If you own a food truck, insurance has to be a top priority. Why? One recent study showed that 57 percent of all lawsuits against businesses involved small businesses that earned less than $1 million annually. So, it's not always the big corporations that receive most of the legal heat. The investments you've made in your trailer and your business need proper protection that a well-written insurance policy can provide.
3 Reasons Why You Need Food Truck Insurance
- Even if your small business wins its lawsuit, the legal costs could damage or ruin your business.
- Lawsuit out-of-pocket costs for small businesses exceed $35 billion every year.
- Over 70% of small business owners report that a lawsuit hurt their credit and reputation, whether or not they won their case.
What Businesses Need This Insurance?
There is a need for concession trailer liability insurance across many industries and business types, including:
- Food trucks and hot dog carts
- Vendors at swap meets and flea markets
- Concessionaires at state or county fairs
- Retailers who sell out of mall kiosks
- News stands
- Christmas tree lots
Concession locations include:
- Parking lots
- Business parks
- Office buildings
- Train stations and bus terminals
- Shopping malls
- Rest stops
- Sports fields and indoor arenas
- Beaches and sea ports
- Fairgrounds and other public areas
Your business may operate from one primary location or from a number of locations, and you may even move regularly among fairgrounds or business parks. Your concessionaire insurance will need to reflect the specific risks involved in your business operations, whether you have a mobile operation or you have one stable location, and whether you sell food, goods or artwork.
If your concession business involves food, you might handle business functions, conventions, weddings, buffets, events or you may have a mobile service that travels between customer sites. Each of these may require concession trailer or "food truck insurance." There may be state or federal laws that require it, but just as importantly, your business's future may require it.
Risks Concessionaires Face
Food truck liability insurance can help you prepare your business for all manner of liability risks. For example, in one case, the owner of an alcohol concession stand was found guilty for the injury of a 7-year-old girl by one of the stand's customers in a drunk driving case. Other liability scenarios include:
- Injury to a patron due to a malfunctioning product
- Food poisoning due to food contamination
- Injury to a patron from a moving concession, such as a cart or truck
Remember that customers can sue you for damages and injuries that you might not be aware you caused. Protect yourself from liability lawsuits with the right business insurance to cover your bottom line.
What Does Food Truck Insurance Cover?
Your concessionaire insurance should include a range of coverage, including:
- General liability: This broad based coverage is critical for all businesses, and covers your liability in the event that you or an employee are responsible for damage or injury to a third-party.
- Product liability: This specific liability insurance covers your liability risks when you serve or sell products.
- Liquor liability: If you sell alcoholic beverages from your food truck, this coverage will provide liability protection for claims resulting from an accident, illness or injury related to alcohol use.
- Business property: Covers your concession cart, truck or trailer, your equipment and product inventory. If you have a food service trailer, depending on the types of business you do, you may need insurance for a catering truck, refrigerated truck, food service trailer, step van, pickup truck or lunch wagon.
- Inland marine: This protection covers inventory and products while in transit from one location to another.
- Commercial vehicle insurance: Provides protection financially if you or an employee causes an accident while driving your concession truck or another vehicle.
- Workers compensation: If you have employees, you may need workers compensation insurance. Requirements vary by state and your local agent can help you determine what is needed.
Your specific food truck insurance will need to be tailored to your business. For some small businesses, a business owners policy or BOP can provide coverage that can handle many of the most common risks in a bundled policy. There are many additional coverage types to consider that may apply to you as well, such as employee fraud. Be sure to work with a knowledgeable agent to ensure you have the most complete protection possible.
Searching for Coverage
Your concessionaire insurance needs are unique to your business, the products or services you sell and the locations where you operate. With so many insurance companies and types of coverage available, you may need help finding the best fit for your operation. Choose an independent agent to help make comparison shopping easy. These agents can pull quotes from several companies to get the insurance coverage you need at a price that makes sense for your budget and business needs.