Food Truck Insurance

Durango Insurance offers the best options for a food truck business with more than one truck or cart in its fleet.

We understand food trucks and speak your language. We help protect food trucks, food trailers and mobile food vendors with what we feel is the most comprehensive program with the best pricing. Durango has helped mobile food vendors in Connecticut.

The best mobile food vendors deserve the best in coverage and price.

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WHAT IS MECHANICAL BREAKDOWN INSURANCE?

One of the most important insurance coverages for food trucks is also one of the most misunderstood… Mechanical breakdown or equipment breakdown insurance covers the cost to repair or replace damaged equipment. More importantly it can protect lost income because of the breakdown. Food trucks have many pieces of equipment that are necessary for day to day operation to stay in business.

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WHAT IS MEDICAL PAYMENTS COVERAGE?

There is a lot of confusion on medical payments insurance. Many of our prospects and customers ask us if they need this coverage or not. In this entry we will go over what Medical Payments (“Med Pay”) coverage is and why we recommend it.

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ARE COMMERCIAL AUTO INSURANCE RATES ON THE RISE?

Insurance rates in general have been mostly flat for a few years now. However, commercial auto insurance is on a rapid rate incline. There are many factors to the rate increases, but the primary driver is the new technology onboard vehicles and cost to repair them. Think about how much cars have advanced in the past few years… there are cameras, sensors, multiple screens, self parking, self driving even! A small “fender bender” that might have cost less than a thousand dollars is now averaging a few thousand dollars. Specialized labor and parts costs mean that you can’t usually repair a significant accident for less than $10,000. Insurance carriers have had to play catch up with rates in the meantime.

FOOD TRUCK INSURANCE BASICS

AUTO LIABILITY

You drive a 5 ton truck that contains propane tanks, gasoline, oils and other flammables. You are essentially a 65 mile per hour street food slinging missile. The amount of damage an accident can cause can easily be over the standard 1 million dollars you carry. Do not carry less than this! The savings is nominal to drop to $500,000 or less.

AUTO PHYSICAL DAMAGE

Your truck cost say $40,000 to replace, you need collision and comprehensive coverage to protect it if you are at fault in an accident, if it catches fire, is stolen, vandalized, or many other losses similar to your personal auto policy. Don't get me started on your wrap... see my previous post on that.

GENERAL LIABILITY

"The Tainted Taco." This will cover bodily injury and property damage that are not auto related. The biggest exposures would be food related claims such as food sickness, food allergies and slip and fall related claims. The General Liability also picks up personal and advertising injury. Most venues will require at least 1 million per occurrence and 2 million aggregate. This means 1 million per loss and no more that 2 million total coverage for the policy term. This is necessary coverage that is inexpensive to add.

PROPERTY COVERAGE

You invested what, $15,000 up to $50,000 into your truck and have maybe $10,000 in equipment floating around back there? You need property coverage to protect your stash. An auto policy covers the truck, and typically nothing more. Adding in-depth property coverage to protect your modifications, equipment, mechanical breakdown and loss of business income is affordable and adds piece of mind. This is a complicated subject that requires more attention. If you want to be an honor student read some news posts, this is just 101.

WORKERS' COMPENSATION

Did you know that it is the law to provide workers' compensation to all employees in the state of California (many other states as well)? I know, your cousin likes cooking and isn't really an employee... Wrong, do not get caught without workers' compensation! It's not as expensive as you may think and saves thousands in fines, out of pocket losses and those fun attorney fees.

LIABILITY UMBRELLA

Many venues will require more than 1 million dollars in general liability. An umbrella policy is just what it sounds like. It bumps your general liability, auto liability and workers' compensation to 2 million, 3 million or more depending on the limit chosen. If you are in a major metro area chances are you will be asked for higher than 1 million limits. It's worth the $400 or so to add, DO IT!

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We provide awesome food truck insurance from partner carriers that want your business. Call 203-517-4545 anytime or request your food truck insurance Quote.

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