Running a food truck in the United States blends the best of two worlds—culinary creativity and mobile entrepreneurship. But this unique business model also comes with unique risks, especially when it comes to insurance. One of the most overlooked aspects is commercial auto insurance. If you’re using a vehicle for business—like a food truck—then understanding the insurance requirements isn’t just good practice, it’s essential for legal operation and financial protection.
Let’s unpack whether you need commercial auto insurance for a food truck, and explore everything related—from coverage specifics to state mandates, equipment protection, and cost considerations.
Why Personal Auto Insurance Isn’t Enough for a Food Truck
Many new food truck owners assume their personal auto insurance will suffice—after all, it’s still a vehicle, right? Unfortunately, that’s a costly misconception.
Personal auto policies are designed to cover personal use only. The moment you use your vehicle for commercial purposes like selling food, delivering catering orders, or moving between vending sites, your personal auto insurer can deny claims. Most policies include clear exclusions for “business use,” especially when the vehicle is permanently modified for commercial functions—like having cooking equipment, propane tanks, or branded wraps.
For instance, if you’re parked at a weekend food festival and your fryer causes a fire, your personal auto insurer likely won’t cover the damages. In contrast, a commercial auto policy is built to handle exactly these types of business-related incidents.
What Does Commercial Auto Insurance for Food Trucks Cover?
A well-structured commercial auto policy typically includes:
- Liability Coverage – Covers injuries or damages to others if you’re at fault in an accident.
- Physical Damage Coverage – Pays for repairs to your food truck due to accidents, theft, or vandalism.
- Medical Payments – Covers medical expenses for you and your passengers.
- Uninsured/Underinsured Motorist – Protects you if the other party is at fault but lacks insurance.
- Equipment Coverage – Depending on your policy, you can also insure attached equipment like grills, refrigerators, and generators—essential for mobile kitchens.
Do You Need Commercial Auto Insurance If the Food Truck Is Parked?
This is a common question among part-time vendors who may only operate at fixed locations. The answer is: yes, you likely still need it.
Whether your truck is in motion or stationary, it’s still a commercial vehicle. Any fire, explosion, slip-and-fall near the truck, or vandalism while parked could result in a claim. Moreover, some cities and event organizers require proof of commercial insurance before issuing permits.
That said, you can combine your commercial auto policy with general liability insurance, which adds broader protection for bodily injury, property damage, and legal expenses when parked.
State Minimum Commercial Auto Insurance Limits
Every U.S. state sets its own minimum liability limits for commercial vehicles. While the specific amounts vary, most states require at least:
- $100,000 for bodily injury per person
- $300,000 per accident
- $50,000 for property damage
However, if you’re operating across state lines or in high-traffic zones (like downtown LA or NYC), you may be required to carry higher limits or even obtain federal filings.
Interstate Food Trucks: MCS-90 and BMC-91X Filings
If your food truck business operates across state lines or is involved in interstate commerce, you might need additional insurance documentation.
The MCS-90 endorsement ensures you meet federal liability limits and can pay for damages even if your policy doesn’t. Similarly, a BMC-91X filing is required if you’re subject to DOT regulations. These filings are more common in logistics or freight, but if your food truck expands into multiple states, consult with a licensed commercial agent to stay compliant.
How Are Attached Kitchen Equipment Items Insured?
A key concern for any food truck owner is the expensive equipment bolted inside the vehicle. Standard commercial auto insurance may only cover permanently attached items if they’re specifically listed in the policy.
For instance, a built-in fryer, generator, or sink system might be covered under the “custom equipment” or “permanently attached accessories” section. However, removable items (like portable POS systems or storage bins) may require additional business personal property coverage.
Pro tip: Document your equipment with receipts and installation details, so you can prove ownership and value if a claim arises.
What’s the Difference Between Mobile Food Trailer Insurance and Food Truck Insurance?
Though similar, food trailers and food trucks have distinct insurance needs:
- Food trucks are self-powered and typically require commercial auto insurance plus general liability.
- Food trailers, on the other hand, are towed by another vehicle. The trailer may be covered under the towing vehicle’s policy for basic liability, but you still need separate coverage for the trailer body, equipment, and operations.
If you’re using both in your business (for example, a truck for cooking and a trailer for storage or desserts), discuss with an agent about a combined commercial package policy.
Can You Use Non-Owned Auto Insurance?
If you’re a food truck owner who rents or borrows vehicles, or if you hire employees who use their own cars for errands, you might benefit from hired and non-owned auto insurance (HNOA).
This type of coverage doesn’t insure the truck itself, but provides liability protection if you or an employee causes an accident while driving a non-owned vehicle for business purposes. It’s a valuable add-on if you lease vehicles or use multiple mobile units.
How Much Does Commercial Auto Insurance Cost for a Food Truck?
On average, commercial auto insurance for a food truck in the U.S. ranges from $1,200 to $3,000 per year, depending on:
- Vehicle type and value
- Equipment coverage
- Driving record
- Business location
- Coverage limits
Urban food trucks in high-traffic areas will likely pay more, while trucks in smaller cities or seasonal businesses might pay less. Bundle discounts may apply if you also carry general liability, workers’ comp, or business property insurance.
Does Selling Alcohol from a Food Truck Change Insurance Requirements?
Absolutely. If your food truck serves beer, wine, or spirits, you’re subject to liquor liability laws, and your standard commercial auto or general liability policy won’t cover alcohol-related incidents.
You’ll need liquor liability insurance, often required by state regulators and event organizers. This can be purchased as a standalone policy or added as an endorsement. Be aware: alcohol service also increases your legal exposure, so maintaining high coverage limits is recommended.
Final Thoughts
If you’re running a food truck, commercial auto insurance isn’t just a smart choice—it’s a legal necessity in most cases. It protects your vehicle, your livelihood, your team, and the people you serve. But don’t stop at the basics—evaluate your operations thoroughly, including whether you cross state lines, serve alcohol, or have complex kitchen setups.
Each of these variables plays a role in determining the type of coverage you need. Consulting with a licensed commercial insurance agent is the best way to tailor a policy that not only keeps you compliant, but gives you peace of mind on the road—and in the kitchen.