California is a BIG state. It's often debated whether Northern and Southern California should be divided into two states. Politics aside, you may or may not know that most insurance carriers really do treat the two independently. Southern California rates have been increasing and recently they are increasing very fast. There are many reasons for this, but primarily workers' compensation insurance is primarily effected in the area due to the frequency and severity of claims. Underwriters know that the cost to treat injuries and get involved in litigation in Southern California can be more expensive than Northern California. They have developed rates around their losses and expected losses for the types of businesses and areas that they insure.
Food trucks are no exception. You take a class of business that is already plagued with underwriting misconceptions and an area of the state that had unfavorable losses. Your industry is getting hit HARD right now with rate increases...
What can you do?
If you are located in Southern California and are seeing your rates increase, but have little or no claims, try:
- Talking with your insurance broker to see if they can look into your specific situation and find a better carrier or can negotiate your rates with you current carrier. Many underwriters will take the time to learn about each business and they unique characteristics to see if the rates are appropriate.
- Improving your controls to manage your risk better and put yourself in a more favorable position. Loss prevention is always better than loss avoidance. You would be doing right by your business, your employees and your bottom line.
- Talking with an industry insurance expert. Insure My Food Truck has been helping gourmet food trucks across the country for over four years. Dealing with industry experts gains you access to great markets, advice, and often rates.
Running a food truck is extremely challenging and margins can be razor thin at times. Insurance is necessary, paying too much is not. Please contact us for advise on reducing your cost while protecting your livelihood.