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Did you know that there are around 25,000 food trucks in the US?

The food truck industry has been growing quickly over the past few years, with demand for quick, convenient, and tasty food higher than ever! If you have a food truck, you could be driving a gold mine.

But, if something happens to your truck, your whole business could fall apart. This is where insurance for food trucks comes in, and you need to make sure you get the right plan for your business.

Find out everything you need to know in our guide.

Look for the Full Food Truck Insurance Package

There are different types of insurance you need to cover your mobile food truck. Here’s what you need:

• Commercial auto liability
• General liability
• Business personal property
• Workers compensation 
• Unemployment insurance
• Umbrella liability

If you can, look for a business insurance company that covers the whole package. This is much easier than setting up plans with various insurers and will make it simpler if you ever have to make a claim. Make sure the insurance company knows you’re a food truck so they can match you with the right plan.

Additional Insured Certificates

If you’re planning on taking your food truck to events, you’ll need to have an additional insured policy. Most places will ask to see your papers for this if you’re serving on their grounds. It basically makes sure that they’re covered if there are any accidents on their property.

Try and find an insurer who doesn’t charge for additional insured certificates. You may need to get a new one for each event you go to, which could end up costing you a lot! 

Know Which Questions to Ask

If you want to get the right insurance policy for your food truck business, you need to know which questions to ask. Here are just a few that can help you:

• Am I covered if I get into a car accident?
• Is my insurance suitable for mobile businesses?
• Is coverage for food poisoning claims included?
• What happens if my truck is vandalized or stolen?
• Do any items that I tow need different insurance coverage?

By asking these questions, you’ll help your insurers understand what kind of policy you’re looking for and make sure you get exactly what you need. 

Check Out Reviews

Once you’ve found a company who provides the right type of insurance for your food truck, it’s time to do some research into them. One of the best ways to do this is by checking out online reviews. Simply search the name of the insurer in Google along with reviews and see what you can find!

There should be plenty of customers discussing the company. Make sure that their feedback is mainly positive and see if there are other food truck users who are happy with their coverage. If there aren’t any reviews, this could be a red flag, unless they are a small/local insurance company who might not have a ton of exposure on the internet.

Find the Best Food Truck Insurance

Finding insurance for food trucks isn’t as hard as it was just a few decades ago. With their rising popularity, you should be able to find a good plan easily!

For more food truck tips, check out the rest of our blog. If you don’t have your food truck yet, we can help you put together a custom vehicle that suits your business perfectly. 

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post How to Find the Best Insurance for Your Food Truck appeared first on Custom Concessions.

Investing in a food truck isn’t going to be cheap but has huge potential, so you need to be informed from the start and have a plan for being profitable. Below we’ll review some of the top operating costs you can expect to encounter when you start your food truck business. 

Fuel Costs

When using a food truck you have to consider fuel costs. No matter if you’re using your food truck locally or going across the country, fuel needs to be a line item in your budget. If you’re going across the country, you’ll need to factor in those costs before you travel.

You’ll also have to consider the size of your truck—the bigger the truck, the more you’ll be spending on fuel. How heavy the equipment you use will be a factor as well, as heavier equipment will add more weight to your truck. More weight equals higher fuel costs.

Calculate how many miles you’ll be going each day compared to your truck’s gas mileage to see how much you’ll be paying each month.

Keep in mind that gas prices vary from state to state. If you plan to travel across state lines make sure to calculate the difference.

Ingredient Costs

Know what ingredients you’ll be using frequently and how much they’ll cost you. Some foods are more expensive than others, especially meats and spices.

Try not to have a large menu, as more ingredients means higher prices. Moreover, you may not have space for as many different kinds of ingredients, depending on the size of your truck and how much storage is available.

Another way to reduce your ingredient cost is to rotate your menu with the seasons using seasonal foods. Buying food in season will save you a lot of money.

Buying in bulk can also reduce how much you should expect to pay. Keep in mind that you need space to store large amounts of food. You may want to store some of these bulk foods somewhere off site so they don’t crowd up the limited space in your kitchen and contribute even more to the gas-guzzling nature of your food truck.

When looking at your food costs, a good rule of thumb is to keep your food costs between 28%-35%.

Demand

When you set up shop, you need to know your demographic. You need to tailor your menu to the people you’re serving. What you sell in one location may not sell well in another location.

You also need to predict how many people will come to your truck. You don’t want to have more food than you need. Too much food can lead to waste, which basically means money down the drain.

Review how well other food trucks in the area have done. Look at sales forecasts and previous sales made by other food trucks.

Moreover, review when food trucks are more popular in that specific area. You want as much foot traffic as you can get.

On top of that, when people go to food trucks, they’re not expecting a large menu. Be clear about what you’re selling. If potential customers don’t understand what you’re selling they won’t buy from you.

Permits, Licenses, Certificates, and Insurance

There are many fees that come with food trucks. Make sure you can afford them before you start a food truck business.

Permits, Licenses, and Certificates

You need permits, licenses, and certificates to be able to legally serve food. For example, you’ll need health permits, hazard prevention, vehicle, and zoning permits. Moreover, food safety certificates may be required (e.g. ServSafe certified).

You may need to get many permits if you go out of your state, or even to a different location in your state. States and local jurisdictions (e.g. counties, towns) have different regulations and prices.

Research each location before you go to make sure you have the proper documentation. Getting this documentation can take time so prepare in advance.

Be aware of how often these need to be renewed as well. Each time you need to renew you’ll have to shell out more money.

Once you have all your documentation, you’re still regulated on where you can set up shop. There will be specific locations and hours you’ll be able to sell food.

Insurance

Not only do you need permits, certificates, and licenses, but insurance as well. Insurance is essential for protecting your business, but it comes at a cost.

Some types of insurance you’ll definitely want include auto, liability, and workers’ compensation. You’ll also want a business owner’s policy. This should bundle in your general liability and property insurance.

Getting bundle deals for your insurance will reduce the amount you’ll be charged for them.

Renting Space

Unlike a restaurant, you’re not guaranteed a fixed space. You need find somewhere to park your vehicle when you’re not serving food.

Moreover, you won’t have as much space as a restaurant. If you can’t get everything done in your food truck, and/or can’t hold everything in it, you’ll need extra space, like a commercial or commissary kitchen.

Parking

Before you go on the road, research your route ahead of time. Reserve parking, if possible. By reserving space ahead of time you may also save on costs.

Commercial/Commissary Kitchens

If you need to store food, you may want/need to use a commercial or commissary kitchen. You can pick up food as you need it.

Keep in mind how far away the location is from where you’re selling your food. You don’t want to make many trips if you have to travel further away from the kitchen.

Having access to one of these kitchens will make it easier for you to prep all your food beforehand. You won’t have to try and prep your food in the small space of your food truck.

On top of that, your food truck may not have all the equipment you need to prepare your food beforehand.

Top Food Truck Costs

These are some of the food truck costs you need to be aware of. Do your research to learn about other costs that could affect you. Look for ways to reduce your costs—you don’t want to pay more than you have to.

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post The Top Food Truck Costs You Need to Consider appeared first on Custom Concessions.

You’ve opened your food truck and everything is just perfect. The food is wonderful, guests are loving it, and you are making some good money. Then…

Disaster strikes. Something is wrong! Oh no. You realize… you didn’t get any type of food truck insurance.

How are you supposed to keep your new, amazing business afloat?

The good news is that getting food truck insurance is very simple and can be done before you even open your new food truck business!

Is Food Truck Insurance Really Necessary?

The answer to this question is, yes, absolutely!

Not only do you need insurance for your business, but you have to remember that you also are running the business out of a vehicle.

Legally, you need to have at least commercial vehicle insurance on the mobile kitchen itself. In addition to this, a lot of food truck owners will get other coverage as well, such as general liability, to make sure that they are covered in other unexpected instances.

Owning a food truck is a big deal! Protect your business with insurance. Not only that, but show others that you care enough about the business you have created to cover it with quality insurance.

Food trucks come with a lot of extra things that normal trucks don’t have, such as refrigerators, temperature controlled compartments, freezers, heat sources, or storage space. You need to protect your truck and all of the assets that go with it.

What Type of Insurance Is Needed For a Food Truck?

The first thing to consider is that although you can get some great advice online, you should always consult an insurance broker or a lawyer to make sure that you are getting the exact type of insurance you need.

You need to at least have vehicle insurance starting on the first day that you purchase the food truck. You can wait a little bit on getting other types of insurance, but vehicle insurance is very important if you plan to drive or move your food truck around.

Other types of coverage you will need are for your vehicle, your business, and your employees. This will generally include:

• Commercial auto liability insurance
• Commercial property insurance
• Workers’ compensation insurance
• General commercial liability insurance

On average, food truck insurance is going to cost between $300 and $600 per month, but it really depends on the type of coverage that you get and how much your food truck sells each year.

Getting Your Insurance Set Up Today

Now that you have learned a little more about food truck insurance, you likely are aware of how important it is and are possibly ready to get your own policy!

The good news is that setting up a new policy is not terribly difficult, but it is important to choose the right one for your business.

Protecting your business from the very beginning is one of the best things you can do as a new food truck owner.

If you’d like to learn about how to turn your food truck business into a mobile catering business, check out this blog article about how to make it happen. It can be a lucrative way to get more of your food out there, while also making a bigger name for yourself.

Want more food truck advice? Check out more blog posts here!

Thinking about starting a food truck? Request a free custom quote and one of our food truck specialists will help you design the truck of your dreams.

Stay up to date on everything Custom Concessions has to offer! Like us on Facebook and follow us on Twitter.

The post Food Truck Insurance: All You Need To Know To Get Going! appeared first on Custom Concessions.