Insurance for Food Trucks

Mobile Food Trucks are classified similarly to caterers because they prepare food to serve at a customer’s location, a third-party location or a rented facility for parties, weddings, meetings, receptions, etc. Food is often prepared off-site and transported to the event location or made-to-order on the truck or trailer. Caterers and Food Trucks have unique risks associated with their vehicles and equipment.

Recommended Insurance Programs for Mobile Food Trucks

Minimum recommended coverage:

• General Liability
• Commercial Auto
• Inland Marine
• Business Income with Extra Expense
• Workers Compensation

Other coverages to consider for Food Trucks and Trailers:
Business Personal Property, Spoilage, Goods in Transit, Umbrella, Business Income and Extra Expense, Equipment Breakdown and Employee Dishonesty.

Common Risks and Needs Associated with Food Truck Insurance

General Liability Insurance
GL premises liability exposure is minimal as there is little to no public access. The primary liability exposures are off-premises at locations that are generally not familiar to either guest or employee. The owner should review the area before the event to determine the hazards involved. All employees should be instructed in proper customer handling, including how to deal with disgruntled or overly enthusiastic customers.

There should always be some contract between the Food Truck owner and the Owner of the event facility so that each party’s responsibilities are clearly understood.

GL products liability exposure is higher than in an on-site eating establishment due to the time delay between food preparation and serving. Maintaining proper temperatures during transport is vital. Injuries can result from food poisoning, contamination and allergic reactions. Monitoring the quality of food received, posting of ingredients and maintaining proper storage temperatures can reduce this exposure. While most Food Trucks and trailers now have on-board equipment to maintain and prepare food, extra caution should be taken to ensure quality control.

Property Insurance
Business property exposures are high due to cooking. While cooking may be limited to ovens, there may also be grills and deep fat fryers. These must have automatic fire extinguishing protection, hoods and filters. There should be fuel shut offs and adequate hand-held fire extinguishers. The Food Truck kitchen must be kept clean and grease-free to prevent fire spread. Spoilage exposure is high as a small fire or a power outage of even moderate duration can cause all fresh and frozen goods to be condemned as unfit for consumption or sale. Business income and extra expenses can be minimized if there is an alternative location to store and prepare food in the event of a loss.

Commercial Auto
Automobile exposure is moderate due to the food being transported from one location to the next. It is important to be aware of the distance, the expertise of the driver and the maintenance of the vehicles. While it is important to transport the food in a timely manner, there must be sufficient time provided for the safe transport of the food. MVRs and driving records should be obtained for all drivers.

Crime Risks
Crime risks typically come from employee dishonesty and loss of money and securities. Employee dishonesty is controlled through background screening of employees, inventory monitoring, control of the cash register and disciplined controls. All ordering, billing and disbursements must be handled as separate duties if possible. Regular audits are recommended.

Inland Marine Coverage
Inland marine exposure includes food and equipment of the insured transported and used off site, and records for suppliers. The insured will need a special floater to accommodate all the items that must be transported for the catering including the equipment on the truck or trailer.

Workers Compensation
Workers compensation exposures come from slips, falls, cuts, burns and heavy and awkward lifting, along with interactions with guests. Food service employees tend to be minimum wage and turnover is usually high. Employees should be trained on the carrying of heavy dishes between the kitchen and the serving areas. Company incentives to encourage long-term employment are positive signs of management control.

Liability Quotes for Food Trucks

General Liability Shop.com offers affordable liability insurance quotes for Food Trucks throughout the U.S. Our Food Truck programs include all lines of business insurance, as well as our Target programs for business owners policies (BOPs). Contact one of our business insurance Specialists today at 800-900-8657, or start a quote online now.

Mobile Food Truck Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Food Trucks and Trailers. Here are the most common business insurance classifications for Food Trucks:

Business Liability Category: Eating and Drinking Places

SIC Business Insurance Codes:

• 5812: Eating Places

NAICS Liability Classifications:

• 722320: Food Caterers
• 722310: Food Service Contractors
• 722330: Mobile Food Services

Business ISO General Liability:

• 11039: Caterers and Mobile Food Service

Common Workers Compensation Class Codes:

• 9082: Restaurant