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Written byJanet Berry-Johnson
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Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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In This Article
A single accident, kitchen fire, or customer injury could stall your food truck business and your profits. Commercial food truck insurance protects you with commercial auto coverage for your vehicle and general liability insurance for customers or event-related claims.
You likely need to show proof of insurance to the city, food festival, or private venue before you begin operations. Whether you operate one food truck or a growing fleet, our guide explains what commercial food truck insurance covers, why you need it, and where to find affordable coverage.
Key Takeaways
Commercial food truck insurance includes commercial auto, general liability, and workers’ compensation coverages.
Most cities and event organizers require proof of insurance before issuing permits.
Food truck insurance costs vary based on your location, coverage limits, and driving history, but owners typically spend a few thousand dollars annually.
What Is Commercial Food Truck Insurance?
Commercial food truck insurance is a specialized type of policy that protects mobile food businesses from the unique risks of operating on the road and serving the public. It combines commercial auto, general liability, workers’ compensation (if you have employees), and potentially other types of coverage.
Unlike personal auto insurance, it covers accidents or damage while using your truck for business purposes. Unlike a standard commercial insurance policy for a restaurant, it protects your vehicle, mobile kitchen equipment, and off-site operations.
Whether you own a taco truck, a coffee trailer, a mobile pizza oven, or another type of mobile food vending business, commercial food truck insurance helps keep your business moving when the unexpected happens.
Protect Your Business Vehicles
Cover cargo vans, pickups, food trucks, and more.
Food Truck Insurance Requirements
Before you hit the road and serve your first customer, make sure your business meets all legal requirements. State laws, city or county health departments, and the venues or events where you operate each have their own rules for coverage and proof of insurance.
State laws: Nearly every U.S. state requires commercial auto insurance for business vehicles. Commercial auto insurance includes bodily injury and property damage liability to cover damage you cause to other people or property while driving for business.[1]
City and county health departments: Local government agencies often require food truck operators to have general liability coverage before issuing a food service permit. For example, Chicago requires mobile food vendors to have general liability insurance.[2] It protects your business if a customer slips, gets burned, or becomes sick after eating your food.
Venues, landlords, and festivals: Many event hosts require proof of general liability insurance and for you to list them as an additional insured on your policy. It’s common for them to request at least $1 million in liability coverage.
What Commercial Food Truck Insurance Covers
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Commercial food truck insurance typically combines several policies that protect your vehicle, customers, employees, and equipment while you’re on the road, serving food, or parked overnight.
Most policies generally include commercial auto, general liability, and workers’ compensation insurance. You can also add optional coverage to address your business’s unique risks, such as food spoilage and equipment breakdowns.
Core coverages for food trucks
Most food truck owners have a combination of core coverages that protect against the most common risks on and off the road. Here’s what each one includes:
General liability covers customer injuries and property damage claims that result as a result of your services.
Commercial auto protects your truck and attached equipment if an accident, theft, or vandalism occurs. It also covers liability for damages you cause while driving.
Workers’ compensation pays medical bills and lost wages if an employee gets hurt on the job. Most states require it if you have employees.
Business owners policy (BOP) combines two or more coverages — typically general liability and property damage coverage to protect your truck’s contents, such as fryers, grills, and cash registers.
Optional add-ons for food trucks
Beyond the basics, you can customize your policy with optional coverages that address specific risks unique to mobile food businesses. Consider the add-ons below.
Inland marine/equipment insurance protects portable kitchen gear, generators, and catering tools while you’re transporting them or using them off your truck. It’s ideal if you cater events or use detachable equipment.
Food spoilage/perishable goods coverage reimburses you for lost inventory after a power outage, refrigerator failure, or equipment breakdown.
Liquor liability insurance covers claims that arise if you serve or sell alcohol, including damages caused by intoxicated customers.
Hired and non-owned auto insurance protects your business when employees drive rented, leased, or personal vehicles for business purposes.
Umbrella liability insurance extends your protection beyond the limits of your general liability and commercial auto policies.
Cyber liability insurance protects against financial losses resulting from data breaches, cyberattacks, or the loss of electronic devices.
What Commercial Food Truck Insurance Doesn’t Cover
Commercial food truck insurance doesn’t cover every risk your business faces. While terms and conditions vary from policy to policy, some common exclusions include:
Wear and tear: Insurers don’t typically don’t cover routine maintenance, mechanical breakdowns, and aging equipment. Budget separately for regular repairs and replacements.
Intentional damage or injury: Insurance typically doesn’t cover losses or injuries caused by deliberate acts.
Contractual liability: General liability policies don’t cover breach of contract, such as failing to show up to an event you agreed to attend, for example. You may be able to buy a separate policy or get an endorsement to your commercial general liability policy.
Food Truck Insurance Costs
Estimating food truck insurance costs can be challenging because national data is limited, and costs vary widely based on how much protection you buy. Rates depend heavily on factors such as your coverage limits, location, truck size and value, claims history, number of employees, and the type of food and beverages you serve.
To give some context, basic general liability can start around $300 per year, according to the Food Liability Insurance Program (FLIP).[3] Most owners will need additional protection. Broader coverage, including commercial auto and workers’ compensation, is more expensive. Industry experts generally recommend budgeting $2,000 to $4,000 per year toward insurance premiums.
Find a Commercial Auto Insurance Policy
Check rates from a top business insurance company.
Where to Buy Food Truck Insurance
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You can buy food truck insurance through national insurance companies, specialty brokers, or online marketplaces that sell small business coverage. Many food truck owners start by getting quotes from their existing auto or business insurance company, but it’s a good idea to shop around to find the right coverage at an affordable price.
When comparing policies, look for flexible coverage limits, bundling options, and reliable claims support.
Some insurance companies that offer commercial food truck insurance include:
Progressive
The Hartford (through a partnership with Tivly)
Accelerant (through the Food Liability Insurance Program)
Hiscox
Next Insurance
Nationwide
Commercial Food Truck Insurance FAQs
Before hitting the road, make sure you understand what coverage your business really needs. Here are answers to some common questions from food truck owners.
Can your personal auto insurance cover a food truck?
No. Personal auto policies typically exclude vehicles used primarily for business purposes. You need a commercial auto policy to cover accidents, property damage, or injuries that occur while operating your truck for work.
What’s the difference between food truck and food trailer insurance?
A food truck is self-powered, so it needs commercial auto coverage. You tow a food trailer, so it usually doesn’t need its own auto policy.
That said, you’ll need separate coverage for the trailer and its equipment. Often, this will be through a commercial property policy, an inland marine policy, or a specialized food trailer policy, depending on your insurer. You’ll also need a commercial auto policy for the vehicle that tows the trailer.
Is general liability required for permits and events?
Yes. Most cities and event organizers require general liability insurance before issuing permits or allowing participation. It protects you and the venue from customer injury or property damage claims.
If you own a food trailer, do you have to get commercial insurance?
Yes. Even though it’s not self-propelled, your food trailer still needs coverage for equipment damage, fire, or theft. You also need liability protection for your business operations.
Sources
- III. "Business Vehicle Insurance."
- City of Chicago. "Mobile Food Truck Licenses."
- Fit Small Business. "Food Vendor Insurance: Cost, Coverage & Best Companies."
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Janet Berry-JohnsonPersonal Finance Writer
Janet Berry-Johnson, CPA, is a freelance writer with a background in accounting and income tax planning and preparation. She's been writing for Compare.com since 2023 and has also appeared on various business and finance sites, including LendingTree, Chime, Insurify, Forbes, and WSJ. She’s passionate about making complicated financial topics accessible to readers.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
