Insurance for Food Trucks in Maine

Whether you are a veteran in the food truck industry in Maine or are looking to start up your own business, there are some insurance considerations that any food truck owner should evaluate. In this article, you can find information about some of the common coverages food trucks may want to consider and factors that may affect the cost.

Who Needs Food Truck Insurance?

Maine food trucks are exposed to many risks in the industry. As a business owner, protecting your investment is important. If you experience theft or your truck is vandalized, it can set your business back and cause you financial stress. Just a few examples of other risks that you may face include a customer becoming sick due to your product, your food truck being involved in an auto accident, or an employee getting injured on the job. Businesses that should consider insurance include but are not limited to: 

• Concession Trucks
• Vending Trucks
• Ice Cream Trucks
• Lunch Trucks
• Catering Trucks
• Mobile Hot Dog Stands

Insurance Coverages for Food Trucks

There are many factors and situations you must take into consideration when deciding what insurance coverages you may need as a food truck. Some types of insurance you may want to consider include, but are not limited to, the following.

Commercial Auto for Food Trucks

When your business is on wheels, a commercial auto policy is vitally important. Covering your vehicle that you use for business is an essential step in protecting your assets. As a food truck, chances are you have equipment and appliances attached to your truck, making physical damage coverage an important coverage to inquire about as well.

Product Recall and Product Liability

One significant risk for a food truck is product contamination or spoilage. Some food trucks not only serve their product out of their own windows, but they may also sell products in stores. With product recall coverage, you can help reduce the costs of taking your product off customers’ shelves due to an unforeseen contamination or packaging error. Some of the costs that recall insurance can help reduce the costs of are:

• Distribution costs
• Storage costs
• Disposal costs
• Replacement costs

Product liability coverage may also be available to help cover costs associated with customers who are injured or become ill as a result of ingesting a defective product.

General Liability Insurance

As a food truck business, a simple unintentional mistake could result in an unhappy customer. General liability insurance helps protect your business against financial liabilities that result from certain types of accidents for which you are legally liable.  General liability policies apply to claims for bodily injury or property damage that your business causes to third parties, for example a customer who trips and falls over your food truck’s extension cords. It is recommended that you should review your insurance policy with your local agent to see what your general liability covers.

Insurance for Your Employees

Regardless of whether you are operating your food truck business in Maine or elsewhere, chances are you aren’t running it by yourself. In Maine, workers’ compensation is a legal requirement for businesses to provide to employees, and having workers’ comp can help protect those employees. Worker’s Comp can help cover medical bills for employees who are injured or become ill because of work related events. It can also help cover a portion of lost wages.

Liquor Liability

If your food truck serves alcohol, a liquor liability policy is something you should consider. Liquor liability coverage can help provide your Maine business with coverage for claims of bodily injury or property damage for which it may become liable as a result of serving alcohol to an intoxicated customer. This type of policy may cover settlements, legal costs, and medical expenses.

What Could Insurance for a Food Truck Cost?

Just as any batch of French fries, barbeque wings, or scoop of ice cream is different, so are the factors that go into how much your food truck business could pay for insurance. To request a quote for your business, you can fill out our form here. Cross Insurance is mainly located in the Northeast, with offices throughout Maine. When you contact one of our local offices, an insurance professional will collect information and details on what policies and coverage limits you may be interested in, among other details. Some of these details may include, but are not limited to:

• What types and amounts of coverage you select.
• Location: Where will your food truck be primarily located?
• Employee Numbers: Does your business have employees or is it a solo operation?
• Claims History: Do you have a claims history? The fewer claims you make, typically the more affordable your insurance costs may be.
• Business Income: How much does your business make?

These, and other factors, will determine what you will pay for insurance premiums. To get a picture of what it could cost to insure your food truck, you can request a quote from us, or if you prefer to call someone to start the quoting process, you can find a list of phone numbers to all of our offices here.

 

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.