Thanks, that makes sense. I think I’m on the right track now.
Are you insuring the cart itself or are you insuring the business? Tow totally different things. Insuring the business will insure the cart itself. Insuring the cart itself (like a trailer) means that if someone sues you because they got sick or split something hot on themselves from your serving them food or trips over your cart and hurts themselves, you’re screwed. Because you do not have Business Liability insurance. At least that is how our insurance worked. We had a policy specifically for food vendors. It covered our cart and and problems that would arise from the operation of our food business.
Thanks to you both – very helpful…I was worried I would miss a piece and might end up talking to an agent not really familiar in that area of insurance either, so this is helpful for the conversation.
Another question: how do I know if I’m talking to an agent or a broker? I just googled the difference between the 2 and it looks like an agent works specifically for a specific insurance company while a broker looks around for the best price for you and isn’t really hired by any insurance company…I can’t think of any reason anyone would ever use an agent..I think my person must be an agent though because correspondence from them is there name along with the insurance companies name, Farmers Union. How can I find a broker? Sorry if these are goofy questions – you can tell me to go google.
You will need commercial auto, 1m liability on the business. That will also cover the needs of most venues if you plan on that route.
If your agent is not a broker, you will most likley not get the best prices. Some agents will not have any clue when it comes to business insurance.
You’ll need insurance to cover damages to the cart and liability in case you hurt anyone with the cart or your product. I have $1 million with a $3 million umbrella and it costs me $505 annually,
You MUST tell your insurance person who covers your auto once you are using the car for a business and not just personal use. There is different coverage for that. Especially since you are towing a cart (your business) with your car.
I am planning to call my insurance company that my car right now is insured under to see if they can also insure my hot dog cart business. I just got my LLC set up. Before I talk to him, I just wanted to make sure I know what I need to cover. I think the following are what I need:
1) Insurance for any damage that might happen to my cart
2) Insurance for any customers customers getting sick and suing me
3) I have a hitch on my car and am hoping to pull my cart just with my regular car right now….didn’t think I would need extra for that, but figured I would ask the insurance agent if I need extra insurance on my car since I’m going to be using it in my business now and not just for personal.
4) Anything else that anyone thinks I should ask about?
5) Also, what is an appropriate level of coverage? $2M? This one I really have no idea on and don’t want my agent to take me for a ride with way more than I need. From reading on here it seems like other carts are paying between 600-1000 / year for all insurance….if I’m looking right, so that is kind of my expectation when I call my agent.
Any advice anyone can give is appreciated! Happy Sunday…we got a bunch of snow yesterday so I guess that winter is here and I’m officially starting my “hot dog cart” run in good old winter.
Call around, places I contacted months ago that told me to go pack sand are now calling wanting to insure my uninsurable cart. I guess they are now feeling the heat of our “new” economy. Just make sure that you are covered on your tow vehicle, because if you are towing a commercial cart, your auto insurance company may just deny any claims if you wreck towing your cart. The blood is in the water, don’t be a victim.
We have our policy with State Farm. $1 M coverage. It’s a business policy. Cost is $300/yr. The policy covers the cart as well.
Good luck with your cart. My hubby and I are still new to it (only been in it since September, 2010). I’ve learned lots of stuff in this forum. Everyone is super helpful!
Looking to talk to my car insurance agent about insuring my cart – what to insure?
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