How Much Does Food Truck Insurance Cost? 2025 Rates

In 2025, U.S. Food Truck Businesses can expect to pay between $3,000 and $5,000 annually for business insurance, averaging $250 to $400 per month. The primary cost drivers are the value of the truck and equipment, location, operating hour and frequency, and employee count.

How Much Does Food Truck Insurance Cost?

The average food truck business in the U.S. pays between $3,000 and $5,000 per year for a full business insurance package. That breaks down to roughly $250 to $400 per month. However, this is only an estimate, and the real cost can be very different based on your unique circumstances.

According to industry research from IBISWorld, over 30,000 food truck businesses are currently operating across the United States. Every food truck operates differently, so insurance costs can vary significantly. A small truck selling packaged snacks a few days a week in a quiet area will generally pay less than a full-service food truck preparing hot meals daily in busy city locations.

For instance, trucks using deep fryers or grills may face higher property insurance costs due to increased fire risk. Similarly, those operating in crowded areas or during late hours may have higher liability premiums because of the greater chance of accidents. Other factors like the value of the truck, location, and the driver’s record also influence the final insurance cost.

Here are some key factors that can increase your insurance premiums:

• Number of employees: More staff leads to higher workers’ compensation and liability costs.
• Truck and equipment value: More expensive vehicles and kitchen setups cost more to insure.
• Operational hours: Working late at night or during high-traffic events may increase risk and raise premiums.
• Previous insurance claims: A history of claims can make insurers see your business as higher risk.

Understanding these factors can help you better estimate your insurance needs and prepare for the true cost of protecting your food truck business.

Average Food Truck Insurance Costs For Coverage Types

When it comes to protecting your food truck, different types of insurance cover different risks. Knowing the average costs, what each policy includes, and what affects the price can help you choose the right coverage for your business. Here’s a simple look at the main types of insurance most food trucks need.

• General liability insurance: $44 per month
• Business owner’s policy: $85 per month
• Liquor liability insurance: $55 per month
• Workers’ compensation insurance: $80 per month
• Cyber Insurance: $150 per month
• Commercial auto insurance: $175 per month

General Liability Insurance

The average cost of general liability insurance for a food truck is about $44 per month.

General liability insurance covers injuries, property damage, and advertising injuries caused to others. For example, if a customer gets burned by your food truck’s hot grill, this insurance would help pay for their medical bills and any legal costs if they decide to take legal action.

Typical policy limits are $1 million per occurrence and $2 million aggregate.

Factors that influence the cost include the food truck’s location, hours of operation, previous claims history, and safety measures.

Business Owner’s Policy (BOP)

The average cost of a business owner’s policy (BOP) is about $85 per month for a food truck.

A BOP combines general liability insurance with property coverage, typically at a lower price. It often also includes additional coverage options, like business interruption insurance or protection for equipment breakdowns. For example, if your food truck breaks down during a busy event and you can’t serve customers, the BOP would help cover lost income and repair costs.

Typical policy limits are $1 million per occurrence and $2 million aggregate for liability.

Cost factors include the size of the food truck, location, number of employees, business revenue, equipment value, and any optional endorsements like business interruption insurance.

Note: Not all food truck owners qualify for a business owner’s policy.

Workers’ Compensation Insurance

The average cost of workers’ compensation insurance for a food truck is around $80 per month.

This insurance helps cover medical bills and lost wages if an employee gets hurt while working. It usually also includes employer’s liability coverage, which protects food truck owners if they’re sued over a work-related injury.

The cost of workers’ compensation insurance mainly depends on how many employees you have and occupational risk

Cyber Insurance

The average cost of cyber  insurance for a food truck, usually runs $150 per month.

Cyber insurance can help protect a food truck business from online threats like data breaches, hacked payment systems, or stolen customer information. For example, if your payment system is hacked and customer information is stolen, cyber insurance would help pay for the recovery and any legal fees.

The cost of cyber insurance for your food truck depends on how much personal information you collect, like customer credit card details, and how many employees have access to that information.

Commercial Property Insurance

The average cost of commercial property insurance for a food truck, when purchased separately, usually runs $175 per month.

Commercial property insurance helps cover damage to your food truck and the equipment inside it caused by fire, theft, vandalism, or certain weather events.For example, if someone breaks into your food truck and steals your cash register and cooking tools, commercial property insurance would help cover the cost of replacing the stolen items.

The cost of commercial auto insurance depends on things like the coverage amount you select, how many vehicles you have, your past claims, and how much they’re worth, and the driving history of anyone who drives the truck.

What Factors Impact Your Food Truck Insurance Costs?

When running a food truck, having the right insurance is important to protect your business. However, the cost of food truck insurance can vary based on several factors. Understanding what impacts your premiums can help you make informed decisions and find the best coverage for your needs.

Number Of Employees

The more employees you have, the higher your insurance cost may be, especially for workers’ compensation and liability insurance. This is because more workers mean a higher chance that someone could get injured on the job. If you’re running the truck by yourself, your insurance cost will be lower. But if you hire three workers to help with cooking and taking orders, your workers’ comp insurance will cost more because there’s a greater risk of injury.

Truck And Equipment Value

Insurance costs go up when your food truck and equipment are more expensive. That’s because it would cost more to repair or replace everything if there’s a fire, theft, or accident. A basic truck with a small grill and cooler might cost less to insure than a fully equipped truck with deep fryers, ovens, and high-end refrigerators. The more valuable your setup is, the more you’ll pay to protect it.

Operational Hours

If your food truck operates long hours, especially late at night or at busy events, insurance companies may see that as a higher risk, which increases your premium. A food truck that runs only during weekday lunch hours will likely have lower insurance costs than one that serves crowds at late-night concerts or weekend festivals, where accidents and injuries are more likely to happen.

Previous Insurance Claims

If you’ve made insurance claims in the past, insurance companies may see your business as riskier and charge you more. They may think there’s a higher chance you’ll file more claims in the future. If your food truck had a fire last year and you filed a claim for damaged equipment, your insurance premium might go up when you renew. But if you’ve had no claims, you might qualify for a lower rate.

Insurance Provider

The insurance provider you choose can significantly impact your food truck insurance costs, as different companies offer varying rates and coverage options. Some providers specialize in food trucks or hospitality businesses, potentially offering better pricing or tailored coverage for your needs.

How To Lower Your Food Truck Insurance Costs

Finding ways to lower your food truck insurance costs can help you save money while still getting the coverage you need. By making smart choices and taking steps to reduce risk, you can lower your premiums and keep your business protected. Here’s how you can cut down on your food truck insurance costs.

1. Bundle Your Policies

One of the easiest ways to save is by bundling multiple policies. Most insurers offer a Business Owner’s Policy (BOP) that combines general liability and property insurance at a lower rate than if you bought them separately. If you also need workers’ compensation, bundling both through the same provider can lead to additional discounts. Not only does this simplify your paperwork, but it also makes your coverage more cost-efficient.

2. Ask About Discounts

Ask your provider if they offer multi-year discounts for signing a two- or three-year agreement instead of renewing annually. You might also qualify for lower rates if you pay your premium in full instead of in monthly installments.

3. Implement Safety Measures

Accidents are expensive for both you and your insurer. Taking steps to reduce the chance of customer or employee injuries can lead to lower premiums over time. For example, keeping your food truck clean and organized, securing heavy equipment, using fire extinguishers and safety signs, and regularly checking gas lines and cooking appliances can help reduce your general liability risk.

4. Create A Safe Working Environment

A strong safety program can help lower workers’ compensation costs for your food truck. This includes training your staff on safe food handling, how to lift heavy items properly, using fire safety equipment, and knowing what to do in case of an emergency. Fewer accidents mean fewer claims, and that translates to lower premiums in the future.

5. Adjust Your Deductible

Your deductible is the amount you pay out of pocket before insurance coverage kicks in. Choosing a higher deductible can significantly reduce your monthly premiums. Just make sure you can comfortably cover that amount if a claim arises.

By taking these steps, you not only save money but also make your food truck business a safer, more resilient business.