Where Does Your Food Truck Insurance Dollar Go?

Insurance

It probably seems like you pay a lot of money for your food truck insurance. You might be wondering where your hard-earned dollars are going when you pay your insurance every month or year…

Our industry could do a better job of explaining what typically happens to the average insurance dollar you pay. This entry will attempt to explain just that.

Sign up to receive the FoodTruckr Newsletter and we’ll throw in our free guide: 6 Free Social Media Tools to Get People Talking About Your Food Truck.

Where Does Your Food Truck Insurance Dollar Go?

Insurance

45 Cents Of Each Dollar Goes To Pay Claims

This could be a minor auto accident or a major fire on your truck. A large portion of food truck claims include business interruption coverage. Our package includes some loss of business income due to a covered loss. When you factor all these exposures, 45 cents per dollar paid can go pretty quick.

20 Cents Goes To The Administration Of Your Policy

Insurance

This is for underwriting, processing, claims administration, customer service, etc. This pays everyone from the CEO to the call center receptionist. Insurance companies insure millions of people countrywide and help our economy. Though it can be expensive to administer insurance, carriers have utilized technology and experience to get this cost down as much as possible without sacrificing service to their agents or customers.

Looking to start your own food truck? Prestige Food Trucks can do wonders for you in that department.

15 Cents Goes To Your Insurance Agency Or Brokerage In The Form Of Commission And/Or Profit Sharing For Selling And Servicing Your Account

An average of 4.5 cents of the 15 goes to your actual insurance agent who sold the coverage. The rest goes to the agency for operating expenses.

You May Also Like...  Take Your Food Truck Business To The Next Level With This Growth Kit

10 Cents Goes Back To Local, State And Federal Taxes And Legislative Support

Every state has its own regulations and department of insurance. It takes a lot of money and support from insurance carriers to work with these regulators.

RELATED: 3 Essential Checks To Make Before Launching Your Food Truck Business. Before you launch your food truck business, you need to make sure you are 100 percent ready.

10 Cents Goes To Profit Which Goes To Shareholders And Stakeholders Of The Insurance CompanyInsurance

Most major insurance carriers are publicly traded and are expected to return a profit to their shareholders.

There you have it! This is a very basic overview of where your average premium dollar goes. Not that it makes it more enjoyable to cut those checks every month, but we wanted to provide some insight so that you can appreciate your food truck insurance costs a bit more, which may make the process of paying a little less painful.

Looking for financing to start or grow an existing food truck? JSL Financial has you covered.

To dig your teeth into what FoodTruckr has to offer, make sure to like us on Facebook and follow us on Twitter, and also make sure to check out more content that we bring to the table.

Recently on FoodTruckr

FoodTruckr Heroes: Destination Desserts We love food trucks with really specific philosophies, but it’s even better when a truck’s mission supports a truly important cause. Today’s FoodTruckr Hero is a non-profit “social venture bakery” out...
3 Tips For Hiring Your First Employee At Your Food Truck Business Editor’s Note: Today we’re excited to present a post from Jeremy Adams. Jeremy is the President/CEO of Prestige Food Trucks, which is the world's leading custom food truck manufacturer. In his current...
Business Bites: Navigating the Latest Facebook Page Upgrade, Food Hackathons, and Skipping the DMV Welcome back to Business Bites, a bi-weekly column with articles and tidbits we've come across in the last two weeks. Facebook Updates Pages: Here's What Changed Facebook loves to make changes qui...
The 12 Days of FoodTruckr: 11 Favorite FoodTruckr Posts On the eleventh day of Christmas, FoodTruckr’s giving you… 11 Favorite FoodTruckr Posts! Happy Christmas Eve, FoodTruckrs! In honor of Day 11 of The 12 Days of FoodTruckr, we wanted to take a little...
How to Run a Food Truck 12: Overcome Roadblocks Last week on “How to Run a Food Truck,” we brought you a few key strategies to follow if you’re having trouble bringing enough customers to your ordering window. Dealing with slow periods is just one ...
3 Essential Checks To Make Before Launching Your Food Truck Business Editor’s Note: Today we’re excited to present a guest post from Hannah. Hannah is the HUB's specialist on social issues and HR. She writes to help readers work in ways that are safer, quicker, and mor...
FS013- All About Your Food Truck Website Food trucks live and often rely on social media, but what about a food truck's website? How important is a website for your truck, and what are the best practices for running a useful site that...
How To Make Your Food Truck Business More Profitable We all want to make more money, right? Well, you likely didn't enter the food truck industry to be an instant success. No, you entered this industry to follow your dreams, to live out your true passio...
3 Food Trends That Foodies Have Been Going Crazy Over In 2016 Just like so many other things on the Internet, food also trends. It trends down, up -- you name it. In 2016, there have been plenty of foods that have swept the nation, and plenty of others that have...
Announcement: FoodTruckr Is Back From Vacation! FoodTruckrs, the big announcement you’ve been waiting for is finally here: We are back from vacation! Whether you are new to FoodTruckr or have been following us since the beginning, we want to wel...
How Food Truck Business Owners Can Gain More Customers In 2017 Editor’s Note: Today we’re excited to present a post from Jeremy Adams. Jeremy is the President/CEO of Prestige Food Trucks, which is the world's leading custom food truck manufacturer. In his current...
Food Truck Branding 101: Build a Brand That Rocks We all learned at an early age not to judge a book by its cover, right? That’s bad advice when it comes to brands. On a daily basis, customers are bombarded with advertisements and challenged to make ...
How You Know You Were Born To Be A Food Truck Owner Were you born to be a food truck owner? Have you always wanted to own your own sit-down restaurant or food truck? If so, then you were likely born for the great industry that is the food truck indu...
Secret Weapons And Tips For Food Truck Owners A food truck needs a killer brand, flawless business plan and delicious food — that’s just a given. However, there are other ingredients that mobile truck owners can add to their arsenal that will mak...
#FoodTruckFan: Your Approachability Factor I had a group of friends over for dinner the other night, and we got on to the topic of ordering pizza. More specifically, The Fear of Ordering Pizza. We had so many arguments my freshman year of ...

About the Author

You found me! My name is Denny Christner. Although I have been in insurance for 15 years, I'm nacho typical insurance agent. I focus on food businesses including mobile food vendors, caterers, restaurants and artisan food manufacturers. I LOVE food and the food community. Life is too short to not be passionate about life and your career! That's why you do what you do, right? My goal is to help protect, promote and grow your mobile food business. When not working tirelessly on protecting the food community i can be found enjoying the beautiful Bay Area with my family. See you in the streets!

Love it? Share it: Share on Facebook Share on Twitter