Insurance Cost for Food Truck Business: What Food Truck Owners Should Know
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 day ago
- 2 min read
Operating a food truck is an exciting business venture, but it comes with unique risks. From vehicle accidents to foodborne illness claims and equipment loss, insurance is essential. Understanding what affects food truck insurance costs can help owners plan their budgets and get adequate coverage without overpaying.
This guide explains how insurance premiums are calculated for food truck businesses and how Wexford Insurance can help owners secure tailored coverage.
What Impacts Food Truck Insurance Costs?
Insurance companies evaluate several factors when calculating premiums for food truck businesses:
Certain foods and cooking methods carry higher risk:
Grilling, frying, and open-flame cooking increase fire risk
Serving allergenic or high-risk foods may increase liability
Mobile catering at crowded events can elevate exposure
2. Business Revenue and Payroll
Insurance companies consider:
Annual revenue
Number of employees and payroll
Higher revenue or a larger workforce generally increases premiums due to greater exposure.
3. Truck and Equipment Value
Your food truck is both a vehicle and a commercial kitchen. Premiums reflect:
Truck model, age, and value
Kitchen equipment and appliances
Tools and supplies used in daily operations
4. Coverage Types and Limits
The cost depends on the coverages you select:
Higher coverage limits generally lead to higher premiums, while bundling policies can lower costs.
5. Claims History
Past claims or lawsuits can increase insurance costs. Maintaining a clean claims history helps demonstrate lower risk to insurers.
6. Location and Event Participation
Where you operate affects pricing:
Local laws and regulations
Events, festivals, and commissary kitchens
Crime or accident rates in your area
7. Safety Measures
Insurers often reward businesses that implement safety practices:
Fire suppression systems in trucks
Employee training and food safety programs
Secure storage for equipment
Average Food Truck Insurance Costs
While costs vary widely, food truck owners can expect:
General liability insurance: $400–$1,500 per year
Commercial auto insurance: $1,000–$3,000 per year
Workers’ compensation: $2.00–$5.00 per $100 of payroll
Product liability insurance: $500–$2,000 per year
Equipment coverage: $300–$1,000 per year
Actual costs depend on your truck, menu, coverage limits, and location.
How to Save on Food Truck Insurance
Bundle multiple policies with the same insurer
Maintain a clean claims history
Implement safety programs for employees and equipment
Compare quotes from multiple carriers
Why Choose Wexford Insurance for Food Truck Coverage
Wexford Insurance specializes in food truck and small business insurance, helping owners:
Assess risk and determine proper coverage
Bundle policies to reduce costs
Get fast, accurate, tailored quotes
Access multiple carriers for competitive rates
