If you are new to the business you should get familiar with all of your future expenses, especially insurance. If you are already established, you probably want to be sure that you are paying an appropriate premium for your coverage. So, how much does food truck insurance cost? There are many variables that will affect your rates such as location, value of your truck, driver experience and records and your gross revenue. Insure My Food truck writes houndereds of gourmet food trucks and we are in almost every state, so we can give you a good idea of your costs...
Business Owner Policy:
Commonly referred to as a BOP, a Business Owner Policy is essential to operating your food truck. This will cover the general liaiblity. product liability and contents of your truck. Our program will also cover your equipment breakdown and loss of business income which many companies will not. Typical premium for a BOP is about $600 per year.
Commerical Auto Policy:
Most food trucks start with a commeircal auto policy wich is also essential to your business. This will cover the liability out of the use of your truck. it also covers the physical damage of your food truck which is often at least $40,000. A typical commerical auto policy will run approximately $1,800 per year.
So, our National average premium for the BOP and auto policies are running about $2,400 per year. Of course if you are in New York City or Boston, premiums will probably be about double this amount, and if you are in Cincinatti for example, they may be about $500 less. Like I mentioned earlier, there are many conditions that will affect your premium, but hopefully this gives you a good idea as far as what to budget.
Remember that insurance is not only about price! Be sure to analyze your coverage with an industry professional. We see too often food trucks suffer losses that are not covered. This can put them out of business or severly hurt them and their employees if not adequately protected.
Don't forget about workers' compensation insurance if you plan on employing... Please read our other entries on this vital piece of your insurance needs. We also have a food truck coverage menu here which will help describe coverage and estimated premiums.
If you have any questions about your coverage or the costs of food truck insurance, please contact us. We have been insuring mobile food vendors for years and have a specialized program exclusively for gourmet food trucks.