What Insurance Cover Do You Need For Operating A Food Truck?

Have you ever considered owning and operating a food truck business? What better way to make some money than by cooking and serving a cuisine you’re passionate about? Whether it’s burgers, arepas, pad Thai, or fried chicken, everyone loves to eat at a food truck. 

And for those passionate about pursuing a career in hospitality, starting up your own mobile enterprise is a great way to get started and to get your name out there. You get to cook the food you love, potentially employ other people, and earn a decent living all at the same time.

However, owning a food truck business comes with some responsibilities, such as food safety, looking after staff and ensuring that you’re operating safely. Part of your responsibilities as a food truck operator is also ensuring that you have the right insurance. 

But exactly what insurance cover do you need for operating a food truck? This Sydney Food Trucks article will share some top tips, so continue reading to learn more.

Trailer Insurance

If your food truck has a trailer attached, you’ll want to take out specialised trailer insurance. Your trailer might carry a generator to provide power to your food truck, or it might carry stock such as food supplies and other things such as drinks or disposable eating implements. Either way, your trailer will be of significant value to you, and it’s always a great idea to insure your valuable items – especially those that are also vital to the smooth operation of your business. 

With the right trailer insurance policy, you can provide yourself with peace of mind that if your trailer is stolen, damaged or otherwise impacted by an insured event, that your insurance provider will be able to offer their support in keeping you on the road and ready to serve your local foodie community. 

What Insurance Cover Do You Need For Operating A Food Truck
What Insurance Cover Do You Need For Operating A Food Truck

Insure Your Truck

You’ll also want to take out a commercial vehicle comprehensive insurance policy. Comprehensive insurance means that in addition to your truck being covered for accident, fire and theft, you’re also covered for any damage you cause to any other property behind the wheel. 

For instance, if you caused an accident on the way to an event, your comprehensive insurance policy would cover the damage you caused. Of course, you’d pay an excess, but this would pale in comparison to the cost of repairs for an expensive vehicle or if you crashed into a shop, for instance. Regardless of what events may occur, it pays to have peace of mind so a commercial comprehensive insurance policy for your truck itself is another must for responsible food truck owners. 

Public Liability Insurance

Of all the most common questions about running a food truck business, one of the most practical is what to do in the event that your business is hit with litigation. Naturally, this isn’t a question that passionate entrepreneurs really want to think about, but it can’t be denied that hospitality businesses come with their fair share of risks, ranging from dangers of food contamination and food poisoning to physical injuries caused by staff negligence.

That’s what makes public liability insurance another must for food truck operators. This is a type of insurance that’s designed to protect you (the business owner) and your business (your food truck) against claims of personal injury or property damage that occur as a result of your business operations. Having a public liability insurance policy will give you extra peace of mind against any stressful, time-consuming and costly legal claims. 

For instance, if someone somehow injured themselves due to your operations at an event or while operating your food truck, public liability would protect yourself and your business and cover the cost of compensation that you would otherwise have to fork out for.

It is worth noting, however, that public liability insurance is not a legal requirement to operate a food truck business – unlike compulsory insurance like worker’s compensation. Still, the last thing you want is to find yourself liable for any injury or damage that results from you running your food truck, so it is a great safeguard, like all insurance policies.

Income Protection Insurance

If your food truck is your sole source of income, it makes sense to take out an income protection policy. Suppose you find yourself unable to work due to illness, injury or perhaps due to repairs needed on your food truck. In that case, the insurance company will pay for a portion of your income to ensure that you can meet basic expenses like housing and bills. 

You’ll have to pay a premium, like all insurance policies. Still, this level of insurance is generally better than that provided through your superannuation fund and can be vital for small business owners like those operating a food truck. If you fall ill or otherwise can’t support yourself and your family, income protection insurance is a godsend. 

Bundle Insurance

Finally, it’s important to keep in mind that some insurance providers may offer their customers the opportunity to secure special bundles for retail food and beverage truck operators that cover your entire operation. These policies may combine comprehensive commercial vehicle, trailer, and public liability insurance specifically tailored to food truck operators. 

This could be better than taking out several separate policies and providing the level of coverage that you need for your business. It may be worthwhile to compare the various costs of separate trailer, vehicle and public liability insurance and then compare these costs to a bundled product to see if there are decent cost savings to be had. You may come out on top with a bundled policy.

Keeping Your Food Truck Insured & On The Road

This helpful article has detailed the insurance coverage you’ll need to operate a food truck. As you’ve read, you will need trailer insurance, comprehensive commercial vehicle, public liability, and perhaps even income protection insurance alongside worker’s compensation insurance to be fully covered and have peace of mind.

Be sure to factor in these insurance requirements and must-haves into your business plan today to make sure your food truck business development stays robust and realistic.