Commercial Auto for Food Trucks

Valuing a converted truck

A food truck's value includes the base vehicle plus the kitchen build-out. Make sure the physical damage limit or stated amount reflects both. Keep invoices for the conversion.

Trailers

When you tow a food trailer, liability while towing generally comes from the tow vehicle's auto policy. Confirm that policy is commercial and that the trailer is listed or covered.

Liability on the road

Commercial auto liability pays for injuries and damage you cause to others while driving the truck. States set minimum limits, but event organizers, commissaries and lenders often ask for higher limits than the state minimum. Check vendor agreements before you choose a limit, so you do not have to change it mid-season.

Physical damage for a working kitchen

Collision and comprehensive cover the truck itself. For a food truck, the build-out can be worth as much as the chassis, so tell the insurer what was installed and what it cost. Some insurers use a stated amount for converted trucks; others pay actual cash value. Ask which applies and keep the conversion invoices and photos with your records.

Drivers and parking

• List everyone who will drive the truck, including part-time staff
• Note where the truck is parked overnight and whether the lot is secured
• Disclose any trips across state lines for festivals
• Mention if the truck is ever used for personal errands

Breakdowns and towing

Towing and labor coverage is often available as an add-on. Rental reimbursement is harder for food trucks because a replacement truck with a kitchen is rarely available to rent, so think about how a week off the road would affect cash flow and whether business income coverage on another policy could help.

Frequently asked questions