As the owner of a food truck, you must make sure that you have the right coverage to protect you in the event of a collision or another incident. It is essential to get a customized commercial food truck policy that will provide you with comprehensive coverage. Why is truck insurance necessary? Why isn’t personal auto insurance enough? Here are four reasons why you need specialized food truck insurance.
#1. It is required by law.
The most compelling reason why you need insurance for your food truck is that it is required by law. Most states have laws that mandate a certain minimum amount of auto liability insurance. Liability insurance pays for damages that another person sustains in an at-fault accident. So, if you accidentally back into another vehicle, liability coverage would pay for their car to be repaired.
#2 You are using your vehicle to conduct a service.
If you operate a food truck, you might think that you don’t need commercial insurance as you are not transporting goods or people for a fee. In spite of this, you still need commercial food truck insurance because you are using your vehicle to conduct a service. When you use your vehicle to conduct a service, you need higher limits of liability, which is why you need specialized insurance.
#3 Your personal insurance will not adequately cover you.
Do you think that you don’t need food truck insurance because you have a personal auto policy on your van? Your personal auto insurance policy will not provide the right coverage for a commercial food truck. When it comes time to file a claim, you will be left out in the cold.
Personal car insurance and commercial truck or auto insurance are two completely different things. Commercial truck policies are designed to address the needs of customers who use their trucks for work while personal policies are designed with the average driver in mind. These policies do not even include all the coverages that you need if you use your vehicle as a food truck.
Imagine the big lunch rush is over. You are driving your car home when you have an accident. Then you file a claim with insurance because you injured your back and the truck is totaled. Well, the insurance company denies your claim because your personal policy does not cover using your vehicle as a food truck.
#4 You have expensive equipment in your food truck.
If you operate a food truck, you probably have expensive equipment in your truck. Examples include refrigeration units, grills, smokers, fryers, sinks or washing areas, and prep tables. If someone breaks into your food truck and steals your equipment, it can cost a lot of money to replace it. For this reason, you need specialized food truck insurance that will cover the equipment inside of your food truck.
Do you want more information about food truck insurance? If so, then contact us today. Also, if you want to save money on your insurance by comparing quotes, then fill out our quote form or give us a call today. Our truck insurance experts would be happy to help you get great coverage at a great rate.