What insurance is required for a food truck in Illinois?

Food truck insurance in Illinois typically consists of an owner's policy that includes general liability coverage and property insurance. Consider an umbrella policy for your food truck to save money.

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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: Jan 29, 2021

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Here's what you need to know...

  • Illinois food truck owners should create a business plan that includes the cost of insurance in it before launching the business
  • A business plan should also identify potential risks the business faces and the optional types of insurance that could be purchased to counter those risks
  • Because a food truck is a mobile business, food truck owners may need to purchase multiple types of insurance products
  • Keeping overhead low is important to food truck operators, and bundling coverage may be an effective way to reduce the cost of insurance

Food trucks are a popular dining option in Illinois, and you may have high hopes of being an independent food truck owner and operator.

This dream could improve your life by enabling you to run your own business, but before you can enjoy living this dream, you need to create a food truck business plan.

Your business plan should itemize possible risks as well as realistic figures for expenses that you plan to have while running your mobile restaurant business.

Remember that optional insurance products may be purchased to offset or counter some of the risks that your food truck business faces.

Illinois food truck owners are required to comply with the state’s commercial auto insurance requirements, but there are other types of insurance that may be needed as well.

The cost of each premium can eat into your net profit, and you should shop around to compare rates for the coverage you need before launching your business.

Compare quotes for auto insurance to find the policy that’s right for your food truck. Enter your zip code above to get started shopping.

Coverage Available for Food Trucks in Illinois

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Are you wondering how much insurance an Illinois food truck owner and operator needs to have? Insurance can help you to mitigate various types of risks you may face, and some insurance is optional while other types are required.

After exploring the required and optional types of insurance that may be applicable to food truck owners and operators, you can begin shopping around for the right combination of policies to meet your needs based on the risks you are anticipating.

Commercial Auto Insurance

Illinois has an auto insurance requirement for private-use vehicles, and it also has similar requirements for commercial-use vehicles, such as a food truck.

The required liability insurance for commercial vehicles in Illinois may pay for another person’s expenses if you cause an injury or vehicle damage while driving your food truck.

You should understand that other types of commercial auto insurance are required if you want your policy to pay for your own accident-related expenses or for other types of losses, such as a collision or comprehensive insurance product.

Hired and Non-Owned Auto Insurance

Hired and non-owned car insurance is a requirement for food truck operators who lease rather than own their food truck. It provides many of the same types of insurance benefits that a liability auto policy provides, but it is designed specifically for leased commercial vehicles.

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Collision Coverage

Food truck owners in Illinois are not required by state law to buy collision insurance, but if you have a vehicle loan on your truck, the lender may require either collision or comprehensive insurance.

Collision insurance specifically pays for expenses caused by a collision and does not pay for expenses related to any other type of event.

Comprehensive Coverage

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Comprehensive insurance may be required by an Illinois food truck lender, and this insurance product pays for expenses created by the following:

  • severe weather
  • criminal actions
  • animal damage

Even though it may not be required for many food truck operators in this state, there are substantial benefits associated with buying this optional type of coverage because it pays benefits related to a wide range of damaging events.

General Liability

Illinois businesses need to purchase general liability insurance. This is a type of business insurance rather than auto coverage.

It pays for expenses specifically related to business liability, such as if your business is sued by a customer for on-site injuries, food poisoning issues, and more.

Property Insurance

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Property insurance is not required for Illinois food truck operators in most cases, but it may be beneficial to buy. This coverage could describe personal property insurance, which pays for the replacement or repair of damaged items inside the truck.

For example, if your kitchen appliances in the food truck were damaged by a fire, personal property insurance would pay for a replacement.

Because all food trucks have expensive equipment necessary for operations, this type of personal property insurance should be added to your policy in most cases.

There is another type of property insurance that may be applicable to some food truck businesses.

Some Illinois food truck owners have purchased land that is dedicated to the use of a food truck business, and this land may have developed features, such as lighting, seating for customers, and more.

Land itself is not insured, but the developments on the land may be insured by property insurance.

Workers’ Compensation

While some Illinois food trucks are completely run by the owners, many food trucks employ cooks and others to perform duties throughout a workweek.

If you have employees, workers’ compensation insurance may be required in this state. Workers’ comp pays benefits to injured employees, such as for their medical bills after being injured at work and their lost wages while they recuperate.

Umbrella Policy

You could also consider buying an umbrella insurance policy. This special type of insurance pays employee-related benefits as well as a full range of non-employee benefits. You can easily request a quote for an umbrella policy when you shop around to find the best rates available.

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Bundling Your Illinois Food Truck Insurance

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Keeping your business expenses as low as possible is important in order to boost the profitability of your food truck, but it is likewise important to buy the full range of insurance products that your business needs.

Initially, you should review these insurance products to determine which are required, and you should also determine which optional coverage types would benefit you. Then, you can compare insurance rates online to quickly identify the best deal available.

Some food truck owners make the decision to bundle coverage together with a single provider. This bundling makes financial management easier, and it may qualify you for a money-saving bundled policies discount.

However, you should avoid assuming that bundling is always the most affordable option.

Savvy Illinois food truck owners will obtain quotes for bundled policies as well as non-bundled policies from different providers to find the best insurance rates available.

Compare car insurance rates right here. Just enter your zip code into our free comparison tool below to find the best rate for the coverage you need.

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