Food Truck Insurance

Nashville is home to a thriving food truck business. It is a dream that has come true for local entrepreneurs with a vision and love for cooking and an outstanding recipe or two.

Once the recipes are developed and the ingredients are sourced, there are business requirements and licensing to consider.

Food trucks can include catering trucks, taco trucks, vending vehicles, concession trailers, ice cream trucks, or other mobile food vehicles.

What is considered a food truck?

A food truck is self-contained mobile food establishment that travels from site to site to serve food.

 

Insurance Coverage

At the beginning of the process of setting up a mobile food truck, insurance options should be reviewed and decided upon to protect against loss and potential lawsuits. Venues and the property owners upon which your truck will reside often require proof of insurance in the form of a certificate of insurance. You will want to have the coverages required by these venues.

Your personal insurance agent who is experienced with commercial restaurants and food trucks can help with all the considerations that accompany this new business venture. Coverage needs will be similar to that of a restaurant yet will vary due to the unique nature of a mobile establishment.

Types of Insurance

Some common types of insurance for food truck owners are listed below.

• Commercial Property Insurance
• Commercial Car Coverage
• General Commercial Liability Insurance
• Workers' Compensation Insurance

Initially, commercial car insurance will be required. This needs to be purchased immediately when you take ownership of the truck, whether you are driving it or not. Before opening specific commercial coverages may be needed.

Insurance can seem complex and overwhelming. Here is a breakdown to help simplify coverages:

 

Commercial Property Insurance

This covers the property you use in your business. The inventory and equipment used in a food truck business can be expensive to replace. Having proper coverage protects owners against loss. 

Property protected includes things like:

• Laptops
• Credit Card Processing Equipment
• Food Supplies
• Food on Hand
• Generators
• Water Heaters

Commercial property insurance also includes the replacement of income lost as a result of a claim.

 

Commercial Liability Insurance

Here are some of the protections that commercial liability insurance provides for food trucks: Damage caused to someone else's propert

• Expenses resulting from illness related to a customer’s food consumption
• Other negligent activities that result in bodily harm
• Defending accusations of false claims in advertising
• Trademark claims

Defending a business against lawsuits is costly and can cause a business to close in a short time period. Insurance can help protect business owners against such lawsuits.

 

Workers' Compensation

The state of Tennessee requires workers’ compensation for businesses employing five or more persons. This coverage may not apply at the opening of the business. As the business expands and hires additional workers and places more trucks at locations, workers’ compensation may be needed.

 

Commercial Auto Insurance

General commercial insurance policies do not insure the truck itself or liabilities related to company-owned vehicles. Commercial automotive insurance is required and will provide protections such as the following:

• Accident coverage in the event of a vehicle collision
• Medical expense coverage for those involved in an accident
• Comprehensive protection other physical damages such as certain weather events, damage from an object or theft
• Bodily injury liability
• Property damage liability
• Uninsured motorist

 

Other Insurance Options

Your insurance agent may suggest other options beyond the standard coverages to protect your food truck business from risk. Examples include umbrella policies, which extend coverage beyond general liability policies or employment practices liability insurance. If you serve alcohol on your truck, you likely need liquor liability insurance.

Our agents offer free quotes and perform comparison shopping to get the best premium rates and terms. The Progressive Advantage Business Program helps identify personalized coverages needed and is available to our food truck customers.

 

Nashville food Truck Requirements

The city of Nashville has documented specific requirements for food trucks for the health and safety of the population.

Some of the Nashville.gov food truck regulations include:

• Commercial Sinks
• Water Source
• Water Heater
• Electric Generator
• Wastewater Disposal
• Fire Extinguishers

 

Permits and Inspections

Since food truck owners both prepare and serve food to Nashville residents and visitors, several permits and onsite inspections are required. A mobile food vender permit is required in addition to a business license.

Have questions about the insurance protections needed? Call Montgomery & Associates Insurance and Financial Services at 615.829.8457.