Southern California is the food truck capital of the world, a region where culinary excellence can be enjoyed on just about any spot with good parking. San Diego is home to a few legendary food trucks such as Red Oven Pizza, Devilicious, and Tacos La Mezcla. These are successful businesses with a constant stream of clients and sales.
If you know your way around gourmet and fusion cuisine in Southern California, you do not need to rent an expensive commercial space with fancy kitchen equipment. You may find business success with a food truck, but you should be aware of the following insurance needs before you get started.
1. Auto Liability
If you decide to start off modestly with a conversion van that is covered by a personal auto insurance policy, you will need to upgrade your coverage to a commercial auto liability policy that will protect your food truck during business hours. Depending on how you plan to structure your business, you may be better off putting something other than your personal vehicle to work as a food truck. It is important to remember this policy will only cover your vehicle and any damage it causes. Your food preparation equipment will require a different policy.
2. General Liability
Once you park your truck and start serving seafood tacos or other delicacies, you will need coverage that will protect you from general issues that may arise during the course of business. If you accidentally spill water on a customer’s expensive smartphone and she decides to enter a civil complaint against you for damages, a general liability policy may cover you in such cases. This policy is crucial, and no business in Southern California should operate without it.
3. Umbrella Coverage
In major metropolitan areas such as San Diego, you may be required to have higher coverage if you are allowed to park in certain upscale areas. In San Diego, umbrella insurance policies can be added to the commercial auto and general liability policies for the purpose of increasing coverage to a desired amount. If business picks up and you decide to upgrade the kitchen equipment in your food truck, umbrella coverage can protect your new purchases. If you hire an assistant, you will need workers’ compensation coverage by law, and you will also be able to increase your employees’ level of protection with an umbrella policy.
4. Property Coverage
The ritziest food trucks that offer gourmet fusion meals have more than just grills, broilers, and hot food tables. The most successful business owners operate fleets that park at multiple locations and generate more sales than fancy restaurants. Getting to this level means purchasing specialized kitchen equipment such as steamers, smokers, roasters, and ovens. This type of equipment may not be covered by your San Diego commercial auto insurance policy. It must be protected separately with property coverage.
If you’d like to find out more about insurance for food trucks and other types of businesses, reach out to Tri-Star Insurance. In addition to commercial insurance, we also offer reliable homeowners, health, RV, and car insurance. San Diego residents can count on American Tri-Star to meet their insurance needs. Find out why by calling 619-272-2100 and speaking with one of our friendly and knowledgeable agents.