Operating a food truck in Colorado requires various types of business insurance to protect both the owner and the business from potential liabilities. While insurance requirements might vary based on your specific situation and the municipality you operate in, the following are generally recommended or required types of insurance for food truck businesses in Colorado:
Auto Liability Insurance: Since your business is mobile, you’ll need commercial auto insurance to cover any potential damages or injuries caused by the truck while it’s on the road.
General Liability Insurance: This insurance will cover you if someone claims that your business caused them bodily injury or damaged their property. For food trucks, it can also help if someone becomes sick from the food you serve or if they get injured while ordering food from your truck.
Workers’ Compensation: If you employ any staff, Colorado law generally requires you to have workers’ compensation insurance. This will cover medical expenses and a portion of lost wages if an employee gets injured or becomes ill because of their job.
Property Insurance: This insurance covers damages to your truck and equipment due to events like fires, theft, or certain natural disasters.
Business Interruption Insurance: If something happens that prevents you from running your food truck business, like a major equipment breakdown or a natural disaster, this insurance can help cover the loss of income.
Umbrella Policy: This provides additional liability coverage beyond the limits of your other policies. If a claim exceeds the limits of, for example, your auto or general liability policy, the umbrella policy would help cover the excess.
Lastly, always work with a licensed insurance agent or broker like Rocky Mountain Insurance Advisors. We are familiar with the commercial insurance regulations in Colorado and are here to provide guidance on appropriate coverage levels.