There are a lot of benefits to running a food truck business, but there are also a lot of risks. If you’re not prepared, your food truck business could face claims that could financially devastate your business.
So how do you avoid these claims? Well, believe it or not, having a good Food Truck Insurance policy is only part of the equation—a big part, albeit, but a part nonetheless. There are actually loads of things you can do to reduce the risk of claims. Without further adieu, let’s take a look at some of the most common liability claims that food truck owners have faced and what you can do to avoid them.
COMMON FOOD TRUCK INSURANCE CLAIMS
Third-Party Bodily Injury Claims
Bodily injury is used to describe an event in which your business product or service caused someone bodily harm. Bodily injury encompasses a variety of accidents—from someone tripping on your business equipment and falling to someone getting sick from the food you served them.
What can you do to avoid bodily injury claims? Well, you can reduce the risk of someone tripping and falling by setting up in a safe location with few or no hazards. If you set up any equipment outside your truck, make sure it’s easy to see and in a low foot traffic location where people won’t trip over it. Any unused equipment should be safely stored where it can’t be tripped over.
To reduce the chances of getting a customer sick, make sure you and your employees adhere to proper health and safety guidelines on how to handle, prepare, and cook your food. Try to use fresh ingredients every day, and never sell food past the expiration date. If your food contains any allergens, such as dairy, wheat, or nuts, make sure it’s properly labelled for customers to see.
On the insurance side of things, you can protect your business from bodily injury claims by purchasing Food Truck Insurance that includes general and product liability coverage. These policies are designed to mitigate the out-of-pocket cost that bodily injury claims create in the unfortunate chance that an accident involving your business occurs.
Third-Party Property Damage Claims
Similar to bodily injury claims, third-party property damage is used to describe an event in which your business causes damage to the property of another individual or business. As businesses that often operate at more than one location, property damage claims are among the most common that food trucks can face.
How can you avoid property damage claims? When setting up your food truck, make sure the area is free of obstructions or other objects that could be damaged. Give your food truck lots of space between objects and other trucks to avoid any unfortunate accidents.
One of the most common causes of property damage we’ve seen at FLIP comes from runaway tents and other business equipment that gets carried away in the wind before smashing into someone’s personal property. If you set up any equipment outside of your food truck—like a tent, chairs, or a-frame signage—make sure it’s securely weighed down.
From an insurance perspective, a Food Truck Insurance plan with a general liability policy can protect your food truck from the cost of third-party property damage claims. As a side note, many locations and events where you might do business require you to include them on your insurance plan as an additional insured, which will extend your coverage to them if an accident involving your food truck occurs.
Cyber Liability Claims
Cyber liability is used to describe an event in which your business experiences a cyber security breach. This can be from malware attacks, phishing schemes, or myriad other ways. With more than 2,000 cyber attacks occurring every day, cyber liability is of utmost importance for small businesses.
Luckily, there are many things you can do to reduce the risk of falling victim to cyber crime, including educating yourself and your staff about proper online security practices. As a business owner, you can implement training or hire a service to do so. It’s also a good idea to install spam filters and other anti-malware software that will protect your computers from attacks.
You can also provide yourself with extra protection by including cyber liability into your Food Truck Insurance plan. Cyber liability is specifically designed to protect against the financial repercussions of cyber crime and can protect from first-party claims—like the cost of repairing, replacing, or recovering data—as well as third-party claims—which can arise when your customer information is stolen.
PROTECT YOUR BUSINESS WITH FOOD TRUCK INSURANCE FROM FLIP
Hopefully these tips have given you something to think about when it comes to protecting your food truck. One thing to keep in mind, though, is that your food truck business will always have risk, no matter the number of precautions you take to protect it.
Without Food Truck Insurance, you run the risk of one day facing an insurance claim that could cost you thousands of dollars out of pocket.
If you haven’t already, consider FLIP. We provide food truck owners like you with high quality, affordable liability insurance that protects from all the common food truck risks. For as low as $299 a year, you can get up to $1 million in general and product liability coverage as well as up to $10K in business personal property coverage. Getting started with FLIP is easy with our online process that takes less than ten minutes to complete, and you can make changes to your policy 24/7 with our online user dashboard.
While there are many things you can do to avoid insurance claims, it’s not possible to eliminate the risk. Cover your food truck with Food Truck Insurance today and gain the peace of mind that comes with having the protection you need should the need ever arise.