Commercial auto insurance for food and beverage businesses

Your employees might be safe drivers – but they still have to contend with other drivers on the road. An accident could lead to another person getting injured, or your food truck or delivery van getting totaled.

An auto accident could cost your small business thousands of dollars, especially if it leads to a lawsuit. Compare that to the average monthly premium for a food truck ($170) or caterer ($164) and it’s easy to see why commercial auto insurance is the better deal.

Commercial auto insurance helps cover the cost of potential lawsuits, property damage, medical bills, and other expenses arising from an accident. It can also pay for repairs due to weather events and vandalism, or cover the theft of a vehicle.

Your policy can be tailored to match your business. For instance, a food truck that parks in one location may need less coverage than a bakery van with an extensive delivery route.

Company-owned vehicles such as food trucks and delivery vans must be covered by commercial auto insurance.

You may need commercial auto insurance if you:

• Operate a mobile food truck
• Deliver food to customers
• Transport equipment or prepared foods to event venues
• Send employees on errands during work hours

State regulations determine how much coverage you need. Your commercial auto insurance must meet your state’s liability insurance requirements.

You can tailor your commercial auto insurance policy to match the needs of your food truck, catering company, or other food business. Your policy may cover:

If your restaurant or other food business is sued over an accident, legal defense fees can add up quickly. You could also end up having to pay a settlement or court-ordered judgment.

If an accident injures the driver of your food truck or delivery van, or any passengers, your policy can cover the cost of medical care.

Collision coverage pays for damage to your delivery van or other work vehicle, regardless of who is at fault.

This coverage pays for damage caused by drivers who don’t have insurance.

Comprehensive insurance covers non-collision damages including vandalism, theft, and fire.

Commercial auto insurance covers business-owned vehicles, but sometimes employees drive their own cars for business errands. Personal auto policies almost always exclude coverage for business use.

Hired and non-owned auto insurance (HNOA) provides liability coverage for restaurant owners, caterers, and others who get into an accident while driving their personal vehicle to conduct company business. It also covers leased and rented vehicles.

Commercial auto insurance is a must-have for small businesses that own a food truck or delivery van, but it doesn't cover risks beyond those related to your vehicle. Owners of food and beverage businesses should also consider:

Business owner’s policy (BOP): A BOP defends against the most common risks in the food service industry. It bundles general liability insurance with commercial property insurance at a lower rate than purchasing both policies separately.

Workers’ compensation: Workers' comp is required in most states for businesses with employees. It can cover medical expenses if an employee is injured on the job.

General liability insurance: This policy protects against basic third-party risks, such as a customer injury or damage to customer property. It’s often a requirement for a commercial lease.

Liquor liability insurance: This policy covers risks involved with serving alcohol, such as an intoxicated customer damaging someone's property or causing an injury.

Cyber liability insurance: Cyber insurance helps food and beverage businesses recover financially from cyberattacks and data breaches.

Are you ready to safeguard your food truck, catering van, or other business vehicle with commercial auto insurance? Complete Insureon’s easy online application to compare quotes from leading U.S. carriers. Once you find the right policy, you can begin coverage in less than 24 hours.