Food Van Insurance: What You Need To Know

Insurance Blog

The food van industry is increasingly buoyant across Australia, but there are various steps you need to take before you can trade in this way. An appropriate food business licence is vital if you want to stay on the right side of the law, but you'll also need food van insurance to protect you against the various risks your new business faces. Make sure you get the right insurance for your mobile food business, and carefully consider the following facts.

The cost of insurance can vary considerably

Like any other type of insurance, the cost of a food van policy will vary according to various factors. Information an insurer will want to consider include:

• The cost of the vehicle and its fit out. Specialist and expensive equipment like pizza ovens or premium coffee machines are more expensive to replace and will affect your premium.
• Your annual turnover. Busier businesses serving more customers present a higher risk.
• Your personal and business history. Previous insurance claims, bankruptcy proceedings and criminal convictions can all affect your insurance premium.

Some insurers may decline people who don't meet certain criteria. It's often better to talk to a specialist insurer to get the most economical deal.

Your insurance must comply with state laws

State laws for mobile food businesses often dictate that business owners must have public indemnity insurance. This type of policy protects you against claims from members of the public who suffer injuries or losses as a result of your business activities. Without this insurance, your business could become wholly liable for these damages, and the authorities recognise that many food businesses couldn't afford these costs. As such, most states insist that you have insurance to protect your customers.

You should tailor the cover to your needs

Mobile food vans can operate in different ways. Some of these vehicles may travel long distances, while some may work from a semi-permanent pitch. Some mobile businesses may sell relatively low-risk foods and drinks like sweets and soft drinks, while others may use high-risk food preparation methods like deep fat frying. As such, you must tailor the coverage to your needs.

Coverage for a vehicle may not automatically apply when the van is moving. Similarly, some policies may not cover damages and losses when you're not serving customers. You should also check if your policy includes coverage for theft or damage to items on the van.

Few food van policies will cover the value of stock and contents. In fact, you'll normally need to buy separate coverage for your stock. In any case, it's always vital that you check the small print on your policy.

Insurance is an important way to protect your food van business. Talk to a specialist insurer for more information or advice.

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31 May 2016