One of the big questions new and existing food truck owners have centers on workers’ compensation insurance (otherwise known as food truck workers’ comp). In the food truck industry, there’s no shortage of potential risks that employees face. From slipping on wet floors in the commissary or truck, to suffering cuts and burns, food truck employees could be harmed on the job while simply carrying out everyday tasks.
Because a food truck is typically required to provide a mobile serve your potential for injury is higher than a typical brick and mortar restaurant. Your employees could be involved in an automobile accident, or they could be the victims of robbery, since food trucks are known to carry cash.
Food truck vendors use their workers’ comp policy to protect their mobile food business against the high cost of on the job injuries. In this article I will try to explain the basics of workers’ compensation insurance.
Food Truck Workers’ Comp: Protecting Your Employees
In the food truck industry, time means money, and the fast pace inside a food truck means that employees are consistently at risk to be involved in accidents. Unfortunately no matter how much time or effort is placed into safety training, food truck owners need to understand that accidents happen all the time.
Workers’ comp is a protection policy for your small business that will offset some of the unavoidable risks that your food truck employees face every shift.
If one of your employees be injured while on the job, your food truck workers’ comp will protect your mobile food business by providing the necessary funds to cover the medical expenses associated with the injury and the lost wages they miss while recovering.
How Vendors Benefit from Food Truck Workers’ Comp
Worker’s Compensation Insurance benefits food truck owners and their employees by covering:
- Legal fees for defending your mobile food business should an employee sue you for work-related injuries.
- Medical expenses associated with your employees’ job-related injuries.
- Wages your employee would have earned during their recovery from an on the job injury.
In cases where a lawsuit is merit-less, your food truck can be covered for the court costs and attorney fees associated with defending yourself. Without making sure you have food truck workers’ comp in place these costs and fees would likely put you out of business.
Key Details About Food Truck Workers’ Comp
Take the time to shop around for your food truck workers’ comp package for your food truck, but make sure you keep the following in mind when you make your choice.
Understand Your State’s Workers’ Comp Laws
If your food truck business has employees, your state probably requires some kind of workers’ comp coverage. Make sure you know how much coverage your state requires.
If you don’t employ full-time staff members, you might be still required by your state laws to cover part-time employee’s workers’ comp. When in doubt about your state’s laws concerning food truck workers’ comp, simply ask an insurance professional familiar with your state insurance laws.
Exclude Yourself from Workers’ Comp Coverage
As the owner of a food truck business, you may want to include yourself under your food truck workers’ comp coverage to provide some additional protection and income security in case you get sick or injured. However, if you want to save some money on your policy, some states will allow you to opt out of this coverage.
Once again, please speak with an insurance professional to understand if this is allowed in your state.
BONUS: Risk Management Tips
In addition to food truck workers’ comp insurance; you can help protect your food truck business and staff members by following these basic risk reduction tips.
- Train your staff bi-annually on proper lifting techniques.
- Provide your kitchen staff with proper equipment to safely handle the food they prepare, including an enclosed storage area for sharps and plenty of clean towels for heat protection.
- Pu in place a strict dress code, especially when it comes to footwear. This will minimize the risk of slips inside your commercial kitchen and/or food truck.
If you have questions about food truck workers’ comp for your mobile food business, make sure to reach out to an insurance professional. You can find our current list of food truck insurance providers <here>