Where Does Your Food Truck Insurance Dollar Go?


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.

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Where Does Your Food Truck Insurance Dollar Go?


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


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.

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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.

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About the Author

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!

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