While running a hot dog street vending cart business or any business for that matter anything can happen when you least expect it.
For instance, there’s a chance even if it’s an extremely slim one that one of your customers could get sick from eating one of your hot dogs. Or a minor accident may happen at your food cart that injures one of your patrons.
It is these unforeseen situations where a business owner like you will need insurance to pay for the costs arising from any property damage or injuries that may happen in the course of running your business. This kind of insurance coverage will also help in protecting your personal finances in case your customer decides to sue you in court.
The kind of coverage is known as “commercial general liability insurance”. In some cities and states like Sacramento CA, you’ll be required to get general liability coverage before you’ll be even given a license or permit to operate your food cart.
You can start by contacting your insurance agent or broker and ask him if his company can provide liability insurance for your cart business. But bear in mind that not all insurance companies are able to provide general liability insurance in all 50 states.
In fact, an insurance company may be limited in providing general liability coverage only in a particular state. So you’ll have to confirm with your agent if his company is licensed to provide such service in your area.
For small businesses, some insurance companies could place your hot dog cart business on “umbrella coverage”. Although this could cover any problems with your food cart and equipment, this kind of protection has limited liability coverage. If you already have business insurance coverage, you’d be better off asking your agent to add your general liability insurance to it.
If the hot dog cart is a trailer-drawn unit, you’ll also need to get trailer insurance coverage, just as you would with a travel trailer as it will be on the road most of the time. This is in addition to your liability insurance coverage for your hot dog cart business.
The premium for a liability insurance is estimated to be from $300 – $500 a year depending on where you plan to operate your food cart business. So where can you find an insurance company that will provide you with general liability insurance?
1. As mentioned earlier, you can ask your insurance agent or broker. You can save more if you already have an existing business insurance policy. But it also pays to shop around so that you can get the best deal for your hard earned money.
2. Most hot dog cart manufacturers devote some space on their sites for insurance companies to promote their services online.
3. You can ask a hot dog cart owner in your area who his liability insurance provider is. This will also be the perfect opportunity for you to get some feedback first hand.
4. You can join a forum site for hot dog owners and ask for some recommendations.
So be prepared for the unexpected. It pays to protect yourself and your business if things get out of hand. It’s better to be safe than sorry.
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