Get a custom quote on +61 418 646 188
Get a custom quote on +61 418 646 188
Sep 4, 2024 in by A & B Content Team
For aspiring entrepreneurs looking for a business to start, there are few better options than operating a food truck. Everyone needs to eat, which means that you’ll always have a market for your products. Working in this line of business also means you won’t be tied down to one geographical location all the time: a food truck, by its nature, is mobile, which makes it easy to move from place to place.
If you’re looking to break into the food truck business, it’s vital to secure insurance. While it’s tempting to think that things will go perfectly, unforeseen costs are inevitable. For instance, your food truck might run into an accident on the road, or you might experience theft from one of your employees or a stranger. These are situations that happen on a regular basis in the food truck industry, even if your food truck and the tools inside were built by an experienced food truck designer.
In this post, we’ll answer the question of what sorts of insurance you need to secure for your food truck business. We’ll also list some of the situations covered by these different types of insurance and go over why you need to be insured against these risks.
PL insurance, or public liability insurance, is a form of business insurance that protects you against a wide range of public liability risks. This type of insurance is critical for businesses that operate in public spaces, create their own products and interact with customers in private spaces owned by others. All of these are characteristics of a food truck business.
PL insurance can cover the cost of lawsuits should an employee suffer an injury while working for your food truck business due to equipment malfunction or if one of your customers decides to sue you after experiencing ill effects from eating your food.
You can also tailor a PL insurance policy to suit your specific needs. For instance, you might want to take out a smaller or larger policy depending on the size of your business. You can ensure that your food truck company is insured for costs of up to $20 million. You can also add coverage for specific risks like employee theft, damage to machinery and business interruptions.
No matter what type of food truck business you run, securing PL insurance is essential for covering potential costs that can pose an existential risk to your business.
If you’re selling a food item like burgers, donuts or tacos from a food truck, you’ll need commercial motor insurance. This form of insurance covers damage to a wide range of commercial vehicles, including delivery trucks, forklifts and, most importantly for you, food trucks.
As a food truck operator, you’ll be spending plenty of your time on the road, which makes you vulnerable to unforeseen accidents. Moreover, repairing a damaged food truck can cost you thousands of dollars, so you’ll want to make sure you have sufficient coverage for these unforeseen events.
Commercial motor insurance is particularly important if you’re running a food truck as your vehicle is the heart and soul of your entire business. Without a working truck to sell food out of, your company grinds to a halt.
Even food trucks made by manufacturers with a vast portfolio of work are susceptible to everyday accidents on the road. You can protect yourself by securing commercial motor insurance for your food truck business.
Businesses can’t run smoothly 100% of the time, especially those that operate in physical spaces, like food trucks. Every now and then, disasters like fires, floods or earthquakes can halt business activities, costing you days’ or even weeks’ of potential revenue. More minor incidents like burst pipes can also interrupt your food truck business and take their toll on your bottom line.
The possibility of an unforeseen interruption to your operations makes business interruption insurance a necessity for food trucks. Business interruption insurance covers the loss of potential revenue due to these events and the costs of remaining operational during this time, helping your food truck business stay afloat even if you go through periods when it’s impossible to operate normally.
It’s important to note that business interruption insurance covers operating expenses and the loss of potential income over a period of time, not the cost of repairing damages caused by natural or man-made disasters.
Protect your pizza, ice cream or burger food truck business against unforeseen disasters today by securing business interruption insurance.
While you might think of a food truck business as being primarily brick and mortar, there are plenty of cyber threats you could fall victim to. These can include data theft, data destruction, hacking and human error on the part of your IT team. Running into one of these risks can set your food truck business back significantly, which makes it crucial to protect yourself against digital threats.
While cyber insurance wouldn’t have even been a consideration for businesses in years gone by, it’s essential in 2024. A cyber insurance policy provides financial cover should your food truck business be on the receiving end of a digital attack, which can happen even if you’ve set up cybersecurity measures.
Even if your business consists of selling ice cream or burgers out of a food truck, securing yourself against digital threats is essential. Do so by adding a cyber insurance policy to your cybersecurity arsenal today.
Every now and then, food truck businesses may be subject to a tax audit by the government. Even if you’ve done nothing wrong, these audits can be lengthy, expensive processes. You’ll often need to enlist the help of accountants, bookkeepers, lawyers and other tax experts during a tax audit. As you can imagine, these costs can add up, especially if you’re in charge of a small food truck business.
Investing in tax audit insurance protects you against the costs involved with going through a tax audit process. Your insurance provider will compensate your food truck business for the losses you incur in hiring tax professionals. To reduce the stress caused by government tax audits, it’s crucial to secure a tax audit insurance policy for your food truck as soon as possible.
~
At AB Food Trucks, we know all about building a wide range of food trucks and providing advice on daily operations. In this article, we’ve gone over some of the most important types of insurance you should invest in for your food truck business.
If you need more advice about what kind of insurance to secure for your food truck or have another question about running a food truck business, please reach out to a member of our friendly team. To build your very own food truck with us, request a quote online today.
0 Comments.