You likely started your catering business because you love what you do. But it comes with important insurance risks you need to consider.
From car accidents to theft, fire, and food poisoning, a lot can go wrong in running a mobile catering business, and your personal car insurance policy generally contains exclusions for business use. That’s where a commercial auto policy can come into play.
Many companies offer insurance policies specifically designed to meet the business needs of food truck businesses, which also extend to catering vans. We’ll cover how these policies work, how much they cost, and how to ensure you’re getting the coverage you need.
Put simply, if you run a mobile catering company, you’ll likely need a food truck insurance policy. Aside from the valuable financial protection it offers your business (and your personal finances, in some cases), catering venues and events often require evidence of coverage or even that you add the venue or location as a named insured onto your business’ policy.1
These types of policies can take a few forms, depending on your risks, state regulations, and the types of vehicles you use in your business. A complete business owner’s policy often wraps together multiple insurance policies, which can include catering van insurance.
You can also apply for commercial van insurance separately for vehicles that your business owns or leases. If you or your employees use your personal cars, you can also buy a non-owned vehicle policy since your business doesn’t own your personal car.2
Premiums for food truck insurance, including general liability and vehicle coverage, generally run between $2,500 and $4,500 per year for most businesses.
Coverage might cost less in some cases, such as if you’re just pulling a hot dog cart behind your car to different venues. Mobile food trailer insurance might come with much lower premiums since your cart will be cheaper to repair and cause less damage than a large food truck with several employees inside operating hot oil fryers, food chopping stations, etc.
Both businesses might suffer losses from equipment theft, fire, and vandalism, as well as lawsuits from accidents and food poisoning injuries. But a catering trailer business is far less likely to run into these problems than a larger operation, and the premiums that your insurance company charges should be less, too.
As with personal car insurance, your state might require you to buy a certain amount of food truck insurance in order to stay compliant with the law. Individual cities might set different insurance requirements, too, and your venue or event might also require certain business insurance coverage.
Experts recommend that you design a policy based on your business’ actual insurance needs, though, rather than the minimum legal requirements.3 That way, you can keep your doors open without running the risk of the slightest business setback causing your whole catering business to close down.
Most states require some variation of the following coverages:4
Today, a single lawsuit can shutter your business. That’s why experts highly recommend that you carry more insurance coverage than you might on your personal policy.
Here are a few coverages recommended for catering van insurance:
General liability: In addition to product liability coverage — like if your food makes someone sick — this may also cover things like copyright infringement.
Workers’ compensation insurance: States set different insurance requirements for this type of policy, which helps cover the cost of any injuries your employees might suffer on the job.
Business interruption insurance: Especially handy for mobile businesses, this can help you recoup lost income from things like government closures, fire, vandalism, and more.
A good business owner’s policy can offer extra savings by underwriting multiple lines of coverage into one package, depending on your business’ unique needs.
The food service industry is notoriously challenging for business owners, and that’s without the added complication of running a restaurant on wheels. Having the right coverage in place can help your business survive and even thrive, especially in challenging times.
If you’re using your cargo van for business use (as opposed to personal use), you’ll need a commercial auto liability policy, at a minimum. Your state may set additional minimum insurance requirements, and it’s often a good idea to purchase additional coverage, depending on your business needs.
In general, food trucks must carry commercial auto insurance. This consists of separate policies for property insurance and bodily injury insurance. Your state may require additional types of coverage, such as medical payments coverage or uninsured/underinsured motorist coverage.
Liability insurance for catering businesses helps cover your business’ financial responsibility when it makes mistakes. For example, if an employee causes a car accident, or if someone gets sick after eating an unlabeled allergen in your food, liability insurance could help cover the cost to make things right.5
Insurance companies may offer special endorsements for commercial van insurance if you’ll be using it for personal use as well. Alternatively, you may be able to insure it under a personal auto insurance policy and then buy a non-owned food truck insurance policy through your business to cover those times when you’re using it for work.
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