Why Most Food Trailers Are Underinsured - Food Trailer Insurance

We get dozens of quote requests every month. Many are from food trailers looking to protect their brand new, amazing food trailer. If this is you, you saved for months or years to afford and build your food service dream machine. The typical first steps you go through are finding a builder, deciding options then putting a deposit on the work.

Next you realize you need to get insurance for the pick up or delivery of your food trailer. You go online to find the best food truck and food trailer insurance provider. Insurance My Food Tuck comes up first along with some imitator sites. You decide to get a quote through one, two or several insurance providers.

Here are a few of the reasons most food trailer owners buy the wrong coverage with the wrong broker.

1.       Your biggest exposure is your driving, not your food! You may have found a cheap quote to insure your trailer for property damage and general liability for your food business, but how do you get the trailer to the venues? Large claims almost always involve auto accidents. Most food trailer owners tell us they don’t need auto liability because they already have it insured on their personal policy… Does your personal insurance carrier know you’re using it for business and towing a three ton trailer equipped with propane and other flammables? They may not be happy with that and may not cover you if they find out or if you have a claim. Plus, what if the trailer comes unhitched and causes bodily injury or property damage? Are you covered?

2.       Hidden costs. Congrats, you found a quote a couple hundred less than ours! Did you ask about costs for certificates of insurance, broker fees or nonrefundable fees if you cancel? Many times there are hidden costs that you don’t see or realize until you are into the policy period. Some carriers and brokers will charge up to $100 per certificate of insurance. Most venues are going to need to be added as an additional insured. Our average account will get 12 additional insured request per year. If you are charged per certificate, you are now paying $1,000 more per year than our quote since we don’t charge for certificates.

3.       Insufficient trailer coverage/value. We know some carriers cannot cover high value trailers. If they stop at $35,000 value and your trailer is worth $50,000 you are essentially self-insuring the $15,000 or risking coverage penalties because you were underinsuring your trailer knowingly and intentionally.

Our gourmet food truck program CAN extend to trailers, but only when the owners insure the vehicle that tows the trailer. This is the proper way to protect your business since most personal auto policies will have coverage limitations and most have much lower limits than a commercial auto policy. There may also be way better tax advantages to carrying a commercial policy vs. a personal one (check with your tax accountant). You have invested too much into your new food trailer business to not insure it properly. We have many food trailer clients that have had claims and I’m sure were very happy they decided to get the right coverage. If you need a quote, please call 800-733-3131 or request a quote here www.insuremfoodtruck.com/quote