Best Food Truck Insurance

Best Food Truck Insurance Carriers

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There’s never been a better time to open your own food truck. Between 2013 and 2018, the number of food trucks in the United States nearly doubled—and for good reason. Relatively low startup costs and flexibility of location make this an attractive business option for aspiring chefs and established restaurateurs alike, and customers can’t get enough of affordable roadside cuisine.

Unfortunately, insurance companies don’t view food trucks in the same light. From a risk perspective, food trucks combine a potentially dangerous kitchen environment with the hazards of a moving vehicle. As a food truck owner, this means you’ll need to carry both commercial business coverage and a robust auto insurance policy.

Thankfully, insurers have made it easy to protect your new venture with tailored insurance packages for food trucks. We took a deep dive into the options available and chose the best options based on coverage, price, customer experience, and more.

The Best Food Truck Insurance Carriers for 2021

Best Overall : Food Liability Insurance Program


Food Liability Insurance Program

 Food Liability Insurance Program

FLIP’s affordable policies and top-notch customer experience make it the best insurance option for most food truck operators.

Pros
  • Get a quote and manage your policy online

  • Immediate coverage available

  • Available in all 50 states

  • Policies start at just $25 per month

Cons
  • Less customizable than competitors

  • No commercial auto coverage available


The best place to look for food truck insurance is the Food Liability Insurance Program, or FLIP. FLIP provides a unique setup called a risk purchasing group, which allows individual food truck operators across the country to buy coverage together as a group. This leads to better negotiating power and lower premiums for all.

FLIP makes it fast and easy to get coverage with off-the-shelf insurance packages designed specifically for food truck operators. Simply enter your business’s details online to purchase same-day coverage. Policies start at $25 per month for basic general liability and business personal property coverage; you’ll also have the option to add professional liability, excess liability, liquor liability, and cyber coverage as needed. Note that commercial auto coverage must be purchased separately from another provider.

The main downside to purchasing coverage through FLIP is that policies aren’t very customizable. Since all members purchase coverage together, policies must remain relatively standardized with few or no options to choose limits and deductibles. It's worth noting that FLIP's underwriter, Great American Insurance Company, has been around since the 1870s and holds an A+ rating from AM Best.

Best Bundling Discounts : Progressive


Progressive

 Progressive

Progressive offers the best bundling options for food truck operators, with generous discounts available even if your policy is with another provider.

Pros
  • Save up to 15% on your commercial auto policy with proof of general liability coverage

  • Nine additional discounts offered on vehicle insurance

  • Provides online quotes

  • Coverage in all 50 states

Cons
  • May require a down payment

  • Hard to get information on equipment coverage

It’s not uncommon for insurers to offer discounts to business owners who purchase general liability and commercial auto insurance together, both essential coverages for food trucks. But none can match Progressive’s generous bundling discount, which offers up to a 15% reduction on your commercial auto premiums if you have an active general liability policy—even if that policy isn’t with Progressive.

Bundling isn’t the only way to save when purchasing commercial auto insurance through Progressive. The company offers nine additional discounts, including up to 15% for paying in advance and 5% to 18% for enrolling in Snapshot ProView, Progressive’s black box insurance program.

Taking these discounts into consideration, Progressive’s commercial auto premiums were extremely affordable; rates quoted start around $200 per month for a policy with mid-tier liability limits and both comprehensive and collision coverage. However, you may be asked to make a down payment if you don’t choose an annual payment option.

While Progressive does offer a full range of business insurance options, little information is available on specific coverages such as food truck equipment.

Best for Large Fleets : GEICO


Geico

 Geico

Building a food truck empire? GEICO is the best insurer to keep rates affordable without sacrificing coverage as you scale.

Pros
  • Competitive discounts

  • Save up to 25% on additional vehicles

  • Great business owner’s policy (BOP) options

  • Offers coverage in every state

Cons
  • No prepackaged policy for food truck operators

  • Lengthy quote process

  • Additional business insurance products may come from a third party

GEICO has long been touted as a go-to provider for affordable personal auto policies, but the same applies to commercial auto coverage. The company hands out dozens of discounts, including up to 25% when insuring more than one vehicle on the same policy. This can lead to huge savings as you grow your fleet of food trucks.

Combining a GEICO commercial auto policy with a business owner’s policy (BOP) is a convenient way for food truck operators to get full coverage in one convenient package. GEICO offers BOPs through a partnership with Hiscox, another highly rated commercial business insurance provider. Just keep in mind that you’ll need to deal with both insurers separately for ongoing policy management.

While many competitors will offer you a quote in a matter of minutes, GEICO makes the process a bit more tedious with dozens of questions about your business and personal driving history. In fact, you may be better off purchasing coverage over the phone or in person, especially if you plan to add coverage for liability or equipment. Since GEICO doesn’t advertise a food truck-specific insurance package, it’s a good idea to go over policy specifics with a representative to make sure you’re adequately covered.

Best General Liability Coverage : Hiscox


Hiscox

 Hiscox

Hiscox offers the most flexible and affordable general liability coverage for food truck operators with limits as low as $300,000.

Pros
  • Flexible general liability policies start around $25 per month

  • Add equipment coverage for as little as $11.25 per month

  • Offers same-day policy start dates

Cons
  • Monthly payment plans require a down payment

  • Only one deductible option for equipment coverage

  • Some coverages sold through a third party

As a budding food truck operator, you may not need the $2 million or more in general liability coverage that comes with many policies. Hiscox helps keep costs low with limits as low as $300,000. If you need more coverage, no problem; multiple options are available up to the $2 million mark.

Hiscox’s general liability policies start at only $25 per month and are calculated based on your food truck’s annual revenue. Adding coverage for equipment is equally affordable, starting at $11.25 per month with limits available from $5,000 to $25,000. One downside is that the company won’t give you a choice on your equipment coverage deductible, offering a standard $500 across the board. You should also anticipate being asked for a down payment if you don’t pay the entire year of premiums up front.

Unfortunately, Hiscox doesn’t offer coverages like commercial auto insurance and workers' compensation directly. These are made available to Hiscox customers through a partnership with CyberPolicy, a third-party insurance marketplace. You’ll have to request separate quotes and purchase policies individually to get full coverage for your food truck.

Best Policy Options : Farmers


Farmers

 Farmers

From standard liability coverage to food truck-specific riders, Farmers has the best policy options to choose from.

Pros
  • Offers liability, auto, property, crime, and workers compensation insurance

  • Additional coverage options for equipment breakdown, food spoilage, contamination shutdown, and more

Cons
  • Doesn’t provide online quotes

  • Requires working with a local independent agent

  • No advertised discounts

Securing general liability and commercial auto policies for your food truck is a breeze. Finding niche coverage options like equipment failure and food quality issues, however, is an entirely different story. Farmers offers the best of both worlds with a complete range of standard business insurance products and additional coverage options geared toward food truck operators.

Start building your Farmers policy with a foundation of general liability and commercial auto insurance, deciding whether you need additional coverage for property, crime, and workers' compensation. Then, choose from an array of specialty coverages such as equipment breakdown insurance to offset the cost of food spoilage and lost revenue. Farmers even offers food contamination shutdown insurance, which can help cover costs if you’re forced to temporarily close.

Since Farmers only sells policies through local agents, you’ll have to get in touch with your nearest office for information about coverage and costs. No online quotes are offered, which may be a drawback for those who prefer the convenience of online interactions. Farmers also falls short on providing discounts, unlike most of its competitors.

Best for First-Time Food Truck Operators : Insure My Food Truck


Insure My Food Truck

 Insure My Food Truck

If you’re still not sure where to get started, Insure My Food Truck will do all the heavy lifting, making it the best for first-time business owners.

Pros
  • Works with multiple insurance providers to find quotes and coverage options

  • Handles ongoing policy changes and claims on your behalf

  • Specializes exclusively in food truck insurance

Cons
  • No instant quotes

  • Poor online experience

  • Doesn’t underwrite its own policies

Insure My Food Truck may not sell its own food truck insurance policies, but the company will do all the legwork to make sure you end up with the right coverage. If you’re just getting started as a food truck operator, Insure My Food Truck can provide excellent value by assessing your business, gathering quotes, and guiding you through the steps of purchasing a policy. Since the company deals exclusively with food truck insurance, you can rest easy knowing that critical coverage decisions are being handled by experts.

If that wasn’t enough, Insure My Food Truck’s work doesn’t end once you have a policy in place. The company will continue working on your behalf, interfacing directly with the insurance company to submit claims and update your policy as needed. If you have questions, you’ll have an expert on call to provide assistance.

Insure My Food Truck is a bit behind the rest of the industry in terms of digital experience, so you should plan to interface with agents primarily over the phone or by email. Since the company sells policies from third-party providers, you should still do your own research on the insurer they suggest before making a purchase.

Bottom Line

Choosing the right food truck insurance requires finding a balance between protecting your business’s assets and keeping premiums affordable. To make things easier, many companies offer pre-packaged solutions based on the most common coverages requested by food truck operators. Whether you’re looking for a basic insurance bundle or a tailored policy for your expanding fleet, don’t be afraid to shop around and compare quotes from multiple providers.

Based on our research, the Food Liability Insurance Program is the best overall insurer for food truck operators. However, you may find better coverage and/or rates from another provider depending on your needs. For example, if you’re opening your first food truck with no prior business experience, Insure My Food Truck can help make sure you have all your bases covered. Operators of large fleets, on the other hand, may find that GEICO provides better rates at scale.

Compare Providers

Insurance Company Why We Picked It Key Benefit
Food Liability Insurance Program Best Overall Convenient and affordable coverage
Progressive Best Bundling Discounts Up to 15% off commercial auto insurance with an active general liability policy
GEICO Best for Large Fleets Discounts up to 25% on multi-vehicle policies
Hiscox Best General Liability Coverage Low-cost general liability coverage with flexible terms
Farmers Best Policy Options Highly tailored policies with food truck-specific coverage options
Insure My Food Truck Best for First-Time Food Truck Operators Provides full-service assistance through the process of purchasing insurance

Frequently Asked Questions (FAQs)

What Is Food Truck Insurance?

Food truck insurance doesn’t refer to a specific type of insurance, but rather a set of coverages typically advertised to food truck operators. Basic food truck insurance policies usually consist of commercial auto insurance and general liability insurance, but may also include workers compensation, commercial property, inland marine, professional liability insurance, and more. Food truck insurance is important to help protect you and your business if you’re sued by a customer or if you get in an accident while driving your commercial vehicle.

When Do You Need Food Truck Insurance?

As a food truck operator, you should plan to have an insurance policy in place from the first day you hit the road. Not only is it against the law to drive a food truck without commercial auto insurance, it’s simply not worth exposing your business to major risks that could easily be offset with an affordable general liability policy.

What Type of Insurance Does a Food Truck Need?

While food truck operators must carry certain types of insurance to stay in compliance, there are additional coverages that are generally recommended if not required by law. Here’s a quick guide:

Insurance Type Required by Law? What It Does
General liability No Protects your business from lawsuits related to bodily injury and property damage
Professional liability No Protects you from lawsuits related to negligence
Commercial auto Yes Allows your food truck to be legally driven for business purposes
Workers' compensation Yes, if hiring employees Provides employees with compensation if they are injured at work
Commercial property No Protects business property such as equipment against theft and certain types of damage
Inland marine No Protects business property such as equipment while in transit
Equipment breakdown No Covers costs and sometimes lost revenue due to malfunctioning equipment

How Much Does Food Truck Insurance Cost?

The cost of food truck insurance depends on the type of vehicle, your annual revenue, and the types of coverage you choose. General liability insurance starts around $25 per month, while the median cost of a commercial auto policy is $142 per month.

How We Chose the Best Food Truck Insurance Carriers

Even though operating a food truck is a business with relatively low barriers to entry, getting the right insurance can be a major hurdle for those with limited entrepreneurial experience. We kept this in mind when choosing the best food truck insurance carriers, prioritizing companies that made the experience painless and convenient. Of course, cost is also a major factor, so we compared costs and compiled lists of discounts offered by each provider. Last but not least, we looked at the range and types of coverage available, including food truck-specific options not available from mainstream insurers.

Article Sources

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  1. United States Census Bureau. "Fast-Growing Food Truck Industry Can Operate Amid COVID-19 Social Distancing Rules, No Indoor Seating Orders." Accessed August 26, 2021.

  2. AM Best. "AM Best Affirms Credit Ratings of American Financial Group, Inc.; Upgrades Ratings of Key Life and Workers' Comp Entities." Accessed August 26, 2021.

  3. Insureon. "How much does commercial auto insurance cost?" Accessed August 26, 2021.