Everything You Need To Know About Food Truck & Van Insurance

Not that long ago, the humble food truck was the last resort for hungry Aussies unable to get a table at their favourite restaurant on a night out. Nowadays, they’re a staple of the streets and even a necessity at the likes of a market stall, live music festival, fete or private, open–air event.

Mobile food vans have become famous for their multicultural menus, essentially serving up gourmet on the go, They aim to cater to all patrons – regardless of their dietary requirements or preferences – by providing various options and alternatives, and just as importantly, they are affordable.

However, with a mobile business comes risk and responsibility, and there are many different situations and scenarios for a food truck business to try and pre–empt. This is where food truck insurance comes in handy.

The coverage needs to be as versatile as the business itself, and protect traders from a wide range of potential claims, such as accidents, allergies, equipment failure and property damage.

Whether you operate a single food truck or a fleet, keep reading to find out all the reasons why insurance should be an essential part of your industry…

Why do Mobile Food Trucks need Insurance?

It doesn’t matter what you’re serving up, be it sliders, pastries, pizzas and french fries, or hot coffees, ice–creams, dumplings and donuts, the need to have insurance is universal.

You function like a hospitality business but you function out of a vehicle, meaning there are more variables to be considered and covered. So, the best insurance option for a food truck is one that can be customised and made to suit the specifics of the industry and the people who work in it.

First of all, there are the food industry incidents to be protected from. Burns, poisonings, allergic reactions and foreign objects in the food are just a few of the things people can cite as reasons for suing an establishment.

Secondly, the nature of the business being run out of a truck could cause issues, from collisions on the road or in car parks with other vehicles, to customer (and even employee) injuries, slips or falls whilst engaging with the business.

What Types of Insurance do Food & Coffee Vans need?

Food truck insurance doesn’t just give the participant peace of mind, it gives them protection against specific circumstances and claims, if they should arise.

To adequately address all the potential risks that come with the job, a good truck insurance policy will need to combine several types of coverage to safeguard the business from lawsuits or lost income.

An appropriate policy could be a combination of the following:

• Business Interruption Insurance – for if your food van is damaged or out of action
• Commercial Vehicle Insurance – for if you have multiple trucks to get insured
• Commercial Property Insurance – for if any equipment or ingredients are stolen
• Product Liability Insurance – for if a customer falls ill because of what they ate
• Public Liability Insurance – for if a customer slips or falls at the site of the truck
• Workers Compensation – for if a staff member falls ill or injures themselves on the job

There are also opportunities to widen your coverage to include food spoilage, roadside assistance (for if you suffer from a flat tyre or if your truck breaks down) and liquor liability for if your food or coffee van also sells alcoholic beverages.

How much does Food Truck Insurance cost?

The average cost of commercial truck insurance for a mobile food business in Australia is around $2,500 per year, however, the true price for a tailored policy comes down to a number of factors.

The type of truck you drive is the first thing to take note of. A light truck, mini van, kombi van etc will be valued very differently, with size and weight all considered. For example, a heavy vehicle with a lot of stock and equipment onboard is at greater risk of incurring a higher premium, due to how much it would cost to replace them if they were to get damaged.

And if the truck is an expensive model and parts and repair work would be costly, that would increase the policy price too.

Location is another factor, as different states around the country have different pricing methods. This links in with the operating radius too, as charges are higher for trucks that clock up many kilometres and cover long distances (and are therefore at risk of fatigue). For a food truck or coffee van, however, this isn’t an issue as they often only travel a short distance to their spot and then remain static for the rest of the day.

The truck driver’s driving history has an impact on price too. The cleaner their record (i.e., the fewer violations and speeding fines they’ve accrued) the cheaper the policy. Truck drivers with a clean driving history get better deals. Having a few traffic violations or speeding tickets could add hundreds of dollars to your quote. 
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Contact us for more information and to get your food truck insured with B Insured Brokers today!