Inadequate coverage, expensive premiums, costly additional insured endorsements, and carrying too much insurance are all common problems for food truck owners searching for the right insurance. Good food is your specialty, insurance is not.
So how do you determine whether your insurance coverage is from a reputable carrier or even provides you with the coverage you need?
AM Best Rating—What Is It and Why Does It Matter?
Insurance carriers are rated by AM Best and receive their ratings based on financial solvency, claim response time, quality of coverage, customer service, and meeting other important regulatory requirements. You should look for insurance carriers that have an A or higher rating. Avoid insurance carriers with a B rating or lower.
If you are faced with a lawsuit or claim, carriers that hold an A rating or higher are stable and responsive to their clients. It would be awful to pay a premium to a company for years and then have them declare bankruptcy just as you need help with a claim.
Comprehensive Coverage—Are you Under or Over Covered?
When insuring your food truck, knowing just how much coverage to carry is important. Too much insurance and you’ll be overpaying on your premium. Too little, and you could be hit with a massive bill when a claim occurs.
Your insurance company should fully understand the specific risks and liabilities that food truck owners face as well as provide comprehensive coverage that will protect you from most claims.
As a food truck owner, your policy should have the following coverages:
- General Liability
- Damage to Premises Rented
- Inland Marine
- Commercial Auto
- Trailer Endorsement (If your food truck is towed or is a trailer)
Another important item to consider is where your insurance company is licensed. If you cross state lines or move, your insurance policy may not cover you. Find an insurance policy that is valid in all 50 states and follows you wherever you may roam.
Are Additional Insureds Included? How Much?
An additional insured is someone you name on your policy who will be protected against claims that arise from your negligence. For example: If you are vending at the local state fair, you would name the owner of fairgrounds and possibly the fair organizers as additional insureds. If you were to cause a fire or if someone were injured due to your operations, the fairgrounds and fair organizers might be named in the resulting lawsuit but would be covered as your additional insured.
Many insurance companies charge for additional insureds and sometimes have a charge per each additional insured. As a food truck owner, adding additional insureds can add up fast, especially if you operate at multiple events.It’s important to find a food liability insurance program that offers free additional insureds, and FLIP does just that.
Hello? Is Anyone There? The Value of Good Customer Service
Nothing is more maddening than needing to reach your insurance company and not receiving an answer. While most insurance companies are open only during normal business hours, you should still be able to access your documents 24/7. With FLIP, you can log in to your account and access your documents anytime via your customer dashboard.
Make sure you look for a company that is responsive and available, or has an online option for you to download or purchase your policies.
About FLIP—The Food Liability Insurance Program
The Food Liability Insurance Program serves the needs of caterers, bakers, food vendors, concessionaires, food trucks, and many others. Our policy is designed to respond to the specific needs of the food vending, food trailer, and food distributing industries by offering the most affordable liability insurance without sacrificing coverage.
With FLIP, you get:
- Instant Coverage
- Immediate Access to Your Certificate
- Customized Dedicated Limits
- Inland Marine Coverage Included
- Quality Insurance
- Licensed in all 50 States
- Convenient Online Purchasing
- 24/7 Access to Policy Documents
- A+ Rated Insurance Company
- Peace of Mind
- Free Unlimited Additional Insureds
Visit FLIP today to purchase from $299/year.