We get the question asked every day…What level of food trailer insurance coverage do I need?
Listen, we know food trailer insurance can sometimes be confusing, this is such a unique industry! You want to find a great price, but also make sure you are covered! We created this to help you visually understand what food trailer insurance you need in order to protect your business. Nobody has ever regretted reviewing their coverage levels when preparing for a possible claim. It is important to put the time into learning about food trailer insurance before it’s too late!
General Liability Insurance
General liability protects you from lawsuits brought against you for injury or property damage to third parties. It does not cover auto related or employee injuries, those coverages are discussed below.
GL food trailer insurance coverage includes your products (food), your premise (slip and fall), personal injury/advertising injury (libel and slander), and property damage to others.
The best part about this insurance is it also covers the legal fees to defend such claims, even if it’s found you were not at fault!
It is smart to have this coverage since we live in a sue crazed world. Also, it is often required to do business with most landlords, vendors, and commissary kitchens.
Common coverage limits in the industry are 1 million per occurrence, 2 million aggregate (total claims per year).
To read more about general liability for food trailers and food trucks see our blog post:
For vendors such as food trailers, concession trailers, food carts, pop-up vendors, street vendors, food stands, and catering trailers you will need to speak with your personal auto carrier on if you can keep that policy or if you will need a commercial auto policy.
Either way, you want to make sure you are covered for injury or property damage to others if you cause an accident while driving.
The auto liability applies once you attach the trailer and start moving. Once you park, detach and start operating your mobile food business, the general liability takes over.
Workers Comp
Workers Compensation Insurance or worker’s comp as it is commonly known pays wage replacement and medical benefits to employees if they are injured. In many states, it’s required by law to carry workers comp and others optional.
To read more on workers comp insurance, check out our blog post:
For example, umbrella insurance is excess coverage above and beyond your limits of general liability or auto liability insurance. This coverage is often required by large contracts.
Food spoilage is another optional coverage that can pay for your spoiled food. However, beware that deductibles are often 500 or more, and many food trailers will hold about equal to the deductible.
One of the best additional coverages in my experience is the loss of business income due to an insurance loss.
Often times, even when you suffer a covered claim from an insurance loss, the resulting loss of income while you repair or replace your trailer. It will at best be a big hit to your income, or more likely put you out of business.
About Insure My Food
Insure My Food provides insurance coverage for many types of mobile food vendors such food trailers, concession trailers, pop-up vendors, concessionaires, snow cone stands, and more.
We are committed to providing our clients the highest quality insurance service combine with our industry knowledge and experience.
We have the knowledge and insurance carrier partnerships to help make the insurance process affordable and easy!
To request an insurance quote click here or call us at (800) 985-7859
2017 is shaping up to be a great year to attend a mobile food conference! Three different states are hosting expos this year. Joel will be speaking at ROAM and the Columbus Mobile Food Conference. He will also be on the panel for insurance, trademarks and employment law at the Capital City Convention.
Columbus Mobile Food Conference and Expo
Taking place February 25-26, The Columbus Mobile Food Truck Conference and Expo is back with new topics and more exhibitors. The conference will have over 20 workshops and seminars including an opportunity to attend a separate Food Manager certification course and exam. The conference will also include some non-food related seminars covering topics such as “Mobile Boutiques”.
Capital City Food Truck Convention
Taking place June 3-4 (NEW DATE!), The Capital City Food Truck Convention is unlike any other conference and trade show in the food, beverage and hospitality industries. This conference gathers together under one roof the industry’s brightest chefs, entrepreneurs, innovators, and leaders for two days of education, professional development and networking. The convention features workshops for aspiring and current mobile entrepreneurs, event and meeting planners and local government agencies who license and permit food trucks.
ROAM Mobile Food Expo
Taking place October 6-7, Roam Mobile Food Conference is the premier industry event for all things mobile food vending. From food trucks to carts to kiosks, and beyond, ROAM is the first of its kind serving North America’s mobile vending professionals. The perfect event to attend if you own or want to start your own food truck! You will learn about best practices, innovations and trends in mobile vending technology and operations. Also, grow your network with fellow professionals. Suppliers are located in the conference exhibit area to support your growing business!
Standard restaurant insurance policies can, unfortunately, leave gaps in coverage for a mobile food vendor. All too often, insurance agencies don’t fully understand your unique needs when searching for proper food trailer insurance coverage. At Insure My Food, you should know we get mobile food vendors and understand proper food trailer insurance coverage needs. We offer a competitive insurance policy for food trailers, food trucks, and mobile food vendors. Due to our experience insuring mobile food vendors, we’re confident we can help you avoid gaps.
Common Mistakes
Having property coverage that is limited to just the business address (this is standard practice). Meaning if you go to an event away from your primary location, you lose coverage. Food trailer insurance coverage needs to be treated differently because you are a mobile business.
Using a business owner policy designed for a restaurant, and not for a mobile food vendor operation.
Types of risk Food Trailers and Food Trucks are exposed to are as follows:
In the following examples, you would be responsible for these bills and losses!
Bodily Injury:
Let’s say 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:
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:
In addition to the above, you also need to cover your bases if a theft occurs. Say the day is over and your trailer is stored for the evening. While you sleep peacefully, thieves are at work! You awake to find it has been stolen. Therefore, you will now need to spend $15,000 on a new food trailer and equipment. What a major bummer!
The above are just a sample of some of the situations you can be exposed to as a mobile food vendor. Don’t settle for food trailer insurance coverage with someone who doesn’t understand this business. It may seem like a “good deal,” but the gaps in coverage are not worth the risk!
The Insure My Food advantages included:
Options for standalone General liability coverage (or package coverage to include property coverage)
No liability deductible
General Liability limits up to 2 million
Security of “A” rated carrier or better
Coverage for your trailer or truck
Competitive pricing
No charge for adding additional insured’s (commissary kitchen, events, etc.)
Insure My Food offers affordable insurance, made easy! We cover insurance for food trailers, food trucks, and mobile food vendors. We offer a one page quick quote form, or check out our other blogs and resources created for you. Joel brings over a decade of insurance experience in helping you determine your proper food trailer insurance coverage.
As a mobile food vendor, your day likely begins before dawn as you carefully procure ingredients, prep food, hand letter your menu board and ensure everything is ready to go before greeting your first customer. Your schedule is far from a traditional 40-hour work week and you know a thing or two about what it means to dedicate your life to the culinary arts.
There is nothing quite like owning your own business; the sweat equity you’ve poured into your creative pursuits is priceless. A satisfied smile from a happy customer makes it all worth it, and when a line forms and someone takes the time to tell you how much they enjoy the day’s special, you know the heart you’ve put into your work has translated beautifully.
With a long list of to-do’s and responsibilities, it can be hard to find the time to research the best options available to insure your mobile business. Thankfully, we “get” the mobile food industry! We know how full your schedule can be, as well as the unique nature of your office on the go. Often, your desk is your food prep area and your computer is your smartphone…we get it!
Why insure your business?
Not only is a level of insurance often necessary to do business (such as the general liability required by most commissaries, landlords and many events), it is a critical step in protecting your food business investment. Things like collision, theft, vandalism, extreme weather and more have a way of making an unwelcome appearance at the worst of times; we tailor your Insure My Food coverage to work well with your needs and your budget. In fact, we even offer a no liability deductible!
We streamline the process!
Instead of wasting time on tedious applications or trying to explain how your workflow is structured, we are trained to make the process smooth and headache free! We know and work with food vendors in a range of areas, including concession trailers, food carts, pop-up vendors, hot dog carts, street vendors, food stands and catering trailers.
As the leading mobile food vendor insurance company, we insure in nearly every state and take pride in supporting this community all over the country. We promise working with us is affordable and easy!
The Disadvantages for Food Trailers that Don’t Have Workers Comp Insurance
Unlimited liability for negligent injury to employees
Unpredictable accident-related expenses
More difficult to attract and retain qualified employees
Unable to do business with some entities that require statutory workers’ comp
Texas employers who do not carry workers’ compensation insurance coverage are required to report their non-coverage status and work-related injuries and occupational diseases to the Texas Department of Insurance, Division of Workers’ Compensation (TDI-DWC). Employers that fail to meet the below requirements commit an administrative violation and may be subject to administrative penalties:
Must file an annual notice with TDI
display notices of no coverage in the personnel office and throughout the workplace
give a written statement of no coverage to each new employee.
If you do not carry workers comp insurance, your employee retains the right to sue you. In addition, you are not allowed exercise common law defenses of
The assumption of risk of the job
The contributing negligence from the employee
Or coworker’s negligence contributing to the injury.
You are still required, however, to report all known occupational disease and any work-related injuries that result in more than one day of lost time.
Mobile food vendors have their challenges most every day. Running a kitchen on wheels makes every owner aptly skilled with plumbing, electrical and all types of construction and repair. Sometimes contractors can be engaged and it is wise in certain circumstances, yet food cart and truck owners are DIY people by nature. However, when it comes to insurance, where do you turn?
Most owners turn to their personal insurance broker who may or may not be skilled enough to know the ins and outs of insuring a mobile food unit. That’s why I recommend working with companies who specialize in food truck and cart insurance. Insure My Food works hard to make insurance easy and affordable for the industry. Simple application forms, the ability to pay with a credit card and quick turnaround on certificates puts them in a position to be a good member of the mobile food community. Standard forms for property, auto and liability insurance weren’t sufficient or designed for food trucks that operate as a mobile business which could create gaps in coverage. Insure My Food understands these gaps and work to inform the customer so that you’re covered.
Insurance is key to operating a successful mobile food business. Getting catering jobs or working with corporate clients will require proof of insurance and certificates. Some companies just can’t do that quickly. Insure My Food Trailer can. As a sponsor of the ROAM Mobile Food Conference for 2014, Insure My Food has committed to partnering with the ever growing and ever evolving street food industry. If you’re looking for a new policy or would just like to make sure you’re covered at the right price, drop them a line. You can find more details about Insure My Food at InsureMyFood.com.
Come on down to San Antonio, TX, November 8-9, 2014 for the ROAM Mobile Food Conference to learn more about opening a mobile food business whether it be a food truck or cart. There will be something for everyone, whether you’re a beginner or an experienced owner. Register Now.
Joel Paprocki, CIC, CRM, CPCU is founder of Insure My Food. Joel has over 20 years of experience in the insurance industry. He is passionate about helping food entrepreneurs navigate insurance and risk management with confidence. He holds all three top industry designations: Certified Insurance Counselor, Certified Risk Manager, and Chartered Property and Casualty Underwriter. He has served over 5,000 clients in the food industry, including restaurants, food truck, cateriers, If you are looking for a reliable, experienced, and specialized insurance partner, please contact us.
Joel Paprocki, CIC, CRM, CPCU is founder of Insure My Food. Joel has over 20 years of experience in the insurance industry. He is passionate about helping food entrepreneurs navigate insurance and risk management with confidence. He holds all three top industry designations: Certified Insurance Counselor, Certified Risk Manager, and Chartered Property and Casualty Underwriter. He has served over 5,000 clients in the food industry, including restaurants, food truck, cateriers, If you are looking for a reliable, experienced, and specialized insurance partner, please contact us.