What insurance is required for a food truck in North Carolina?

Food truck insurance in North Carolina usually consists of a business owner's policy that includes general liability and property insurance. Consider bundling policies 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: Sep 15, 2020

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Here's what you need to know...

  • North Carolina food trucks must comply with all business insurance requirements and commercial auto insurance requirements for this state
  • Most food truck owners need to purchase multiple insurance products, and bundling insurance may be a great way to save money on the insurance you need
  • Developing an exceptional business plan that incorporates your price quotes for insurance premiums is a great way to prepare for the launch of your food truck business in North Carolina

North Carolina food trucks give patrons the opportunity to pick up quick food to go or to enjoy dining outdoors at scenic spots throughout the state.

Whether you plan to sell barbecue food, Mexican food, or other types of cuisine from your food truck, you need to plan for the launch of your business in the same way you would plan for the launch of any other business type in the state.

A thorough and detailed food truck business plan should be prepared, and it should itemize specific risks that you may face as well as licensing and insurance requirements.

A food truck in North Carolina is unique from many other types of businesses because it is a mobile restaurant. It must comply with requirements for commercial vehicles as well as food service businesses.

With this in mind, you likely need to buy several types of commercial auto and business coverage to comply with all of the related regulations and requirements for doing business in North Carolina.

Understanding the requirements for insurance as well as the optional coverage types available is a great first step to take when preparing to launch your business.

Paying multiple insurance premiums for all of the commercial auto and business insurance that your North Carolina food truck business needs can be expensive, and you understandably want to keep the premium expenses as low as possible.

Consider getting quotes for both bundled and unbundled insurance from several providers so that you can find the best rates available on the coverage you need.

Compare quotes today by using our free rate tool above. Enter your zip code into our free car insurance comparison tool to begin.

Coverage Available for Food Trucks in North Carolina

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Most days, you will run your North Carolina food truck without mishap or concern, and you may have many satisfied customers.

However, issues such as a car accident or a customer injury near your food truck may place you at risk for liability issues or may create additional expenses for your business that you have not budgeted and prepared for.

There are many types of business and commercial auto insurance that you can buy to protect your business from related losses, and you should be aware that some of these insurance types may be required by local law.

Commercial Auto Insurance

All vehicles on North Carolina’s public roads need to comply with the state’s auto insurance requirements, and there are special commercial requirements that business-use vehicles must comply with.

The primary component of a commercial auto policy in this state is liability insurance, which pays for other individual’s expenses if you cause an accident.

Because liability insurance does not pay to repair your vehicle if it is involved in a collision or another type of damaging event, you may also consider buying optional collision or comprehensive insurance.

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Hired and Non-Owned Auto Insurance

If you intend to rent a food truck that you operate your business out of, you may need to purchase a policy that includes hired and non-owned auto insurance.

Commercial auto coverage is designed for owned vehicles and hired and non-owned auto coverage offers financial benefits for leased or rented commercial vehicles.

Collision Coverage

If you have a vehicle loan on your food truck, your lender may have a collision or comprehensive insurance requirement.

These two coverage options pay for repair services or other related expenses if your vehicle is damaged. Note that collision insurance only offers you financial benefits if the vehicle is damaged in a collision with another vehicle.

Comprehensive Coverage

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Comprehensive insurance gives you benefits for the following losses:

  • theft
  • vandalism
  • a wildlife mishap
  • severe weather damage

General Liability

Because your food truck business is a legally operational business in North Carolina, it may need to be properly insured in this way as well.

In addition to getting auto liability insurance, you may need to buy general liability insurance for your business activities.

For example, liability related to food poisoning would not be paid for by your auto policy, but it may be paid for by your general business liability insurance coverage.

Property Insurance

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Property insurance is not usually required for North Carolina food trucks, but it could be beneficial in different ways.

Consider that auto coverage does not typically provide for repairs or a replacement of the expensive items inside the truck, such as your commercial kitchen appliances.

Personal property coverage can be added to your auto insurance to give you this benefit.

Property insurance could also describe real estate insurance.

Many food truck operators drive around and do not commit to operating from a single location, but some food truck owners have bought their own land and have developed this dedicated space with lighting and sound features, dining tables, and more.

Real estate insurance can cover damage to these land improvements.

Workers’ Compensation

Businesses that hire employees to work on-site may need to buy workers’ compensation insurance. This unique type of business insurance pays your employees financial benefits if they are injured while working for you.

This coverage includes paying for their medical expenses, wages for time when they are recovering, and more.

Umbrella Policy

Your North Carolina food truck could also benefit from an umbrella policy. Umbrella insurance usually is closely related to employee benefits.

However, your food truck business in North Carolina may also obtain non-employee benefits from this type of coverage.

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Bundling Your North Carolina Food Truck Insurance

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You can choose to bundle your various insurance products together for your food service business, and this simply means that you are buying coverage from one provider.

Many insurance companies have a bundled coverage discount that could save you money on all of your premiums.

This may be the most affordable way to get the auto and business insurance your food truck operation needs, but this is not always true.

If you are serious about finding the best rates available for your food truck insurance coverage, thoroughly explore quotes for both unbundled and bundled insurance.

Compare car insurance quotes to find the provider that’s right for your situation. Enter your zip code below to get started.

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