by Ed S. Chicago ice cream truck insurance specialist

Ice Cream Truck Insurance

Many people think that insuring an ice cream van or ice cream truck is similar to insurance a personal auto insurance policy. While insuring an ice cream truck may be simple, the nature and amount of coverage are siginificantly different.

Ice cream truck insurance vs personal auto insurance

Because ice creams are used for commercial purposes they need commercial policy. Insuring your personal van or SUV truck needs personal coverage. While you may not get in trouble with the policy if you get pulled over carrying wrong type of insurance, your insurance company may not pay claims on a commercial vehicle such as an ice cream vending truck or food vending van if personal insurance was carried.

Limits of liability insurance ice cream trucks

Most municipalities and Counties in Illinois have started to regulate the amount of liability insurance that needs to be carried. Most ask between $500,000 to $1 million in auto liability. The City of Chicago along with few others do not have any special requirement, and in these cases, the minimum state limits of $20,000 bodily injury per person, $40,000 bodily injury per accident, and $15,000 property damage per accident remain sufficient till this date.

Rates for ice cream liability insurance

Rates for ice cream truck insurance is based on factors related to the insured's person garaging address, credit, age, driving records, and limits of insurance.

General liability for ice cream vending

This include payments for damages that the owner/ business providing the ice cream may cause to other in terms of bodily injury or property damage for incidents that are not related to operating the ice cream truck (for example, selling ice cream that causes harms to people). Many municipalities and counties are asking for this coverage in the amount of $1 million.  The price for general liability for ice cream vending truck ranges between $600 to $1,000 per year in the Chicago metro area.

Workers compensation for ice cream vending truck

Many municipalities are asking businesses and individuals selling ice cream in vending trucks to show proof of workers compensation. Many self employed individuals may be exempt from workers compensation insurance, but those who hire drivers and helpers may have to purchase it to protect themselves from work related injury lawsuits and to comply with the law. Rates for Illinois workers compensation insurance for vending ice cream trucks is based on annual payroll estimates.

Ice cream truck umbrella insurance

Some local governments (Counties and Park Authorities) ask for significantly higher liability limits, more that what auto insurance and general liability offer. For example, a $3 million umbrella policy may be required by some ice cream vending trucks by certain Counties and Park Authorities.
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