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.
1. Make sure you are qualifying for all eligible discounts. This can be as simple as asking your broker what discounts are available. There might be previous experience credit, loss control measures you are taking to reduce claims, employee background checks or hiring practices, or any number of ways to potentially reduce your insurance. Ask your broker and you may be surprised at discounts you could be eligible for.
2. Let you broker/agent know your operation radius and number of stops per day. The more you are on the road and the more stops per day increases your chance of loss. If you only have one location and rarely drive, you should explain this to your broker as there might be special pricing available. A local truck with a regular routine is a much better risk compared to a truck that has an erratic schedule and will travel very far to serve.
3. Show your proof of loss history. If you have been in business for at least 1 year of preferably 3 years with little to no losses, be proactive by ordering your loss history from you current carrier and let show your good experience to the broker/agent that you are getting a quote from. Most carriers will offer credits or discounts if you can prove that your track record.
4. Have photos of the exterior and interior of your truck handy. When shopping your insurance, be sure to provide photos of the interior and exterior of your truck. If you take pride in ownership it shows in pictures. There are often discretionary discounts available based on the quality of your operations and your truck. They say a picture is worth a thousand words, well it could be worth a few hundred bucks too!
5. Provide a resume or LinkedIn profile link if you are a new venture with plenty of food and/or hospitality experience. New ventures are viewed as risky business to underwriters. If you can show that you have managed a restaurant or have extensive food preparation experience, you may be eligible for discounting. Even if your agent/broker doesn't ask, you can provide your experience and ask if it helps.
These are just some ways to potentially reduce your insurance costs. Every operation is different and deserves a close look. At Insure My Food Truck, we will help you find eligible discounts and make sure you are getting the best insurance bang for your buck. If you have questions about food truck insurance, discounts, or anything else, please feel free to reach out!