Food trucks and carts have been around for a very long time but have recently begun to increase in popularity due to the low overhead costs of running the business. If you have considered owning and operating a food truck, now is a great time to look into it further. Currently, in the United States, the food truck business is booming despite the risks that are associated with it. There are well over 4,000 food trucks driving around the United States which makes for an industry that generates over $1.2 billion in revenue. From 2009 to 2016 the food truck business revenue increased by almost 8%. Many food trucks offer a cheap way to grab some delicious food whether you are walking around town on your lunch break, or are at a festival enjoying music or crafts.
Of course, some areas have more food trucks than others and rules and regulations are a big reason for that. Some cities that support food trucks, like Portland Oregon, have truly embraced them and according to the city website they have over 500 food trucks, or carts, there. When you are looking into whether or not you're going to operate a food truck it is a good idea to check your area to make sure the rules and regulations are not too stringent.
Certainly, every business faces its unique challenges and the food truck industry is no exception. Be aware of these issues before you consider operating a food truck and generate your business plan.
As we said above, the food truck business is a good and profitable industry because of lower overhead, but that doesn't mean there are fewer risks involved.
Now that you know the risks that can come with the food truck business, how can you avoid them, or at the very least mitigate them?
While General Liability, Workers Compensation, and Commercial Auto insurance is a great place to start, some other insurance policies are critical to reducing the risk of your food truck operations. At the very least, please consider these.
While this is a comprehensive list, it does not cover everything that your food truck business could potentially face. You must work with an experienced insurance agent to dig into the operations of your business and assess the risks your unique situation will face. CoverWallet has a team of educated advisors to do that just that and will do so with absolutely no pressure. Contact us today to get started.
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