Your food truck is the backbone that keeps your mobile business running. When it comes to insuring your mobile bistro, it can be difficult to distinguish insurance facts from myths and buying insurance without knowing the facts can cost you big bucks in damages or downtime.
We have compiled a number of some common food truck insurance myths and facts. Use them to make sure you have the right insurance coverage for your food truck.
Myth: Downtime following an accident is annoying, but won’t significantly affect your bottom line.
Fact: If your truck is out of commission for 30 days, your business could only have a 50 percent chance of survival. Make sure that your insurance company will provide a rental vehicle or downtime payments to help you get back on the road quickly following a claim.
Myth: It is cheaper to cancel your insurance for stored vehicles if you have a seasonal business.
Fact: Not necessarily. If you cancel your insurance policy, your stored vehicles won’t be protected. A comprehensive-only policy provides coverage for businesses that don’t need liability coverage during certain months, but want basic protection against incidents like vandalism, fire, theft, and acts of God. This is ideal for food truck owners that shut down operations during their off-season.
Plus, a comprehensive-only policy provides continuous insurance. If you drop your insurance completely, you may pay significantly more to get a new policy when your peak season rolls around because most insurance companies want to see proof of continuous coverage prior to offering their best rate.
Myth: All insurance companies offer 24/7 service.
Fact: Many insurance companies are only available during their regular office hours, which can make these issues difficult to complete when you need them.
- Filing a claim
- Obtaining a Certificate of Insurance
- Paying bills
Before you purchase a policy for your food truck make sure an insurance company will be available when you need them.
Wonder if one of your perceptions about truck insurance is myth or fact? Talk to a local food truck insurance agent. They should be able to answer those questions and help you determine which coverage(s) are right for your business.