What insurance is required for a food truck in Arkansas?

Food truck insurance in Arkansas usually consists of an owner's policy that includes general liability and property insurance. Consider bundling food truck insurance policies and save.

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Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

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Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

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Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Sep 15, 2020

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Here's what you need to know...

  • Running a food truck business in Arkansas comes with many risks, and you can buy many types of insurance products to mitigate risk
  • Some types of insurance are required by law for food truck owners in this state, but optional coverage may have benefits as well
  • Some food truck owners may be able to save money on insurance products by bundling their policies together with the same provider

A food truck may be mobile, but it is nonetheless a legitimate business that can produce incredible profits for the owner or that may bring the cost of risks.

If you are preparing to launch a new food business in Arkansas, it is important that you spend ample time developing an incredible business plan.

You definitely need to focus your attention on developing unique and delicious menu items, but you also need to turn your attention to more practical matters, such as insurance and business licensing.

Your food truck’s business plan will help you to prepare for the financial aspect of running a mobile restaurant business, and it may include details related to the cost of the following:

  • ingredients
  • the equipment you need for food prep
  • rent

When analyzing potential net profits from the operation of your Arkansas food truck, the cost of insurance premiums must be determined. With multiple types of insurance to choose from, the need and cost for each one should be explored in greater detail.

A food truck is unique because it is a commercial vehicle as well as a self-contained business.

You will need to obtain all licenses to comply with legislation for food trucks, and you also need to buy the right commercial auto, business, and workers’ compensation insurance to address all of your needs.

A closer look at food truck insurance options will help you to finalize your plans. Compare quotes today to find the best rate for the insurance you need! Enter your zip code above to begin.

Comparison Shop for Insurance in Arkansas

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There unfortunately is not a standard food truck insurance that you can buy to simplify your insurance buying activities. Instead, you will need to buy separate coverage for running the business as well as for owning and operating a commercial vehicle.

With a closer look at some of the most common types of insurance food truck owners in Arkansas buy, you can then obtain quotes for the coverage and finalize your business planning and budgeting activities.

Commercial Auto Insurance

If you own your food truck, you may need to comply with commercial auto insurance requirements in Arkansas. Requirements vary based on the following:

  • the size of your truck
  • the truck’s actual use
  • other factors

Therefore, carefully research the commercial auto insurance requirements that you must legally comply with, and consider the benefits associated with buying more insurance than what is required by law.

Hired and Non-Owned Auto Insurance

On the other hand, if you lease your truck from someone else, you may need to purchase a hired and non-owned auto insurance policy. This is auto coverage that is designed for a leased vehicle that is being used for commercial purposes in this state.

It provides you with many of the same liability protections that a commercial auto insurance policy provides to a vehicle owner.

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Collision Coverage

Collision and comprehensive insurance for food trucks is not a legal requirement, but lenders often require at least one of these types of insurance. Collision insurance only provides benefits for food truck repairs or for a full truck replacement in the event of a vehicle collision.

Comprehensive Coverage

Comprehensive coverage pays for repairs or a truck replacement in the event of a collision as well as for damage caused by many other things. This may include a bad weather event, criminal activities, and more.

General Liability

Liability insurance for your moving vehicle is usually covered by your commercial auto policy and is often required by law in Arkansas. However, you also may need to obtain general liability insurance for the business itself.

Remember that your business faces liability risks even when your food truck is not moving, and this type of insurance pays for legal costs and other related liability expenses related specifically to the business.

Property Insurance

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The two types of property insurance that you may need to buy as an Arkansas food truck operator are real estate insurance and personal property insurance.

Land that your truck sits on may be owned by you, and it may have some developed features on it that need to be insured, such as utilities developments or a seating area for your customers.

Personal property for a food truck business may describe chairs and tables, appliances in the truck, and other similar types of items.

Workers’ Compensation

You may want to keep your food truck business open every day of the week, but you may need to hire a few employees so that you can take time off periodically. Workers’ compensation may be required for some businesses in this state.

It pays for an individual’s lost wages, medical expenses, and other costs in the event the worker is injured on the job. This may be through a burn, a cut, a slip and fall issue, or something else.

Umbrella Policy

An umbrella policy is a great way for a food truck operator to get employee coverage, but it can also provide other coverage types. This may be the most cost-effective coverage solution available but compare all options carefully to avoid paying more than necessary for your coverage.

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A Food Truck Owner May Want to Bundle

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A common way for business owners to save money on insurance is to bundle coverage, which means that you buy multiple policies from the same provider.

Insurance companies usually save money on administrative expenses when you bundle coverage, and they pass at least some of this savings on to you in the form of a bundled policies discount.

Bundling may also be more efficient and convenient for you as a business owner because you are only working with one insurance company and one premium payment.

On the other hand, bundling may not always be the most affordable insurance option available for your food truck even with the discount taken into consideration.

There are many factors that can affect the cost of each of these different types of insurance, and you may get a better deal overall when you buy coverage from at least a couple of different providers.

Requesting quotes and comparing rates for different insurance products is the best way to find the most affordable coverage option available. Enter your zip code below to compare quotes today!

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