So today we are going to discuss about Food truck insurance cost. No, no, don’t worry I will not teach you finance here, just the costing and insurances thing. You know!
You guys must be pondering what would be the average cost of food truck insurance? Okay, guess the range.
Yes, exactly its between $2,000 and $4,000 a year, although this can vary depending on your coverage options and provider.
Don’t worry my friends to make things easy for you. I have enlisted and breakdown of typical food truck insurance costs.
So, let’s start with, General Liability Insurance: It has premiums range from $300 to $800 and Moreover, for $1,000,000 of coverage with no deductible. Its that amazing!
Next up is, Commercial Auto Insurance: Premiums range from $1,500 to $3,000 and for coverage of $250,000 and a $500 deductible.
Subsequently is, Premiums for contents insurance ranges from $300 to $1,000 and in fact, for a $25,000 policy with a $500 deductible. Its premium guys, you can pay a bit more. I know!
Follow up is, Workers' Compensation Insurance: Premiums range from $1,000 to $1,500 and furthermore, for $1,000,000 of coverage with no deductible. Woooww again!
Moving ahead, with the aspects that can affect the cost of food truck insurance:
First and foremost is a service provider
At number 2 comes, Scale of the company
Furthermore, Policies of the state
And Intentioned location- taking into consideration the crime rates can increase insurance rates.
Moreover, the Risk factors, for instance, cooking equipment is more dangerous than refrigeration equipment and Equipment value to illustrate, the higher the equipment price, the higher the rate and the Replacement cost coverage versus cash value coverage
What’s more is the Payroll for employees
In addition to Amount of coverage categorising into minimal, average, high
And last but not least, Options with a deduction.
After all this discussion, you guys must be really excited to about insurance thing, and might be questioning to yourself, What Kind of Insurance Does a Food Truck Require? right? So, without making you wait, let me tell you that,
It's important to think about the types of insurance you'll need to cover your company and vehicle from liabilities, theft, and accidents when purchasing a food truck. Food trucks, ice cream trucks, and catering trucks, for example, all need the following forms of insurance.
Food truck general liability insurance is required to cover your mobile company from third-party fatalities and accidents when vehicles are parked but open for business.
Its General Liability Coverage are:
- Foodborne diseases, food poisoning, burns from hot food, wounds from glassware or metal utensils, and tainted food with debris or allergens are all examples of product-related litigation.
- Customer slip and falls on pavement, ice, or standing water around your food truck, as well as any other accidents to customers or passers-by on your premise, are both examples of premises-related litigation.
- Personal injury, libel, and defamation litigation in advertisement campaigns are examples of advertising lawsuits (intentional or unintentional).
- Property damage claims and fines, such as those resulting from damage to another person's house or property caused by your truck.
- Legal costs and representation in court, regardless of the result, if you are sued.
But it has some things which it Doesn't Include and that are,
Incidents involving employees And Accidents that occur when your truck is travelling from one place to another
To do business with food truck operators, most vendors, tenants, and commissary kitchens need a minimum of a $1,000,000 general liability policy, and they will often ask to be identified as an additional insured on your policy.
Second insurance is. Insurance for commercial vehicles
All vehicles used for business purposes must have commercial auto insurance to protect against liability and loss while in transit. Physical damage to your car and objects permanently attached to your vehicle by bolts, plumbing, and gas lines are covered by commercial auto insurance policies.
Commercial Auto Coverage:
- Collision insurance for commercial vehicles (damage to the vehicle and permanently fixed items resulting from a collision with a barrier or other vehicle)
- Coverage for liability (Injuries to others while the vehicle is in motion, damage caused to property while in transit)
- a broad range of services (Not-at-fault incidents including theft, fire, vandalism, nature, and weather-related damage)
and it Doesn't cover: Injuries and property damage caused by your car while it's parked.
Smaller cars are also covered by personal auto policies. Before choosing a personal policy over a commercial policy, make sure to check with your policy provider and local jurisdiction.
- Insurance for the contents
Contents insurance protects the things in your food truck that aren't permanently attached to it. Contents insurance is also known as company property insurance or contents coverage insurance. Business owners can choose between an actual cash value policy (which provides the product's cost minus depreciation) and a replacement cost value policy (which covers the cost of a new product). Real cash policies would have a higher premium than replacement policies.
And Contents Insurance Coverage:
1.Damage to objects caused by an accident and vandalism
2.Items that have been stolen
3.Objects that aren't held in the truck
4.Weather or fire-damaged products
But it Does Not Cover:
Objects linked to the truck
To ensure that all of your food truck possessions are covered by your premium, combine commercial car insurance with contents coverage.
- Insurance for Workers' Compensation
Workers' compensation is required to provide salaries and medical care to the employees if they become sick or injured at work.
Excited to know what Workers' Compensation Insurance uploads:
1.On the job, an employee slips and falls.
- Employee illnesses as a result of their work
- When an employee is injured on the job, they are entitled to medical treatment, costs, medication, and recovery.
- Long-term or lifelong disability benefits to employees
- Family members of workers who die as a result of their jobs receive death insurance.
But on the flip side of coin, it Don’t comprise of-
Liabilities affecting consumers and injuries or diseases that are not linked to work.
OSHA requires workers' compensation in most states for food trucks, and it is strongly recommended in the remaining states to ensure that your company is completely covered.
So, That’s all for today’s show. I will get back to you with another video.
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Thanks for watching.