Mobile catering vans face different risks than personal cars. You’ll generally need more van insurance for a catering business than if you drove the same vehicle for personal use.
Lindsay is a freelance personal finance writer currently pursuing her Series 65 license. She enjoys helping readers learn money management skills that improve their lives.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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You likely started your catering business because you love what you do. But it comes with important insurance risks you need to consider.
From car accidents to theft, fire, and food poisoning, a lot can go wrong in running a mobile catering business, and yourpersonal car insurance policy generally contains exclusions for business use. That’s where a commercial auto policy can come into play.
Many companies offer insurance policies specifically designed to meet the business needs of food truck businesses, which also extend to catering vans. We’ll cover how these policies work, how much they cost, and how to ensure you’re getting the coverage you need.
Quick Facts
Food truck operators often have to show proof of insurance to event centers and venues.
Food truck insurance premiums typically range between $2,500 and $4,500 per year.
Insurance requirements can vary by state, town, and even venue.
Who needs mobile catering insurance?
Put simply, if you run a mobile catering company, you’ll likely need a food truck insurance policy. Aside from the valuable financial protection it offers your business (and your personal finances, in some cases), catering venues and events often require evidence of coverage or even that you add the venue or location as a named insured onto your business’ policy.[1]
These types of policies can take a few forms, depending on your risks, state regulations, and the types of vehicles you use in your business. A complete business owner’s policy often wraps together multiple insurance policies, which can include catering van insurance.
You can also apply for commercial van insurance separately for vehicles that your business owns or leases. If you or your employees use your personal cars, you can also buy a non-owned vehicle policy since your business doesn’t own your personal car.[2]
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How much does it cost to insure a mobile catering van?
Premiums for food truck insurance, including general liability and vehicle coverage, generally run between $2,500 and $4,500 per year for most businesses.
Coverage might cost less in some cases, such as if you’re just pulling a hot dog cart behind your car to different venues. Mobile food trailer insurance might come with much lower premiums since your cart will be cheaper to repair and cause less damage than a large food truck with several employees inside operating hot oil fryers, food chopping stations, etc.
Both businesses might suffer losses from equipment theft, fire, and vandalism, as well as lawsuits from accidents and food poisoning injuries. But a catering trailer business is far less likely to run into these problems than a larger operation, and the premiums that your insurance company charges should be less, too.
Commercial car insurance coverages you’ll need for a food and beverage business
As with personal car insurance, your state might require you to buy a certain amount of food truck insurance in order to stay compliant with the law. Individual cities might set different insurance requirements, too, and your venue or event might also require certain business insurance coverage.
Experts recommend that you design a policy based on your business’ actual insurance needs, though, rather than the minimum legal requirements.[3] That way, you can keep your doors open without running the risk of the slightest business setback causing your whole catering business to close down.
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Basic commercial car insurance coverage
Most states require some variation of the following coverages:[4]
Commercial auto liability
If your catering van causes an accident, liability coverage payouts could help cover expenses such as injuries, property damage, and lawsuits.
Physical damage coverage
Comprehensive and collision insurance may cover property damage claims on your catering van, such as if your refrigeration unit goes out, a fire burns part of your vehicle, or someone steals your keys or fittings.
Medical payments or personal injury protection (PIP)
If you or your employees incur any injuries while driving, medical payments and PIP can help pay medical bills.
Uninsured/underinsured motorist coverage
If someone with insufficient liability insurance hits you, or they have no coverage at all, uninsured/underinsured motorist coverage can step in to cover the difference.
Other coverages you might need
Today, a single lawsuit can shutter your business. That’s why experts highly recommend that you carry more insurance coverage than you might on your personal policy.
Here are a few coverages recommended for catering van insurance:
General liability: In addition to product liability coverage — like if your food makes someone sick — this may also cover things like copyright infringement.
Workers’ compensation insurance: States set different insurance requirements for this type of policy, which helps cover the cost of any injuries your employees might suffer on the job.
Business interruption insurance: Especially handy for mobile businesses, this can help you recoup lost income from things like government closures, fire, vandalism, and more.
A good business owner’s policy can offer extra savings by underwriting multiple lines of coverage into one package, depending on your business’ unique needs.
Mobile catering van insurance FAQs
The food service industry is notoriously challenging for business owners, and that’s without the added complication of running a restaurant on wheels. Having the right coverage in place can help your business survive and even thrive, especially in challenging times.
What type of insurance do you need for a cargo van?
If you’re using your cargo van for business use (as opposed to personal use), you’ll need a commercial auto liability policy, at a minimum. Your state may set additional minimum insurance requirements, and it’s often a good idea to purchase additional coverage, depending on your business needs.
What type of insurance does a food truck need?
In general, food trucks must carry commercial auto insurance. This consists of separate policies for property insurance and bodily injury insurance. Your state may require additional types of coverage, such as medical payments coverage or uninsured/underinsured motorist coverage.
What is catering liability insurance?
Liability insurance for catering businesses helps cover your business’ financial responsibility when it makes mistakes. For example, if an employee causes a car accident, or if someone gets sick after eating an unlabeled allergen in your food, liability insurance could help cover the cost to make things right.[5]
How do you insure a commercial vehicle for personal use?
Insurance companies may offer special endorsements for commercial van insurance if you’ll be using it for personal use as well. Alternatively, you may be able to insure it under a personal auto insurance policy and then buy a non-owned food truck insurance policy through your business to cover those times when you’re using it for work.
Sources
MRSC.org. "Food Trucks Have Arrived: What Are the Regulatory and Policy Options?."
Lindsay VanSomeren is a freelance personal finance writer living in Suquamish, WA. Her work has appeared with FICO, Credit Karma, The Balance, and more. She enjoys helping people learn how to manage their money better so they can live the life they want.
Lindsay has been a contributor at Insurify since October 2022.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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