Food trucks relay on many pieces of equipment to operate. From the generator, grill, hood, blender, compressor, sink, you name it... If one of these items goes down it could put you out of business until a repair or replacement is made.
Most standard business owner or package policies cover equipment breakdown in some form. However, there are important things you should think about and ask your agent before you have a loss and try to file a claim.
- Does your equipment breakdown apply to mobile equipment? A standard business owner policy will have a designated premiums on the policy. that could be your commissary or home office, what ever you told your agent/broker. Property losses typically have a limitation of coverage subject to 1,000 feet from such designated property. Therefore, if your hood or other vital equipment fails at a venue, you probably won't be covered.
- Does you insurance carrier understand the food truck business and have adjusters that can act quickly and get you back rolling? The food truck business moves fast! If you have a carrier that doesn't understand the type of time constraints you are under, it could spell disaster.
- Does your policy cover the loss of business income due to equipment breakdown? This is a BIG deal! One of our most common losses is generator failure with the resulting loss of income while the generator is repairs or replaced. Not many if any other carriers can do this but ours... Be sure to ask you agent or broker for this coverage IF available.
Equipment breakdown is pretty comprehensive coverage, but you should be aware that no policy that we are aware of, even ours, will cover engine failure. Most food trucks are ten year old or older with thousands of miles on them. Engine breakdown is a risk you run operating an aging food truck. Also, wear and tear is not covered by equipment breakdown insurance. The loss must be sudden and accidental. This could be for malfunction to power surge or something that causes the failure of your equipment... A skilled adjuster can help determine the cause of loss. Insure My Food Truck works with a national A rated insurance carrier for our program. They are familiar with our gourmet food truck clients and their operations. It's best to be with a broker and carrier that know your business. For any questions that are equipment related or otherwise, please contact us anytime.