Food Truck Insurance | Food Liability Insurance Program (2023)

Coverage Details:

General Liability Aggregate Limit


Products-Completed Operations Aggregate Limit


Personal and Advertising Injury Limit


General Each Occurrence Limit


Damage to Premises Rented to You (Any One Premises)


Liability Deductible


Business Personal Property / Inland Marine Limit (Any One Article / Aggregate)


Business Personal Property / Inland Marine Limit (Per Occurrence) - Deductible


For food trailers, general liability limits only apply if you add a Trailer Endorsement to your policy. (Trailer Endorsement can be added during checkout).

**Please note that this is only a summary of your insurance coverage. All policies have specific terms, conditions, exclusions, and limitations. Please refer to the policy for a complete description of coverages. For a sample policy, please contact us at (844) 520-6992 or by email at

General Liability

Under a food truck insurance policy, GL would provide coverage for personal injury and damage to your property. This could include damage to your food truck or if someone claims to have gotten sick from the food that you served them.

Aggregate Limit: $2,000,000

Product Liability

You love to make food, that’s why you started your food truck. But what happens if someone gets a food-borne illness because of food they purchased from you? Product liability insurance for your food truck will help protect you in this situation.

Aggregate Limit: $2,000,000

Inland Marine Coverage

Also referred to as tools and equipment coverage, inland marine insurance is an insurance policy designed to protect your business from the cost of claims regarding third-party equipment damage, like if an individual accidentally breaks an appliance or other piece of business equipment. It can also cover cases of equipment theft. FLIP offers increased coverage limits for inland marine should you want extra protection for your gear.

Aggregate Limit: $10,000

Damage To Premises Rented

We understand that as a vendor that moves locations often, you need street food insurance to protect you no matter where you are. If you are renting a spot at a farmers’ market, a food truck rally, or a spot on the street you need coverage that protects your rented space in case of damage to it. Some organizers might even require you to have insurance and for you to add them as an additional insured in order to protect them as well.

Aggregate Limit: $300,000

(Video) Food Truck Business Insurance | Food Liability Insurance Program

Workers Compensation Insurance

As a food truck owner, you probably have hired employees to help you on the truck.

Aggregate Limit: $300,000

Food Truck Insurance | Food Liability Insurance Program (1)

FAQ's About Food Liability Insurance

What IsFood Truck Insurance?

A food truck insurance policy is designed to respond to claims related to the day to day operations of your food truck business.

Covered claims may include slip and fall accidents, illnesses caused by your food product, or equipment loss. With food truck insurance from the Food Liability Insurance Program (FLIP), we offer coverage for business personal property/inland marine, general liability, product liability, and damage to premises rented coverage.

What IsFood Trailer Insurance?

A food trailer endorsement on your Food Liability Insurance Program (FLIP) policy includes coverage for incidents that occur in, on, or around your food trailer when it is unhooked from your towing vehicle and parked on a rented premise. Most general liability policies exclude coverage for trailers and without this endorsement may leave your business exposed for these types of claims.

How Much DoesFood Truck Insurance Cost?

A basic general liability insurance policy from FLIP starts at $299/year or $25.92/month.

However, there are additional coverage options that you can add to customize your policy. As a food truck owner, you may wish to increase your business personal property coverage amounts or add professional liability coverage for example.

There are only a couple of factors that affect the cost of your food truck policy. The first is annual gross sales. If the sales for your mobile food truck business are less than $50,000 per year, the insurance will cost $299 per year. If, however, your annual gross sales are between $50,001-$100,000, then your policy will cost $399 per year. You also need to factor in how much your business personal property is worth – this means items such as equipment, supplies, and inventory. If your business property is worth more than $10,000 then it is an additional $179 per year.

(Video) What Are Food Truck Insurance Requirements?

Do I NeedFood Truck Insurance?

Yes. As a food truck owner, you are liable if injuries, illnesses, or damages happen due to your business operations. For example, if a customer gets sick eating your food or if somebody trips and falls over a piece of your equipment and is injured, you could be held responsible.

Claims from unfortunate incidents like these can easily wipe out your business and personal finances and cause your food truck business to close. With FLIP insurance, you’ll have the protection you need just in case something goes wrong.

Businesses that need food truck insurance include but are not limited to

  • Mobile food trucks
  • Lunch trucks
  • Catering trucks
  • Concession trucks
  • Vending trucks
  • Ice cream trucks

What Is AnAdditional Insured?

If you run your food truck at a food truck hub or farmers market, the location owner/organizer could request to be listed as an additional insured.

An additional insured is an organization or person who is not automatically included as an insured under an insurance policy and who is included or added as an insured under the policy at the request of the named insured. If you run your food truck at a food truck hub or farmers market, the location owner/organizer could request to be listed as an additional insured. This will help protect them in case of an incident regarding your food truck at their event.

You might be asked by farmers market organizers, food truck roundup managers, or any event owners to be added as an additional insured. Depending on how many events you attend, you could have to add numerous additional insureds to your policy. With a FLIP policy, you receive free, unlimited additional insureds, and you can add as many as you need in minutes through your FLIP online portal.

Risks Of Running A Food Truck

As a business in the food industry, food trucks face a unique set of risks, meaning there is a chance for your business to cause harm to people or for other people to cause harm to you. Some risks are more common than others, but can include:

  • A customer or bystander injuring themselves on your equipment or getting hurt “on premises.”
  • An individual stealing or damaging your business equipment.
  • A customer getting a food-borne illness from food they purchased at your truck.
  • A fire or other disaster destroying equipment in your truck.
  • A disgruntled customer sues you for breach of contract for an accident that occurred at a catered event.
  • A cyber criminal hacking your business account and stealing your information.

Partner Resources

FLIP works with numerous partners to provide the best possible resources of food truck owners. Some of the partners we work with include:

(Video) Food Business Insurance [ Food Business Insurance Policies]

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Food Truck Insurance | Food Liability Insurance Program (2)

Program highlights

  • General Liability
  • Products and Completed Operations Coverage
  • Personal and Advertising Injury Coverage
  • Damage to Premises Rented Coverage
  • Business Personal Property Coverage
  • No Quote Process
  • 24/7 Access to Policy Documents
  • Convenient Online Purchasing
  • Licensed In All 50 States
  • A+ Rated Insurance Carrier

Annual Policies



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Food Truck Insurance | Food Liability Insurance Program (3)

Simple, Easy, affordable coverage! Been with FLIP for over 4 years. I love the unlimited additional insured as well. They have a lifelong customer!!

Baked Chemistryvia Google Reviews

I needed an insurance company for my small business. FLIP was the right choice for me. I love the automatic sign up year after year. I can log in and add an event address and know I'm covered.

Tara L.via Google Reviews

It was an easy and fast experience that you don't get with others and I will definitely be using this in the future and to any of those who want to try it, I got one thing to say to you, "JUST DO IT!"

Michele M.via Google Reviews

As a personal chef, I am confident in running my business with FLIP on my side!

Jenn T. via Google Reviews

FLIP insurance for my catering company was very affordable and a simple process to obtain. In addition, they respond quickly when asked to add on addition kitchens to the policies.

Ken P.via Google Reviews

Great Insurance Company. All my needs are accommodated through FLIP. I’ve been a client for 7 years and never needed to find a new home.

Spyce Companyvia Google Reviews

(Video) Food Truck Insurance Requirements [ How much is Insurance for a food trailer]



If you’re thinking about starting a food truck business, you’ve probably spent some time looking at vehicles. Choosing the best vehicle for your food truck can be hard. With so many different makes and models, it can be challenging to know what to

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There are a lot of benefits to running a food truck business, but there are also a lot of risks. If you’re not prepared, your food truck business could face claims that could financially devastate your business. So how do you avoid these

(Video) What You Need to Know About Food Liability Insurance

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What are liabilities for a food truck? ›

Liabilities: Liabilities are the debts owed by your food truck business. An example of liability is a loan you received to start your food truck, accounts payable, credit cards payable, or taxes you still need to pay.

What is the best explanation of liability insurance? ›

What is liability insurance? Liability insurance helps cover medical and legal fees if you're held legally responsible for someone else's injury, or damage to someone else's property. Drivers are required to carry liability insurance in nearly every state.

What kind of insurance do I need for a truck? ›

Whether you operate as a long haul or short haul trucker, you will always run into the risk of getting into an accident. That is why all states require you to carry liability insurance. Your transportation liability insurance will cover bodily injury, provide financial support for medical expenses, and property damage.

Does liability cover food poisoning? ›

If you have product liability insurance, it can: Cover claims of food poisoning or foodborne illness. Pay your legal costs in the event of a covered lawsuit over illness outbreak.

What should I list as liabilities? ›

Recorded on the right side of the balance sheet, liabilities include loans, accounts payable, mortgages, deferred revenues, bonds, warranties, and accrued expenses. Liabilities can be contrasted with assets. Liabilities refer to things that you owe or have borrowed; assets are things that you own or are owed.

What are 3 examples of a current liability? ›

Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable.

What are the 3 parts to liability insurance? ›

Liability. Most auto insurance policies contain three major parts: liability insurance for bodily injury, liability insurance for property damage and uninsured/under-insured motorists coverage.

How do you answer insurance questions? ›

Here are some guidelines to follow when answering questions from the insurance company to help protect the value of your claim:
  1. Do not comment on your injuries. ...
  2. Only answer the questions asked. ...
  3. Do not agree to have your statement recorded.
  4. Stick to the facts. ...
  5. Write down the adjuster's name and information.
Dec 19, 2019

What are the 3 most important insurance? ›

The Bottom Line

Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have.

How much insurance do I need in trucking? ›

Under the federal regulations (FMCSRs), most motor carriers must carry a minimum of $750,000 in liability insurance. The $750,000 minimum requirement has been in place for 35 years despite inflation greatly increasing medical and litigation costs.

What is general liability insurance coverage for trucking companies? ›

What Does Truckers General Liability Cover? In most cases, general liability insurance for truckers covers things like bodily injury and property damage. So, if you were to get into an accident and injure someone or damage their property, your policy would help pay for their medical bills.

Do trucks cost more to insure? ›

Because they may cause more damage in an accident — and cost more to repair or replace — trucks pose a substantial financial risk to an insurance company. Thus, the insurer protects itself by charging a higher premium for these vehicles.

What is food product liability? ›

Food product liabilities are the existential threat facing every food business. In nearly every state, food manufacturers are held completely liable for any injuries their food products cause, regardless of whether they were negligent, and stand to lose everything in civil suits.

Does insurance cover food spoilage? ›

Most standard homeowners insurance policies cover up to $500 in food loss after a power outage, but only if the cause of the outage is covered by your policy. Homeowners insurance doesn't cover maintenance issues, so if your food spoils because your refrigerator suddenly stops working, your policy won't cover the loss.

What are liabilities in food business? ›

Current Liabilities refer to any external financial obligations the restaurant is responsible for satisfying within one year, like utilities, short-term loans, interest on those loans, lines of credit, building rent, equipment rent, wages, income tax deductions, or medical plan payments for their employees.

What are liabilities Give 5 example? ›

Examples of liabilities are -
  • Bank debt.
  • Mortgage debt.
  • Money owed to suppliers (accounts payable)
  • Wages owed.
  • Taxes owed.

How do I calculate my liability? ›

To calculate liabilities, simply list out the amount that your company owes across all of its obligations (both current and future) and add them together. This may require gathering up bills, loan documents, and other important paperwork.

What are the 4 types of liabilities? ›

Different Types of Liabilities in Accounting
  • Current Liabilities. These can also be commonly known as short-term liabilities. ...
  • Non-current Liabilities. Non-current liabilities can also be referred to as long-term liabilities. ...
  • Contingent Liabilities.

What are the 2 types of liabilities? ›

Current liabilities are short-term debts that you pay within a year. Types of current liabilities include employee wages, utilities, supplies, and invoices. Noncurrent liabilities, or long-term liabilities, are debts that are not due within a year. List your long-term liabilities separately on your balance sheet.

What falls under a current liability? ›

Examples of current liabilities include accounts payable, short-term debt, dividends, and notes payable as well as income taxes owed. The analysis of current liabilities is important to investors and creditors. This can give a picture of a company's financial solvency and management of its current liabilities.

What are the 5 elements that must be proven in a products liability claim? ›

The Key Elements Of A Product Liability Claim
  • The Product Caused Your Injury. The first element of a product defect claim is that the product is linked to your injury. ...
  • The Product Is Defective. ...
  • The Product Defect Resulted In Your Injury. ...
  • You Used The Product As Intended. ...
  • Get In Touch With Our Experienced Legal Team.

What are 2 types of liabilities in insurance? ›

What are the different types of liabilities insurance available? There are a number of liabilities insurance policy available. These include third party liability, public liability, product liability, employer liability, professional liabilities, industrial risks and so on.

What is limit of liability insurance? ›

Limit of liability refers to the max amount of money your insurer is on the hook for if something bad happens to you, your stuff, or your property.

What should you not say in an insurance statement? ›

Avoid using phrases like “it was my fault,” “I'm sorry,” or “I apologize.” Don't apologize to your insurer, the other driver, or law enforcement. Even if you are simply being polite and not intentionally admitting fault, these types of words and phrases will be used against you.

What are 4 things you should look at when choosing an insurance plan? ›

5 Things to Consider When Choosing Your Health Coverage
  • Type of Plan and Provider Network. Do the health care. ...
  • Premiums. How much will you pay per month for coverage? ...
  • Deductibles. What is the amount you must pay out of pocket before your coverage kicks in? ...
  • Co-pay or Coinsurance. ...
  • Coverage of Medicines.

Do I have to answer questions from insurance? ›

You're not legally required to speak with the other insurance company's representative. The first time an insurance adjuster for the other driver's insurance company contacts you will likely be fairly soon after your car accident. But they're not checking in to see how you're doing, or to have a chat.

What 4 types of insurance should everyone have? ›

There are, however, four types of insurance that most financial experts recommend we all have: life, health, auto, and long-term disability."

What are the 4 major lines of insurance? ›

Four Major Lines of Insurance
  • Property.
  • Casualty.
  • Life.
  • Health and Disability.
Feb 18, 2005

What type of insurance should you get first? ›

1. Health insurance. Health insurance is the single most important type of insurance you'll ever buy. That's because if you don't have health insurance and something goes wrong, it's not just your money at risk -- it's your life.

How many cents per mile is good for trucking? ›

It's important to note, however, that truck drivers are typically not paid an annual salary or hourly wage, as with many other careers. Company drivers are paid on a cents per mile basis. Average truck driver pay per mile is between 28 and 40 cents per mile. Most drivers complete between 2,000 and 3,000 miles per week.

Can a trucking company be self insured? ›

To save money, trucking companies are permitted by FMCSA to self-insure the business. Instead of buying a policy from an insurance agency, the trucking company can pay for its own general liability insurance.

How are trucking expenses calculated? ›

To calculate your cost per mile, simply divide your total expenses for the month by the total number of miles you have driven that month. For example, if your expenses totaled $3,000 and you drove 10,000 miles, your cost per mile is $0.30.

What types of claims are not covered under general liability insurance? ›

For example, your commercial general liability insurance policy doesn't cover:
  • Employee injuries or illnesses resulting from their work. ...
  • Damage to your own business property. ...
  • Automobile accidents caused by you or your employees while driving for work. ...
  • Errors in professional services.
Mar 23, 2021

How much is liability insurance for a trucking company? ›

Trucking insurance rates can vary among both insurance companies and the type of coverage that you get. For general liability insurance, you typically pay anywhere between $750 and $7,000 a year. This gives you a coverage limit of about $1 million. Trucking liability insurance costs about $2,500 to $4,000 per trucker.

What is General liability insurance example? ›

General Liability insurance is a policy that helps preserve your business assets by covering legal costs and damages or settlements up to the limit of your policy for covered claims. Although you operate your business with care, accidents can happen. For example, a customer slips on a wet floor and gets injured.

How can I save on truck insurance? ›

6 Ways to Reduce Your Commercial Trucking Insurance Premiums
  1. Employ Experienced Drivers. ...
  2. Hire Drivers with Clean Driving Records. ...
  3. Verify Driver Employment History. ...
  4. Map out Your Trucking Routes. ...
  5. Use Newer Trucks. ...
  6. Consider a Higher Deductible.

How can I reduce my truck insurance premiums? ›

Use Newer Trucks

Regular maintenance and installation of new equipment on trucks also impacts the insurance premium. Ideally, make sure your trucks are no older than 10 years. Installing aftermarket safety features, like accident avoidance technologies, can also help lower truck insurance rates.

Why are trucks so cheap to insure? ›

Lower repair and replacement costs result in lower insurance premiums. The heavy-duty nature of pickup trucks often results in less damage and fewer injuries. These factors result in less expensive claims, which also lower insurance rates.

What is strict liability in food service? ›

Strict liability means that it doesn't matter whether the restaurant takes reasonable steps to keep the food products safe. Products liability means that the restaurant as a producer of food faces liability when their food causes food poisoning for any reason.

How does product liability insurance work? ›

The product liability insurance covers any legal liabilities to third party arising out of injury or harm due to a product sold by a business. It covers the following: Bodily injury, illness or accidental death to a third party. Accidental damage to third party property.

What are the 4 signs of food spoilage? ›

Signs of food spoilage may include an appearance different from the food in its fresh form, such as a change in color, a change in texture, an unpleasant odor, or an undesirable taste.

What insurance do I need to start a food business? ›

Product liability insurance

Food manufacturing or preparation can involve several stages with a wide range of potential risks. Product liability insurance covers you and your business against any legal claims of injury or damage, whether you're involved in the production, sale or delivery of a food product.

What is the No 1 cause of food spoilage? ›

Air - This is the primary reason why the spoilage of food causes it to change in color, flavor, and the fats in foods become rancid. When food is exposed to the air, oxidation can occur.

What are the 3 types of liabilities? ›

Liabilities can be classified into three categories: current, non-current and contingent.

What are three sources of liabilities? ›

These three doctrines of breach of warranty, negligence, and strict liability are available today as causes of action by a consumer in a product liability cases.

What are two examples of liabilities that you might need for a business? ›

These are some examples of current liabilities:
  • Accounts payable.
  • Interest payable.
  • Income taxes payable.
  • Bills payable.
  • Short-term business loans.
  • Bank account overdrafts.
  • Accrued expenses.

What is liability in food industry? ›

In the U.S., a business is usually strictly liable if it sells a contaminated food product. In other words, an affected customer does not need to prove and identify the particular failure of the business, but only to prove the food was contaminated and caused illness.

What is liability in food? ›

Product liability law governs most legal actions arising from foodborne illness. This branch of tort law describes the circumstances under which one can recover damages for a defective food item.

What are the liabilities of a carrier? ›

Carrier liability refers to how a carrier is responsible for lost, damaged, or delayed freight. For LTL freight shipments, carriers determine their liability on a dollars-per-pound basis depending on freight class, packaging, commodity type, and other factors.

What are the 5 elements of liability? ›

The basic elements of delict are conduct, wrongfulness, fault, causation and damage. As a starting point, it is essential to realise that all five elements mentioned above must be present before a person can be set to be delictually liable.

What is an example of liability coverage? ›

For example, say you cause a vehicle accident and someone that was injured sues you for $1 million to cover their lost income and other expenses. If your auto policy's liability coverage has a limit of $500,000, you could be responsible for coming up with the additional $500,000.

What is liability for example? ›

Liability usually means that you are responsible for something, and it can also mean that you owe someone money or services. For example, a homeowner's tax responsibility can be how much he owes the city in property taxes or how much he owes the federal government in income tax.

What are the 3 types of product liability claims? ›

Products liability claims can be based on negligence, strict liability, or breach of warranty of fitness. This will typically depend on the jurisdiction within which the claim is based, due to the fact that there is no federal products liability law.

How do you calculate product liability? ›

There are three common elements to all product liability lawsuits, regardless of the legal theory that the lawsuit is brought under. The lawsuit must involve a product, the product must be found to be defective, and the product defect must be found to be the proximate cause of the injury.

What are the four elements of liability? ›

Identifying the Four Tort Elements
  • The accused had a duty, in most personal injury cases, to act in a way that did not cause you to become injured.
  • The accused committed a breach of that duty.
  • An injury occurred to you.
  • The breach of duty was the proximate cause of your injury.

What are liability products in insurance? ›

This policy covers claims, which the insured becomes legally liable to pay to third parties as a result of bodily injury or property damage arising out of the use or consumption of products manufactured, sold and /or distributed by the Insured.

What are basic liabilities? ›

Examples of liabilities are -

Bank debt. Mortgage debt. Money owed to suppliers (accounts payable) Wages owed. Taxes owed.

What are the limits of liability? ›

Limit of liability refers to the max amount of money your insurer is on the hook for if something bad happens to you, your stuff, or your property.

What are examples of liability risks? ›

Examples of liability exposures are bodily injury or death of customers, product liability, completed operations (i.e., faulty work away from the premises), environmental pollution, personal injury (e.g., false arrest, violation of right of privacy), sexual harassment, and employment discrimination.


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