Food trucks have been all the rage lately. Whether you’re looking for a quick bite to eat while walking around the city or hunting down your favourite ‘meal on wheels,’ you have likely eaten from a food truck. There is a lot of planning that needs to go into opening up a food truck business; you need to consider the type of cuisine to serve, overall menu and pricing, design of the truck, not to mention choosing a name. When looking into the operation of food truck ownership, make sure you also keep insurance top of mind.
As a food truck owner, you need to ensure that you and your business are properly protected – that’s where insurance comes in. In order to operate a food truck, you will need commercial auto insurance and general liability insurance.
Commercial auto insurance is different from your regular car insurance because it offers a higher limit of coverage (up to $5 million is recommended) than your personal car insurance, and will provide additional protection during the course of business operation. Vehicles used for food trucks are typically larger than the average vehicle and have been modified to serve food. It’s important to have adequate protection to cover the initial investment of the truck and all the hard work you’ve put into customizing it with food equipment.
As well, if you are planning to expand your business or are currently operating five or more vehicles as part of your food truck business you should consider insuring your vehicles as a commercial fleet. Insuring a fleet is often cheaper and more convenient than insuring each vehicle individually; learn more about commercial fleet insurance here.
A commercial package that includes general liability and commercial property insurance provides additional support for your business. It can provide protection from claims that may arise from property damage or bodily injury – such as a foodborne illness, as well as cover your equipment and food stock. In addition, you should consider asking your BrokerLink Broker if business interruption insurance should also be added to your policy.
If you’re just starting your food truck business for the first time, your prior experience may have an impact on your insurance rate. For example, if you have experience working in a food truck or operating a large vehicle your insurance may be lower. Let your BrokerLink Broker know and they will work with you to discuss your insurance needs, compare your options and get you the best value at the best possible price available.
There are many factors that go into starting up your own food truck business; the Canada Business Network’s food truck start-up checklist is a great resource. The site has useful tips and information to help you get your business up and running. Proper insurance coverage will provide you with peace of mind as you travel from location to location serving up some good eats. Let your BrokerLink Broker help ensure you find the right protection for your business.