How To Recover From An Employee Injury or Key Person Death In a Food Truck Operation

http://mobilecuisine.wordpress.com/2010/11/23/new-jersey-food-truck-owner-killed/

This is tragic news for the food truck industry. Being in the insurance industry, we are more aware than most about food truck claims like this. This has prompted me to discuss the importance of Key Person Insurance and Workers' Compensation for the food truck business.

In this particular story, the wife will have a difficult time continuing the business by herself. Key Person Insurance would help sustain and continue operations despite the loss of her husband. Even with him gone, there will still be outstanding business liabilities. There are four categories of loss for which key person insurance can provide compensation (source -wikipedia):

1. Losses related to the extended period when a key person is unable to work, to provide temporary personnel and, if necessary to finance the recruitment and training of a replacement.
2. Insurance to protect profits. For example, offsetting lost income from lost sales, losses resulting from the delay or cancellation of any business project that the key person was involved in, loss of opportunity to expand, loss of specialized skills or knowledge.
3. Insurance to protect shareholders or partnership interests. Typically this is insurance to enable shareholdings or partnership interests to be purchased by existing shareholders or partners.
4. Insurance for anyone involved in guaranteeing business loans or banking facilities. The value of insurance coverage is arranged to equal the value of the guarantee.

Now just imagine if the person killed in this particular accident was an employee. Too often we hear about food truck operators ignoring the state requirement (see your particular state laws) of Workers' Compensation. A death or substantial injury to an employee could bring your food truck business to a screeching halt without Workers' Compensation. Your business is directly responsible for employees medical bills or other liabilities as a result of an accident. The business is also subject to state fines and penalties for not having the coverage in place. All those months invested into building the truck, perfecting the menu, creating a website and Twittering...all in order to create a line of eager patrons is now gone in an instant.


Some food truck operators think that this type of thing could never happen to them. Yes, Workers' Compensation or Key Person Insurance isn't cheap...but it is worth spending the money to protect your business, lifestyle and family. Please contact me if you would like to discuss options or catering truck insurance quotes.

Follow That Truck! Zagat Launches Food Truck Website

Looks like there is a new player in the food truck tracking or chasing website world. More evidence that some big players are getting into this mobile industry. Check out this article about Zagat's new website.

http://www.prnewswire.com/news-releases/follow-that-truck-zagat-launches-food-truck-website-106967463.html?cf_synd_id=zaaoCRT

CateringTruckInsurance.com Adds Eastcoast Representative

Due to the amount of interest we are receiving from Eastcoast trucks, we have added Gregg Knepper to the CateringTruckInsurance.com team. Gregg is based out of our New York office and will provide local representation for the expanding national food truck industry. Now we can provide you prompt customer service no matter where you operate. Please continue to sent quote applications to the contact info provided on the website. All applications from Eastcoast truck operations will be directed to Gregg after we receive it in California.

"How to Start a Food Truck" Article on Small Business AOL

Great article for those looking to start a food truck business... http://smallbusiness.aol.com/2010/10/27/how-to-start-a-food-truck/

Catering Truck Insurance - It's time to hire a driver...is there anything I should know before I do so?

Often a food truck operation starts with a owner or co-owner driving the catering truck. However, there may come a time when you need to hire a back-up driver or want that cook to get behind the wheel occasionally or perhaps you are adding a second truck. Regardless of the situation, ALWAYS ALWAYS ALWAYS check their motor vehicle report (MVR) prior to hiring them or allowing them to drive the truck! Require the potential employee to go to the DMV and get a copy of their MVR. The last thing you want to do is hire an employee with a poor driving record. You are putting the company at risk and incurring additional auto insurance premiums. Here are some good guidelines to use when hiring a driver...

Within the last 36 months, no driver can have more than:

• 1 violation and two accidents
• 2 moving violations and one accident.
• 3 moving violations and no accidents

No driver may have any serious violations (i.e. DUI, suspended, auto felony convictions, or other serious violations) these drivers will be excluded from most insurance companies policies.

Keep in mind that when your broker is obtaining Auto quotes, they are getting a list of drivers and running their MVR's. If you have an ineligible driver, then most of those competitive insurance companies will pull their quote because of a bad driver. Then you are stuck going with a insurance company that will charge an arm and a leg to provide Auto coverage for that poor driver.

Additional Insured Certificates...a topic and (hidden) cost that most new food trucks are unfamiliar with before purchasing an insurance policy.

I often get calls from new food trucks just weeks away from embarking on their new food truck operation and looking to secure insurance coverage. They know they need it, but often it is last on their very long to-do list. One topic they are usually unfamiliar with is the need for Additional Insured certificates...most venues/events that a truck attends will require a certificate.

An Additional Insured is a term for a person, firm or other entity afforded the same protection under the insurance policy as the insured (food truck). Essentially the venue/event is protecting themselves for Bodily Injury or Property Damage you may cause at the venue/event. So venues/events will want to be named as an Additional Insured on a certificate. Some carriers charge $25-$100 per Additional Insured certificate...this can add up to a significant cost after twelve months. Unfortunately, insurance brokers that are not familiar with food truck operations often fail to mention the cost or even realize a truck would need many certificates.

My hope is that either your potential broker A) places you with an admitted carrier that doesn't charge for certificates or B) they offer you a blanket (unlimited) Additional Insured option that will add about $500 in premium for the year. It is best to deal with an insurance broker that knows your business inside and out and can help guide you on insurance process for today's needs and your future needs. Please visit my website CateringTruckInsurance.com if you have any questions or need a quote. http://www.cateringtruckinsurance.com/