What Food Trailer Insurance Policies Best Protect Against Risks

Food trailer businesses are among the fastest-growing dining concepts in the country. They’re driven by their affordability, versatility, and increasing preference among young people for unique experiences over traditional brick-and-mortar restaurants. For these reasons, it’s unsurprising the U.S. is home to nearly 53,000 food trucks as of 2023 and growing at 18.4% per year.

Whether you refer to it as a food trailer, food truck, or mobile kitchen, all roving food entrepreneurs need comprehensive insurance coverage to protect their business from unexpected risks. Food trailer owners like you encounter unique challenges, from road accidents to fire hazards, making specialized insurance policies crucial for maintaining your profitability.

Below, we explore common business risks, uncover key types of food trailer insurance policies you should consider to mitigate these risks, and offer some expert tips from Anne Russo—director of small business underwriting at Central Insurance—that will ensure peace of mind.

Recognizing Liability Risks in Food Trailer Operations

Running a food trailer business combines culinary creativity with mobility, but it also introduces significant liability risks. That’s why general liability insurance is a must-have policy to protect against claims arising from third-party injuries, property damage, or on-site accidents.

“Liability risks are a major concern because incidents such as bodily injuries or property damage can result in significant financial consequences,” Russo explains. “For instance, if a customer trips on a cord near your trailer or is injured by your setup, the associated legal fees and settlements can add up quickly.”

Did You Know? California, Texas, and Florida are the U.S. states with the most food trucks.

Food Trailer Insurance Protects Your Assets from Fire, Weather, and More

Restaurants are widely recognized as a high-risk industry, and food trucks, as mobile restaurants, face even greater challenges. Food trucks are equipped with grills, fryers, propane tanks, generators, and fuel storage, which pose significant fire risks. 

According to the NFPA, propane tank leaks or structural problems cause 68 percent of food truck fires. In recent years, nearly all food truck fires resulting in injuries and deaths have been linked to propane explosions.

In addition to fire hazards, food trucks face operational challenges due to their reliance on weather and location. Extreme heat, heavy rain, or snow can disrupt outdoor operations, leading to revenue loss. These unique risks highlight the need for specialized coverage. 

While commercial auto insurance addresses road-related incidents, such as accidents causing property damage or injuries, food trailer insurance offers the additional protection required for a business that functions as a vehicle and a mobile kitchen. This type of insurance covers weather-related damages, fire risks, and operational liabilities that traditional policies typically do not address.

One such aspect is auto business income coverage, uncommon for standard auto policies. This coverage becomes critical if, for example, a kitchen fire renders the trailer inoperable. Even if the damage isn’t total—like smoke damage that makes food unsellable—this policy can help replace lost income while you make repairs. As food trailers serve as mobile kitchens and sales spaces, losing their functionality impacts revenue directly.

Another specialized coverage is mobile food service property coverage, which addresses the dynamic nature of food trailers. Russo highlights that this policy provides a blanket limit for built-in equipment, food stock, and other essentials within or near the trailer, typically up to a specified distance, such as 20 feet. Examples of covered property include coolers, grills, ovens, storage units, and other fixed equipment integral to operations.

“These innovative food trailer insurance solutions bridge the gap between traditional location-based property insurance and vehicle-based coverage, ensuring comprehensive protection for food trailer businesses,” Russo expands.

Learn more: How Much Does Restaurant Insurance Cost? Factors That Affect Your Rate

Foodborne Illness and Contamination is a Serious Risk For Mobile Food Vendors

As a food truck owner, you know the business involves an inherent risk of contamination or foodborne illnesses, which can lead to customer claims, lawsuits, and reputational damage. Proper food storage, preparation, and handling are critical, but even with your high standards of cleanliness, the potential for contamination remains a reality.

Food trailer insurance helps mitigate these risks through coverage options like product liability insurance and equipment breakdown coverage. 

Product liability typically provides coverage for injuries, illnesses, and property damage caused by defective products sold by a business. In the food service industry, this often involves illnesses linked to improperly handled food. Since contamination can occur at any point in the supply chain, this coverage is essential, even if you meticulously follow hygiene practices and handling protocols. On the other hand, equipment breakdown coverage ensures units like refrigerators remain operational, reducing the risk of spoilage and contamination.

Protect Employees and Yourself With Workers’ Compensation Coverage

Operating a food truck involves unique workplace risks, especially in the confined spaces typical of mobile kitchens. Employees must navigate around hot surfaces, fryers, sharp tools, and other cooking equipment in close quarters, increasing the potential for burns, cuts, and other injuries. This setting makes the risk of accidents significantly higher compared to traditional restaurants.

Workers’ Compensation insurance is essential for addressing these hazards, as it provides coverage for medical expenses, lost wages, and rehabilitation costs for injured employees.

“In many states, Workers’ Compensation is a legal requirement, whether you have three employees or 300,” Russo says. “This essential coverage helps protect your employees by covering medical expenses and lost wages if injured on the job while also shielding your business from financial and legal liabilities.”

Cybersecurity is an Important Part of Food Trailer Insurance Coverage

In today’s digital-first environment, food truck businesses increasingly rely on electronic payment systems like Square and Apple Pay to manage orders. While this reliance on technology is effective at streamlining processes, it also makes these businesses vulnerable to cyber threats. 

A data breach or cyberattack can compromise sensitive customer information, damage your reputation, and lead to costly legal and recovery expenses. Cyber Suite is comprehensive coverage with multiple layers of insurance defense against the complex, ever-evolving cyber risks that food service businesses face.

“Food truck businesses may not consider themselves targets for cyberattacks, but any operation handling customer data is at risk,” Russo says. “Cyber Suite coverage helps mitigate the financial and reputational impacts of a data breach, allowing you to focus on running your business while staying protected.”

Why Central is the Right Partner for Food Trailer Insurance

Choosing Central Insurance for your food trailer business means partnering with a company that understands your unique challenges and risks. From road accidents to foodborne illnesses and equipment breakdowns, we’ve designed our policies to ensure your business thrives no matter the circumstances.

With years of experience working with food businesses, Central’s team understands the complexities of running a mobile operation. Our underwriting and loss control specialists will help you identify risks and develop strategies to minimize them.

Don’t let unforeseen risks disrupt your food trailer business. Contact an independent Central agent today to learn how our food trailer insurance policies can protect your livelihood and dreams.