Last Updated: February 22, 2024, 8:59 am by TRUiC Team

Ice Cream Truck Business Insurance

Getting insurance for your ice cream truck is essential.

Ice cream trucks need to be protected against personal injury lawsuits, breach of contract, claims, and property damage.

For example, you could hit someone with your truck and cause an injury, or your truck or freezers could break down and need to be repaired.

We’ll help you find the most personalized and affordable coverage for your unique business.

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Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.

Best Insurance for an Ice Cream Truck Business

General liability insurance is — generally speaking — one of the most important insurance policies for ice cream trucks. 

Some of the risks general liability insurance covers are:

  • Bodily injury
  • Property damage
  • Medical payments
  • Legal defense and judgment
  • Personal and advertising injury

Although general liability insurance provides great overall coverage, there are certain risks that your business may encounter that are not included in this type of insurance. To manage and reduce these risks, it might be a good idea to explore the option of obtaining additional policies.

  • Workers' compensation insurance: This insurance covers medical expenses and related costs if an employee is injured or becomes ill due to work-related activities.
  • Commercial property insurance: This type of policy protects all the equipment and assets used by a business, such as computers and printers.
  • Business income coverage: This type of insurance provides financial protection in case of a significant business interruption, such as a natural disaster or a major power outage. It covers expenses such as lost income, relocation costs, and extra expenses incurred during the recovery period.

When searching for insurance, it's important to keep in mind that there are two main types of providers with their own pros and cons depending on your individual circumstances: traditional brick-and-mortar insurers such as Nationwide or Allstate, and online insurers like Next or Tivly. 

Typically, for small businesses, it's advisable to opt for online-based insurers as they offer the best chance to obtain high-quality insurance at an affordable price.

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Cost of General Liability Insurance

The average ice cream truck in America spends between $450 - $1,000 per year for $1 million in general liability coverage.

Compare the average cost of general liability insurance for an ice cream truck business to other professional industries using the graph below.

Several factors will determine the price of your policy. These include your:

  • Location
  • Deductible
  • Number of employees
  • Per-occurrence limit
  • General aggregate limit

You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.

A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.

Graph showing average price of general liability insurance prices per industry

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Find the Best Rate

Discover the best coverage at the lowest rate in our affordable business insurance review.

Common Situations That General Liability Insurance May Cover for an Ice Cream Truck Business

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Example 1: As a supplier helps load products into your truck, they slip on the steps and sustain a concussion. General liability insurance would cover the supplier’s medical bills.

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Example 2: A child climbs onto to your parked truck at night, jumps off, and breaks an arm. General liability insurance typically covers such “common nuisance” situations and would pay for the child’s medical bills.

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Example 3: A competitor believes one of your social media posts contains defamatory statements about their business and sues. General liability insurance would cover your legal fees and any damages awarded in a settlement.

Other Types of Coverage Ice Cream Truck Businesses Need

While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:

Commercial Auto Insurance

Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured but also freezer breakdowns and cargo spoilage.

Product Liability Insurance

When you sell products to the public, there’s always a chance a customer may file a lawsuit if they believe one of your products caused harm—such as a child choking on an ice cream treat. Product liability insurance would protect your business by covering your legal fees and any damages awarded in a settlement.

Workers’ Compensation Insurance

Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover but also any disability benefits stemming from a work-related accident.

Commercial Umbrella Insurance

Accidentally hitting a child while driving your truck could lead to a very expensive lawsuit, so you may want to purchase additional liability coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed the limits of your general liability insurance policy.

Additional Steps To Protect Your Business

Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.

Here are several things you can do to better protect your ice cream truck business:

  • Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
  • Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
  • Stay up to date with business licensing.
  • Maintain your corporate veil.

Ice Cream Truck Business Insurance FAQ

Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.

A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.

"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.

It is crucial for an ice cream truck to obtain business insurance before starting operations due to the specific risks that come with the business. Failing to secure adequate insurance coverage can lead to significant liability and financial risks. 

Additionally, in cases where certain types of insurance, such as workers' compensation insurance, are mandatory, operating without insurance can lead to legal issues. Therefore, obtaining appropriate insurance coverage is a prerequisite for opening an ice cream truck.

Not necessarily. Certain exceptions may be written directly into your ice cream truck business insurance policy, and some perils may be entirely uninsurable.

Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.

An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.