9 Types of Insurance for Food Trucks 

Operating a food truck is a unique and rewarding business, but it also comes with its own set of risks. From truck accidents to equipment malfunctions and food safety concerns, the unpredictable nature of mobile food service requires comprehensive protection. Understanding your insurance coverage is key to safeguarding your business and keeping it running smoothly.

In this article, Anne Russo, director of small business underwriting at Central Insurance, shares insights on essential types of insurance coverage every food truck owner should consider.

Read on to learn about nine key coverages that can protect your business from unexpected events and equip you to handle the risks of the road.

1. General Liability Insurance

General liability insurance is foundational for any food truck business. It protects you from claims related to bodily injury, property damage, and personal injury caused by your operations.

Russo notes liability insurance is crucial because food trucks often operate in busy locations, where an accident can happen quickly. “If a customer trips on an extension cord near your truck, it could lead to a bodily injury claim.”

Why It’s Important:

• Covers third-party injuries and property damage claims
• Protects your business reputation and finances in case of lawsuits

Example:
A customer trips over a misplaced power cord next to your truck and sprains their ankle. General liability insurance helps cover their medical expenses and your legal costs.

2. Commercial Auto Insurance

While food trucks are vehicles, a personal auto policy typically doesn’t cover business vehicles. Commercial auto insurance is an essential food truck coverage that protects against accidents, damage, or liability while you’re driving to a location or even while the truck is parked.

Why It’s Important:

• Helps cover accidents, vehicle repairs, and third-party damages
• Ensures compliance with state financial responsibility regulations for commercial vehicles

Example:
You rear-end another vehicle, damaging both your truck and the other car. Commercial auto insurance helps cover repairs to your food truck and the third-party vehicle, as well as any bodily injury-related liability costs.

3. Commercial Property Insurance

Your food truck is packed with expensive equipment, including grills, refrigeration units, and point-of-sale systems. Property insurance helps cover the cost of repairing or replacing your equipment if damaged or stolen, whether due to fire, theft, vandalism, or certain weather events.

“Property insurance protects your truck’s equipment and inventory, including built-in items like grills and refrigerators,” Russo says. “If something goes wrong, it helps you recover quickly so you can continue serving customers.”

Why It’s Important:

• Protects critical equipment
• Helps you recover quickly after unexpected incidents

Example:
A kitchen fire damages your grill and refrigeration system, forcing you to temporarily pause business. Property insurance helps pay for equipment repairs and replacement costs.

4. Workers’ Compensation Insurance

Workers’ Compensation is essential if you have employees working in or around your food truck—and often required by law. It covers medical expenses and lost wages for employees injured on the job.

Why It’s Important:

• Protects employees from financial hardship after workplace injuries
• Shields your business from potential lawsuits related to employee injuries

Example:
Your employee burns their hand while cooking, requiring medical treatment and time off. Workers’ Compensation, when included in a comprehensive insurance food truck policy, helps cover their medical bills and lost wages during recovery.

5. Product Liability Insurance

Food trucks face a unique risk when it comes to the food they serve. If a customer gets sick from contaminated food or has an allergic reaction, liability insurance can cover medical costs, legal fees, and settlements related to these claims.

Why It’s Important:

• Protects against foodborne illness or contamination claims
• Adds peace of mind when serving food or beverages

Example:
A customer reports food poisoning after eating at your truck and files a claim for medical expenses. Liability insurance helps protect your business from the financial fallout.

5. Business Interruption Insurance

Unexpected events, like truck damage, equipment fires, or severe weather, can force you to halt operations temporarily. Business interruption insurance helps replace lost income during these disruptions so you can recover financially while getting back on the road.

Why It’s Important:

• Covers lost income when your food truck is unable to operate
• Ensures your business remains financially stable after unexpected interruptions

Example:
A tree branch falls on your food truck during a storm, leaving it inoperable for a week. With insurance for food trucks, business interruption can cover your lost income.

6. Equipment Breakdown

Your food truck relies heavily on specialized equipment—grills, fryers, refrigerators, and generators—to keep your business running. If any of these systems break down due to a mechanical or electrical failure, the cost of repairs and lost business can add up quickly. Equipment Breakdown coverage can guard you from the financial impact of such incidents.

Why It’s Important:

• Covers repair or replacement costs for damaged equipment
• Helps minimize downtime so you can get back to serving customers
• Includes coverage for power surges, short circuits, or motor burnout

Example:
Your truck’s generator malfunctions, causing your refrigeration system to fail. Without refrigeration, your food inventory spoils, and you can’t resume operations until it’s repaired. Equipment Breakdown coverage can help pay for repairs and even reimburse you for lost income during downtime. 

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7. Cyber Suite

Many food trucks rely on point-of-sale (POS) systems, mobile payment apps, and online ordering platforms to streamline transactions and enhance customer convenience. However, this reliance on digital tools increases the risk of cyberattacks or data breaches. Cyber Suite protects your business from the financial fallout of stolen customer payment information, hacking, or other cyber-related incidents.

“Cyber liability insurance is becoming increasingly important as more food trucks rely on mobile payments,” Russo warns. “This coverage helps protect your customers and your business if your system is hacked.”

Why It’s Important:

• Covers expenses related to data breaches, such as customer notification and credit monitoring
• Helps with recovery costs after a cyberattack, like system restoration or ransomware payments
• Protects your reputation by helping you respond professionally to cyber incidents

Example:
If your food truck’s POS system is hacked and hundreds of customer credit card numbers are exposed, cyber liability insurance can cover costs related to investigating the breach, notifying affected customers, and mitigating further damage.

8. Inland Marine

Your food truck business likely requires transporting expensive equipment, such as grills, fryers, and refrigerators, between storage, events, or ghost kitchens. Inland marine insurance protects these valuable assets while they’re in transit or temporarily stored at a location other than your truck.

Why It’s Important:

• Covers equipment damaged, lost, or stolen while on the move or in storage
• Provides coverage for tools, inventory, and specialized mobile cooking equipment
• Protects items that are excluded from standard property policies during transit

Example:
Your generator is damaged in transit to a weekend festival. Inland marine insurance helps cover the repair or replacement costs, ensuring minimal disruption to your operations.

9. Umbrella

Food trucks face a variety of liability risks, from customer injuries to vehicle-related accidents. Umbrella insurance extends the limits of your general liability, auto liability, or other liability policies, providing an extra layer of financial protection if a claim exceeds your existing policy limits.

Why It’s Important:

• Adds a safety net for large or unexpected claims
• Protects your assets in the event of a lawsuit
• Ideal for food truck owners operating at busy events or in high-traffic areas

Example:
If your food truck is involved in an accident with multiple vehicles, the damages and medical costs might exceed your commercial auto policy’s liability limit. Umbrella insurance covers the remaining costs, helping safeguard your business from devastating out-of-pocket expenses.

The Central Difference

Operating a food truck is a dynamic and rewarding business, but it comes with its fair share of risks that can quickly disrupt your operations if not properly managed. “With food trucks, you’re dealing with a combination of property and auto risks, along with unique exposures like food contamination and liquor liability,” Russo says. “Having the right coverage helps you protect your business, employees, customers, and reputation.”

Working with an insurer who understands your business’s complexities is the best way to manage your risks effectively. Our team has the knowledge and experience to evaluate your needs and match you with the right coverages.

Find an agent to learn more about how Central can protect your business and help you stay on the road doing what you do best—feeding your customers.