I love this time of the year because the Sun is out longer out and so are the street vendors. Where I live (and probably those reading this) Food Trucks, Concession Trailers and street vendors continue to grow in number each year. These food artist each bring a unique talent directly to the people in a way which truly benefits everybody in their community. That’s why insuring these types of risks have always been a favorite of mine. If you are the owner of this type of business you may not be familiar with the necessary coverage’s and limits nor the changing landscape of insurance. I hope this small article helps out.

COVERAGE NEEDED:

Auto Liability: Food Trucks owners like most Commercial Auto customers should carry a minimum of $1M in Auto Liability Coverage. You’re driving a 5 ton truck that contains propane tanks, gasoline, oils & other flammables. The amount of damage an accident can cause can easily be over the standard 1 million dollars you carry. Do not carry less than this!

Auto Physical Damage: Let’s assume for a moment your Food Truck cost $50K to replace, you need comprehensive & collision coverage to protect it from fire, theft, vandalism, hail and accidents.

General Liability: This is the coverage which protects you from bodily injury & property damage that are not auto related. In the case of a Food Truck or Concession Trailer it’s the FOOD. General Liability covers food related claims such as food sickness, food allergies as well as slip & fall related claims. The General Liability also picks up personal and advertising injury. Most venues will require at least $1M per occurrence & $2M aggregate limits on General Liability. This means $1M per loss and no more than $2 million total coverage for the policy term. This is a required coverage which is pretty inexpensive given the limits. .

Property: Most Food Truck owners or Concession owners have made a sizable investment into their truck and equipment. A truck could cost $10K to $50K and have another $10K in equipment inside the unit. You need property coverage to protect your stuff! An auto policy covers the truck and typically nothing more. Property coverage protects any modifications you made, your equipment, mechanical breakdown.

Liability Umbrella: Although the legal limit of Liability coverage is $1M / $2M many venues will require more than this. A $1M umbrella is just what it sounds like. It gives you an additional $1,000,000 limit over the top of your general liability, auto liability limits, making them $2M / $3M limits. If you are reading this in a Metro area pretty good chance you need the Umbrella to reach their limits.

Additional coverage options you should discuss with your agent are: Property in transit, equipment breakdown, Spoilage coverage, Loss of Income (business interruption) and Workers Compensation.

Running a mobile food business can be fun, rewarding, and sometimes overwhelming with the number of hats you have to wear as a business owner. Finding insurance should be the easiest thing you do. Email me today for a comprehensive review of your current coverage shawn@vfsknox.com

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