What insurance does a food truck need in Texas?
Auto liability, general liability, equipment and the certificates that events and commissaries require before you set up.
A food truck is two businesses in one vehicle: a restaurant and a commercial vehicle. Insurers treat it that way, and so should you.
The coverages
- Commercial auto liability, for driving the truck
- Physical damage on the truck itself, valued to include the build-out and not just the chassis
- General liability, for foodborne illness claims, slips near the window and damage to a venue
- Equipment coverage for the cooking equipment, generators and the point of sale system
- Workers compensation if you have employees
- Spoilage coverage, which pays for product lost when refrigeration fails
Valuing the build-out
This is where food trucks get underinsured. A used step van might have cost 25,000 dollars, with another 60,000 in equipment, wrapping and fabrication. Insuring it at the chassis value means a total loss pays a fraction of what it takes to get back on the road. Get an itemized build sheet and insure the real number.
Certificates for events and venues
Festivals, breweries, private events and commissary kitchens will ask for a certificate of insurance, usually naming them as additional insured. Requirements often specify one million dollars of general liability. Ask for the requirements when you book, not the day before.
Propane, fryers and fire
Fire is the most common serious loss for food trucks. Carriers ask about suppression systems, propane storage and hood cleaning schedules. Having a serviced suppression system and documented cleaning helps pricing and helps far more at claim time.
Where the truck sits overnight
Garaging location and overnight security affect theft and vandalism pricing. A commissary lot with cameras rates better than a street parking spot, and insurers ask.
While parked and operating
Some auto policies limit coverage while the vehicle is stationary and being used as a business premises. This is exactly why the general liability policy matters and why the two need to be written to work together.
We will cover both halves
Bring your build sheet, your equipment list and any event contracts. Call (956) 687-3334. Se habla español.
Common follow-up questions
Can I insure a food truck on a personal auto policy?
No. The business use and the build-out both put it outside personal auto coverage.
Do I need workers compensation in Texas?
Texas does not require most private employers to carry it, but many venues and clients do, and without it an injured employee can sue the business directly.
What about a food trailer instead of a truck?
Similar coverages, with the trailer scheduled and the towing vehicle insured appropriately. The general liability and equipment needs are the same.
Want this looked at properly?
We are an independent agency in McAllen serving Hidalgo, Cameron and Starr counties. No cost to talk it through.
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