Am I Covered If My Catering Van Crosses State Lines for an Out-of-State Event?
Your liability coverage generally travels with the vehicle, but the applicable minimum limits change. Once a trip crosses state lines for business purposes, federal interstate commerce rules can apply on top of, not instead of, your policy and any state requirements.
State Minimums vs. Federal Interstate Requirements
The Commercial Auto Insurance hub compares state minimum liability limits, such as California's $15,000/$30,000/$5,000 and Texas's $30,000/$60,000/$25,000. Those figures apply to a vehicle operating within a single state. A catering van driving to an out-of-state event is a different situation: it may also fall under Federal Motor Carrier Safety Administration rules that set their own minimum financial responsibility levels, separate from any single state's requirement.
When Does a Catering Trip Count as 'Interstate Commerce'?
Under 49 CFR Section 390.5, interstate commerce includes trade, traffic, or transportation between a place in one state and a place in another state, even if the vehicle itself never leaves the country and even for a single trip. A restaurant sending a catering van across a state border for one event can meet this definition, which triggers federal motor carrier requirements that don't apply to purely local deliveries.
What Federal Minimum Financial Responsibility Actually Requires
49 CFR Section 387.9 sets minimum levels of financial responsibility for motor carriers operating in interstate commerce, and these levels can be higher than an individual state's minimum liability requirement. If a catering van's coverage was purchased only to meet one state's minimum, it may fall short of what federal rules require the moment that vehicle crosses into interstate operation.
What to Confirm Before Booking an Out-of-State Event
Before committing to a catering job across state lines, confirm with your insurer that your policy's liability limits meet or exceed federal interstate minimums, not just your home state's requirement, and ask whether the vehicle's registration or permits need any update for the destination state.
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