Catering Truck Insurance

What to Know About Catering Truck Insurance

Food trucks have grown in popularity in recent years. Many consumers appreciate the fact tasty food can be delivered to their home or business. If you operate this kind of vehicle, then it is vital to get it insured. It needs to be insured no matter what because it is a vehicle, but if you sell food, then you need to obtain a specialized catering truck insurance policy. When pursuing this, it is vital to keep several points in mind to get the best coverage out there.

Buy From an Experienced Food Truck Insurance Agent

Since food is being sold from the truck, different types of policies are required. That means an operator of a catering truck needs more than simply a standard auto insurance policy. For this reason, it is good to work with an agent who has dealt with catering trucks in the past. Someone who has never done this before may be willing to take on the job but does not understand everything that needs to go into the policy. Experience matters in the insurance world.

Get Every Policy You Need

Owning a company vehicle usually requires the owner, whether it is an individual or company, to have commercial auto insurance. A catering truck requires much more than that, such as:

  • Auto Liability Insurance: Vehicle insurance should cover damage caused by collisions and damage caused by fire or other natural disasters. It is also good to acquire uninsured coverage in case you end up in an accident with someone else lacking insurance.
  • Commercial Property (Equipment) Insurance: This covers additional property you own outside of the truck. That includes kitchen equipment and any computers you need to operate the day-to-day actions.
  • Commercial General Liability Insurance: This insurance protects you in case of property damage or injuries you cause in your food services business.. If the food from your truck makes someone sick, then  commercial  general  liability coverage protects you. 
  • Workers’ Compensation Insurance: Various employees need to work on a catering truck including the driver and  the cooks in the back. You need to ensure employees injured in a vehicle collision or from getting hurt in the kitchen have safeguards in place.

Catering truck insurance technically consists of several different coverages, and they are all essential. Professional brokers will assist you in finding a policy that covers everything you need, so you can operate your business with peace of mind.

“Bad Apple” Truck Insurance Brokers

Watch Out for unscrupulous insurance agents/brokers who falsely scare unsuspecting truck operators that their truck insurance is cancelled.   I learned of an incident where a trucker was called by one of these “bad apple agents” and told their insurance policy was not going to be renewed and was being cancelled.   The frightened trucker was smart enough to call his insurance broker to see what was happening and the current broker explained there were no problems.

Be careful who you buy your truck insurance from. There are a bunch of scam truck insurance agents who’ll do or say anything to mislead in order to make a sale.  Check out the agent before you buy insurance!

Truck Insurance Sales People Needed

A quick tally on the pulse of the insurance professionals who specialize in placing insurance for the trucking industry reveals a strong need for quality sales people.

A regional business development manager from Great American Insurance Company recently stated that the brokers he works with are all looking for new producers, or sales people.  

This is an interesting development as this form of insurance sales is a great place to be working in; as far as insurance sales go.   The cost of truck insurance is relatively expensive and the commissions can add up fast as compared to personal auto or homeowners insurance sales.    The sales person needs to understand the trucking industry,  commercial trucks,  and the appropriate insurance coverage needed but this is relatively simple and can be learned in depth within 6 months.

Good sales people,  especially those already in insurance, should hunt down the high quality brokers who specialize in this line of insurance.   Take a look at this commercial truck insurance sales ad.

Truck Insurance Rates Fall

Truck insurance rates continue to spiral downward as the long term Truck Insurance providers compete with new Insurance Company entrants into this industry.  Rates are down, on average, about 15% last year from 2006 and it is expected to fall another 5-15% again this year. The home page of Western Truck Insurance shows how much their customers have saved on their rates from 2006 to 2007. Great news for owner operators and trucking companies. Let’s hope the trend continues.