Company insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for an ice cream truck.
This article will discuss the primary insurance coverage for ice cream trucks, general liability insurance, as well as additional policies that are appropriate for this industry.
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
Example 1: While assisting in the loading of merchandise onto your truck, a supplier slips on the stairs and suffers a concussion. The supplier’s medical expenditures would be covered by general liability insurance.
Example 2: At night, a youngster climbs atop your parked vehicle, leaps off, and breaks an arm. Such “common nuisance” circumstances are often covered by general liability insurance, which would pay for the child’s medical expenditures.
Example 3: A rival feels one of your social media postings is derogatory to their company and sues. General liability insurance would cover your legal bills as well as any settlement amounts.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
The typical American ice cream truck pays between $450 and $1,000 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all ice cream trucks should have are as follows:
In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. Choose a coverage that covers not just vehicle repair expenses and medical care for anybody wounded in a collision, but also freezer malfunctions and cargo spoilage.
When you offer things to the general public, there’s always the possibility that a consumer would sue if they feel one of your products caused them injury, such as a toddler choking on an ice cream treat. Product liability insurance will safeguard your company by paying legal expenses and any settlement amounts.
In addition to the insurance listed above, your ice cream truck may need other forms of coverage based on particular features of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they require time to recuperate, but also any disability benefits resulting from a workplace injury.
Accidentally striking a kid while driving your vehicle might result in a costly lawsuit, so you should consider purchasing supplementary liability coverage. Commercial umbrella insurance prevents you from having to pay legal expenses and awarded damages out of pocket if they exceed the limits of your general liability insurance policy.
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.