If you're planning to start a food truck business in Texas, you're entering one of the most food-truck-friendly states in the country. But before you fire up those grills and start slinging tacos, you need to understand the insurance requirements that'll keep your business protected and legally compliant. Here's the thing: Texas doesn't make it simple. The state has some requirements, cities have others, and event organizers often have their own rules. Let's break down exactly what insurance you need and why.
Commercial Auto Insurance: The Non-Negotiable
Your food truck is a commercial vehicle, which means standard personal auto insurance won't cut it. Texas law requires you to carry commercial auto insurance with minimum liability limits of $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 for property damage. That's the 30/60/25 split you'll hear insurance agents talk about.
But here's the reality: those minimums are barely enough to cover a fender bender, let alone a serious accident. Most food truck operators carry at least $1 million in combined commercial auto and general liability coverage. Why? Because if your truck causes an accident that seriously injures someone, you could be looking at medical bills and legal fees that blow through those minimums in a heartbeat. Commercial auto policies typically cost between $1,500 and $3,500 annually, depending on your truck's value, your driving record, and how much you're on the road.
General Liability Insurance: Your Safety Net
General liability insurance isn't technically required by Texas state law, but don't let that fool you. You'll struggle to operate without it. Major cities like Austin, Houston, Dallas, and San Antonio require proof of at least $1 million in general liability coverage before they'll issue your mobile food vendor permit. Event organizers won't let you set up at festivals or corporate gigs without it. Property managers won't allow you on their premises. It's effectively mandatory.
General liability covers you when someone gets hurt at your truck or claims your food made them sick. If a customer trips over your generator cord and breaks their ankle, this policy handles the medical bills and legal defense. If someone alleges they got food poisoning from your brisket tacos, you're covered. Given that food safety lawsuits can run into six or seven figures, this coverage is worth every penny. Most food truck owners pay between $500 and $2,000 annually for general liability, depending on coverage limits and your claims history.
Workers' Compensation: The Texas Exception
Texas is one of only two states (along with South Dakota) that doesn't mandate workers' compensation insurance for private employers. If you're a solo operator, you definitely don't need it. If you have employees, you're still not legally required to carry it at the state level. But before you celebrate, understand this: many venues and event organizers require proof of workers' comp before they'll let you operate, regardless of state law.
More importantly, without workers' comp, you're exposed to lawsuits if an employee gets hurt on the job. Burns from fryers, cuts from prep work, slips on wet floors—these are common in food service. Workers' comp covers medical expenses and lost wages for injured employees while protecting you from being sued. If you have even one part-time employee, seriously consider carrying this coverage. It typically costs 1-3% of your total payroll, which is often cheaper than the legal risk of going without it.
The 2026 Licensing Revolution
Here's some good news: Texas just made running a food truck significantly easier. House Bill 2844, signed into law in June 2025, creates a statewide mobile food unit permit starting July 1, 2026. Before this law, you needed separate health permits for every city and county where you operated. Want to work an event in Austin one weekend and Houston the next? That meant two separate permits, two sets of inspections, and double the paperwork.
Starting in mid-2026, one state-level permit lets you operate anywhere in Texas. This dramatically reduces administrative burden and costs for mobile vendors. However, your insurance requirements won't change—you'll still need to show proof of coverage to get that statewide permit, and individual cities can still require certificates of insurance for special events or specific locations.
Additional Coverage to Consider
Beyond the core policies, several other coverages can protect your business. Inland marine insurance covers your equipment—generators, refrigeration units, cooking equipment—if it's damaged or stolen. This gear easily runs $30,000 to $50,000, so protecting it makes sense. Business interruption insurance covers lost income if you can't operate due to equipment breakdown or other covered losses. If your refrigeration unit dies and you lose a weekend of festival income, this coverage helps keep you afloat.
Spoilage insurance specifically covers food inventory lost due to equipment failure or power outages. If you're carrying $2,000 worth of meat and produce when your cooler goes out, that's real money. Some food truck owners also carry liquor liability if they serve alcohol, though this requires separate licensing and significantly increases insurance costs.
How to Get Started
The smart approach is to work with an insurance agent who specializes in food truck or restaurant coverage. They'll understand the specific requirements in your area and can bundle policies for better rates. Most food truck operators pay between $4,000 and $8,000 annually for comprehensive coverage including commercial auto, general liability, and equipment protection. That might sound steep, but it's far cheaper than a single lawsuit or major accident.
Before you shop for insurance, gather information about your truck's VIN and value, your estimated annual mileage, your menu and food handling processes, your employee count and payroll, and where you plan to operate. This helps agents give you accurate quotes. Once you have coverage, keep certificates of insurance readily available—you'll need to provide them constantly for permits, events, and venue contracts. Running a food truck is rewarding, but it comes with real risks. The right insurance lets you focus on feeding people great food instead of worrying about what-ifs.
