Food truck insurance cost varies depending on the coverage you include into your insurance policy. When it comes to selecting insurance coverage, the real cost of insurance is based on the specific need of your running business. It means, we cannot just utter the exact cost that applies for all business. Instead, we can just get the average cost.
So, how much do you have to pay? This article tries to give you a helpful description around insurance cost for food trucks. In the end, you can calculate how much you can afford with business need as major consideration.
The Average Cost of Insurance for Food Trucks
In the first place, truckers or trucking business owners must be familiar with licenses and legality. The trucks should be already licensed so it can operate in most cities in the US. Here, you will need general liability insurance.
It gives protection against lawsuits of the third party for the bodily injury, property damage or illness they incur due to an accident where you are at fault. Since it is the basic need, it is a must to include.
Legal expense skyrockets so if you do not carry this liability insurance, your business may collapse. This coverage of food truck insurance cost is around $500 up to $600 per year.
In the second place, consider adding Business owners’ policy. Basically, it is a part of General liability insurance. So, if you think you need it, it will cost you lower than buying General liability and property liability separately.
It already includes both of them. The cost is automatically a lot more expensive. The annual premium may cost you between $510 up to $1,200 with $2 millions median policy limit.
For broader coverage, there is commercial auto insurance. This food truck insurance cost is double with average amount between $1,275 and $3,150 per year. It gives protection towards your business against any law suits for the legal expenses, repair costs and also medical costs from the injured third party.
Even, you can customize your insurance policy by covering you especially to protect you from an accident where you are hit by uninsured truckers or drivers.
To cover for your employees or truck drivers in case they are injured while working, you need worker’s compensation insurance. Perhaps, you do not need this insurance if you are a kind of an independent truckers or someone who drivers your own truck.
It pays for the lost wages, medical expenses and lawsuits for the injured employees. This food truck insurance cost requires you to pay around $1,450 up to $2,500 per year.
Conditions That Require You to Add Certain Coverage
It seems, accident is our only risk we have to face. Apparently, there is variety of risks that we have to face. If we understand the conditions, we understand the risks and food truck insurance cost. Then, we have reason why we need to include particular type of coverage.
Your food trucks have to regularly travel a lot. While moving from one destination to another one, the truck is in a great danger and will get involved in an accident. This condition requires you to add commercial insurance.
Your oven or grill may also get damaged on the road. Since grill or oven is one of the business equipment, this condition clearly emphasizes the importance of business property damage.
Besides, you may only create healthy foods, but you have a risk for a lawsuit from the customer for possible poisoning food. General liability insurance pays for the lawsuits.
All in all, our food trucks are at risks of various cases. Before you include the coverage, make sure you can afford it. Only then, you can manage your food truck insurance cost.