Why You Need Insurance For Your Food Trailer

Why You Need Insurance For Your Food Trailer

by | Dec 31, 2013 | Food Trailers, Food Trucks, Insurance 101, Mobile Food, Mobile Food Business

Lawsuit

Why you need insurance for your food trailer

If you own a mobile food business like a food truck, food trailer, or concession trailer, you need general liability insurance.

Wondering why it’s so important?

  • Even if you win a lawsuit the legal cost could ruin your business, and legal fees are covered by insurance policies.
  • Lawsuit out-of-pocket costs for small businesses exceed $35 billion every year.
  • Most events won’t let you attend unless you can show you have the proper coverage to list the event organizers as an additional insured.

The need for general liability insurance goes beyond just mobile food vendors, and insuremyfood.com can help with many other types of vendors. Get a quote here.

  • Vendors at swap meets and flea markets
  • Retailers who sell out of mall kiosks
  • Food Carts
  • Indoor Vendors
  • Newsstands
  • Outdoor Vendors
  • Seasonal Lots or tents
  • Stands, Tables, and booths.

 

10 questions to ask on your Food Trailer Park lease

10 questions to ask on your Food Trailer Park lease

by | Nov 25, 2013 | Food Trailers, Mobile Food, Mobile Food Business

The 10 questions to ask on your Food Trailer Park Lease

When yFood trailer in cold.jpgou sign a commercial food trailer park lease, you are entering into a relationship where both parties have responsibilities to each other. This is one contract you will want to thoroughly read! It’s always best to ask questions ahead of time on areas that aren’t clear.

ALWAYS put any gray areas that aren’t clear in writing. Even with the best intentions of both sides, doing so will avoid miscommunication.

Don’t be left out in the cold! Make sure you understand your lease.  Below are some tips that you’ll want to cover with your potential Landlord before signing anything.

 

1. Maintenance

  • What are you going to be responsible for?

2. Utilities

  • Who pays for electricity? Do they have grey water pick up?

Insurance

  • What limits and coverage are you required to carry on your food trailer?

Lease duration

  • How long are you locked into the location?

Landlords right to Terminate your lease

  • Can they cancel your lease early for his or her convenience?

Access in and out of the park for your food trailer

  • Will you be able to take advantage of catering opportunities and events?

Amenities

  • Are parking, restrooms, seating, etc. provided?

Management

  • Will they partner with you in promoting the food trailer park or just interested in filling the park with food trailers?

Exclusivity

  • Is there a limit to the number of food trailers and types of food that can be located in the park?

Hours of Operation

  • Will tenants be required to be open certain hours?

Keys to a Successful Food Trailer or Food Truck

Keys to a Successful Food Trailer or Food Truck

by | Oct 4, 2013 | Food Trucks, Food Trailers, Mobile Food, Mobile Food Business

Keys to a SUCCESSFUL Food Trailer or Food Truck

Raw Chef Renee1. Leverage your strengths

Everyone has unique skills and experiences. What things can you do better than most?

2. Identify what excites you

What’s your passion? Hopefully food! ;-), However, after you crank out the thousandth taco, hamburger, hotdog, etc, what will keep you going? What is interesting and stimulating for you?

3. Be willing to learn

Jumping into running a food trailer can be thrilling!  But make no mistake, there is plenty to learn. You will be reminded daily. Don’t let these failures run you off course.  Instead, use them to learn and grow.

4. Be wary of naysayers

Maybe it’s from friends and family or from the established food trailer owner themselves, change scares many people.  Be confident in your goals. As long as you’re willing to learn, failure doesn’t exist because you gain experience and knowledge.

Who, What, Why, Where Additional Insureds?

Who, What, Why, Where Additional Insureds?

by | Aug 20, 2013 | Uncategorized, Food Trailers, Food Truck Insurance, Food Trucks, Mobile Food, Mobile Food Business

Additional Insureds Food Trailers

Additional Insureds (aka when a landlord or event informs you that you will need to produce a COI proving they are covered under your policy) are an important part of being a mobile food vendor. You know you need to have additional insureds listed on your policy to sign up with a commissary kitchen or to sign a lease for your food trailer location, but Who, What, Why, and Where!?!

Many think, “Hey, they are free riding off my policy!” But what is actually occurring is that they will be included in coverage for losses you would be responsible for anyway so that they don’t take on all your liability risk. Landlords still have their own insurance as well (or should!).

In the below example, assume we are talking about a landlord additional insured.

Who:

An Additional Insured is a second party with whom you are doing business. As part of their contract requirements, they may ask to be listed as covered on your policy.

Why:

Your food trailer business brings increased risk for the landlord with whom you are contracted. By listing them as an additional insured they are protected along with you on your policy for a claim from your actions. They are only covered for claims arising out of “your work.”

An example would be a suit from a customer eating spoiled food. Since the lawsuit could name the landlord (and they always do), your policy would help protect the landlord.

What:

An additional insured is an endorsement to the existing policy that provides the policy benefits to the landlord for “your work.”

Where:

The landlord will want to be shown proof of being added as an additional insured. This is accomplished by having your agent complete a standard form called an Acord 25. Some agencies will charge extra for this work; we do not. We offer a form for clients to list the information needed to generate the certificate here.  If you’re not our client, make sure your agency does not charge for a COI, and processes them 7 days a week.  The worst thing that can happen is that you have a last minute opportunity on the weekend, but no one in the insurance office to process the additional insured request!

Insurance What Is It Good For?

Insurance What Is It Good For?

by | May 3, 2013 | Insurance 101, Food Trailers, Food Trucks

What is insurance good for.

Insurance…What Is It Good For?

You know you need coverage to satisfy your lease or commissary kitchen, but what does insurance do for YOU?

Below are some examples of where a proper insurance policy can protect your hard earned business.

Types of risk Food Trailers are exposed to:

product liability for food trailer.jpg

Bodily Injury:

  • A customer buys a hot dog from your stand. While eating the hot dog, the customer suddenly chips a tooth on something hard contained inside the hot dog. The customer incurs $700 in medical expenses and $6,000 in corrective dental expenses.

Premise Liability:Premise liability insurance.jpg

  • Customers are within the premises you occupy choosing the perfect meal. A customer trips over an extension cord lying on the ground and sprains a knee. The customer incurs $1,200 in medical expenses for x-rays and $3,500 in lost wages.

theft of a food trailer.jpg

Theft:

  • The day is over and your trailer is stored for the evening. You awake to find it has been stolen. You will now need to spend $15,000 on a new cart and equipment.

food truck collision.jpg

Collision:

  • You’re pulling your trailer to the big event and run a light and your trailer is hit!  This causes severe damage to your food trailer or food cart. Damage to the trailer runs $4,000.

These are just a few examples of the insurance coverage options we offer.  Like anything in life, it’s better to be prepared.  Not thinking ahead to plan your coverages could lead to several thousand dollars in unexpected bills.

Check out our Glossary of Insurance terms to learn more.