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.
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.
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.
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.
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.
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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This post was last modified on October 10, 2016
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