Examples Of Various Insurance Coverage Your Food Truck Business May Need

If you are thinking of launching a food truck business, note that business insurance should be part of your plans. Here are some of the various forms of insurance you may need for your food truck business:

Commercial Auto Insurance

You need commercial auto insurance coverage to protect the truck you use for hauling your business around. Just like other forms of car insurance, commercial auto insurance include various forms of coverage such as:

• Liability insurance – this is what pays for damages your business truck may cause to other people
• Collision coverage – this is what pays for the damages caused by a collision between your business truck and other cars
• Comprehensive coverage – this is what pays for any other damage that is not caused by a collision; it is what you need to repair the truck, for example, if it is damaged by a flash flood

Note that if you own a car or truck that tows a separate trailer for your food truck business, you may need an endorsement to your commercial auto insurance coverage for it to extend to the trailer. Otherwise, you may only be covered for the damages your actual truck suffers or causes, but not the trailer.

Commercial General Liability

Since your food truck business is a business just like other brick-and-motor food sellers, it also needs commercial general liability insurance (CGL). CGL coverage is what comes to your rescue if your business causes harm to others in any other way other than a truck accident. This is what will come to your rescue, for instance, if someone sues you for food poisoning or if your food truck causes a fire that ends up burning other people's properties. Your commercial auto insurance coverage only applies if it causes an accident while it is moving. CGL comes to your rescue if you cause injuries or property damages to others while in the course of your business.

Commercial Property Insurance

Lastly, you also need commercial property insurance coverage for your business properties. Not that even if you have comprehensive commercial auto insurance, it will not pay for damages that the contents of your business may experience; it only applies to the truck, trailer (if there is an endorsement), and their attached parts. Other business properties such the food in the freezer, the cooking appliances, the cooking stove, among others, are not included in the comprehensive auto insurance policy and you need commercial property insurance to protect them. That is the only way you will be able to make a claim and expect a payout if fire accidentally destroys your cooking ranges.

To learn more, get in touch with a company like Welsh Insurance Agency Inc.

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