Amazing Innovations in the Food Truck Industry spark new Insurance needs
One of the most delightful culinary happenings in history is here to stay. Food trucks have made major inroads into the restaurant industry and are one of the fastest growing areas due to new innovations in this field. From sleek and savvy to cute and sassy the designs, structure, overall look and utilization of food trucks are being reborn, and taking root in America.
The widespread advances throughout the food truck industry sparked a remarkable change in the food world because of the unique melding of two types of business into one. That is a hybrid restaurant on wheels but not the stereotype ice cream truck or cold sandwiches and snacks served in a factory parking lot. The public wanted outrageously good food, with appetizing aromas and an enticing appearance served in a fun atmosphere.
Restaurant entrepreneurs responded to the public’s desires and now diverse menus with every food imaginable served from fantastic wickedly designed trucks provide adventures in dining to the public’s delight.
As more and more food trucks enter the business world and develop their own style or “brand” many other industries seek to cash in on this phenomenon by providing goods and services designed specifically for the food truck scene.
Among those wanting to collaborate with the food truck industry is the commercial insurance industry. Thus the food truck BOP insurance policy came into being because every business needs insurance which fits their specific needs. Especially a state of the art customized truck fit to feed a queen and king or better yet, you and me.
With that thought, what type of insurance does an amazingly clever entrepreneur need to keep his mobile eatery and victuals protected from peril?
While the insurance needs for a food truck are similar to the needs of a restaurant there are many differences and concerns which are not present in a brick and mortar restaurant so restaurant insurance is just one piece of the protection puzzle. Additionally you need excellent comprehensive vehicle coverage for your food truck; especially since you have lovingly crafted the ideal truck with the right atmosphere using your imagination to create a dining experience extraordinaire for your clientele.
Initially, the insurance industry did not share the vision and were really divided into two camps. Auto insurance carriers offered business add ons to policies and commercial restaurant insurers offered add ons for company vehicles, but very rarely did insurers have a specifically designed business owner’s policy for a food truck. To meet the growing desire for “specialty” policies, insurance carriers adapted and developed packages tailored for food trucks and more options became available. No matter which carrier you utilize a specialty tailored policy should include these basic elements:
- A comprehensive commercial general liability insurance policy (required by law)
- Commercial auto/truck policy.
- Business property and equipment/inland marine
- Business Loss of Income with extra Expense
- Workers Compensation for your employees (Required by law)
The business liability category for Mobile Food Trucks is Eating and Drinking Places
This means your classification codes used to classify and rate coverage premiums would generally fall under:
SIC Business Insurance Codes
4812 – Eating Places
NAICS Liability Classifications
- 722320 Food Caterers
- 722310 Food Service Contractors
- 722330 Mobile Food Services
Business ISO General Liability:
- Code 11039 – Caterers and Mobile Food Service
Additional insurance options are:
- Food Spoilage/contamination
- Cyber-security/data breach
- Liquor Liability (If you serve beer, wine or alcohol)
- Commercial Umbrella
- Catering/Special Events
- Employees Dishonesty
Special concerns may arise when choosing your businesses commercial automobile coverage and your businesses commercial property insurance.
- Coverage for employees sent on errands for the food truck with their personal auto.
- Special riders that cover the unique painting and finishes on your truck in the event of a wreck
- Coverage if you have retractable awning or parts that expand the size of the vehicle. You may need extended coverage or a rider similar to a policy for an RV
- Coverage for refrigeration units, both if the unit breaks or the truck itself is broken or damaged and coverage for any foods that spoil
- Coverage for cooking equipment and apparatus giving special attention to whether there is any exclusion for types of cooking units or types of fuel used. A good example of this is exclusion for a propane fuel cooking system due to the spate of recent explosions.
- Coverage for nearby buildings, and objects damaged by fire or explosion
(You will also want to develop a fire and safety plan with training components for employees to help with your insurance costs. You will also need a gas detector suitable to the type of cooking fuel you use.)
- Coverage for lease or rental of additional commercial kitchen space
- Coverage for use of your home kitchen to cook a portion of the food in ,needs to be specifically covered in your property insurance.
- Coverage if you have a home office, computers or other equipment used for the business located in your residence, which should be specifically listed and included.
Another category of concern is raised by the frequent use of credit card readers which leaves your food truck vulnerable to data breach. This seems unlikely but really is not. Credit card information is eagerly stolen by criminals who want to make profit from its usage. Approximately 43% of all business in US have had data breaches.
Now that you built your dream on wheels keep on, keeping on protecting your dream by being a connoisseur of your insurance needs.