What insurance is required for a food truck in Louisiana?
Food truck insurance in Louisiana usually consists of a business owner's policy that includes general liability and property insurance. Consider bundling your food truck insurance policies to save money.
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UPDATED: Jan 29, 2021
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- All food trucks in Louisiana need to comply with the state’s insurance laws, and some business owners decide to buy additional coverage beyond what is required by law
- The right combination of food truck insurance can help you to offset the expenses associated with some risks you may be exposed to while driving the truck or operating your business
- You may be able to save money on the full range of insurance products that your food truck business needs by bundling your auto insurance coverage together with a single provider
Louisiana is a popular destination for food trucks because of the fabulous weather conditions throughout most of the year as well as the lovely scenic beauty throughout the state.
Owning a food truck can be a dream come true for you, but you should not rush hastily into this venture. All of the risks associated with running a food truck should be analyzed carefully.
You also need to review licensing and insurance requirements before you start your food truck business.
Developing a business plan for a Louisiana food truck business is a great idea, and it can help you to be more prepared for the actual operation of your business on a daily basis.
The business plan may define your recipes and menu options, but it also goes significantly further to analyze income and expenses as well as risks.
Insurance products can be purchased to tackle many of the potential risks that your food truck business is exposed to, but you need to determine which insurance products you need to buy.
All businesses are required to buy at least some insurance, and food truck businesses in Louisiana need to comply with local auto insurance laws as well as workers’ comp laws and more.
After you learn more required and recommended insurance options for a food truck business in this southern state, you can then compare rates to determine how premium expenses will impact your profitability.
Enter your zip code into our free car insurance comparison tool above to find the provider that offers you the best rate.
Coverage Available for Food Trucks in Louisiana
Buying insurance in Louisiana for your food truck may seem counterintuitive. After all, you may be focused on keeping overhead as low as possible, and adding premium payments to your monthly expenses may seem unwise.
However, some types of food truck insurance are required in this state, and even optional coverage types offer financial benefits that you should explore carefully.
Commercial Auto Insurance
Commercial auto insurance is a requirement for local food truck owners. Any commercial vehicle that is on local roads needs to be properly insured, and the required minimum amount of insurance features liability coverage.
With liability insurance, benefits will be paid to other people for damages you cause to them.
Additional coverage, such as collision or comprehensive insurance for your food truck, will need to be added to your auto policy if you want benefits that pay for your own food truck’s damages.
Hired and Non-Owned Auto Insurance
Many Louisiana food truck owners buy their own truck, but you could also rent a food truck from someone else.
Hired and non-owned auto insurance requirements may prevail in place of standard liability insurance requirements if you rent a food truck. You can enjoy liability benefits for a rented vehicle with this type of commercial coverage.
Louisiana drivers are not required by law to purchase collision or comprehensive auto insurance, but some food truck owners have a lender requirement for one or both of these coverage options.
Collision insurance pays benefits for a collision event only, and its benefits are used to repair your own damaged vehicle.
Some lenders also require comprehensive insurance on a food truck. This insurance product pays for repairs on your damaged vehicle when the damage comes from something other than a collision. You can use these benefits for damage caused by the following:
- truck theft
- a severe storm
Louisiana business owners face risks while driving in commercial vehicles, and they also face risks through the daily operation of their business.
A common type of liability issue related to food industry businesses is food poisoning. Business liability insurance should be purchased to help you pay for related liability expenses that otherwise could potentially wreak havoc on your financial situation.
Buying personal property insurance for your food truck is another idea to consider. Personal property insurance is often added to an auto policy, and it may pay for damage or theft-related losses for any items in the truck, such as for your food truck appliances.
Another type of property insurance that you may need or want to buy is real estate property insurance. Many food truck operators drive around to different locations to sell food, but some buy their own land to park their truck on.
If you fall into the latter category, property insurance can be used to pay for damages to any site-built improvements to your land, such as to an on-site dining area.
Hiring workers may be necessary for your food service business, but it also exposes you to different risks. For example, if one of your workers is injured on the job, you may be held liable for related expenses.
Workers’ compensation insurance is a type of required insurance that your food truck business may be responsible for.
Buying an umbrella insurance policy for your food truck business in Louisiana may be a great idea as well. With this type of insurance, you may receive employee-related benefits and a full range of other necessary or advantageous benefits.
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Bundling Your Louisiana Food Truck Insurance
When buying multiple insurance policies for your Louisiana food truck business, you may be interested in buying all of your coverage from the same provider.
By taking this step, you could save yourself a headache related to financial management, and you may be able to qualify for a bundled policies discount. Bundling could save you money with some providers, but it is not always a smart idea.
For example, you may get a better deal on your premiums overall when you buy insurance from different providers than if you limit your options to a single provider.
Each food truck business has different factors that will affect rates, so it is necessary to request quotes for bundled policies as well as unbundled policies to identify the most affordable insurance option available.
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