Never Pay for a Certificate of Insurance for a Food Truck & Other Tips

Podcast Archives - Food Truck Empire

Odds are insurance isn’t a topic that is top of mind for you as a food truck owner… until you actually need to use it. In episode of the podcast we speak with Jonathan Rausch, an insurance agent in Florida that specializes in insuring food trucks. To date, he’s helped over 50 trucks protect their investments with insurance coverage.

In this FTE exclusive, Rausch shares his insights into coverage for food trucks along with common-sense advice for lowering your monthly rate. This episode provides insights for food truck owners looking for their first policy or existing vendors, including key questions you should ask your insurance agent.

Today’s guest is Jonathan Rausch.

Here are five key questions you should be asking your insurance agent—and why they matter.

• What Does My Policy Actually Cover?
  This might seem like a no-brainer, but it’s crucial to know exactly what your policy includes—and, more importantly, what it doesn’t. Does your general liability insurance cover accidents involving customers and passersby? What about property damage? Ask your agent to break down the specifics so you’re not left guessing when something unexpected happens.
• Are There Any Coverage Gaps I Should Be Aware Of?
  Even the best insurance policies can have gaps, areas where you might think you’re covered but aren’t. Ask your agent to review potential gaps that could leave you exposed. For instance, does your property insurance cover theft of equipment outside of operating hours? Knowing these gaps upfront allows you to address them proactively, rather than finding out the hard way when it’s too late.
• How Can I Lower My Premiums Without Sacrificing Coverage?
  Insurance is a necessary cost, but that doesn’t mean you should pay more than you need to. Inquire about any available discounts, such as bundling policies, taking safety courses, or installing security systems. Your agent should be able to offer suggestions on how to maintain robust coverage while keeping costs in check.
• What’s the Claims Process Like?
  When disaster strikes, the last thing you want is to be bogged down by a complicated claims process. Ask your agent to walk you through how to file a claim, what documentation you’ll need, and how quickly you can expect to see a resolution. A quick and efficient claims process can make all the difference in getting back on your feet after a loss.
• Can I Update My Policy as My Business Grows?
  Your food truck business today might not be the same as it is a year from now. You could add another truck, expand your menu, or start attending more events. Ask your agent about the flexibility to adjust your policy as your business evolves. A good insurance policy should be able to grow and change with you, providing the coverage you need at every stage.

Already have insurance? Here’s are steps you can take to evaluate your food truck insurance policy.

1.) So, when was the last time you took a good look at your policy? If it’s been a while, it might be time to shop around. Just like with regular car insurance, rates can change, new discounts can appear, and competitors might offer better deals. It’s a simple step to ensure you’re not dishing out more than necessary. Remember, every dollar saved is a dollar you can reinvest back into your business, your food, and ultimately, your dream.

2.) When it comes to insurance, some costs are inevitable, but there are others you simply shouldn’t have to pay for—like certificates of insurance. A certificate of insurance (COI) is a crucial document that proves you have the necessary coverage to operate your food truck, often required by event organizers, landlords, or local governments.

Here’s the kicker: some insurance carriers charge for issuing these certificates, but that shouldn’t be the case. Certificates of insurance are a standard part of doing business, and reputable insurers understand this. They know that food truck owners need these documents frequently, and charging for them is just an unnecessary expense that eats into your profits.

The Rolling Stove was Rausch’s first food truck insurance client.

If your current insurer is making you pay for every COI, it’s a clear sign that you should start looking elsewhere. Plenty of carriers provide certificates of insurance at no cost, understanding that supporting their clients with hassle-free documentation is part of the service. By choosing a carrier that offers free COIs, you’re not only saving money but also time and frustration. Remember, your insurance provider should work for you, not against you.

3.) Commercial auto policy. Why is this area ripe for discounts? It’s simple: commercial auto policies cover a lot of ground, literally and figuratively. These policies don’t just insure your food truck; they encompass the vehicle’s use, the drivers, and sometimes even the equipment inside. Because of this broad scope, there are numerous factors that insurers consider when calculating your premium, and plenty of opportunities to adjust those factors in your favor.

So, what should you be looking at when evaluating a commercial auto policy? Let’s start with the basics.

1. Mileage and Usage: How often and how far is your food truck on the move? Policies are often priced based on your truck’s usage, so if you’re operating locally or seasonally, you could be eligible for a lower rate.
2. Driver History: Who’s behind the wheel matters. A clean driving record can substantially reduce your premium, while a history of accidents or violations could do the opposite.
3. Vehicle Safety Features: Does your truck have the latest safety technology? Insurers often provide discounts for vehicles equipped with advanced safety features, such as backup cameras, lane departure warnings, and anti-theft systems.
4. Bundling Policies: Sometimes, the more you bring to the table, the better. Bundling your commercial auto policy with other types of insurance, like general liability or property insurance, can result in significant discounts.

As Rausch emphasized in the podcast, the key is to dig into the details of your policy and don’t be afraid to ask for a better deal. The commercial auto policy is not just a necessity; it’s a chance to save big, so make sure you’re not leaving money on the table.

New truck owner looking for insurance for the first time?

Here’s a rundown of the essential types of insurance every food truck owner should consider, as shared with me by insurance professional Jonathan Rausch.

1. General Liability Insurance: This is your first line of defense against the unexpected. General liability insurance covers bodily injury, property damage, and even some types of advertising injury. Whether a customer slips in front of your truck or someone claims your marketing slogan is too close to theirs, this policy has you covered.
2. Commercial Auto Insurance: We talked about this one already, but it bears repeating. Your truck is more than just a kitchen—it’s a vehicle on the road, subject to all the risks that come with driving. A commercial auto policy protects you against accidents, collisions, and other road mishaps. It’s an absolute must-have for any food truck owner.
3. Property Insurance: Your food truck is a mobile kitchen, filled with expensive equipment. Property insurance covers your truck, cooking equipment, and other valuables in case of theft, vandalism, or damage. Think of it as a safeguard for your investment, ensuring you can get back on the road if something goes wrong.
4. Workers’ Compensation Insurance: If you have employees, even just one, you’ll likely need workers’ compensation insurance. This coverage is designed to protect both you and your employees in the event of a work-related injury or illness, covering medical expenses and lost wages.

Every food truck is unique, so it’s essential to tailor your insurance to fit your specific needs. As Rausch wisely pointed out, the right coverage can mean the difference between a minor hiccup and a business-ending disaster.

What You’ll Learn

• How to get a lower rate on food truck insurance.
• The one thing every policy should contain.
• The questions you should be asking your truck insurance company.
• The types of insurance coverage each food truck needs.

Show Mentions

• Florida First Insurance – The Facebook page of Florida First Insurance.
• The Rolling Stove Food Truck – Serving South Florida residents, this is the first truck that Rausch provided insurance for.

The post Never Pay for a Certificate of Insurance for a Food Truck & Other Tips appeared first on Food Truck Empire.