Food Truck Insurance Requirements 2025 | Complete Coverage Guide

Food trucks need commercial auto, general liability, and often product liability insurance. Learn what coverage is required for permits, events, and daily operations.

Quick Answer: Do Food Trucks Need Insurance?

Yes. Food trucks need multiple types of insurance to operate legally. Most jurisdictions require commercial auto insurance and general liability insurance for business licenses and event permits. Health department permits often require proof of coverage as well.

Food Truck Insurance Requirements at a Glance

Coverage Type	Requirement	Typical Limits
Commercial Auto	Required	$1,000,000 CSL
General Liability	Required for permits	$1,000,000-$2,000,000
Workers' Compensation	Required with employees	State minimums
Product Liability	Often included in GL	$1,000,000+
Property/Equipment	Highly recommended	Replacement value

What Insurance Does a Food Truck Need?

Commercial Auto Insurance

Why required: Your food truck is both a vehicle and a business. Personal auto insurance won't cover it—period.

What it covers:

Liability for accidents while driving
Collision damage to your truck
Comprehensive (theft, fire, vandalism)
Uninsured/underinsured motorist
Medical payments

Coverage considerations:

Food trucks often qualify as "commercial vehicles" requiring CDL limits in some states
Specialized equipment (fryers, grills, refrigeration) may need separate coverage
Parked coverage while vending

Typical costs: $3,000-$6,000/year

Recommended limits: $1,000,000 combined single limit (CSL)

General Liability Insurance

Why required: Most cities, events, and commissaries require GL for permits and access.

What it covers:

Customer injuries (slips, falls, burns)
Property damage (grease splatter on customer's clothing)
Products liability (foodborne illness claims)
Personal/advertising injury
Completed operations

Real-world claims:

Customer slips on wet ground near truck: $20,000-$75,000
Food poisoning outbreak: $50,000-$500,000+
Hot oil splashes on customer: $15,000-$50,000
Truck damages event venue: $5,000-$25,000

Typical costs: $1,000-$3,000/year for $1M coverage

Recommended limits: $1,000,000 per occurrence / $2,000,000 aggregate

Product Liability Insurance

What it covers: Claims arising from food you prepare and serve—foodborne illness, allergic reactions, foreign objects in food.

Why critical for food trucks:

Preparing food in a mobile environment increases contamination risk
Limited space means cross-contamination concerns
Temperature control challenges
Allergen exposure in tight quarters

Good news: Product liability is typically included in general liability policies for food service businesses. Verify your policy explicitly covers food operations.

Workers' Compensation Insurance

When required: Mandatory once you hire employees in nearly all states—even one part-time worker.

Food truck-specific risks:

Burns from cooking equipment
Cuts from knives and slicers
Slips on wet surfaces
Repetitive motion injuries
Heat exhaustion
Vehicle-related injuries

Typical costs: $2,000-$5,000/year for small food truck crew

Business Property/Equipment Coverage

What it covers: Your cooking equipment, inventory, point-of-sale systems, and business property.

Items to insure:

Commercial cooking equipment: $10,000-$50,000
Refrigeration units: $3,000-$10,000
POS systems and electronics: $2,000-$5,000
Food inventory: Variable
Generator: $1,000-$5,000

Typical costs: 1-3% of equipment value annually

Who Requires Food Truck Insurance?

City/County Business Licenses

Most require proof of liability insurance
Minimum limits vary by jurisdiction
Annual certificate updates required

Health Department Permits

Food handling insurance often required
Product liability coverage verification
May require specific endorsements

Event Organizers

Private events typically require $1M-$2M GL
Certificate of Insurance (COI) required
Additional insured status for event
Sometimes require day-of coverage proof

Commissary Kitchens

Most commissaries require proof of insurance
May require specific limits
Often require their facility named as additional insured

Landlords (Permanent Locations)

If you have a regular parking spot/location
Lease agreements typically require insurance proof
Higher limits for private property

State and Local Requirements

Common City Requirements

City	GL Required	Minimum Limits
Los Angeles	Yes	$1,000,000
New York City	Yes	$1,000,000
Houston	Yes	$500,000
Austin	Yes	$1,000,000
Portland	Yes	$1,000,000
Denver	Yes	$1,000,000

Additional Local Requirements

Fire suppression certification (most jurisdictions)
Health department inspection (all jurisdictions)
Propane/gas certifications
Vehicle safety inspection
Zoning compliance for vending locations

Cost of Food Truck Insurance

Coverage Type	Annual Cost Range
Commercial Auto	$3,000-$6,000
General Liability ($1M)	$1,000-$3,000
Workers' Comp (1-2 employees)	$2,000-$5,000
Equipment Coverage ($30,000)	$500-$1,000
Total (typical operation)	$6,500-$15,000

Factors Affecting Cost

Menu type: Fried foods and open flames cost more
Annual revenue: Higher sales = higher premiums
Number of events: More events = more exposure
Driving record: Affects commercial auto rates
Claims history: Prior claims increase all rates
Location: High-traffic cities cost more
Experience: New operations pay more

Money-Saving Tips

Bundle coverage: Food truck business owners policies (BOPs) save 10-20%
Higher deductibles: Reduce premiums with $1,000+ deductibles
Safety certifications: Fire suppression systems may reduce rates
Industry associations: Some offer group insurance programs
Clean driving record: Maintain good MVR for lower auto rates

Common Coverage Gaps

Spoilage Coverage

Standard policies may not cover food spoilage from:

Generator failure
Refrigeration breakdown
Power outages
Equipment malfunction

Solution: Add spoilage/contamination endorsement

Business Interruption

If your truck is damaged and you can't operate:

Lost income during repairs
Continuing expenses (commissary fees, permits)
Event contract penalties

Solution: Business interruption coverage

Hired/Non-Owned Auto

If employees use personal vehicles for business errands:

Supply runs
Bank deposits
Catering deliveries

Solution: Hired and non-owned auto endorsement

How to Get Food Truck Insurance

Determine your needs:
- Single truck or fleet?
- Employee count?
- Annual revenue estimate?
- Events vs. fixed location?
Gather required information:
- Vehicle details (VIN, year, value)
- Equipment inventory and values
- Menu and food preparation methods
- Planned vending locations
- Employee count and payroll
Get specialized quotes:
- Food truck insurance specialists
- Restaurant/hospitality insurers
- Commercial auto insurers familiar with food service
Compare coverage, not just price:
- Verify product liability inclusion
- Check equipment coverage limits
- Understand exclusions
- Review deductibles

FAQ

How much does food truck insurance cost?

Typical food trucks pay $6,500-$15,000 annually for comprehensive coverage including commercial auto, general liability, and equipment. Costs vary based on location, menu type, and revenue.

Can I use personal auto insurance for my food truck?

No. Food trucks are commercial vehicles used for business purposes. Personal auto policies explicitly exclude commercial use and will deny any claims.

Is product liability included in general liability?

Usually yes, for food service businesses. However, verify your policy explicitly covers food preparation and service operations. Some policies exclude or sublimit food-related claims.

Do I need insurance for each event?

Your annual policy should cover all events, but many event organizers require event-specific certificates of insurance naming them as additional insured. Your insurer can issue these certificates at no additional cost.

What happens if someone gets food poisoning?

Product liability coverage responds to foodborne illness claims. This covers medical expenses, legal defense, and settlements. Without coverage, you're personally liable for potentially hundreds of thousands of dollars.

Do I need workers' comp if I only hire family members?

It depends on your state. Many states exempt family members from workers' comp requirements, but some don't. Check your state's specific rules—and consider coverage anyway for protection.

Important Disclaimer

This guide provides general information about insurance requirements based on publicly available sources. This is not legal advice. Insurance and permit requirements vary by city, county, and state. Always verify current requirements with your local health department, city licensing office, and consult with a licensed insurance professional for advice specific to your situation.

Last verified: December 2025
Sources: City licensing departments, State insurance departments, National Food Truck Association