The advent of food trucks across the US has confounded insurers before, but as the market begins to mature, tailored insurance products are beginning to emerge. IBISWorld estimates that the mobile restaurant market earns $857 million yearly and will grow at a 9% average annual rate over the next 10 years.
Farmers Insurance announced that beginning July 1, food trucks can get policies that specifically suit their business requirements.
Whereas in the past food truck owners had to get a cornucopia of policies to secure adequate coverage, Farmers Head of Business for Auto Insurance Jake Rothfuss told reporters that the new products provide coverage for exposures that are unique to food trucks.
For example, he said, his company offers mobile business interruption coverage. This means that the policy would underwrite the cost of repairs for damage due to an accident, and help cover the loss of income while a truck is undergoing repairs.
Initially, Rothfuss said the new policy is expected to perform well in New Mexico and Utah where it will be offered first, but take-up is soon to spread across the US. Farmers chose to offer the new products in the two states first because the carrier already has a strong presence in the restaurant market there, he explained.
