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...  This Video Will Help Owners Create A Community For Their Food Truck Brand

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

Simple Ways To Gain New Food Truck Customers This Summer You can never have too many customers in the food truck industry. That would be like saying you have too much money. In the spirit of that thinking, below you will find some simple ways to gain new...
What Are You Willing To Give Up To Make Your Food Truck Dreams Come True? 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...
Building An Email Leads List Can Be Beneficial For Your Food Truck Sales You may or may not send out emails to your food truck customers. Believe it or not, doing so could be beneficial for your sales. Sign up to receive the FoodTruckr Newsletter and we’ll throw in o...
Inspiration & Motivational Mindset For FoodTruckrs Motivation is a very powerful thing. Motivation led you to the opening of your food truck business. How can you keep the inspiration and motivation going in the long run, though? Sign up to r...
5 Simple Ways To Spice Up Your Days At Your Food Truck It's tough to spice up your day/add something new to the routine when you already have a plan in place, and said plan consists of you working double-digit hours at your food truck. With that said, ...
2 Effective Ways Food Truck Owners Can Boost Their Social Media Game It's okay if you aren't a social media guru. Likewise, it's okay if you don't want to spend all of your free time trying to come up with a social media strategy that will benefit your food truck busin...
Work-Life Balance Is Crucial In The Food Truck Industry In this week's edition of Throwback Thursday, we decided to go all the way back to last year. One might be wondering why, and it's a valuable question. Last year around this time, FoodTruckr did an...
3 Ways Food Truck Owners Can Continue Their Learning 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...
Lease-To-Own Programs For Food Trucks 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...
The Best FoodTruckr Advice For Mobile Kitchen Owners From Last Week: Jan. 15-21 Every Monday, we like to give food truck owners a full serving of advice, and we do that by dishing out every single article from the week prior. So, with that said, below you will find every artic...
Five Website Essentials To Help Your Food Truck Convert More Customers Editor's Note: Today we're excited to bring you a guest post from Brian Casel, the founder of RestaurantEngine.com! You might remember Brian from last week's podcast episode where he and Pat talked ab...
Simple Thoughts That Will Motivate Food Truck Owners During Times Of Stress If you are a food truck owner, then you know how tough the battle can be. It really is a tough industry to break into, but it is also a very rewarding one. If you are enduring times of stress, then we...
How to Run a Food Truck 20: Improve Your Social Media Outreach It’s time to continue onward with Unit 5 of the “How to Run a Food Truck” series! Today, we bring you more marketing strategies for advanced food truck owners with an all-new lesson on connecting with...
How To Avoid Truck Accidents For Food Trucks Editor’s Note: Today we’re excited to present a guest post from The Tenge Law Firm. The Tenge Law Firm is a boutique injury litigation firm specializing in serious personal injury and insurance cases....
Outside-The-Box Ways For Food Truck Owners To Incorporate Marketing While everyone's food truck business is different and every food truck owner focuses on different marketing strategies as a result, we want to highlight five articles that were published right here on...

About the Author

Avatar

You found me! My name is Denny Christner, founder of INSURE MY FOOD TRUCK (www.insuremyfoodtruck.com). 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