Food Truck Insurance
What is Food Truck Insurance?
Food truck insurance protects mobile food service operations from the unique combination of restaurant and vehicle-related risks. Unlike brick-and-mortar establishments, food trucks face elevated exposures from propane system failures, generator dependencies, constant vehicle movement, and equipment spoilage from power loss.
Comprehensive food truck insurance combines commercial auto coverage with restaurant liability protection, property insurance for kitchen equipment, and specialized endorsements addressing propane explosion risks and refrigeration failures. This multi-layered approach addresses hazards that generic business policies and personal auto insurance explicitly exclude.
Benefits of Food Truck Insurance
Financial Protection Against Catastrophic Loss Food truck fires typically cause tens of thousands of dollars in losses with the majority of these fires attributed to propane system failures. Comprehensive insurance protects against total vehicle and equipment loss from propane explosions, fires, and structural damage.
Coverage for Mobile-Specific Risks Constant vehicle movement jostles propane tanks, loosens connections, and causes structural damage that increases fire hazards. Food truck insurance addresses risks from generator failures, power loss spoilage, carbon monoxide buildup in enclosed spaces, and equipment breakdowns during peak service hours. These mobile-specific exposures fall outside traditional restaurant coverage.
Liability Protection at High-Traffic Locations Food trucks operate at festivals, concerts, and street locations where large crowds congregate near propane systems. Insurance responds to customer injuries from burns at service windows, slip-and-fall incidents, foodborne illness claims, and third-party property damage.
Liability protection prevents single incidents from devastating mobile operations.
Business Continuity During Closures Generator failures, propane system malfunctions, and equipment breakdowns force operational shutdowns during revenue-generating events. Business interruption insurance within food truck policies covers lost income, employee wages, and operating expenses during forced closures, ensuring businesses survive unexpected downtime.
What Does Insurance for Food Trucks Cover?
Vehicle and Equipment Damage Commercial property insurance protects food trucks against fire, theft, vandalism, weather damage, and collision incidents. Coverage extends to permanently installed kitchen equipment including fryers, grills, refrigeration units, generators, POS systems, and inventory.
Unlike personal auto policies that exclude business use, commercial coverage responds to damage during transit and at operational locations.
Third-Party Liability Claims General liability insurance defends against customer bodily injury claims, property damage allegations, and foodborne illness lawsuits. Product liability coverage is included with general liability and addresses food contamination incidents, undisclosed allergen exposure, and food poisoning claims.
This protection extends to advertising injury and personal injury allegations.
Employee Injury Protection Workers’ compensation insurance covers medical expenses, lost wages, and rehabilitation costs for employees injured in cramped food truck workspaces. Kitchen workers face elevated burn risks from confined cooking areas, cuts from food preparation in limited space, and slip-and-fall incidents.
Employer liability insurance within workers’ compensation policies protects against employee lawsuits related to workplace injuries.
Generator and Power System Failures Equipment breakdown insurance addresses sudden mechanical failures of generators, refrigeration compressors, cooking equipment, and electrical systems. Food spoilage coverage reimburses lost inventory when power outages, refrigeration failures, or generator malfunctions spoil perishable goods during events or overnight storage.
Alcohol-Related Incidents Liquor liability insurance protects food trucks serving beer, wine, or cocktails from over-service claims, dram shop law violations, and third-party injuries after alcohol consumption. Event organizers frequently require liquor liability certificates before permitting alcohol service at festivals and gatherings.
What Type of Insurance Do Food Trucks Need?
Business Owner’s Policy (BOP) BOP bundles general liability, commercial property, and business interruption insurance into comprehensive mobile food coverage. The average premium is typically $150 to $300 per month.
This foundational policy addresses customer injuries, equipment damage from fires and theft, and lost income during operational shutdowns. Property coverage protects kitchen equipment, generators, refrigeration units, and inventory from propane fires, generator failures, and theft.
Commercial Auto Insurance Food trucks require commercial auto insurance covering transit accidents, property damage to the vehicle, and medical expenses from collisions. The average premium is around $170 per month ($2,041 annually). Coverage includes collision protection for accident repairs, comprehensive coverage for fire/theft/vandalism, and liability protection for injuries and property damage caused by the food truck during operation.
Workers’ Compensation Insurance Required in nearly all states for food trucks with employees. The average premium is $78 per month ($940 annually), calculated at $1.03 per $100 of payroll.
This insurance covers medical costs and lost wages for employee injuries from burns, cuts, and workplace accidents in confined food truck spaces.
Equipment Breakdown & Spoilage Coverage Critical endorsement addressing generator failures and refrigeration breakdowns. The premium is typically $300 to $600 annually depending on equipment value.
Single spoilage events during festivals can cost thousands of dollars in lost inventory, making this coverage essential for operations dependent on continuous generator power.
Liquor Liability Insurance Required for food trucks serving alcohol. The average premium is generally around $58 per month ($700 annually).
This protects against dram shop violations, over-service allegations, and incidents involving intoxicated patrons. Many event organizers mandate liquor liability certificates before permitting alcohol service.
Hired & Non-Owned Auto (HNOA) Insurance Covers liability gaps when employees use personal vehicles for food truck business including supply runs and catering transport. HNOA fills protection gaps in personal auto policies that exclude business use.
How Much Does Food Truck Insurance Cost?
Food truck insurance typically costs $2,500 to $5,000 annually depending on vehicle value, equipment inventory, employee count, and operating frequency. A food truck with 2 to 5 employees typically pays $250 to $400 per month for comprehensive protection.
Average Costs by Coverage Type:
- Business Owner’s Policy (BOP): $150 to $300 per month
- Commercial Auto Insurance: $170 per month ($2,041 annually)
- Workers’ compensation: $78 per month ($940 annually)
- Liquor Liability: $58 per month ($700 annually)
- Equipment Breakdown & Spoilage: $300 to $600 annually
Premium Factors: Vehicle and equipment value significantly impact property insurance costs, with high-value trucks and specialized equipment driving premiums higher. Propane system configuration affects fire risk assessments as 100-pound cylinders increase premiums compared to smaller tanks.
Operating frequency influences exposure, with daily operations commanding higher premiums than weekend-only service. Geographic location creates premium variations between urban high-traffic areas and rural locations.
Claims history over 3 to 5 years qualifies operations for discounts. Safety equipment including automatic fire suppression systems, professionally installed generators, and regular propane inspections also reduces premiums.
🚚 Food Truck Insurance Premium Calculator
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Getting Started with Food Truck Insurance
Insurance Kitchen specializes in restaurant insurance with 20+ years protecting mobile food operations. Our bespoke approach addresses the unique intersection of vehicle liability, propane system risks, generator dependencies, and equipment protection that mainstream agents overlook.
We evaluate vehicle specifications, propane configuration, generator setup, equipment inventory, operating schedule, and event locations to craft coverage protecting complete mobile operations. Most food truck quotes are delivered within 24 to 48 hours.
Contact Insurance Kitchen at (234) 271-4963 for specialized food truck insurance from agents who understand propane explosion risks, generator-related spoilage, and mobile operation complexities that generic providers cannot address.
Experienced Restaurant Insurance Specialists Who Get The Job Done
Insurance Kitchen is built on a simple premise: restaurant owners deserve insurance partners who understand their world because that's all we do. Our 20+ years serving restaurants means your coverage benefits from expertise that generic agents simply cannot provide.
Start Your QuoteDiscover how specialized insurance transforms your food truck from transactional renewal to strategic protection.
Data Sources
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Food Liability Insurance Program (FLIP) – FLIP. “Best Food Truck Insurance” https://www.fliprogram.com/food-truck-insurance
Insuranceopedia – Insuranceopedia. “Food Truck Business Insurance Costs 2025” https://www.insuranceopedia.com/business-insurance/food-truck-insurance-cost
Insureon – Insureon. “Food Truck Business Insurance Costs” https://www.insureon.com/food-business-insurance/food-trucks/cost
JouleCase – JouleCase. “Powering Your Food Truck: How to Avoid Generator Overloading” https://www.joulecase.com/blog/preventing-generator-overload-essential-tips-for-food-truck-owners
Kickstand Insurance – Kickstand Insurance. “Workers’ Compensation Insurance for Food Trucks Cost | 2025” https://www.kickstandinsurance.com/blog/workers-compensation-insurance-for-food-trucks-cost
Koorsen Fire & Security – Koorsen Fire & Security. “Food Trucks – A Growing Industry Brimming with Fire Hazards” https://blog.koorsen.com/food-trucks-a-growing-industry-brimming-with-fire-hazards
MoneyGeek – MoneyGeek. “Food Truck Business Insurance Cost (2025 Rates)” https://www.moneygeek.com/insurance/business/food-truck/cost/
NEXT Insurance – NEXT Insurance. “Food Truck Insurance Cost – November 2025” https://www.nextinsurance.com/business/food-truck-insurance/cost/
QRFS – QRFS. “Food Truck Fire Safety Regulations: New NFPA Model Code” https://blog.qrfs.com/281-food-truck-fire-safety-regulations-new-nfpa-model-code/