A topic and (hidden) cost that most new food trucks are unfamiliar with before purchasing an insurance policy.
I often get calls from new food trucks just weeks away from embarking on their new food truck operation and looking to secure insurance coverage. They know they need it, but often it is last on their very long to-do list. One topic they are usually unfamiliar with is the need for Additional Insured certificates…most venues/events that a truck attends will require a certificate.
An Additional Insured is a term for a person, firm or other entity afforded the same protection under the insurance policy as the insured (food truck). Essentially the venue/event is protecting themselves for Bodily Injury or Property Damage you may cause at the venue/event. So venues/events will want to be named as an Additional Insured on a certificate. Some carriers charge $25-$100 per Additional Insured certificate…this can add up to a significant cost after twelve months. Unfortunately, insurance brokers that are not familiar with food truck operations often fail to mention the cost or even realize a truck would need many certificates.
My hope is that either your potential broker A) places you with an admitted carrier that doesn’t charge for certificates or B) they offer you a blanket (unlimited) Additional Insured option that will add about $500 in premium for the year. It is best to deal with an insurance broker that knows your business inside and out and can help guide you on insurance process for today’s needs and your future needs. Please visit my website if you have any questions or need a quote.
Matt Carlson, CIC is an insurance broker that specializes in insurance and risk management solutions for food and catering trucks. He is a foodie and second generation commercial insurance broker. He provides his clients with General Liability, Auto and Workers’ Compensation coverage. Matt currently insures over 25 food trucks. Some of his more notable clients are Krazy BBQ, Kogi BBQ and The Fox Pizza Bus. You can find his insurance website at http://www.cateringtruckinsurance.com where you can get more information on his company or an insurance quote application.