Food Trucks Are Growing—So Are the Insurance Gap

Food Trucks Are Growing—So Are the Insurance Gap

The food truck industry is on the rise—and so is the need for proper insurance coverage.

According to a recent report by HTF Market Intelligence, the global food truck insurance market is projected to grow from $320 million in 2024 to $391 million by 2031, with a compound annual growth rate (CAGR) of 3.4%. This growth reflects more than just the popularity of mobile dining. It highlights the increased demand for tailored insurance that protects food truck operators from real-world business risks.

As an insurance agency based in Ontario, California, we work with food truck owners, mobile vendors, and artisan contractors every day. This shift in the market is no surprise—because on the ground, we’re seeing more mobile food entrepreneurs than ever before.

What’s Driving Growth in Food Truck Insurance?

The report cites several key trends fueling this expansion:

  • A growing number of food trucks entering the market
  • Rising regulatory requirements for food truck operators
  • Increased awareness around risk management
  • Advancements in policy customization and digital management
  • Eco-conscious trucks requiring new types of coverage

In California specifically, cities like Los Angeles, Riverside, and San Bernardino have seen a noticeable increase in food truck permits since 2022. Local entrepreneurs are finding that food trucks offer a lower overhead path to owning a restaurant—but with that flexibility comes new liability.

What Makes Food Truck Insurance Different?

Unlike traditional restaurant insurance, food truck insurance is mobile, multi-faceted, and location-sensitive. It combines elements of auto, liability, property, and employee protection—all in one.

Here are the must-have coverages:

Commercial Auto Insurance - your food truck is your storefront and your transportation. One accident could put you out of business without proper coverage.

General Liability Insurance - protects you if a customer slips near your truck, gets burned by hot food, or sues over a foodborne illness.

Property Coverage - your cooking equipment, generator, and inventory are often worth tens of thousands of dollars—and are often exposed to theft or fire.

Workers' Compensation - if you have employees—even just one—you need to protect them (and yourself) from on-the-job injuries.

Business Interruption - mechanical breakdown, fire, or health shutdown could cost you days or weeks of revenue. Business interruption coverage helps cover those gaps.

California Context: Why Local Food Trucks Need to Pay Attention

California doesn’t legally require general liability insurance for food trucks—but that doesn’t mean you should go without it. A single claim could sink your business financially.

Add to that:

  • High foot traffic at public events
  • Tailgating, street fairs, and festivals
  • The need for special event insurance or proof of coverage for permits

In short: if you operate a food truck in California without a tailored insurance plan, you’re one bad incident away from disaster.

In the News: The Coverage Gaps You Didn’t Think About

A recent Reuters article highlighted how insurance gets murky during public events—especially when alcohol is involved or crowds get aggressive. This is highly relevant to food truck operators who serve at large events, tailgates, or late-night locations. The article makes one thing clear: assume nothing is covered unless your policy specifically says so.

(Source: Reuters, Oct 31, 2024)

Artisan Contractor Insurance for Mobile Pros

At our Ontario agency, we also insure artisan contractors—people who make a living using their tools and trade. That includes:

  • Electricians
  • Plumbers
  • Landscapers
  • Beauticians
  • Nail technicians
  • Handypeople
  • Mobile service providers of all types

If your business moves with you, your insurance needs to move too.

More Food Trucks = More Responsibility

We see this industry growing locally and globally. But whether you're a startup with one truck or you’re expanding your fleet, you need a policy that covers all sides of your business—your truck, your tools, your team, and your time.

We can help with:

  • Food truck insurance
  • General liability
  • Commercial auto
  • Workers’ comp
  • Life insurance for owners
  • Coverage for artisan contractors

Let’s Talk Coverage

If you're running—or planning to launch—a food truck or mobile service in California, now’s the time to protect your business from risk.

Reach out for a no-obligation insurance quote today. We’ll walk you through the coverages that matter most and build a policy that fits your business and budget.

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