Before your food truck can hit the road, you have to ensure that it is properly insured. The insurance you need goes beyond auto insurance since you are basically operating a restaurant on wheels. Without the right coverage, you could face serious out-of-pocket expenses if there is an incident and possible fines from state agencies for not being covered. If you are planning to operate a food truck, here is what you need to know about the insurance required.
What Type of Coverage Do You Need?
The type of insurance you need can vary based on the specifics of how your truck is operated and the state in which you live. However, there are some coverage requirements that tend to apply regardless of the state. For instance, you will need commercial auto insurance. You need to opt for the full commercial policy and not the coverage that allows personal vehicles to be used for commercial use.
You also need business personal property coverage. The policy covers everything in your business that is not considered a part of the truck. For instance, your fryers, smoker, and pots and pans would be covered under this policy.
If you have employees, you also need unemployment and workers' compensation insurance. Some states do not require you to carry both, but to avoid a costly settlement, you should consider adding the coverage to your policy.
There is also coverage that is available to protect your truck and the venue if you are contracted to provide services for an event. For instance, if there is a fire in your truck and it spread to the venue, the policy would help to cover the venue's damages.
Do You Need Insurance When the Truck Is in Storage?
If your food truck does not operate throughout the year, you have the option of buying insurance to protect it while it is in storage. Even though the truck is not operational, it could still incur damage that results in a loss. For instance, it could be damaged in a flood or fire. It could even be stolen.
Depending on the state in which you live, you might be required to obtain the coverage. If your state does not require it and you opt for the coverage, it is important that you remember to switch your coverage from the storage policy. If not, if you are involved in an incident while operating the food truck, the damages might not be covered.
Finding the right coverage can be complicated. However, working with an insurance agent can help make the process simpler and you can be sure you get the coverage your food truck business needs. For more information, contact companies like Hamsher Insurance.