Food Trailer Insurance

There are several types of licenses and permits you might need in order to launch a food trailer or food truck business. That includes:

• Business license: States, counties, and cities typically require a business license for you to operate legally. If your route takes you through different jurisdictions, you may need multiple licenses. Fortunately, it's fairly easy to get a business license.
• Food handlers card: Anyone who makes or serves food needs a food handlers card. The exact requirements vary by state, but you and your employees will typically need to attend a food safety training course and pass an exam on the topic.
• Health permit: Your trailer must pass an inspection conducted by your local health department and pay an application fee.
• Commercial driver's license (CDL): In most cases, a driver's license is sufficient. But if your trailer or truck weighs more than 26,000 pounds, you'll need a CDL to drive it.

Food trailer or food truck owners might also need a seller's permit, a mobile food license, a mobile service permit, or a parking permit. In addition, cities have different regulations regarding parking, noise levels, or even whether food trailers are permitted. It's worth doing some research to make sure you're in compliance and to avoid fines.

Yes, you can buy business insurance policies that protect your food trailer freezers, generators, and other property in transit from fires, theft, and other losses. This is important coverage to have, as commercial property insurance only covers items at your primary business location.

The type of equipment and its value determine which policy you need. For a food trailer business, you might need:

• Tools and equipment insurance: This policy insures mobile tools and equipment valued at less than $10,000. The items typically must be less than five years old.
• Inland marine insurance: For more valuable business equipment, you'll need inland marine insurance. It'll pay for costs if a malfunctioning generator causes a fire in your trailer, destroying your freezers and inventory.
• Cargo insurance: This policy covers the risks of transporting goods. For instance, it'll help pay to replace a shipment of ingredients that was destroyed in an auto accident.

These policies are all different types of inland marine insurance. They're sometimes called "floater" policies because they provide protection for property that moves from place to place.

Owners of food trailers and other food service businesses should consider the following types of coverage to protect against their unique risks and liabilities:

• Commercial property insurance: This policy covers business property at your primary location, including your building if you own it. Property coverage protects against financial losses from fires, storms, and burglaries.
• Hired and non-owned auto insurance (HNOA): Your personal auto insurance won't cover business-related driving, which is why food trailers need additional coverage. This policy provides auto liability coverage for personal, leased, and rented vehicles used for work purposes, such as a leased food trailer.
• Commercial umbrella insurance: Umbrella insurance boosts the protection of your general liability, employer's liability, and commercial auto coverage, activating when the limit is reached on your food business's underlying policy.
• Equipment breakdown coverage: This policy covers the cost of replacing a generator, freezer, point-of-sale device, or other piece of equipment that breaks down unexpectedly. In the event of a freezer malfunction, you'll also need food spoilage coverage to replace the inventory that had to be thrown away.