Insurance isn’t something that everyone thinks about when they get into the food truck business. At Progressive, we’ve noticed a sharp rise in the amount of food trucks we insure, with an increase of nearly 20% from 2011 to 2012. Food trucks are unique – they double as your work vehicle and your actual place of business. Knowing what insurance coverages you need for your truck will help you protect your investment.
- Liability coverage – If you are at-fault in an accident, liability coverage will help you pay for damage to the other vehicle.
- Bodily Injury & Property Damage coverage – This coverage will help pay for injuries to people or damage to property caused by your truck.
- Physical Damage coverage – There are two types of physical damage coverage – Comprehensive and Collision. Comprehensive coverage helps pay for damage to your truck caused by an event other than a collision, like fire, theft or vandalism. Collision coverage helps pay for damage caused to your truck if you hit something.
- With both Comprehensive and Collision coverage, don’t just cover your truck, cover your equipment. If you have expensive grills or stoves, include them in your limits, so you’re not stuck paying to replace or fix them if you’re in an accident. Anything bolted to your truck can be covered by Comprehensive and Collision coverage. Keep all of your receipts to make the process as smooth as possible if you ever need to file a claim, and keep your coverage limits up-to-date as you update your truck with new equipment.
In addition to coverages, check how much each company is charging for an additional insured under your policy. The cost can vary greatly depending on your insurer. Also make sure you talk to an independent agent about coverages that go beyond your commercial auto coverage – coverages you still need for your business. This could include General Liability, Business Property to cover equipment that isn’t bolted to the vehicle and equipment breakdown coverage.
Knowing your coverage options puts you in a position to make the best commercial auto insurance decision. Whether you go through an agent or shop on your own, having the right coverage lets you work worry-free and concentrate on your food and your customers.
Win $5,000 for your food truck
In addition to insuring food trucks, Progressive is giving food truck owners the chance to win $5,000. All you have to do to enter is upload a picture of your food truck and tell us how you’d spend the money. Then encourage your customers, friends and family to go vote for you. The contest ends in July 2013. To enter, vote or get more details about the contest, visit http://www.progressivecommercial.com/hub/contests/2013-food-truck-contest.aspx#!/.
Rishi Arora is commercial auto product manager at Progressive. In business since 1937, Progressive is a market leader in commercial auto insurance and the #1 truck insurer. For more information on Progressive’s coverages or to find a local independent agent, go to http://www.progressivecommercial.com.