Food trucks are changing the way people “do lunch” in large and not-so-large cities throughout the country. They may offer big business potential, but they also pose a significant amount of risk to the people who own, operate, and buy from them. Here are just a few risks of food trucks, from a business perspective, you should consider if you’re a food truck owner or simply wish to become one.
Vehicle Risks
First and foremost, food trucks, such as mobile hot dog trucks, are physical entities that are vulnerable to the elements as well as general wear and tear. These risks include auto accidents, fire, theft, flood, wind damage, hail damage, and electrical breakdowns. Not only can these cause damages to the vehicle but they may also take the truck out of commission for a lengthy amount of time.
You do what you can, through education, hiring safe drivers, and adopting diligent protocols to prevent fires, theft, etc., but there are times when bad things happen despite your best efforts to prevent them. These are the times when you need solid commercial auto insurance coverage to mitigate the costs of damage and loss of operational readiness due to the physical structure of your business. Adequate insurance coverage isn’t a luxury when you’re operating a food truck. It’s a necessity.
Operator Risks
In addition to physical damage to the vehicle there are also risks to the person operating the food truck. Some of the risks that person may face include slips, trips, and falls, cuts, burns, smoke inhalation, and back injury from all the heavy lifting that’s required during the course of a busy day.
Your employees are your biggest asset and can be your greatest liability. It’s important to have them wear slip-proof shoes, practice safe lifting techniques on the job, and minimize risks from burns, cuts, and smoke inhalation in every way possible. Beyond that, it’s vital to provide worker’s compensation insurance to cover your responsibility to cover the costs of their medical treatment and time off resulting from on the job injuries.
Liability Risks
Food trucks pose liabilities to consumers in many ways. Not only can they slip or fall on the premises or while standing in line, but they are also risks of food-related illnesses and auto accidents that are somewhat unique to food trucks.
In addition to commercial auto insurance coverage, food truck owners need to invest in insurance policies that also protect the business from liability if anyone is hurt on the property or by food that is served from the food truck.
That doesn’t even cover the full scope or risks food truck owners face. But, you can use adequate insurance coverage to protect the business when necessary. All food truck owners should carefully consider investing in business insurance for liability, spoilage insurance, business automobile insurance, and worker’s compensation in order to adequately cover their bases.
