Will my restaurant insurance policy cover my food truck?

If you’re a restaurant owner looking to expand, a food truck is an interesting option. It’s one of the fastest-growing segments of the restaurant industry.

  • A food truck would allow you to introduce your restaurant to parts of town that typically do not frequent your physical location.
  • New or unique food items can be tested, too, as possible menu items.
  • A food truck would certainly be less expensive to purchase and operate than a physical location.

The ability to grow your business with a smaller upfront investment is something every business owner would like. An important question to address is if your restaurant insurance policy will cover your food truck operation. It most likely does not.

But don’t make assumptions about what your restaurant insurance will cover.

Be sure you consult your insurance agent to see what changes or additions you will need to make to your restaurant insurance policy. If you don’t currently work with an insurance agency, reach out to Allen Drew Insurance Agency. We’ll discuss your situation. No pressure.

There will be the obvious need to cover the truck itself. These are specialty vehicles with special equipment that won’t be covered by a basic auto policy. The insurance company should want details about the unique features of your truck and/or trailer.

A great client of ours owns is Red Bird Coffee Cart. Jessica and Rachel are great examples of having a dream and combining it with hard work to get their business rolling. (literally)

We have found the following coverage options to be critical to restaurant and food truck owners.

  • The right insurance plan can protect your restaurant or food truck from a variety of risks. Here are some risks that may not seem obvious but can lead to tremendous loss.
    • Cyber and Media Content Liability: Does your Social Media and Website display media material that has a copyright that you don’t have permission to use? What about images and comments that could be seen as offensive to viewers? Your online liability is a real risk.
    • Data Breach: If your business takes credit card payments or collects any type of personal data for “reward” plans, your business should protect that data from theft, loss, or unauthorized disclosure. This coverage can provide coverage for contacting and protecting your customers if this happens.
    • Employment Practices Liability: Protects you against accusations of discrimination, sexual harassment, or wrongful termination. Don’t think it can’t happen to you.
    • Business Crime Insurance: Protects you against fraud, theft, forgery, or robbery.
    • Business Income InterruptionProvides income while your business is being restored because of a covered loss. Could your business survive with no income while your restaurant or food truck is being repaired?
    • Equipment Breakdown: Pays for direct damage and the resulting loss of income caused by or resulting from equipment breakdown. The world is an imperfect place. There is no convenient time for the grill, fryer, or freezer to break down.

U.S. Food Truck revenue is estimated to reach $2.7 Billion in 2018, according to Emergent Research.

Most restaurant owners will be considering whether adding a food truck operation is the direction they want to go. Restaurant entrepreneurs without the capital to start a “bricks and mortar” business can get started easier this way.

Starting a Food Truck business or expanding your restaurant business takes planning. There are a lot of very important things competing for your attention. The fact is, insurance is usually one of the last tasks addressed by the owner.

No matter when you look into the need for an insurance policy, remember that the insurance contract protects your assets as well as your current and future income.

This is your business we’re talking about. You pour your time, blood, sweat, and tears into it. When it comes to protecting it with insurance, don’t cut corners or take shortcuts.

Your insurance agent should be asking you a lot of questions to make sure the policy you have is tailored to your needs. You want the peace of mind that the insurance policy you are paying for is exactly what you need.

We at Allen Drew Insurance Agency would be glad to help you review your insurance plan to make sure your business insurance meets your needs.

Call us at 405-340-0606 or complete the contact form and we’ll reach out to you.

The information contained in this page is provided for general informational purposes only. The information is not meant as professional or expert advice, and any reliance you place on such information is therefore strictly at your own risk.

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Are you ready to save time, aggravation, and money? The team at Allen Drew Insurance Agency is here and ready to make the process as painless as possible. We look forward to meeting you!

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