Before getting started with a food truck business, you should be aware of the insurance you’ll need. Here you’ll learn all about Pennsylvania food truck insurance coverage.
Food trucks in this country are on the rise and especially in PA. America now has over 4,000 food trucks and the industry revenue grew by 7.9% from 2011 to 2016.
A successful food truck owner is about more than dishing up tacos and burgers on the go. A food truck needs to be treated like any other business, with smart practices and procedures being the key to longevity and success.
One issue that plagues many food truck owners is finding the right type of insurance. Before getting started with a food truck business, you need to be aware of the different types of insurance required for protection.
Here you’ll learn all about food truck insurance coverage. Read on to learn more about the different types of coverage for your dream business.
Commercial Auto Insurance
It goes without saying that you need auto liability insurance for your food truck. But many food truck owners make the wrong choice when it comes to coverage. And there are state specific coverages for PA that you need to be aware of.
As a business, your food truck requires commercial auto insurance. This will cover your truck in the event of a collision or accident, a non-traffic incident (such as a fire), injury, or an incident with an uninsured driver or bicyclist.
The key thing to remember is that you need to purchase the vehicle insurance before you purchase your truck. Coverage needs to be purchased even if your truck is going to be renovated or modified prior to opening. By purchasing the insurance in advance, you will protect yourself from collisions that may occur during transportation.
Your PA food truck insurance coverage also needs to kick in once you’re open for business. That’s what general liability insurance is for.
General liability insurance protects you from any lawsuits or claims made by third parties. This coverage applies to physical damage, property damage, and legal fees.
This type of insurance is crucial for businesses because it’s what protects you from claims – whether or not you’re at fault. This is what will help you should someone fall sick from your food, slip and fall at your location, or find any other reason to pursue money from your business.
Many companies obtain at least a $1 million policy coverage. That might sound expensive until you consider a $1 million policy costs only $300 to $1,000 per year. This small payment could save you big money down the road.
It seems counterintuitive to purchase property coverage for a truck. However, property coverage is one of the best types of food truck insurance you can buy.
Property coverage is a good idea for larger food trucks or food trucks with multiple fleets. As the business grows, so do your assets. You can protect these assets with general commercial property insurance. This type of insurance covers all of your business assets besides your truck.
Your “property” that is covered might include your computers, commercial kitchen space, and other assets. Property coverage can also protect your next-level investments like smokers, large ovens, and other specialized types of kitchen equipment.
Workers’ Compensation Insurance
Workers’ compensation is a familiar type of insurance for business owners. Food truck owners are often first-time business owners who might not be aware of this type of insurance.
Basically, workers’ compensation insurance is your protection against injuries on the job. It will cover medical expenses should any of your employees get hurt or claim to have gotten hurt while working.
The laws on workers’ compensation vary from state to state. Most states require employers to provide this type of insurance, but coverage requirements range depending on the size of the business. Whether or not it’s required by law, it’s a good idea to invest in this type of food truck insurance. Consider all of the different work hazards that occur in a kitchen.
Consider all of the different work hazards that occur in a kitchen. People are working in a confined area with ovens, fryers, and other dangerous equipment. They also are working with knives and other sharp materials. Cuts and burns are a common entity on food trucks.
Medical expenses can add up. Make sure you protect your food truck from potential job hazards by purchasing workers’ compensation insurance.
There are a number of additional types of commercial insurances you might want to consider.
Umbrella coverage is additional coverage that goes above and beyond the normal limits covered in general liability or auto policies. This is a good type of coverage to have if you feel that you need to go beyond the normal coverage limits. You might want to purchase this if you upgrade your equipment or work in a more upscale location.
Another type of food truck insurance to consider is food spoilage. This is a lifesaver in case your shelved food is spoiled due to equipment breakdown, mechanical failure, or a power outage.
You can also get coverage for a loss of business income due to an insurance loss. Let’s say you suffer from a loss of income due to a disaster such as a food truck breakdown. The business income loss will include the net income that would have been earned if you continued to operate with normal business expenses.
How to Find Food Truck Insurance
Now that you know what type of coverage you need, it’s time to hit the marketplace.
You should speak with an insurance agent or broker to find the right insurance plans for your food truck business. These experts can walk you through the different coverage options and price points based on your business plan. Insurance agents work for and are paid by an insurance company, whereas independent agents work for several insurance companies at once.
Brokers also work for multiple insurance companies and require additional training for certification. They must pass a broker’s license exam and can work alone or hire agents to work for them. A broker’s plan is more comprehensive, meaning they might require additional fees and payments for their work.
Don’t try to find coverage alone. By heeding the advice of a true expert, you will keep your food truck and business safe.
Are you looking for food truck insurance? We can help.
Contact us today to speak with our team of advocates on finding the right coverage for you.