Food truck revenue in 2015 topped
"It is relatively new for us across the country, and we're slowly rolling it out," he said, adding the insurance is now available in 16 states. "It was tough at times for food truck owners to get the coverages they needed, and also to get them from one place, as opposed to having to piece them together."
With significant insurance business covering restaurants, Rothfuss said Farmers recognized the coverage gaps as restaurant owners began branching into the food truck business and needed additional insurance. The challenge, though, was there wasn't a product that covered all aspects of the business.
"Even if they got one policy from one avenue, and another portion from another avenue, there might have still been some coverage gaps. Traditional property and general liability insurance is really geared to a physical location, where a food truck itself by definition is mobile," Rothfuss said.
The company hopes with its new policy to solve two primary gaps that exist. One is that a food truck needs a traditional commercial vehicle auto policy but also needs to be covered for loss of income that may occur if the vehicle is damaged and the owner can't operate it, he said.
The second is coverage of off-premise liability, so that if an incident occurs when the food truck operator is parked in a parking lot, the owner would be covered.
"Our policy, which is a combination of commercial auto coverage as well as traditional property and liability coverages, does cover that," Rothfuss said.
The Farmers policy isn't the first to try to meet the needs of food truck owners.
Janice said he is required to show that he has insurance when his truck attends any of the food truck festival events that are becoming increasingly popular in the area.
Geller said many communities are still catching up with the industry, which has grown significantly. Although food trucks have been around for decades, he said, the past eight years have seen a significant increase in their popularity.
He said food trucks often provide an economic boost for communities because they are locally owned and keep money local.
Geller said he is glad to see national companies like Farmers creating insurance to cover food trucks, but he will wait to see how successful it is. He said it is critical for insurance companies to be responsive, especially because food trucks routinely go on private property and often need to quickly get a certificate of insurance to show they are covered for each property.