How Much Does Food Truck Insurance Cost? 2025 Rates

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 costs of business insurance 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, with generators and propane 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.

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

Business Owner’s Policy (BOP)

Many food truck operators choose a Business Owner’s Policy because it combines general liability protection with coverage for equipment and property. The average cost for a food truck BOP is about $85 per month.

A BOP can help cover customer injury claims along with damage to the truck, cooking appliances, signage, and point of sale systems. Some policies may also include business interruption protection, which can help replace lost income if your truck becomes unusable due to breakdown or damage during an event or busy weekend.

Premiums are affected by factors such as truck size, cooking equipment, location, staff count, revenue, and optional extensions.

Average annual premiums across 10 states:

Note: Estimates reflect average BOP pricing based on sample quotes. Actual costs vary by limits, endorsements, location, equipment value, and business history.

Workers’ Compensation Insurance

Workers compensation for food trucks averages around $80 per month and is essential for businesses with employees.

This coverage pays for medical treatment, wage replacement, and related costs when a staff member is injured on the job. In a food truck, risks include burns, cuts, lifting strain, and slips inside a compact workspace. It may also include employer liability protection if a workplace injury leads to legal action.

Premiums depend on payroll size, job tasks, staffing levels, and safety practices.

Average annual premiums in 10 states:

Note: Estimates reflect blended averages for food truck staffing risk. Actual premiums vary by payroll, classification codes, safety programs, and claim history.

General Liability Insurance

General liability insurance is one of the most common policies for food truck owners, with an average cost of about $44 per month.

This policy protects against claims involving customer injury or property damage. If someone is burned by hot equipment near the service window or trips in line and blames your operation, this coverage can help pay medical expenses and legal defense. Typical limits are $1 million per occurrence and $2 million aggregate.

Costs depend on location, operating hours, customer traffic, loss history, and safety controls.

Average annual premiums in 10 states:

Note: Estimates reflect average liability rates for food trucks. Actual pricing varies by location, endorsements, safety practices, and claims history.

Cyber Insurance

Cyber insurance is becoming more common among food truck businesses due to mobile payment systems and online ordering. The average cost is about $150 per month.

If your payment device is hacked, customer card data is exposed, or an online order platform is breached, cyber insurance can help cover recovery costs, notification expenses, tech forensics, and legal claims. Premiums depend on how much customer data is stored and how transactions are processed.

Average annual premiums in 10 states:

Note: Estimates reflect average cyber exposure for food trucks. Actual premiums vary by transaction volume, security controls, and coverage limits.

Commercial Property Insurance

Commercial property insurance for food trucks averages about $175 per month when purchased separately.

This policy covers physical damage to the truck and equipment due to theft, fire, vandalism, or covered weather events. If thieves break in and steal cooking tools, POS devices, or inventory, property insurance may help pay for replacements. Limits depend on truck value, equipment investment, and storage arrangements.

Average annual premiums in 10 states:

Note: Estimates reflect average property costs for food trucks. Actual pricing varies by equipment value, location risk, deductible, and loss history.

Food Truck Business Insurance Costs By Provider

Food truck business insurance costs will vary greatly depending on the insurance carrier. Use the table below to find average costs across different providers.

Note: These estimates are based on average annual premiums for food truck businesses, considering both small and large agencies. Coverage typically includes general liability, commercial auto, property/equipment coverage, workers’ compensation, and product liability. Actual premiums will vary depending on truck value, equipment, location, employee count, menu type, claims history, and coverage limits.

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.