Here's something that confuses almost every new food truck owner: insurance. You'll hear about Business Owners Policies, general liability, commercial property coverage, and a dozen other terms that all start to blur together. The biggest question? Whether you should bundle everything into a BOP or buy separate policies. The answer isn't the same for everyone, and choosing wrong could mean paying hundreds extra each month or—worse—being underinsured when something goes sideways.
The truth is, most food truck operators fall into one of two camps: those who are purely mobile and those who have some kind of brick-and-mortar presence or significant fixed storage. Your category determines which insurance approach makes financial sense. Let's break down exactly when a BOP works and when standalone policies are the smarter play.
What's Actually In a BOP for Food Trucks
A Business Owners Policy bundles three main coverages into one package: general liability, commercial property insurance, and business interruption coverage. Think of it as the insurance equivalent of a combo meal—everything you need in one purchase, usually at a lower total price than buying each item separately.
General liability is the heavy hitter here. It covers customer injuries (someone burns themselves on your equipment, slips near your truck), foodborne illness claims, property damage at event locations, and legal defense costs if someone sues you. Most vendors and event organizers won't let you operate without at least $1 million in general liability coverage, and some stadiums or large festivals demand $5 million.
Commercial property coverage protects your physical assets—your cooking equipment, point-of-sale systems, prep tables, signage, and inventory. Standard BOP policies typically include around $5,000 in business property coverage, though you can increase this if you've invested more in equipment. Here's the catch: BOPs are designed to cover property stored at a specific fixed location. If your food truck is fully mobile and you don't have a commissary kitchen or storage unit where you keep significant equipment, you're paying for coverage that doesn't match how you actually operate.
Business interruption insurance kicks in if a covered event forces you to shut down temporarily. If a fire damages your truck or your commissary kitchen floods, this coverage helps replace lost income while you get back up and running. For food trucks with tight margins, this can be the difference between weathering a setback and going out of business.
The Standalone Alternative: General Liability Plus Inland Marine
If your operation is purely mobile—you drive to events, set up, serve customers, and pack everything back into your truck at the end of the day—standalone policies might be your better bet. This approach typically combines general liability insurance with inland marine coverage (also called tools and equipment insurance).
General liability functions the same whether it's bundled in a BOP or purchased standalone. You get protection against customer injury claims, foodborne illness lawsuits, and property damage. Most food truck operators pay around $141 per month for standalone general liability coverage with the standard $1 million per occurrence limit.
Inland marine insurance is where things get interesting for mobile operations. Despite the name (it has nothing to do with boats), inland marine covers business equipment that moves from location to location. Your griddles, fryers, refrigeration units, generators, and POS tablets are all covered whether they're in your truck, at an event, or in transit. This matches how food trucks actually operate far better than the fixed-location property coverage in a BOP.
The standalone approach gives you flexibility. You pay for exactly what you need—protection against third-party claims and coverage for your mobile equipment—without paying for fixed-location property insurance you don't use. If your business grows and you add a brick-and-mortar location later, you can always switch to a BOP then.
Cost Comparison: What You'll Actually Pay
Numbers vary wildly based on your location, revenue, claims history, and coverage limits, but here's what food truck owners typically pay in 2025. A BOP runs about $207 per month on average, or roughly $2,485 annually. That said, rates range from $150 monthly in Alaska to $244 in New York for the same coverage—location makes a massive difference. Some insurers like NEXT offer more competitive rates at around $112 monthly ($1,339 annually), which is 46% below industry averages.
For standalone general liability, you're looking at approximately $141 per month for standard $1 million coverage. Add inland marine coverage for your equipment, and you might pay another $30-60 monthly depending on the value of your gear. Total? Around $171-201 per month for both policies combined.
Here's where it gets interesting: a BOP often costs less than buying general liability, commercial property, and business interruption separately because insurers discount the bundle. But if you don't need fixed-location property coverage or business interruption insurance, you're paying for coverage you can't use. The standalone route might run $170-200 monthly versus $207 for a BOP—not a huge difference, but why pay extra for protection that doesn't fit your operation?
BOP Eligibility and When It Makes Sense
Not every food truck qualifies for a BOP. Most insurers require that you operate at least 9 months per year—seasonal operations need not apply. You'll also need to meet size requirements: typically fewer than 100 employees and annual revenue under $5 million, though most food trucks easily fall within these limits.
A BOP makes the most sense if you have a brick-and-mortar presence in addition to your food truck—maybe a storefront, a commercial kitchen you own or lease, or a storage facility where you keep significant inventory and equipment. The commercial property coverage in a BOP shines when you have substantial assets at a fixed address. If your prep kitchen gets broken into or a fire damages your storage unit, you're covered.
BOPs also make sense for food truck operators who want the simplicity of one policy and one renewal date. Managing multiple policies means multiple bills, multiple renewal dates, and more administrative headache. If you value convenience and don't mind paying slightly more for coverage you might not fully utilize, a BOP delivers that simplicity.
Business interruption coverage is another reason to choose a BOP. If losing income for even a few weeks would put you in financial trouble, having that safety net matters. Pure standalone general liability and inland marine policies don't include business interruption—you'd need to add that separately, which eliminates much of the cost advantage of going standalone.
When Standalone Policies Are the Smarter Choice
If your food truck business is entirely mobile—you park overnight in your driveway or a shared lot, rent commissary kitchen time by the hour, and carry everything you need in your truck—standalone policies are probably your best fit. You need protection against third-party claims (general liability) and coverage for your mobile equipment (inland marine), but you don't need fixed-location property insurance.
Standalone coverage also makes sense if you're just starting out and watching every dollar. You can get exactly the coverage event venues require (general liability) plus protection for your gear (inland marine) without paying for business interruption or fixed-location property coverage. As your business grows and your needs change, you can always add coverage or switch to a BOP.
One important note: whether you choose a BOP or standalone approach, you'll still need commercial auto insurance and workers' compensation separately. Commercial auto covers your truck itself and liability when driving it—this is legally required in nearly every state. Workers' comp is mandatory if you have employees. Neither coverage is included in a standard BOP or bundled with general liability, so factor these costs into your total insurance budget regardless of which route you take.
Making the Switch: When to Upgrade or Downgrade
Your insurance needs will change as your business evolves. If you start with standalone policies and later open a brick-and-mortar location or start storing significant inventory at a fixed address, that's when you should seriously consider switching to a BOP. The commercial property coverage suddenly becomes valuable, and bundling everything together will likely save you money compared to adding a separate commercial property policy.
Conversely, if you started with a BOP but realized you're purely mobile and don't need fixed-location coverage, shopping around for standalone general liability plus inland marine at renewal time could cut your costs. Just make sure there are no coverage gaps during the transition—you never want to operate even one day without the general liability coverage that venues require.
Before making any changes, review your current coverage limits and compare quotes from multiple insurers. Prices vary dramatically—we're talking $150 versus $244 monthly for identical coverage depending on your state and insurer. Get at least three quotes for both BOP and standalone options, then evaluate which gives you the protection you need at the best price. Don't just look at the total cost—make sure you understand exactly what's covered and what isn't, especially regarding equipment coverage for mobile versus fixed-location property.
