Insurance

If you’re looking to start your own food truck, one of the most important business steps is investing in insurance. Without the right insurance or proper coverage, your food truck is at risk of costing you thousands of dollars or putting you out of business entirely. The average cost of food truck insurance is approximately $3,500 - $5,500 a year but could vary depending on the coverage option you choose and your provider.

Food truck general liability insurance is necessary to protect your mobile business from incidents and accidents involving third parties while your vehicle is stationary but open for business. Be sure that it is protected from liabilities, collisions, and other threats by covering it with comprehensive insurance to provide you with peace of mind and a successful business in the long run.

*If you are vending with a trailer and not a truck, be sure to ask your insurance agent about insuring your tow vehicle.

General Liability Coverage:

  • Product-related lawsuits such as those involving foodborne illnesses, food poisoning, burns from hot food, cuts from glassware or metal utensils, and contaminated food with debris or allergens.

  • Premise-related lawsuits including customer slip and falls on pavement, ice, or sitting water around your food truck, as well as any other injuries to customers or passersby on your premise.

  • Advertising lawsuits, such as personal injury, libel, and slander in marketing campaigns (intentional or unintentional).

  • Property damage lawsuits and fines like those involving damage caused to someone else’s building or property by your truck.

  • Legal fees and representation in court if you do get sued, regardless of the outcome.

General Liability Does Not Cover:

  • Employee-related incidents

  • Auto accidents

  • Incidents while your truck is driving from location to location

A good Food Truck Insurance policy should also cover;

  • Equipment like generators and kitchen supplies that are “not attached” to your mobile.

  • Business Interruption Insurance- if something happens to the truck this will cover lost income,

  • Cyber Liability- protects you in case someone hacks into your customers data,

  • Employee Benefits Liability-protects you in case you make an error when offering benefits,

  • Employment Practices Liability- protects you for any wrongful termination lawsuits.



Below are the typical minimum standards:

General Liability $1M

Product Completed Operations $1M

Tenants Liability $250k (for the commissary kitchen)

General Aggregate $2M

Auto Liability $1M (combined single limit)



COI - Certificate of Insurance

Food truck owners should be adding the business owner (and the property owner) of a rented/leased service site as “additional insured” to indemnify them from any liability in the case of an accident. This way, the food truck’s insurance will be responsible.  Food truck owners should call their insurance company and ask what the process is to add the additional insured parties to the policy.

A COI is the term used for a Certificate of Insurance required at all vending locations (that are not owned by the food truck operator.)

Many cities and counties here in Washington are changing their insurance minimums and requiring vendors to have the following:

Commercial General Liability - Bodily Injury Liability and Property Damage Liability Insurance: $2,000,000 each occurrence OR combined single limit coverage of $4,000,000, with not greater than a $1000.00 deductible.

Our Preferred Agents

Cesar Ramos Bus: 253-277-8418 / Address: 26019 104th Ave SE Ste 102, Kent, WA 98030-7031 https://cesarnationinsurance.com/ Provides auto, home, life, and business insurance. Proudly serves speakers of English, Tagalog, and Spanish. You can order your COIs right from their website. Tricia Ramos is the contact person, specifically for food truck insurance, and can be reached at: tricia.ramos.g2dy@statefarm.com

Matt Layson of CalRose Insurance is located in Everett, specializing in commercial and small business policies. CalRose Insurance was started by Don Layson and is managed now by his son, Matt. Together they deliver a high level of insurance understanding to individuals and businesses and companies throughout Snohomish County and Puget Sound. Contact Matt Layson via Email: Matt@calroseins.com or Phone: (425) 257-5088. Find them on Facebook here.

“Getting your food truck business insured isn’t as simple as you thought right? We’ve found food truck business owners often come to us feeling like there isn’t much anyone can do to help, and we think you deserve better than that. We have access to a new program that recently came to Washington, which has saved some of our clients thousands of dollars while improving coverage at the same time. As a family owned, independent insurance agency, we are different from the other insurance brands you may be familiar with. Not only do we have access to dozens of insurance companies, if we learn of a better program, we will inform you.” Matt Layson

Great articles to be fully informed:

Food truck insurance is more than just commercial auto

Food Truck Insurance Types and Cost

**As of 8/28/23 new Farmers Insurance policies written for a food establishment will only be good for 12-months and cannot be renewed. Current Farmers vendor policies can only be renewed up until the end of October. All Farmers food establishment policies will need to be brokered out to another company as they will be discontinuing coverage for this type of business in the future.


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