is a fine example that illustrates an owner’s need for appropriate property insurance. The equipment, contents, and personal property for the restaurant should all be protected, and many policies also provide coverage for equipment breakdown and even loss of business income in the event that you’re equipment malfunctions or fails to work properly.
5. WORKERS COMPENSATION –
The last and final matter of insurance that ALL business owners (not just restaurant or Food Truck owners) should be mindful of involves protection for your employees. Even though, this specific type of insurance may not apply to start-up operations, if your Food Truck desires involve expanding to a second truck or even a brick and mortar location, insurance coverage for the employees that you hire will be a necessity. Food Truck Workers Compensation Insurance can be extremely affordable and may not only protect your employees but protect your business in the event that an employee is injured and requires medical attention and/or legal action.
All of the above listed Food Trailer Insurance topics can be frequently offered by many standard business insurance companies. Once, Food Truck Liability Insurance, Commercial Auto Liability Insurance, Food Truck Property Insurance, Workers Compensation Insurance and matters of Proofs of Insurance are in place, you can essentially check matters of “Insurance” off of your list for the time being and focus on making your Food Truck Business a success. Further recommendations regarding NonOwned Automobile coverage, Commercial Umbrella coverage, Employee Dishonesty and other ancillary coverage’s can be recommended and purchased, however, the above mentioned 5 factors should be addressed initially in the start-up of any Food Truck operation. Snotherly Insurance offers Food Truck Liability Insurance for businesses throughout the state of North Carolina. For more information email us at snotherlyinsurance@gmail.com or click here
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