We get calls and online quote requests daily from new food truck owners daily. Most have already purchased their trucks and are preparing to open. It is shocking how many have not fully developed a business plan and started their networking to fill their calendars for the first several months of operation. The success ratio of food service-related businesses is very low. This is exactly the reason why food truck owners need to come prepared…

It seems that almost weekly we are hit weekly with news of a tropical storm, wildfire or earthquake that is causing damage across the country. Catastrophic losses or “Cat losses” as we say in the business are to be expected to some degree and baked into most insurance rates. However, when cat claims get to be as significant as they have been in the past few years, reinsurance companies are forced to increase rates…

One of the most important insurance coverages for food trucks is also one of the most misunderstood… Mechanical breakdown or equipment breakdown insurance covers the cost to repair or replace damaged equipment. More importantly it can protect lost income because of the breakdown. Food trucks have many pieces of equipment that are necessary for day to day operation to stay in business.

Insurance rates in general have been mostly flat for a few years now. However, commercial auto insurance is on a rapid rate incline. There are many factors to the rate increases, but the primary driver is the new technology onboard vehicles and cost to repair them. Think about how much cars have advanced in the past few years… there are cameras, sensors, multiple screens, self parking, self driving even! A small “fender bender” that might have cost less than a thousand dollars is now averaging a few thousand dollars. Specialized labor and parts costs mean that you can’t usually repair a significant accident for less than $10,000. Insurance carriers have had to play catch up with rates in the meantime.

Operating a food truck can sometimes mean operating a thin margin line where every dollar counts. Most of you don't have much time or patience to deal with insurance. You're busy trying run your business and managing your team. Many food truck owners don't realize that commercial insurance rates can often be negotiated depending on the risk. Here are five quick ways that you can possibly reduce your insurance premium and put more money in your pocket.

For our next client spotlight, we have Lexylicious, an ice cream sandwich truck from the east coast. Alexa Hesse, founder and owner, answered some questions from us below: