What many drivers do not realize is that this type of work changes how insurance applies. Driving for delivery introduces higher risk, longer hours on the road, and greater exposure to accidents. Because of that, standard personal auto insurance often falls short. Understanding how commercial auto insurance works helps you protect your finances, your vehicle, and your ability to keep working. 

Why Delivery Drivers Need Special Auto Insurance 

Yes. Personal auto insurance is designed for everyday driving like commuting, errands, and leisure trips. Once you use your vehicle to earn money, insurers classify that activity as commercial use. Commercial use carries more risk because delivery drivers spend more time driving, navigate unfamiliar routes, and often work under time pressure. 

Because of this increased exposure, most personal auto insurance policies exclude delivery activities. If you get into an accident while delivering food or packages, your insurer can deny the claim if the policy does not include business use coverage. 

This means damage to your vehicle, injuries to others, and even legal costs could come directly out of your pocket. Special delivery or commercial auto insurance fills that gap by covering risks that personal policies are not built to handle. 

For many drivers, delivery work starts as a side hustle. A few hours after work, a couple of weekend shifts, or an extra source of income during busy seasons. At first, it feels similar to regular driving, just with more stops and tighter timelines. Over time, though, the risks quietly add up. 

Delivery drivers spend more time on the road than the average commuter. They drive during peak traffic hours, navigate unfamiliar neighborhoods, and often park in busy or poorly marked areas. The pressure to complete deliveries quickly can also increase the likelihood of minor accidents, even for careful drivers. 

Insurance companies account for this added exposure. From their perspective, delivery driving increases accident frequency and claim costs. That is why personal auto insurance policies draw a clear line between personal use and business use. Crossing that line without the right coverage can leave drivers financially exposed at the worst possible moment. 

Having proper delivery driver insurance is not just about compliance. It is about protecting your income, your vehicle, and your long-term ability to keep working. When your car is part of how you earn money, it’s important to understand how to determine the right amount of car insurance coverage for you. The right coverage gives you the freedom to focus on deliveries instead of worrying about what could go wrong. 

What Are the Insurance Options Available? 

Delivery drivers typically have several coverage paths depending on how often they work and which platforms they use. 

Commercial Auto Insurance 

Commercial auto insurance offers the most complete protection. If you’ve ever wondered what does commercial auto insurance cover and why do you need it, you must know that it is designed for vehicles used primarily for work and covers liability, physical damage, and sometimes hired or non-owned vehicle exposure. While premiums are higher than personal policies, this option provides consistent protection regardless of which delivery app you use. 

Commercial coverage is often ideal for full-time drivers or those working across multiple platforms. 

Customized Delivery Driver Coverage 

Some insurers offer add on endorsements or hybrid policies specifically for delivery drivers. These policies extend personal auto insurance to cover food and package delivery. Coverage details vary, so it is important to review what driving periods are included. 

This option works well for part-time drivers who deliver occasionally. 

Coverage Through Your Employer 

Some large employers or restaurant chains offer non-owned vehicle liability coverage. This coverage protects the business, not necessarily the driver or the driver’s vehicle. It may help with liability claims but usually does not cover damage to your own car. 

Drivers should always confirm what is included and what is excluded before relying on employer provided coverage. 

App Based Delivery Coverage in 2025 

Delivery apps offer different levels of insurance protection. Coverage often applies only during specific stages of the delivery process. 

DoorDash 

DoorDash provides liability coverage while you are actively delivering an order. This coverage applies after you accept a delivery and continues until the order is completed. DoorDash does not provide collision or comprehensive coverage for your vehicle unless you already carry those coverages on your personal policy. 

Uber Eats 

Uber Eats offers liability coverage during active deliveries. It also provides contingent comprehensive and collision coverage if your personal auto policy includes those coverages. A deductible typically applies. 

Grubhub 

Grubhub does not provide auto insurance coverage for drivers. Drivers are expected to carry their own insurance that allows delivery use. Without proper coverage, accidents may not be insured. 

Instacart and Shipt 

These platforms generally require drivers to maintain personal auto insurance. Some offer limited occupational accident coverage, which is not the same as auto insurance and does not cover vehicle damage or liability to others. 

Amazon Flex 

Amazon Flex provides commercial auto liability coverage during active deliveries. Physical damage to your vehicle may not be covered unless you carry appropriate coverage on your own policy. 

Because app coverage varies and often has gaps, relying solely on platform insurance can leave drivers exposed. You can also do a little research on the best delivery driver apps and find the right insurance for your needs.  

How Delivery Insurance Differs from Personal Auto Insurance 

Personal auto insurance and delivery or commercial coverage serve very different purposes. A personal policy assumes limited daily driving and lower exposure. Delivery insurance is built for higher mileage, frequent stops, and increased liability risk. 

When you are delivering, your insurer needs to account for injuries to others, damage to property, and potential damage to your own vehicle. Delivery coverage is designed to respond to these risks, while personal insurance usually will not. 

Scenario	Personal Insurance	Delivery/Commercial Insurance
Hit someone while delivering	Claim denied	Covered
Damage your own vehicle	Not covered	Usually covered
Liability for injuries	Not covered	Covered
Driving between deliveries	Not covered	/ depends on app coverage

Understanding this difference is critical. Many drivers only learn about coverage gaps after a claim is denied. Knowing how these policies differ helps you avoid costly surprises. 

What Happens If You Drive for Delivery Without the Right Insurance? 

Driving without proper coverage creates serious financial and legal risks. 

If you are involved in an accident, your insurer may deny the claim completely. You could be personally responsible for medical bills, property damage, legal defense, and vehicle repairs. Some insurers may cancel your policy once they discover undisclosed delivery activity. 

Paying out of pocket for a serious accident can jeopardize your savings and your ability to continue working. Having the right insurance protects you from these consequences and allows you to focus on your job with confidence. 

Find the Right Delivery Driver Insurance With InsureOne 

Choosing the right coverage depends on how often you deliver, which apps you use, and how much protection you need. InsureOne works with multiple carriers to help delivery drivers find policies that match their work and budget. 

Visit our website, call us at 800-836-2240, or stop by an office close to you so our agents can explain your options clearly and help you avoid coverage gaps. 

FAQs 

Does App Based Coverage Protect Me When I’m Not Actively Delivering? 

In most cases, no. Coverage usually applies only after you accept an order and ends once the delivery is completed. Driving between orders is often not covered. 

Will My Insurance Rates Go Up If I Start Delivering? 

Rates may increase because delivery driving increases risk. However, having the correct coverage prevents denied claims and larger financial losses later. 

Do I Need Rideshare Insurance If I Only Deliver and Don’t Drive Passengers? 

Some insurers offer delivery specific endorsements instead of rideshare coverage. An agent can help determine what applies to your situation. 

Does Commercial Auto Insurance Cover Multiple Delivery Apps? 

Yes. Commercial auto insurance typically covers your vehicle for business use regardless of which delivery platforms you work with. 

Neither your personal car insurance policy or your employee’s coverage is likely to cover the ensuing fallout of costly repairs (or replacement) and medical bills. 

For many businesses, commercial auto insurance is an absolute must-have. However, far too many entrepreneurs are unsure whether or not they need this specialized coverage. As a result, they do not find out how important it really is until one of their vehicles gets into an accident, resulting in major bills and serious lawsuits. 

Do you actually need business vehicle coverage? How can you tell, and what does such a policy cover? By getting the answers to these questions, you can make the decisions that are best for you and your company. Keep reading to discover everything you need to know. 

What Is Commercial Auto Insurance? 

Commercial auto insurance is designed to protect companies that use vehicles for business purposes. Should one of those vehicles be involved in an accident, this policy provides liability coverage that will pay to cover damage to people and property for which one of your drivers may be found legally liable. 

Not every company needs commercial auto insurance coverage because not every company relies on vehicles. If yours does, though, it is very important for you to take out such a policy to protect yourself against unknown future threats. 

How It Differs from Personal Auto Insurance 

How does coverage compare with commercial vs. personal auto insurance? Commercial vehicle insurance offers very similar protection to personal auto coverage. The key difference is that a personal policy will not pay out if the vehicle was being used for business purposes. In that case, the only way to achieve the necessary level of protection is via a commercial policy. 

Who Needs Commercial Vehicle Coverage 

In short, business vehicle coverage is necessary for any company that uses automobiles to conduct business. This includes companies that deliver food or that transport people (for example, rideshare drivers). It also includes companies that simply use vehicles to transport equipment, much of which might be expensive to replace in the event of an accident. 

What Does Commercial Auto Insurance Cover? 

Entrepreneurs on the fence about getting this policy often ask a simple question: “What does commercial auto insurance cover?” However, the answer depends on the exact policy that you get. A typical business auto insurance policy will provide at least the liability coverage to pay for damage caused by the driver and collision coverage to repair the company vehicle, no matter who is liable for the damage. 

Blurring things further regarding commercial vs. personal auto insurance is that both policies allow you to add additional kinds of protections. For example, you may decide to add medical payments, uninsured motorist, or other additional protections to a business policy for maximum protection. 

Liability Coverage for Business-Related Accidents 

Liability commercial auto insurance coverage pays for damage caused to people or buildings by someone driving one of your company vehicles. This can protect entrepreneurs from having to pay expensive out-of-pocket bills that may threaten the day-to-day operations of the company in question. 

Coverage for Physical Damage to Business Vehicles 

The collision protection of a business auto insurance policy will pay for any repairs a vehicle needs after an accident. This policy pays out regardless of who was at fault for causing an accident, offering robust car insurance for delivery drivers and others using vehicles to conduct business. 

Medical Payments, Uninsured Motorist, and More 

Some entrepreneurs may wish to add additional protection to their work vehicle insurance. For example, medical payments coverage pays for the medical bills of the driver and any passengers. 

An uninsured motorist policy provides additional coverage if one of your automobiles is hit by a driver who has insufficient coverage. Finally, a comprehensive policy protects the vehicle from damage that may occur when nobody is behind the wheel, including theft and weather-related damage. 

Optional Add-Ons for Specialized Business Needs 

You can further supplement work vehicle insurance with optional add-ons. This includes roadside assistance, which comes in handy in the event a work vehicle breaks down and needs towing, a battery jump-start, or additional fuel. A hired auto rider can protect vehicles that your company leases, and a non-owned auto rider provides protection for employees who occasionally use their personal vehicles on behalf of your business. 

Why Commercial Auto Insurance Is Essential for Businesses 

As you can tell, commercial auto policies offer many kinds of robust protection for entrepreneurs. But why is such a policy truly essential for your own business? Simply put, it is the only real automobile protection available to you in the event of an accident involving a company car. 

Personal coverage will not protect such vehicles. Without a business policy, an entrepreneur might be stuck paying for the costs of any damages for which he or his employees are liable. In the case of a victim’s medical bills, those costs could be high enough to destroy the business altogether unless it has the proper protection. 

Vehicles Generally Covered by Commercial Auto Insurance 

Commercial auto insurance covers the vast majority of automobiles your business might use. With that being said, not every policy will cover every type of vehicle. Below, you will find more information on the kinds of transportation this policy protects. 

Commonly Included Transportation Types 

Most companies that use transportation rely on cars and trucks. A commercial policy should protect any such type of vehicle, but be sure to check with your carrier about what is and is not allowed. 

Specialty and Niche Vehicle Inclusions 

Beyond cars and trucks, commercial policies typically cover things like food trucks, box trucks, service utility vehicles, and work vans. As noted before, you should always ask your carrier whether your automobiles are properly covered. If not, there is no time like the present to switch to a better provider. 

From Food Trucks to Fleets — Cover Your Business on the Road 

Now you know everything about commercial auto insurance. This includes what it covers, how it differs from personal policies, and why it is so important. But do you know where you can find a provider just as committed as you to protecting your business? 

At InsureOne, we are here today to protect your business from the threats of tomorrow. Ready to give yourself some peace of mind when it comes to your company? Once you are ready to experience the gold standard in both pricing and protection, come get a quote online. You can also always pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come find an InsureOne office near you. 

If you own a business that uses multiple vehicles, chances are you already have commercial auto insurance. Unfortunately, what you have may not be sufficient for your needs. And unless you know how to check the fine print, you might not realize your fleet insurance coverage is insufficient until there is an accident and you are stuck with major out-of-pocket expenses. 

The solution is simple: You need to have the right policy in place well before anything happens. But what do you need to look for when it comes to carriers, and how can you know the coverage offered is sufficient for your needs? Keep reading to discover how to choose the right commercial auto insurance for your fleet. 

The Importance of Insuring Your Business Fleet 

Some entrepreneurs do not worry much about fleet insurance because they are unsure why it is important. Such coverage is crucial for you as a business owner because it helps repair or replace any of your vehicles that get damaged in an accident. Without a good policy, you would have to pay out of pocket for these costs. 

Fleet insurance coverage also provides liability protection in the event an employee driving one of your vehicles causes property damage and/or injures somebody. The policy can help pay for the damage and, if needed, your legal bills if someone takes your business to court. This is one of the biggest reasons why liability protection is vital for your business. 

Without liability protection, a court battle (even one in which you prevail) could be so costly that it could threaten or even destroy the business you worked so hard to build. 

Assessing Your Fleet Insurance Needs 

When it comes to fleet insurance, there is no one-size-fits-all method of choosing a policy. That leads to the obvious question: How can you determine exactly what kind of coverage your own business needs? 

It usually comes down to calculating the size and nature of your fleet and measuring that against the unique risks you may face. Not sure how to do that? You will find everything you need to know below. 

Determine the Size and Nature of Your Fleet 

Depending on the carrier, you may have the chance to get commercial auto insurance suitable for small fleets or large fleets. As a general rule, you need small fleet coverage if you have less than 10 vehicles and large fleet coverage if you have 10 or more. 

Remember though: The more cars you have to cover, the higher your premium. That is actually one of the bigger similarities between commercial vs. consumer auto insurance. 

Evaluate Risks Unique to Your Business Operations 

Ideally, your commercial auto insurance should be tailored to the unique risks your business faces. For example, businesses that offer delivery services are likelier to have accidents because drivers with time-sensitive tasks are more likely to make mistakes. Similarly, businesses that face inclement weather (like tropical storms in Florida and snowstorms in Boston) should consider coverage that takes those risks into account. Whatever dangers your own fleet faces, make sure to get a policy that properly protects you. 

Coverage Options for Commercial Fleets 

As mentioned before, fleet insurance typically offers collision coverage to help pay for damage to your vehicles and liability coverage to pay for damages to others and potential legal costs. The limits on both can be increased as needed if you would like additional peace of mind when it comes to collision or liability. 

There are additional forms of commercial auto insurance you can add, including uninsured motorist coverage (for when someone hits one of your cars and does not have their own policy) and roadside assistance (in case one of your vehicles breaks down and requires immediate help). Remember, your business might be fine with the standard package, but it is important to carefully consider the exact protection your own fleet needs. 

Why InsureOne Is the Right Choice for Your Business Fleet 

When it comes to getting the best commercial auto insurance benefits, you have plenty of carriers from which to choose. But if you are reading this, chances are you are considering switching to a new carrier. And if you are ready to receive the best protection in the business, it is time to switch to InsureOne for your fleet coverage needs. 

At InsureOne, you can get a versatile coverage package uniquely suited to the needs of yourself and your company. And you will work with industry professionals dedicated to giving you the best coverage at affordable prices. You are used to paying too much for too little; why not join InsureOne and see how fun it can be to pay too little for more protection than you ever imagined? 

Get a Free Quote for Your Fleet 

Now you know everything you need to know about commercial auto insurance. This includes what is covered, your additional options, and how to decide what your business needs. But when the time comes, do you know who you can trust with your business and its entire fleet? 

At InsureOne, we specialize in protecting entrepreneurs just like yourself. Ready to give your business the protection it deserves so you can have peace of mind at prices you simply cannot believe? If so, be sure to come get a quote online. Additionally, you can also pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to find an InsureOne office near you. 

This is something that rideshare drivers face every day unless they have good commercial automobile insurance. There are serious risks of accidents and injuries each moment that you are on the clock, and all it takes is a single careless moment to lead to a life-changing rideshare accident. 

If you’re a rideshare driver, then you need the protection of commercial coverage. Not convinced? Keep reading to discover the top seven reasons rideshare drivers need commercial automobile insurance. 

1. Better Protection if You Injure Someone 

Obviously, the biggest danger to delivering passengers to their destination each day is that you might inadvertently injure someone. Rideshare accidents could easily result in the injury of one of your passengers or even pedestrians on the road. 

In the event of such an accident, it’s highly likely that the injured parties would take legal action. Should that happen, your existing rideshare car insurance may not be sufficient to cover your legal fees (more on this later). With commercial coverage, you have the added liability protection that you need to stay safe. 

2. Enhanced Liability Protection for Property Damage 

While most rideshare drivers are (understandably) most worried about injuring passengers or pedestrians, it’s important not to underestimate the threat of accidental property damage. After all, your job involves driving on the road all day, so it’s very easy to accidentally cause a fender bender while driving. 

If you should happen to crash into a very expensive car, then even a minor accident may result in many thousands of dollars in damage. This damage could be too much for your employer’s commercial rideshare insurance and will almost certainly be too much for you to pay out of pocket. When you have the added cushion of your own commercial automobile insurance, you don’t have to worry about a single accident landing you in major debt that could haunt you for the rest of your life. 

3. Your Personal Insurance Won’t Protect You 

If you’re new to being a rideshare driver, you may think that your existing automobile insurance may be enough to protect you in the event of an accident. However, individual coverage is usually not enough for insuring rideshare vehicles. And if you’re working for a company like Lyft or Uber Eats, you may also be required to take out both a collision and comprehensive policy on your vehicle if you want to use your own coverage. 

Obviously, that can get very expensive over time. If you have commercial coverage, you may be able to rely on this to more comprehensively protect your vehicle. Ultimately, it’s a win/win: you get more robust protection on the business side of things without having to take out more personal coverage than you may actually need. 

4. It’s More Affordable Than You Think 

One reason that some rideshare drivers hold off on getting commercial auto insurance is that they worry that it will be overly expensive. While your exact premium may vary based on a number of factors, the average cost of this coverage is only $147 per month. 

Depending on your budget, this may still seem like a high amount. However, keep in mind that the average cost of automobile liability settlements is $23,900. By getting commercial coverage, you can help protect yourself from a nasty lawsuit that could change your life forever. 

5. Your Rideshare Coverage Is Insufficient 

Perhaps the main reason that rideshare drivers feel like they can skip commercial coverage is that they are counting on the insurance provided by their employer. If this sounds like you, then you should know that your rideshare coverage may be insufficient in the event of a major accident. 

For one thing, the amount of coverage offered by your employer may not be equal to the amount of personal or property damage that you accidentally cause. More alarmingly, employers like Uber have strict rules regarding exactly when liability coverage does or doesn’t kick in, so you may think you have enough protection only to discover at the worst possible time that you’re not covered at all! 

6. Medical Payments Will Be Covered 

As we have noted, rideshare passengers are far more likely to take you to court if they get injured in your car. But what if you had a simple way of reducing those odds and potentially saving yourself from getting saddled with a huge, post-lawsuit debt? 

One of the best things about commercial automobile insurance is that it will pay for your medical bills and those of your passengers in the event anyone is injured. That makes for one less bill that you have to worry about after an accident. In many cases, your ability to pay for the medical costs of injured passengers will keep them from turning around and suing you. 

7. Every New Passenger Is a Risk 

The average person may not think that being a rideshare driver is all that dangerous. However, you know better than this; the truth is that every new passenger is a risk. Any one of a million different variables could cause a simple ride to turn into a catastrophic accident at a moment’s notice. 

While you can’t predict the future, you can do your best to protect yourself from these risks. By supplementing your existing rideshare car insurance with commercial coverage from a great carrier, you can make sure that any accidents you have won’t rob you of a great future. 

Get the Best Commercial Car Insurance for Rideshare Drivers Today! 

Now you know why rideshare drivers would benefit from commercial automobile insurance. But do you know who you can trust to keep you safe out on the road? 

InsureOne offers rideshare drivers the protection they need when they need it the most. If you’re interested in such security, we’re always ready for you to get a quote online. Alternatively, you can pick up the phone and give us a quick call at 800-836-2240. Finally, feel free to come into one of our nearby offices at your earliest convenience! 

Despite this, many business owners think they don’t need this specialized form of car insurance. But even if you own a very small business, commercial auto insurance is a real “must-have.” And this insurance provides both the protection and the peace of mind that you need to properly run your company. 

Don’t believe it? Keep reading to discover why commercial auto insurance is so important for your business, your vehicles, your property, and your employees. 

Liability Protection for Your Business 

One of the best things about commercial insurance for your company cars is liability protection. Even a small wreck can cause way more damage than you can imagine. 

That’s because you have to worry about more than just the damage to your car or someone else’s car. A traffic accident may cause serious damage to other people’s property and any valuable items near the scene of the accident. 

If you or one of your workers is liable for the accident, then your business could be liable for the damages. And the subsequent legal costs could seriously disrupt your business. But with the liability protection of commercial auto insurance, you can rest assured that you are covered. 

Protecting Deliveries to Your Customers 

It’s not uncommon for a business to deliver products to customers. And in order to really build your brand, it’s important for those items to arrive in good quality so that you can create a great impression on your customers and on your community. 

However, you never know when a car accident or other traffic disruption can damage the products you are delivering. Not only can this damage or destroy the important things your drivers are delivering, but those things may be very expensive to replace. 

With commercial car insurance, the products you are delivering will be covered in the event of an accident. This is especially important because even if that vehicle was covered by personal car insurance, many standard insurance plans don’t protect the possessions inside the car, and those that do are often severely limited (especially if you need to replace expensive items damaged in transit). 

Commercial Insurance: Covering Your Business for Both Medical Coverage and Legal Action 

Earlier, we touched on the fact that commercial auto insurance can help protect your small business from the costs of things like property damage. But if you or one of your employees is liable for a car accident, then your bigger concern should be the medical costs for the injured and the potential for a major lawsuit. 

A good commercial auto insurance policy can help pay for the medical care of anyone (employees or non-employees) that were injured. It can also pay for the legal fees if someone tries to take your business to court. That’s important because even if the court decides in your favor, the sheer cost of the assorted legal fees might otherwise be enough to sink your business. 

Protection for Your Business Cars and Drivers 

You don’t always have to overthink why commercial auto insurance is a “must-have” for your business. For example, one of the biggest reasons it is so important is fairly obvious: this insurance offers the protection that your cars and drivers need. 

When you run a small business, it’s not uncommon that your employees will need to drive a car for business purposes. With commercial auto insurance, you can easily hand employees your keys. In the event of an accident or even a lawsuit related to the accident, you don’t have to worry about how you’ll pay for everything. And trust us: your employees will appreciate the fact that they are covered wherever they drive. 

Meet Lease Requirements for Your Business 

Does your small business lease the company cars you use instead of buying them outright? In that case, you may want commercial auto insurance simply to meet the lease requirements. 

For one thing, some require proof of insurance before they lease a vehicle to your business. Simply adding commercial auto coverage is going to give you more leasing options than you had before. And even when insurance is not required to get the lease, having it may help you negotiate better lease terms, especially once they see you as less of a potential liability. 

A Powerful Business Marketing Tool 

There is one more reason your business needs commercial auto insurance, and it’s been hiding in plain sight. And here it is: having proper insurance can be a surprisingly effective marketing tool on multiple levels. 

As an example, good insurance can help you when you’re recruiting new employees. When it’s clear that you are devoted to protecting your employees in the event of an accident, you are likely to get a higher caliber of applicants. 

Additionally, many modern consumers respond positively toward businesses that really take care of their employees. A good insurance policy can set you apart from your competition just enough to bring in customers who are really concerned about shopping from more ethical and employee-focused businesses. 

Get the Best Commercial Insurance Today 

Now you know why commercial insurance for your automobiles is so important. But do you know where you can find the coverage you need? 

At InsureOne, you are welcome to check out a quote for commercial car insurance online. You can call us at 800-836-2240 or visit us at one of our convenient nearby offices. 

Food Truck vs. Food Trailer

A traditional food truck is a combination of a vehicle and an all-in-one kitchen. Food trucks come in many forms. That includes mobile food trucks that drive from one location to the next and catering and vending trucks that travel to designated areas to provide a service.

Usually, these trucks provide a specific service. That’s why there are ice cream trucks, taco trucks, and lunch trucks that address the midday rush. Regardless, you’ll need to get commercial truck insurance to cover your vehicle, along with additional coverage.

If you have your mobile kitchen attached to a trailer, meaning you tow it with another vehicle, you have a food trailer. For this, you’ll need commercial vehicle insurance for the truck used to tow the trailer, as well as an endorsement to insure the trailer itself. The endorsement serves as food trailer insurance. However, you’ll need additional coverage beyond that.

Types of Food Truck Insurance

Foodservice vehicles need more coverage than traditional commercial vehicles. If you own a food truck business, it’s imperative to get all the necessary protection.

Auto Liability

Auto liability insurance covers property damage and injuries incurred due to an accident. This coverage is only active whenever the truck is in motion.

Food Truck General Liability Insurance

When you park your food truck to serve customers, it operates as a business. Food truck liability insurance will protect you from financial liability-related issues. It also covers property damage and injuries to third parties. This includes foodborne illnesses, along with slips and falls. Additionally, general liability insurance covers any legal fees associated with a lawsuit filed against the food truck business.

Workers’ Compensation

In most states, workers’ compensation is mandatory. This coverage pays medical costs and lost wages if an employee sustains an injury while on the job.

Property Damage

Collisions, fires, vandalism, and theft can occur when owning a food truck. When buying food truck insurance, you’ll need to add coverage for property damage. The policy will cover the truck, as well as any attached equipment such as a plumbing line, gas line, or bolts.

Contents Coverage

While contents coverage is another form of property insurance, it provides protection for items that aren’t permanently attached to the truck. For example, this policy covers cooking materials. Although this type of food truck insurance isn’t mandatory, it’s wise to get it just in case the contents become damaged.

What Factors Affect Food Truck Insurance Cost?

Various factors determine the cost of food truck insurance. For a better idea of how much you’ll pay for coverage, it’s essential that you talk to a reputable insurance provider.

Business Type

Food trucks are mobile, so the risk is higher compared to a stationary business. Because of that, food truck insurance can be more expensive than other types of commercial insurance. 

Operating Location

Typically, food truck owners have permits to operate in specific geographic locations. If the location is in or near a high-crime area, it could increase the monthly premiums. 

Property Value

When determining the rates for food truck insurance, agents consider the value of the property. Trucks with expensive equipment might cost more to insure. The age of the equipment is another factor.

Replacement Cost Coverage versus Actual Cash Value

When securing an insurance policy for a food service vehicle, you’ll choose between replacement cost and actual cash value coverage. Replacement cost coverage is more expensive. However, it also replaces items for what they would cost today as opposed to what you spent several years ago.

Coverage Amount

You can choose the coverage amount when purchasing food truck insurance. Minimum coverage yields the lowest premiums. However, this could cost your company money in the long run since you might have to pay out of pocket if something happens.

Deductibles

There’s also the amount of the deductible to consider when purchasing insurance. You can choose a high deductible policy in exchange for lower premiums. Before doing this, make sure you have enough money to pay the deductible.

Payroll and Job Function

As part of the underwriting process for workers’ compensation coverage, the insurance company will factor in payroll and job functions. If your company has high payroll costs and dangerous job functions, you can expect higher premiums.

Get a Quote for Food Truck Insurance

With so many coverage options and factors that go into the cost of a policy, buying food truck insurance can seem overwhelming. Fortunately, a reputable provider like InsureOne can help simplify the process. Request a free commercial auto insurance quote online or over the phone at (800) 836-2240 today. A licensed insurance agent will discuss your coverage needs and make recommendations that match that criteria.

Sometimes the line between the need for a commercial vehicle insurance policy or a personal policy isn’t as clear as you think. If you aren’t sure which policy is right for you, it is important to do your research to ensure you are fully protected. 

What is Commercial Auto Insurance?

The definition of commercial auto insurance is simple; it provides insurance coverage for any vehicle that is used by your business. While the definition is straightforward it can be slightly more complicated when determining if you need it or not.

Commercial Auto Insurance vs. Personal Auto Insurance

While commercial auto insurance and personal auto insurance coverages are similar in many respects the major distinction between the two is that commercial policies are rated to cover much higher risks.

Consider the examples below:

1. A box truck is being used by a driver to deliver furniture for his antique business and accidentally crashes into the customer’s home. Unfortunately, the damage caused by the accident is far greater than any damage that would be caused by a personal vehicle and as a result it will not be fully covered. In this scenario, the truck owner should have invested in a commercial truck insurance policy, which is specifically designed to cover the damage that can result from large vehicles. 
   
2. A driver using his personal vehicle to drive for a ridesharing program accidentally rear-ends a car in front of him while driving a car full of passengers. The passengers ultimately sue the driver because they believe they sustained long term injuries from the accident. Unfortunately, when the driver’s auto insurance company finds out about the incident they terminate his policy because he did not disclose that he was using his personal vehicle for business purposes. While ridesharing services may offer drivers some insurance coverage, this driver should have invested in ridesharing insurance, which is designed to cover the increased risks of driving paying customers and can be added to an existing policy in many cases.  

Drivers Who Need Commercial Auto Insurance

If your vehicle is used for your business, occupation or profession beyond commuting – you should consider investing in business vehicle insurance.

Examples of situations in which commercial car insurance should be considered include:

• If
  you transport goods or people for business purposes
• If
  employees use your vehicle or vehicles for business purposes
• If
  your vehicle is used to haul business-related equipment or tools
• If
  your vehicle is registered or owned by the business
• If
  you own a vehicle that is heavier than a standard truck or SUV, such as a dump
  truck or tow truck as they may require commercial truck insurance
• If
  your business requires higher liability limits then what are covered by a
  standard auto insurance policy

What Does Commercial Auto Insurance Cover?

The coverages typically found on a commercial vehicle policy include:

• Liability
  Coverage: Similar
  to a personal auto policy, liability coverage helps to pay for damages that
  result from an accident that you or your employees cause. This includes bodily
  injury protection and property damage coverage. Liability insurance can also
  include uninsured motorist coverage if you were injured or your property was
  damaged due to an uninsured motorist.

• Vehicle Coverage: This coverage will help to pay for damages to your vehicle caused by an incident or accident, regardless of who was at fault. This typically includes collision and comprehensive coverage, among others.

While you may be concerned about the cost of a commercial auto insurance policy it is more important to think about the alternative if you are involved in an accident while operating your personal vehicle for business use. Unfortunately, your personal policy may not cover any damages or injuries that result from the accident and worse you could be dropped from coverage by your insurer completely. Don’t run the risk of losing coverage and consider investing in a commercial auto insurance policy. 

If you need commercial auto insurance for your business vehicles, InsureOne can help. Request a free commercial auto insurance quote online or over the phone by calling (800) 467-1958.