Ice Cream Truck Insurance

There are several types of licenses and permits you might need in order to launch an ice cream truck or similar ice cream 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 truck 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 truck weighs more than 26,000 pounds, you'll need a CDL to drive it.

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 ice cream trucks 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 ice cream 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 an ice cream truck 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 equipment, you'll need inland marine insurance. It'll pay for costs if a malfunctioning generator causes a fire in your truck, 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 ice cream 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.

Ice cream is synonymous with summer, which is why you might be tempted to pick up short term coverage only when you need it. It's true that seasonal insurance can be affordable and flexible. However, significant drawbacks make it better to buy continuous coverage.

Here are the top reasons why you should buy year-round insurance instead:

• Short-term coverage is costly. Insurance companies charge more when you cancel a policy and restart coverage. In the long run, continuous coverage may cost less.
• It's harder to get coverage when you need it. An ice cream business that has a high turnover of policies might find it difficult or even impossible to get insurance, as insurance providers see it as a red flag.
• You're exposed to risk. When you're uninsured, you're unprotected. If a fire destroys your truck or generator while it's in winter storage, you'll end up paying for everything out of pocket.
• You might miss an opportunity. Having continuous insurance means you can quickly accept a contract. If someone asks you to cater an event in the off-season, you might have to turn it down if you're uninsured.

For peace of mind and year-round protection, it's best to buy standard insurance, which means you're covered when you need it. If you're concerned about the cost, there are ways to save money on your policies, such as maintaining minimal coverage during the off-season.

Owners of ice cream trucks 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. It 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 ice cream trucks need additional coverage. This policy provides auto liability coverage for personal, leased, and rented vehicles used for work purposes, such as a leased ice cream truck.
• 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 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.