What insurance is required for a food truck in New Mexico?

Food truck insurance in New Mexico typically consists of an owner's policy that includes general liability and property insurance. Compare quotes online using our free tool to 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...

  • Creating a business plan can help make your food truck open more smoothly.
  • Making sure you have the right insurance for your food truck can save you time and money.
  • Your business will be more successful if you know how to stay within regulations.

New Mexico has plenty of opportunities for food trucks. The two biggest cities in the state have some of the most vibrant food truck scenes. If you are going to open your own food truck, you should prepare for it before you start by making a business plan.

Part of that plan should include car insurance. Compare rates and options by using our free tool above. Just enter your zip code and get started!

How to Start a Food Truck

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Before you even apply for your permits, you will need to have a business plan. Having the plan will not only prepare you, personally, to apply for the permits but it will also be helpful should any issues arise while you are working on the permits.

Your business plan should outline:

  • The food items and equipment you will need – You will most likely need a refrigerator, some type of cooking device for your food and sinks that are separate for sanitation reasons. Food requirements for mobile food trucks in New Mexico are the same as traditional establishments.
  • The food safety you will be using – New Mexico requires that one person who is running the food truck take food safety courses. These courses teach you all the information you need to know about how to handle food.
  • How you’ll protect your food truck – Your business needs insurance coverage. From auto insurance to general business insurance and employee insurance, New Mexico requires you to have coverage.

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Insurance Options in New Mexico

While you’re comparison shopping for food truck insurance in New Mexico, you will come across many different coverage options.

There are minimums that New Mexico requires you to carry on your business, but adding extra coverage can protect you in other situations.

Auto insurance will be a necessity for your food truck. Since you’ll be driving on the road and parking on the road, you should consider coverage options beyond the state minimum.

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Commercial Auto Insurance

The state minimum for New Mexico auto insurance is a 25,000 dollar liability policy. Since a food truck is larger, you should consider having other coverage that includes:

  • Collision
  • Comprehensive
  • Uninsured motorists
  • Medical payment

Different cities in New Mexico, like Albuquerque, will require you to have medical payment insurance. Always check with local requirements for food truck insurance.

Non-Owned Insurance

If you have employees who are driving your food truck or who are using their own vehicles for food truck business, non-owned insurance will protect you while they are behind the wheel.

Collision Insurance

If you are in any type of accident with another vehicle or an object, collision insurance will cover you. It will also cover if your food truck turns over or rolls.

Comprehensive Insurance

While comprehensive coverage is not required in New Mexico and most people choose to not include It in their policy, it can be beneficial to your business.

Comprehensive covers your food truck if an animal hits it or there is a natural disaster. It will also protect you in some cases of theft or fire.

Your Business Insurance

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New Mexico requires business owners cover their business with insurance. Shopping for insurance coverage will help you determine the most affordable option for the best coverage.

Liability

A liability policy that covers your business in the form of general liability will help protect you in the event your business is responsible for any harm to a person or property. General liability is a New Mexico insurance requirement.

Property

Property insurance will cover everything inside the walls of your food truck. Property coverage includes equipment, unused food products and any materials you might have in your food truck. In some instances, it will cover any business property you have in storage.

Importance of Covering Your Employees

A food truck is a lot of work for one person so if you are planning on hiring any employees, you need to consider how you are going to cover them.

New Mexico Worker’s Compensation

Like most states, New Mexico has guidelines for your employee coverage. They require you have worker’s compensation coverage to protect your employees in the event they are hurt while on the job.

Umbrella Coverage

An umbrella policy will help you if there is a catastrophic event with your food truck. This coverage is only supplemental but will provide extra limits to your base policies.

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Bundling Policies

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New Mexico allows you to bundle policies with your insurance agency. Bundling can help you save money, but there are some drawbacks to bundling.

Pros of Bundling

  • Save your business extra money.%)
  • Make a convenient billing options for your food truck.
  • Give you access to special coverage.

Cons of Bundling

  • It may be difficult to comparison shop for bundled insurance.
  • You often cannot choose custom coverage.
  • Unnecessary coverage can happen from policies overlapping each other.

Saving money is one of the most attractive benefits of bundling your insurance plans.

Most may think of it as the best way to save money on business insurance, but having a clear idea of what your food truck is going to need and comparison shopping insurance agencies will help you save even more money.

Compare car insurance quotes today to find the coverage that’s right for you. Enter your zip code below to get started for free.

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