Insurance Overview – Commissary Kitchens / Shared Kitchens

What are Commissary Kitchens / Shared Kitchens

Shared kitchens, also known as Commissary kitchens, have gained popularity in the last 10-15 years, alongside the explosion of food trucks and small food entrepreneurs across the county. Commissary kitchens offer commercial kitchen facilities for small food entrepreneurs such as consumer packaged goods, caterers, chefs, food trucks, or even ghost kitchens. Commissary kitchens provide food entrepreneurs affordability and scalability as they grow their businesses by providing fully equipped and health department-approved shared kitchen facilities.

Risk Management Overview

It is a common misconception that buying insurance is the first and often the only step in risk management. Insurance is just a tool to transfer risk and is only for pure risk (chance of loss or no loss). All businesses also face speculative risks, which are risks with a chance for gain or no gain. For example, buying equipment or starting a new marketing program with hopes for a return on the investment.

For this article, we will focus only on the pure risk that insurance can address, but as a business owner, you should be looking at all risks to the business’s survival and success.

As you address your risk it helps to think about your total cost of risk. The total cost of risk is defined by the cost of insurance, the cost of uncovered claims (retained risk), deductibles, and administrative costs of managing risk. It’s common for small businesses to only look at insurance costs, but having a broader view can help provide a clearer picture to make educated risk decisions.


Identify Risk

The first and most important step is to identify the risks your commercial kitchen faces. If you do not identify the risk, there is no way to control (avoid or reduce) or transfer the risk to insurance or contracts. Below, we will define the risks shared kitchens face, as well as insurance coverages and techniques that can be used to help protect against losses or reduce your risk.


Liability Risk

As a shared kitchen, you are a landlord to many tenants working in a cooking environment. As with any landlord business, you owe a duty of care to offer a safe environment for your tenants. Accidents can happen for bodily injury or property damage to others, which is a risk inherent to running a shared kitchen. General liability insurance can help protect you from these accidents by providing coverage for accidents you are responsible for.

General liability is designed to protect you if your customer or public sues you for bodily injury or property damage. The coverage will pay your legal fees to defend, in addition to any awarded damages up to your policy limits. It’s important to note that “to others” means it does not cover your employees for injury, nor does it cover your own injury; those coverages fall under Workers Comp. In addition, property damage is also “to others”; it will not protect your own property from damage; this will fall under the property coverage discussed in that section.

Every shared kitchen should have general liability with limits of at least 1M per occurrence (per claim) and 2M aggregate (total per year for all claims), and your lease often requires this if you are renting your kitchen space. The lease will also often require you list the landlord as an Additional Insured (discussed in more detail later)


Tenants – General Liability

Now that you understand your responsibility for having general liability, you need to consider what risk your renters bring to you by being associated with them and providing the facility for their business.

If a renter causes an accident on your property, or the food they cook on your property causes injury to others, your kitchen most often will be named in the suit. An attorney, by default, is going to sue all involved parties regardless of the percentage of fault. Your general liability can protect you, but two issues arise. First, if the tenant does not have insurance, you will become the sole focus for liability, and two, these claims end up on your policy, causing your insurance to go up or be canceled.

The solution, and typically a requirement from your general liability insurance company, is that every tenant has general liability insurance and lists you as an additional insured on their policy. By being an additional insured*, you are protected alongside the tenant on their policy if they drag you into a claim from their actions. The result is you have transferred some of the risk your tenant brings to you by being protected by the tenant’s general liability policy.

*An additional insured is a standard policy endorsement with your kitchen’s legal name and mailing address listed. At your tenant’s request, their insurance agent will provide a certificate of insurance form called an Acord certificate of liability, also known as an Acord 25. This form will show the coverage limits, effective dates of coverage, and your kitchen as an Additional Insured.

*Important Note*

Most Additional Insured endorsements are on a blanket form. The blanket form means that a third party, such as your kitchen, is automatically an additional insured when required by a written contract or agreement. For the coverage to be valid, regardless of receiving a certificate, you need to have in your agreement with the insured that it is required to list you as an Additional Insured.

Tenant Damages

Shared kitchens often ask, what about my tenant damaging my kitchen property? There is limited coverage here for a fire the tenant causes and is negligent for, up to the sublimit for damage to rented premises, usually 100K-300K on most policies.  However, the general liability is not designed to cover rented buildings for a broad range of losses. These losses are protected under property coverages, designed for property you own, or in your care, custody, or control.

At first glance, they may come as a shock, and be thinking, what if my tenant damages my expensive mixer or other equipment? Can’t I hold them liable? The answer is maybe, but it’s not going to be covered by their general liability insurance. This type of risk is why landlords often take deposits to offset some of this risk.  There are solutions on property coverage, such as equipment breakdown, but this becomes an issue on the property policy because insurance was not designed to cover many different, ever-changing tenants in a building. With a one-off tenant, there are risk transfer solutions. With a shared kitchen it is not practical, nor realistic to have every tenant cover all the equipment in your kitchen on a property policy. This is for two reasons. One, can you really determine the tenant that solely caused the issue? More often, it is over time and several different tenants that lead to equipment failure. Two, the expense to have yourself, and every single tenant insure the same property would be cost prohibitive. All is not lost, though, as we will cover solutions for shared kitchens under the property section.


Property Risk

With your shared kitchen, you most likely invested a lot into your building, building improvements, and/or property and equipment.

To identify and classify different types of property coverages insurance covers, it is best to review how insurance companies define different types of property.

  • Building – building coverage is designed to cover buildings you own at a specific address. If you lease your building, typically, the landlord will insure the building and pass the cost onto you via NNN in your lease. Note, just because you are reimbursing your landlord for their insurance cost to insure the building, you have no insurable interest in that policy, and it will not protect your business.
  • Tenant Improvements – these are improvements you make to a leased building and things you cannot take with you at the end of the lease as they become the property of the landlord per most leases. These items include building walls, plumbing, and any built-in equipment.
  • Business personal property – this is the contents you put in the space, such as equipment, tables, fridges, etc. These items typically are removed at the end of a lease.


NOTE: Pay careful attention to your lease. If there is existing property that you did not purchase but the landlord requires you to insure, for example,  HVAC or existing walk-in cooler you will need to specify coverage for these items on your policy. Tenant improvements typically do not cover these items because you did not purchase or pay for these items, and they are by default part of building coverage. If you lease a building you do not have building coverage, causing a gap in coverage. However, that has not stopped landlords from transferring the risk of the equipment to their tenants.


What Does Property Insurance Cover

The types of losses that building, tenant improvements, and business personal property are covered below. Note, there are different types of coverage forms, and few areas of optional property coverages that some policies will leave off.

The broadest form is called Special Form, which covers all physical damage unless excluded. This means the burden of proof for a loss to not be covered is on the insurance company to prove its excluded. Common exclusions are food spoilage, earthquakes, floods, equipment breakdowns, power failures, neglect, intentional acts, and war.

The two other forms are Basic and Broad, which have list of coverages, and if its not in the list, there is no coverage. This puts the burden on the insured to prove there is wording to have coverage. It is best to avoid these forms unless no insurance company will offer you special form.

Theft Exclusions – Even with special form pay careful attention to exclusions added, the most common being a theft exclusion due to the nature of being a shared space, this increases the risk of theft, and some insurance companies will add a theft exclusion to make the risk acceptable.

Equipment Breakdown – this is a key coverage that all shared kitchens should seek coverage for and is not included without a specific endorsement. Equipment Breakdown pays for electrical or mechanical failure of equipment, such as walk-in coolers or other mechanical equipment.

Business Income – Business income is designed to pay your loss of profit and continuing expenses after you suffer a property loss. Often overlooked, this coverage is vital for a business to recover after a loss so you can stay afloat as your property is repaired and you can open back up for business. Typically, you will see this coverage listed a “Actual Loss Sustained – 12 months”, or specific limit with coinsurance (see coinsurance definition further below). There is a time element deductible that applies to these losses, typically 24 -72 hours after a loss, and then the coverage kicks in. This works like a deductible, but a time period must pass instead of a dollar amount for the coverage to start.

Replacement Cost vs. Actual Cash Value – Depending on how your property policy is set up, the insurance company will pay out claims differently, and the difference can be large. You either have a replacement value of the damaged property or equipment, which reimburses you for replacing the damaged property with new equipment. Or actual cash value, where depreciation is taken into account before paying the claim.  For example, if you have a kitchen fire and your hood and grill are damaged, with replacement cost, the insurance company will pay for brand new equipment to replace the equipment. With actual cash value, if the hood and grill are ten years old at the time of the fire, the insurance company would only be required to pay the depreciated value of the equipment based on age and condition. Because it’s unlikely or difficult to replace old equipment with used equipment, this means you are likely paying the difference for deprecation for new equipment plus your deductible to get back up and running.

Coinsurance – Coinsurance is an often overlooked nuance in property insurance, and is not the same as coinsurance that you would see on medical insurance. The coinsurance limit on the policy is typically displayed right next to the limits of coverage and states the required insured-to-value limit.  The most common coinsurance limit is 80%, but can vary from 70, 80, 90 or waived (not required), and is best explained by providing an example.

For example, if your requirement is 80% coinsurance, and you have 100K in business personal property but only insure it for 50K. You are insuring 50% of the value of the business personal property. Because you are below the 80% or higher requirement, the insurance company is only obligated to pay you 50% of your claim.

If you insured 80K or higher, in this same example, you met the requirement, and your claim would not be penalized. Keep in mind that in a total loss, they are still only going to pay up to the limit insured.

Admitted vs. Surplus insurance – There are two markets in the insurance world, and knowing the difference is essential. An admitted company is a company whose forms and rates are approved by the state. In addition, if the insurance company goes insolvent, the state will backstop the insurance company.

A surplus insurer is a market designed to take risks that do not have admitted insurance companies willing to offer coverage. With shared kitchens in many parts of the country surplus lines companies are the only ones willing to insure commercial kitchens because of the higher risk they face. These insurers are not regulated and can have customized coverage forms, exclusions, and higher costs. The key here is there is no uniformity. The easiest way to tell if you have a surplus policy is to see if taxes are charged on your premium.

Property of Others – Tenants Supplies, Inventory, and Food – Your property coverage does not cover your tenant’s property, and each tenant is responsible for insuring their own property, including spoilage. To avoid any confusion, it’s best to make this clear in a lease agreement with the tenant.

Situations can arise where you or another tenant unintentionally cause damage to another kitchen tenant’s property. In those cases, your general liability could be paid if you are directly liable for the damage. For example, you unplug a customer’s fridge by accident. If a pipe bursts in the kitchen or a power surge takes out a fridge, these would be examples where typically no liability occurs, and the tenant would need to claim on their own property policy.


Workers Compensation Risk

If your kitchen has employees, Workers Comp is an important coverage to protect against employee injuries, and in many states, the coverage is mandatory. This specific type of policy and coverage differs from general liability because general liability does not cover injured employees.

Workers Comp can pay for injury or disability to your employees injured on the job by providing medical, wage, and financial benefits per your state’s requirements. In addition, most policies come with employer liability coverage, which helps protect the business if you are sued for being negligent in the injury.

Note, paying an employee as a 1099 independent contract will not relieve your duty to be responsible for a workplace injury if they fit the definition of an employee. The IRS lists a full list of qualifications, but from a high level, if you tell them the hours to work, give them the tools for the job, or tell them how to do the job, they are legally employees.

Tenants Workers Comp – If your tenant has employees in your kitchen, it is a good idea to make sure the tenant has Workers Comp for their business. This helps prevent injuries that occur on your premises, blaming you if an employee is injured working but left with no recourse other than to try and hold your kitchen liable.  

If you want to learn more about how Insure My Food can assist with your kitchen insurance, please complete our line form here.

Preventing Thefts In Your Mobile Food Business

Preventing Thefts In Your Mobile Food Business

Tis’ the season for food truck and food trailer owners to get a much-deserved rest and break from the daily grind of the busy summer season. Unlike restaurants, chefs and caterers, who are well into the busy holiday season.

Unfortunately, this time of year has historically been when thefts spike. Thieves have to buy Christmas presents too, right? Here are some tips to help avoid becoming a victim of theft in your food business.

solar light


When you are not able to secure property in a closed off or secure area, lighting is a great tool to deter would-be thieves! Lights help increase the chance someone will see a theft.  That reason alone is enough for thieves to move on to their next target.

Parking near overhead lights works great, but if that is not an option, this Solar LED light with Motion Sensor can easily be installed and a great way to illuminate the area around your property.

Locking up

It’s good business practice to let customers know when you are open or closed, but that makes it easy for thieves to know when you are not around! Locking up is a good first step, but a determined thief that knows he has time when you are away might have tools to bypass basic locks.

locksA client of Insure My Food, Matt with Las Abuelas, recommends using a Shackle-Less Padlock like the ones found here on Amazon. By not having an exposed shackle it makes it impossible for bolt cutters to be used.

For food trailers, hitch locks are a must. While they might not be bulletproof, they are important! Yes, a lock can be forcefully removed or the thief could use a flatbed tow truck to bypass the hitch, but for under $30 dollars it’s well worth the investment and enough to give a thief a reason to move on.

For food trucks, a steering wheel lock is a great idea. Most of the step van trucks used to build food trucks date back 20-30 years ago.  They lack the update ignition protections that modern vehicles have. This makes it easy for thieves to hotwire and drive off with your truck.  

Make some noise

Noise is a great way to draw attention to your property so others around look and know something is not right. Sounds can be very annoying, as Jim Carey taught in Dumb and Dumber.

Alarms that are loud and also report to a monitoring service are great but can require a constant internet or phone connection and that can be difficult for a mobile food vendor. They require a monthly service cost increasing your business costs. If the connection or the cost is prohibitive, having an audible alarm is inexpensive (GE makes a wireless door alarm for under $12) and an effective solution.


Visible cameras protecting your business let crooks know they’re being watched and are very helpful in deterring theft.  Cameras help you review suspicious activity so that you can be proactive prior to a theft occurring.

If a theft does occur, the footage can be used to help catch the culprit. Laura of Bananarchy uses and recommends ZModo cameras. In a break-in that affected her and several other nearby food trailers, the camera footage given to police resulted in the arrest of the suspect.


gps trackerGPS

Trackers are a great way to keep tabs on your property, but they do require a monthly subscription for services. GPS trackers are also not a replacement for other theft prevention practices because they only help when your entire truck or trailer is moved offsite.


Take cash to the bankcash

Having a lot of cash attracts attention not only from outside threats but from employee theft as well. Making frequent trips to deposit cash and never leaving cash overnight is a great step to limit theft of your hard earned money. Hope of Emoji’s Grilled Cheese took it a step further and now only accepts credit and debit, eliminating the risk altogether. She states that she has had very little pushback from customers.

With a little effort and investment, taking the some of all of the above steps will go a long way in reducing the risk of becoming a victim of a grinch during this season. Check out our loss prevention blog post for more tips on How To Protection Your Food Truck’s Bottom Line.

Want an insurance quote? Click here or give us a call at (800) 985-7859.

All You Need To Know About Food Truck Insurance Coverage

All You Need To Know About Food Truck Insurance Coverage

Confused by the complexities of food truck insurance coverage and not sure what exactly you need? We get it. It can be confusing, so we’re going to break down the different types of coverage for you using understandable language (and not insurance-gibberish).

First, take a look at the visual cheat sheet we’ve created. Below that, we’ll get into the specifics of each type of insurance to give you a well-rounded understanding of your specific needs and insurance options.


Save this graphic and keep it handy so you always know what you have covered and what you don’t. Now, let’s go a little deeper into these food truck insurance coverage types.


GL icon

General Liability Insurance

Whether you’re after bare bones protection or a full suit of armor around your business, this coverage type is a must.

General liability acts as protection against lawsuits brought against you. It covers your products (food and drinks), your premise (slip and fall), personal injury (including libel and slander), and property damage to others.

Keep in mind that this type of insurance covers damages to others, but it does not cover you, your employees being injured, or damage to your own vehicle. Nor does this coverage effective for accidents that occur while you’re driving.

A few specific instances where general liability covers damages:

  • A customer gets sick from your food
  • A customer slips and falls on a mat you placed outside
  • Another business accuses you of libel or advertising injury
  • Your patio cover falls and breaks another truck’s window
  • All the legal fees associated with the incident (even frivolous claims where you are not at fault)

The common coverage limit is $1,000,000 per occurrence and $2,000,000 total per year.

Most landlords, vendors, and commissary kitchens require general liability, so you should plan on including it in your policy.


Food Truck Insurance icon

Property insurance coverage for your truck and the attached equipment

Don’t let the countless hours you invested into your food truck go to waste with a single driving mistake or a severe stroke of the weather. Food truck coverage protects your truck and all its attached equipment in the event of a collision, vandalization, theft, flood, fire, and a few other types of losses.

Remember that “attached equipment” specifically refers to items that are attached via bolt, plumbing, or gas line. Plates, pans, rolling carts, food, and anything else that’s not securely bolted down is not covered by this coverage. For those items make sure you get contents coverage (listed below) as well.


Food Truck contents and equipment coverage.

Coverage for items NOT attached to your Food Truck

Contents coverage is for all the things that are not bolted down or attached via plumbing or gas line, but are still a part of your food truck business. Your cooking utensils, your chairs, and even your POS system fall into this category.


Food Truck Auto Insurance

Auto Liability

Your greatest liability risk as a food truck owner is not the food you serve, but the truck you drive. Food-related claims are uncommon, but driving mistakes on the road happen all the time.

Auto liability insurance covers injury or property damage to others while you are driving, and only when you are driving. Once you are parked and open for business, your general liability coverage takes over.


Food Truck Work Comp Icon.

Workers Comp

Worker’s compensation insurance (commonly known as “worker’s comp”) covers you when your employees are injured while on the job. With this type of coverage, injured employees will have access to wage replacement pay and medical benefits.

Most states require you to carry worker’s comp insurance by law, but a few leave it optional. If you’re not sure what the law says in your state, The National Federation of Independent Business offers a state by state list of workers comp requirements.


Umbrella Insurance For food trucks icon.

Additional Coverages

There are a variety of coverage “add-ons” available to suit your specific needs. Let’s take a look at a few of the more common add-ons.

  • Umbrella insurance – Worried a claim cost may exceed the basic limits of your coverage? This add-on extends the financial benefit to cover large claims and is often required by large contracts.
  • Food spoilage insurance – Serve a certain type of food that tends to spoil quickly? This insurance will keep it from eating into your bottom line.
  • Loss of business income insurance – If you suffer a collision and have to get your truck repaired or replaced, the lost income over days or weeks can end up being thousands of dollars. This coverage type compensates you for that lost income and is, in our minds, one of the best additional coverages.

There’s a whole slew of add-ons, so if you have any uncommon truck features or business practices, let us know and we’ll find the right coverage.


About Insure My Food

Insure My Food provides insurance coverage for an array of mobile food vendors such as food trucks, food trailers, concession trailers, pop, vendors, concessionaires, snow cone stands, and more. Our goal is to help you protect your business with insurance that fits your specific needs so that you can focus on the aspects of your business that matter most.

We have over a decade of insurance experience and a deep understanding of the often complex (and ever-changing) mobile food industry. We also partner with several different insurance carriers to make sure your food truck process is affordable and easy.

Want an insurance quote? Click here or give us a call at (800) 985-7859.

Top Ten –  Insurance Mistakes for Food Trailers and Food Trucks

Top Ten – Insurance Mistakes for Food Trailers and Food Trucks

Top Ten – Insurance Mistakes for Food Trailers and Food Trucks

Top 10 Mistakes

Insuring your food truck or trailer can be a messy business. Legalese, weird gimmicks, and confusing rules are all over the place – and it can be difficult to make sure you’re actually getting the coverage you need.

Let’s run through the most common mistakes mobile food business owners make when they purchase insurance – as well as tips on how to avoid them.

1. Buying The Lowest Price Policy You Can Find

Choosing low-cost insurance can – ironically – end up costing you a lot of money.

Many low-cost policies have a remarkably small list of claims they cover. You may find yourself with a surprise bill if something happens and the insurance only covers the event partially – or not at all.

Like with most things in life, you get what you pay for when it comes to insurance. And since insurance companies are continually pressured to lower prices, they’re also forced to reduce plan benefits. This hurts the relationship between the insured and the insurer, especially when claims are filed that aren’t covered by the plan.

We advise you to be thorough when it comes to evaluating your specific needs. Don’t just jump at the lowest price – jump at the plan and agency that fits you best.

2. Paying Extra For Additional Insurance Certificates

Commissary kitchens, landlords, event managers, and city health departments often require that you present them with additional insurance certificates. Frustratingly, many insurance agencies charge you between $10 and $50 for these certificates – which are just sheets of paper.

We don’t charge you extra to process additional certificates. And since our average client needs 20 of these additional certificates per year, we save them up to $1,000 annually.

There’s no reason an insurance agency should surprise you with an additional charge for something as simple as an additional certificate.

3. Incorrectly Classifying Your Truck And Property Values

The insurance world considers your food truck or trailer and your other property as two distinct things with two distinct coverages. This means that property coverage doesn’t include your truck/trailer unless specifically stated on your policy.

Many food truck owners assume wrongly that property coverage is enough. And you can imagine how unpleasant of a surprise that is when they try to submit a claim for their truck.

Here’s what the value of your truck/trailer entails:

  • The value of the truck or trailer on its own
  • The value of “permanently attached equipment” (attached via plumbing or gas)

Everything else is considered “business property” and needs to be listed separately on the insurance policy. For a better look at how this works, check out our blog: How much is my food truck worth?

Tip: Make sure to update your policy when you install new equipment and raise the value of your truck. If you forget, the new items will likely not be covered.

4. Covering Your Trailer On Your Personal Auto Insurance

You’d be surprised at how many people believe that their personal auto policy automatically extends coverage to their food truck or trailer. Your business truck/trailer will not be covered by your personal auto insurance.

The confusion comes from the fact that many auto liability policies will still cover the accident for the other vehicle if you’re pulling a trailer (though you should confirm with your policy).

For example, if you get in an accident while pulling a trailer, your personal auto liability insurance would cover the damage to the other party’s vehicle. However, the physical damage to your own trailer would not be covered.

5. Accepting A Deductible On Your General Liability Policy

Some agencies sell general liability policies that include a deductible that you are responsible to pay before the insurance company starts to pay up on a claim. While this may feel normal since it’s the case with health insurance, it’s quite problematic when it comes to food truck insurance – and you shouldn’t have to put up with it.

Auto claims are rarely cut and dry when it comes to your liability and how much you owe, which means deductibles add a whole new layer of stress and complexity that’s completely unnecessary.

With no deductible, you can file the claim then let the insurance work out the legal fees and handle the claim. This way is much simpler, streamlined, and eliminates a handful of extra costs.

6. Purchasing Insurance Valid Only At A Certain Address

Once again, you’d think that mobile businesses wouldn’t limit their insurance coverage to a single address, but it does happen from time to time. You don’t just want your truck/trailer covered in a couple parking lots – you want it covered everywhere.

Granted, this mistake is often completely accidental since insurance policies originally were designed to cover businesses operating from a single location and, thus, typically only cover a single address by default.

But you’re not working from a single location. Your business moves around – and you need a policy that moves around with you. For this reason, be mindful that your insurance agency isn’t giving you standard policy that isn’t a good fit for your mobile business.

7. Select An Agency That Does Not Process Certificates Same-Day

Need a last-minute certificate of insurance? Many companies refuse to process these on the same day, which can be a major problem for food truck owners who show up to events that require a certificate but didn’t tell vendors in advance.  The nature of this industry is quick and ever changing, and you need an insurance company that will keep up with your needs in a pinch.

8. Buying From An Agency That Doesn’t Specialize In Mobile Food Businesses

As you can see by now, there are quite a few quirks to covering your food truck that your average insurance agent won’t have any idea about. Don’t leave your business in the hands of someone who doesn’t know the in’s and out’s of mobile food insurance specifically.

Here are a few reasons you should strongly consider working with a food truck/food trailer specific insurer:

  • They’ll understand your business. A traditional agent may not “get” the mobile business idea, but a mobile food specialist definitely will – and that’ll mean more appropriate coverage, advice, and claims assistance.
  • You’ll have a trusted partner. No more worrying about how you’ll explain your situation to the agent who only works with brick-and-mortar locations. Your agent will be your partner who knows the insurance and business struggles of owners like yourself.
  • Your policy will be better than ever. An agent that knows the mobile food truck business will know the mobile food truck insurance world – which means your policy will be much more fitting than one selected by a non-specialist.
  • Policy adjustments and claims will be easy. New quotes, equipment changes, and service requests will be quicker and easier than if you’re working with someone who always has to “check the rules” for every little thing.

Get the coverage you need from the informed, savvy partner you need.

9. Not Reviewing Insurance Requirements For Specific Events

Insurance requirements can vary widely, which can lead to some headache as a mobile food business. Different states have different food service laws – and even certain cities within a single state can throw you a curveball.

Do yourself a favor and check up on each event’s requirements. Or better yet, send the requirements to your insurance agent to help you review them and advise you on whether or not you need a policy adjustment.

10. Wasting Time With Agents That Don’t Get Your Business

There’s nothing as costly and frustrating as an insurance agent who claims to be your partner but has no idea how your business is structured, what your struggles are, and what kinds of insurance you need.

You don’t have time to walk an uninformed agent through the inner workings of your business (over and over again, probably). Work with one that won’t have to ask the basic questions and who can skip to the important matters of your specific situation.

Every hour you spend figuring out insurance is time you don’t spend focusing on what makes you money and helps your business thrive. Use a trusted advisor who understands you, get the information and policy you need, and move on to the more important things.

We’d love to help with that.

Insure My Food offers affordable insurance made easy for food trailers, food trucks, and mobile food vendors. We offer a one page quick quote form, or check out our other blogs.

7 Reasons your Need Insurance on Your Food Truck

7 Reasons your Need Insurance on Your Food Truck


If you are not convinced you need proper insurance for your mobile food business, let me share 7 reasons why you should think again!

1) It’s the law. States require all vehicles on the road to carry insurance, even if you do not plan on moving around much, you are required to have auto insurance on a food truck.

2) Opens up opportunities. Without a general liability policy on your food truck, events, landlords, and commissary kitchens won’t work with you. <link to AI blog>

3) Sound risk management and peace of mind. If you invest thousands into your food truck and countless hours building your business you don’t want to see it end in a split second from an accident or theft. Check out our blog on Loss Prevention for a handy checklist to keep your business protected. 

4) It’s socially responsible. The last thing you want to do is injure someone or damage their property with no way to help. Insurance provides a means to compensate others for accidents.

5) Protects your employees. Employees are often like family (or ARE family), and Workers Comp insurance compensates them and pays medical bills if they are injured doing their job.  Still not convinced? We wrote a whole post on the disadvantages of not having Workers Comp Insurance.

6) Legal fees paid for. Insurance companies pay attorney’s fees for insurance claims on your behalf.  Even for frivolous claims.

7) Protection for your assets. Accidents happen.  Without insurance, your assets and your business are on the line.

Insure My Food offers affordable insurance made easy for food trailers, food trucks, and mobile food vendors. We offer a one-page quick quote form, or check out our other blogs for more tips!