Here's what nobody tells you about starting a food truck: you can have the perfect menu, a beautiful truck, and all your permits in order, but you won't serve a single customer without the right insurance. That festival organizer who seemed so excited about your gourmet tacos? They need a certificate of insurance showing at least $1 million in general liability coverage before they'll let you park. The commercial kitchen where you prep? Same story. Insurance isn't something you handle after your grand opening—it's a requirement for day one.
The good news? Food truck insurance is more straightforward than you'd think. You need a few core coverages to get started, and you can add more as your business grows. Let's break down exactly what you need, when you need it, and what it actually costs.
Day One Coverage: What You Must Have Before You Open
Before you fire up that grill, you need two non-negotiable coverages: commercial auto insurance and general liability insurance. These aren't optional. Commercial auto is legally required in every state except New Hampshire, and general liability is required by virtually every event organizer, festival coordinator, and commissary kitchen you'll work with.
Commercial auto insurance covers your food truck while you're driving it. This includes accidents, damage to other vehicles, and injuries to other people. The average cost runs about $170 per month, or roughly $2,000 annually. That might seem steep compared to your personal car insurance, but here's the thing: your personal policy explicitly won't cover a vehicle you use for business. If you try to file a claim after an accident in your food truck and you only have personal coverage, you're paying out of pocket.
General liability insurance is your protection when you're parked and serving customers. Someone slips on a wet spot near your service window and breaks their ankle? General liability covers their medical bills and any lawsuit that follows. A customer gets food poisoning from undercooked chicken? That's covered too. The average cost is around $42 per month, or about $500 per year. Most policies start at $1 million in coverage, which is exactly what event organizers require.
What Happens to Your Equipment: Business Property Coverage
Your truck itself is covered by commercial auto insurance, but all that expensive equipment inside—the griddle, fryer, refrigerator, point-of-sale system—needs separate coverage called business property insurance or contents coverage. This is where a lot of new food truck owners get burned. They assume their commercial auto policy covers everything in the truck. It doesn't.
Business property insurance typically costs between $300 and $1,000 annually, depending on how much equipment you have. If you've invested $25,000 in kitchen equipment—which is pretty standard for a well-equipped food truck—you want that covered. Fire damage, theft, vandalism, even damage during transport are all covered under a good contents policy. The key detail: you need to list every major piece of equipment when you get the policy. That new $3,000 commercial fryer you add six months later? You need to update your policy or it won't be covered.
When to Add Workers' Compensation
If you're running the truck solo, you can skip workers' compensation insurance. But the moment you hire your first employee—even part-time help for weekend festivals—most states require you to carry it. Workers' comp covers medical expenses and lost wages if an employee gets hurt on the job. Burns from hot oil, cuts from kitchen knives, back injuries from lifting heavy equipment—these happen more often than you'd think in food trucks.
The requirements vary by state. New York requires coverage with your first hire. Florida lets you have up to four employees before it becomes mandatory. Check your state's specific rules before you bring on help. The average cost runs between $1,000 and $1,500 annually for small food truck operations, though this varies significantly based on your state and payroll size.
Growth Coverage: When to Level Up Your Insurance
As your business grows, your insurance needs change. Here are the triggers that mean it's time to add more coverage.
You're doing high-profile events or catering large corporate functions: Add commercial umbrella insurance. This kicks in when claims exceed your primary policy limits. If a grease fire at a festival spreads to neighboring vendor stalls, damages could easily surpass your $1 million general liability limit. Umbrella coverage adds another $1-2 million in protection for relatively low cost.
You're transporting equipment between multiple locations: Consider inland marine insurance. This covers your equipment while it's in transit. If you're loading and unloading expensive gear to set up at different spots each day, standard business property coverage might not fully protect you during transport.
You're serving high-risk menu items: Product liability insurance becomes more important if you're serving raw items, allergen-heavy dishes, or anything that requires precise temperature control. While general liability includes some product coverage, dedicated product liability insurance provides higher limits specifically for foodborne illness claims.
Common Mistakes That Leave You Underinsured
The biggest mistake new food truck owners make is accepting a standard commercial policy designed for businesses with a single location. Food trucks are mobile. Your policy needs to move with you. Make sure your agent understands that you'll be operating at different locations, sometimes in different cities or even different states.
The second mistake is forgetting to update your policy when you add equipment. You install a new $4,000 commercial oven? Call your insurance agent that same week and add it to your contents coverage. Otherwise, you're not covered if something happens to it.
Third, many owners work with general commercial insurance agents who don't specialize in food trucks. This often means paying higher premiums and getting policies that significantly undervalue your truck. Some auto insurers will value your food truck at the price of an empty vehicle, completely ignoring the $30,000+ kitchen buildout. Find an agent who specializes in food service businesses—they'll understand your actual replacement costs and get you properly covered.
Getting Started: Your Insurance Checklist
Before you launch, make sure you have these bases covered. Start with commercial auto insurance and general liability—these are your must-haves. Add business property coverage for all your equipment, and if you're hiring employees, get workers' comp lined up before their first shift.
Budget between $3,000 and $5,000 annually for complete coverage when you're starting out. That breaks down to roughly $250-$400 per month—a significant expense, but far less than what you'd pay out of pocket for even a single liability claim or totaled piece of equipment.
Work with an insurance agent who can issue certificates of insurance on the same day. You'll need these constantly—every new event, every new location, sometimes every weekend. Waiting days for paperwork means missing opportunities.
The right insurance setup protects both your business and your dream. Start with the essentials, add coverage as you grow, and work with specialists who understand the unique challenges of running a mobile food business. Get your policies in place before opening day, and you'll be ready to focus on what matters: serving great food and building your business.
