Finding Great Insurance Benefits

Common Mistakes To Avoid With Insurance For Your Food Truck Business

You've created a business model that makes perfect sense. You will take your delectable menu options to the people instead of them having to come to you to get the food you serve. The food truck business is booming, whether you live in rural farm country or in a big city. Because everyone is about convenience with their meals while on the go, food trucks can now be found all over the country. The only problem is, too many prospective food truck business operators have no idea how to properly protect their new business with insurance. Here is a look at a few mistakes you must avoid making with your food truck business where insurance is concerned. 

Mistake: Assuming that regular vehicle insurance will be enough. 

Why? It is a must that you have insurance on any vehicle that is mobile, but this insurance is not enough to cover all the liabilities involved in a food truck business. Regular automobile insurance only covers problems when you are involved in an accident, it will not keep your business protected in any shape or fashion. In fact, it is best if you opt for commercial vehicle insurance over general auto insurance anyway because it is better designed for business protection. 

Mistake: Not getting a substantial level of business property coverage. 

Why? With your food truck being your place of business, you will need business property coverage for your business entity. Business property coverage will protect things like the kitchen equipment inside of the truck, the signage on the outside of the truck, and even the perishable food items if something goes wrong and it is destroyed. If you go for the lowest business property coverage available, you may not have all of the bases covered, which can mean a huge financial hit if something happens. 

Mistake: Assuming you don't need any type of liability insurance for your business operation. 

Why? For the most part, you will see your customers briefly when you hand them food and you may or may not see them again. However, just as it is with any type of restaurant, if a person gets sick because of your food, you could be facing a lawsuit because you will be held liable. Because of this, getting the proper level of liability coverage for your food truck business is a necessity. All it would take is one sick customer and one lawsuit to bankrupt your business. 

Contact a company, like Metropolitan Insurance Service Consultants, for more help.