What insurance coverage is required for a food truck in Montana?

Running a food truck business in the beautiful state of Montana may be a professional goal that is now attainable for you. You may be eager to spend your days preparing meals for your customers in scenic or popular locations across the state.

However, as a food truck owner and operator, you may face risks that include workplace injuries, vehicle accidents, and more.

There are multiple insurance products that are designed for food truck operators that can help you to mitigate some of these risks, and some types of food truck insurance may be required.

While your unique food services business may be mobile and run out of a truck, it nonetheless is a legitimate business that must be operated and run in the same fashion as any other type of business.

Creating a business plan for your food truck is a critical step to take, and a proper business plan analyzes the projected income and expenses of the business.

Insurance premiums must, therefore, be researched before you can create a firm business plan for your food truck.

Saving money on insurance premiums could potentially increase your net profit from operations. Shopping around to find the lowest rate on Montana food truck insurance is a smart idea, but you also need to ensure that you buy coverage from a reputable provider.

Compare quotes today to find the insurance provider who’s right for you. Enter your zip code above to begin.

Some Montana food truck operators bundle their coverage together, and this could potentially help you to save a substantial amount of money on your premiums.

Coverage Available for Food Trucks in Montana

Before you can finalize the operating numbers in your business plan, you must itemize the potential risks that your business faces and understand how different insurance products could be used to address those risks.

You also need to research business licensing and insurance requirements for Montana businesses. These are some of the food truck insurance types that are available to you, and some of them may be required.

Commercial Auto Insurance

All vehicles on Montana’s roads must be properly insured, and food trucks must have at least a minimum amount of liability insurance in place.

A Montana liability policy pays for the expenses you create for other drivers and property owners while you are driving the food truck, but it will not pay for your own food truck repairs and other related expenses.

If you want to enjoy the most robust level of benefits from your commercial auto insurance policy, you need to consider the benefits of combining collision or comprehensive insurance with liability auto insurance.

Hired and Non-Owned Auto Insurance

Hired and non-owned coverage in Montana is suitable for food truck operators that plan to lease rather than buy their food truck. All vehicles must be properly insured in this state, but a standard commercial auto policy is intended for those who own their food truck.

Hired and non-owned coverage for a food truck may be challenging to find in some cases, but shopping around can be effective.

Collision Coverage

Montana does not require you to buy collision insurance for your food truck, but your auto lender may have this requirement as a condition of your vehicle loan.

Whether you are required to buy this insurance product or not, it offers incredible benefits that can help you to pay for your own expenses if you are involved in an accident. However, it only offers financial benefits to you in relation to a collision event.

Comprehensive Coverage

Montana food truck owners may also be required to buy comprehensive insurance by their vehicle lender, but this is not a state requirement.

Comprehensive auto coverage includes benefits for a collision and for other types of events, including:

• bad weather events
• criminal actions
• hitting a deer or other animal

General Liability

Montana requires you to buy auto liability coverage for your food truck, and it may also require you to have general liability coverage for the business itself in many cases.

Liability business insurance covers events and damages related to the operational activities of your food truck rather than to the movement of your vehicle.

Some food truck owners in this state will bundle general liability with auto liability coverage to save money through a bundled policies discount.

Property Insurance

All food trucks in Montana have personal property in them, such as the kitchen equipment that is used to prepare meals in the truck. You may add an optional personal property insurance product to your auto policy to cover these items.

Another type of property insurance that may be relevant for some food truck owners is real estate insurance.

While many mobile food trucks do not own land or real estate, some food truck owners permanently park their food truck on land that they own.

If this land is developed with fixtures and improvements, these improvements could be insured by a real estate property insurance policy.

Workers’ Compensation

Your food truck business may be open for many long hours each day, and part of your business plan may be to hire workers to assist with operations. Workers’ compensation insurance may be required in Montana if you hire any workers.

These employees could potentially be injured on the job, and workers’ comp includes benefits for their lost wages while they are recovering from the event, their medical expenses, and other related costs that you otherwise would have to pay for out of your own pocket.

Umbrella Policy

An umbrella policy is not a legal requirement for Montana food truck owners, but it is advantageous for some owners to buy. It includes employee benefits that could be advantageous in some devastating situations.

It also offers many benefits that extend beyond employee benefits and that could keep your business from having to pay money out-of-pocket if something bad happens.

Bundling Your Montana Food Truck Insurance

When shopping for insurance for your Montana food truck business, you could either bundle your coverage with one provider or buy it from multiple providers.

Bundling may qualify you for a discount through several providers, and it may help you to keep track of your finances more easily.

Nonetheless, the most affordable option is not always found by limiting your options, and you need to analyze multiple quotes to determine if bundling is the most affordable insurance option available.

Get multiple quotes at once by entering your zip code into our free rate comparison tool below.

Case Studies: Insurance Coverage for Food Trucks in Montana

Case Study 1: The Savory Grille Food Truck

The Savory Grille food truck in Montana recognized the importance of securing the right insurance coverage for their business. They understood that a business owner’s policy including general liability and property insurance was essential to protect their food truck and cover potential claims.

The Savory Grille food truck also complied with the state’s auto insurance requirements by obtaining commercial auto insurance. By comparing online quotes, they were able to find affordable coverage that met their needs and saved money on premiums.

Case Study 2: The Flavor Junction Food Truck

The Flavor Junction food truck in Montana took a proactive approach to insurance coverage. They understood the risks they faced as a food truck operator and recognized the importance of comprehensive insurance protection.

The Flavor Junction food truck obtained a business owner’s policy that included general liability and property insurance to address potential risks associated with their business operations. They also considered additional coverage options such as hired and non-owned auto insurance, collision coverage, and workers’ compensation to provide comprehensive protection for their business and employees.

Case Study 3: The Tasty Wheels Food Truck

The Tasty Wheels food truck in Montana prioritized cost-saving strategies while ensuring adequate insurance coverage. They understood the benefits of bundling their insurance policies and explored options to save money on premiums.

By combining their coverage with a single provider, The Tasty Wheels food truck took advantage of bundled policies discounts, ultimately reducing their insurance costs. They carefully assessed their insurance needs, including commercial auto insurance, general liability, property insurance, and workers’ compensation, to create a comprehensive and cost-effective insurance plan for their food truck business.