Frequently Asked Questions About
Commercial General Liability Insurance
How much does small business insurance cost?
Costs can vary widely based on industry and are also determined by zip code and often payroll and/or gross sales. Request a free quote to get an exact number. (read more)
What kind of business insurance do I need?
Most business owners need General Liability Insurance at the very least. If you have any non-owner employees, you will need workers compensation insurance too.
What is a Certificate of Insurance?
A Certificate of Insurance is proof of coverage. It lists the type and amount of liability coverage you have and other policy information when a third party requests it. (read more)
Is business insurance tax deductible?
Yes. you can deduct the cost of commercial insurance premiums. The IRS considers insurance a cost of doing business as long it benefits the business & serves a business purpose.
New Jersey Food Truck Insurance
New Jersey Food Truck Insurance. Owning a food truck means maintaining an optimal level of business liability insurance in the coverage types that matter most for your specific business model. Sadly, a study in recent years found that up to 57 percent of litigation against businesses involved business with revenue of less than $1 million per year.
Food trucks are vehicles designed to sell quick snacks or meals to walk-up customers. Some sell only frozen or pre-packaged items, while others are equipped with ovens and deep-fat fryers to cook items such as french fries, pizza, sandwiches, or tacos. Some carry ethnic or gourmet cuisine, or specialize in a local delicacy. A food truck may be hired for special events such as fundraisers.
Food truck operators often make the mistake of thinking that their businesses are too small to get sued, but in fact, small businesses take the most heat from litigious clients. Protecting the investment you've made in your business requires a comprehensive New Jersey food truck insurance policy that protects you from perils.
New Jersey food truck insurance protects your business from lawsuits with rates as low as $27/mo. Get a fast quote and your certificate of insurance now.
New Jersey food truck insurance ensures that if your business is sued for some accident, food-borne illness, or injury, your business is protected.
There are roughly 38 million businesses operated out of people's homes across the United States. Every 12 seconds, a new business starts up, and around 7 out of 10 businesses based out of the home are operations three years down the road. There is more than $425 billion dollars in revenue generated by U.S. businesses each year. Around 2 out of 10 home businesses take in more than $100K per year.
Why Does Your Food Truck Business Need Business Insurance?
Business insurance for a food truck business ensures that if your business is sued for some accident, food-borne illness, or injury, your business is protected. Even if you are sued and come out the "winner," you're still responsible for paying your lawyer and other members of your defense team. New Jersey food truck insurance can provide a buffer of protection so that these costs do not come out of your pocket.
With out-of-pocket legal costs for small business exceeding tens of billions of dollars each year, now is the time to take a proactive stance to make sure your business doesn't become a statistic. Whether or not a litigious client wins a claim against a business, seven out of ten small business owners say that a lawsuit hurt their business' credit rating and reputation - two things that are difficult to repair.
Do You Need NJ Food Truck Insurance?
New Jersey food truck insurance is an essential business expense for all types of concession trailer businesses, including food trucks, hot dog carts, flea market vendors, swap meet vendors, and concession stand operators at county or state fairs. Retailers who operate from kiosks in malls, Christmas tree lots, and newsstands can also benefit from business insurance. New Jersey food truck insurance should cover your business in the various concession locations, including:
- Parking lots
- Shopping malls
- Business parks
- Bus terminals
- Train stations
- Office buildings
- Rest stops
- Indoor arenas
- Sports fields
- Sea ports
Essentially, any public or private area where your business sets up shop to sell its wares presents a potential for liability to your business. This is true whether your NJ business operates from a primary location or from several different places within the same city, or if it moves from business parks to fairgrounds and beaches. Concessionaire insurance is a necessary expense and it should reflect the risks that your business takes on during its operation, and regardless of what you're selling - whether it's foods, T-shirts and souvenirs, or other goods.
For NJ concession businesses that sell food or that cater to events and weddings, it's important to stay covered from potential liability at every event and location you work. In addition, local, state, or federal law may also require the purchase of such insurance. Either way, your business' success in the future depends on safeguarding it from peril now.
Risks Faced By Concession Businesses
Prepare your business for what may lie ahead with New Jersey food truck insurance or concession insurance. For example, if your business is an alcohol vendor, then you may be held liable if an inebriated person who became intoxicated by drinking drinks you served him injures another party. Some other potentials for liability include:
- Food poisoning due to serving contaminated food.
- Injury to a customer who buys a malfunctioning item.
- Injury to someone on the street who is struck by your truck or cart.
There are all sorts of scenarios where your business may find itself on the ugly side of a lawsuit. Protect it with New Jersey food cart insurance to make sure it doesn't cause you to lose your business or your own personal assets.
What Is Included in Food Truck Insurance?
The best type of NJ food truck insurance or concessionaire insurance provides coverage from many perils. It may include:
- General liability coverage that protects the business from damages and costs due to an irresponsible action on the part of your NJ business or its employees.
- Product liability insurance that covers damages arising from the serving or selling of products or food.
- Liquor liability insurance that protects your business from claims that occur when an illness or injury is linked back to your business serving alcohol to patrons.
- Business property insurance that covers your truck, trailer, cart and equipment.
- Commercial vehicle insurance that covers liability and damage caused by your business' vehicles.
- Inland marine insurance to protect your products and inventory as you move between NJ locations.
- Worker's compensation insurance to cover the costs of employees who are injured or become ill due to a work-related accident or peril in New Jersey.
You can tailor the New Jersey food truck coverage you purchase to suit your business' particular model. A business owner policy, also known as BOP, often provides the coverage that businesses need in one simple policy. You can work with an agent to find out if your business is protected fully by a BOP or if addendums and additional policies are required.
NJ Food Truck's Risks & Exposures
Property exposures include an office, food storage and preparation areas. Ignition sources include electrical wiring, heating, and air conditioning systems, cooking and refrigeration equipment. Wiring must be up to code, well maintained, and adequate to support the refrigeration units. There may be grills and deep fat fryers used to prepare food going onto the trucks. These must be protected by automatic fire extinguishing protection, hoods, and filters over all cooking surfaces.
The area must be kept clean and grease free to prevent fire spread. Spoilage exposure is high as a small fire or a power outage of even moderate duration can cause all stock to be condemned as unfit for consumption. If operations are seasonal, a loss at the beginning of the season could result in a total loss of income.
Equipment breakdown exposures are high as operations are dependent on the availability of cooking and refrigeration equipment.
Premises liability exposure is minimal as there is little or no public access to the company's base location. Off-premises exposures are at locations that may not be familiar to either customers or employees. Temperatures of hot beverages must be limited to reduce injuries due to scalding. All employees must be instructed in proper customer handling, including how to deal with disgruntled or overly enthusiastic customers. If the food truck operates regularly in a particular location, there should be a contract with the property owner spelling out responsibilities.
Products liability exposure is higher than in an on-site eating establishment because of the time delay between food preparation and serving. Maintaining proper temperatures during transport is vital. Injuries can result from food poisoning, contamination, and allergic reactions. Monitoring the quality of food received, posting of ingredients, and maintaining proper storage temperature can reduce this exposure. Quality control requires limits on the length of time food may stay in holding areas before being destroyed. The stock should be regularly rotated so older products are used first. Out of date stock must be removed on a regular basis and discarded.
Crime exposure is from employee dishonesty and theft of money and securities. The low cost of the items being served can result in a significant amount of cash accumulating. The money should be regularly removed from the cash drawer and moved away from the front of the food truck.
Closing time is the most vulnerable time for hold ups so security procedures should be in place. Some trucks refuse to accept cash as a way to control this exposure. Background checks should be conducted on all employees handling money. There must be a separation of duties between persons handling deposits and disbursements and handling bank reconciliations.
Inland marine exposures include computers, goods in transit (food), and valuable papers and records for suppliers' information. Goods in transit can be damaged by collision, fire, spoilage, and theft. Backup copies of all records, including computer records, should be made and stored off premises.
Automobile exposure is moderate due to the size of the vehicle and the need to maneuver that vehicle through congested urban areas. Trucks with cooking devices can catch on fire or explode. The trucks may operate in congested parking lots or in residential areas where children may be present. Video devices that reveal people behind the truck can be very helpful in preventing injuries.
If vehicles are provided to employees, there must be a written policy regarding personal and permissive use. All drivers must have an appropriate license and acceptable MVRs. Vehicles must be maintained, and records kept in a central location.
Workers compensation exposures come from slips, falls, cuts, puncture wounds, burns, back sprains, and hernias from lifting. The employees tend to be minimum wage and turnover may be high, particularly if the food truck operates on a seasonal basis. In any retail business, hold-ups are possible so employees should be trained to respond in a prescribed manner. Anhydrous ammonia refrigerants are poisonous when leaked into confined spaces like coolers. There should be adequate controls in place to maintain, check, and prevent such injury.
New Jersey Economic Data & Business Insurance Requirements
If you are considering opening a business in NJ, it is important to be aware of the economic status of that location. It is also important that you are aware of the regulations related to the commercial insurance that you are required to carry.
If you are thinking about starting a business in the State of New Jersey, keep on reading to find out some key information about the economic status of the state, as well as the rules for commercial insurance. With this information, you will be able to put your best foot forward so that you can make the best choices in the Garden State.
Economic Trends In New Jersey
Currently, New Jersey is ranked 46th in the country in terms of its economic position as compared to other state. While the economic growth may be slower in this state than in other locations, this is largely due to the high taxes. Nevertheless, there are still opportunities for entrepreneurs.
There are several industries that are expected to see growth in NJ in the 2019 calendar year. Some of these industries include:
- Information Technology
- Service Industries
New Jersey Commercial Insurance Requirements
The New Jersey Department of Banking and Insurance regulates the insurance industry In NJ. Just like most states in the country, New Jersey business owners are legally required to carry workers comp insurance. If you employ any type of staff, whether it's full-time or part-time, or hourly or salaries, you must carry this type of coverage. You must also provide your employees with disability coverage in the event that they are injured or become ill on the job. Additionally, New Jersey business owners are legally required to carry commercial auto insurance if they use a vehicle to conduct any type of business.
Commercial liability insurance and commercial property insurance are not required in this state; however, it is still a wise idea for business owners to invest in these types of policies. They can offset the costs that are associated with property loss or with any lawsuits that may arise as a result of doing business.
Additional Resources For Commercial Auto Insurance
Learn about small business commercial auto insurance which includes liability and physical damage protection for vehicles that are used for business purposes.
- Big Rig Truck
- Bobtail Non-Trucking Liability
- Commercial Auto
- Commercial Van
- Dump Truck
- Freight Forwarder
- Food Truck
- Non-Owned and Hired Auto Liability
- Owner Operator
- Pizza Delivery
- Tow Truck
The person injured in an vehicle accident may be a child, a wage earning single parent, a brain surgeon, or even a homeless person. The costs of the accident may be relatively small or run into the millions of dollars, depending on the victim and his or her injuries. Do you have the assets to handle such costs?
Trucking operations in this chapter are among the most heavily regulated in the country. All are subject to multiple types of regulation including municipal, state and federal. The regulations are necessary because potential for severe property damage and/or bodily injury is extremely high.
All carry cargo that if not handled appropriately could have serious consequences to the cargo owner and/or the public at large. Those that carry people must prove that they keep their equipment in good condition and that employees operate in a safe, sober manner.
The insurance company pays amounts an insured is legally obligated to pay as damages because of bodily injury or property damage and certain types of pollution events covered by this insurance caused by an accident and resulting from ownership, maintenance or use of covered vehicles.
The obligation to pay is triggered only by accidental occurrences involving vehicles covered under the Business Auto Coverage Form. An eligible pollution event is covered only if it is connected to a covered bodily injury or property damage loss.
It is important that you have the proper Limit of Insurance to protect your operations. This limit is the most the insurance company pays for the total of all damages, including any covered pollution cost or expense resulting from any one covered accident, is the Covered Auto liability limit of insurance on the declarations.
This limit applies regardless of the number of insureds, autos covered, vehicles involved in an accident, premium paid, or number of claims made.
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Quotes from leading small business insurance carriers including: ACE, AmTrust, Chubb, Cincinnati, CNA, Colony, Employers, Evanston, Fireman's, Foremost, Guard, Hanover, Hiscox, Liberty Mutual, LLoyd's of London, Markel, MSA, Nationwide, Penn America, Philadelphia, Prime, Progressive, Scottsdale, The Hartford, Travelers, USLI, Utica First, Western World, Zurich & others.