What Types of Insurance Coverage for the Ice Cream Truck Business?

What Types of Insurance Coverage for the Ice Cream Truck Business?

Ah, the wonderful sounds of summer: the joyful chirping of birds, the slap of the seashore, the laughter of children frolicking outdoors – and the chiming tunes notifying neighborhood kids of all ages that the ice cream truck has arrived.

Ironically, that happy sound of music announcing the ice cream truck brings untold sadness to some. For the mothers, fathers and siblings of those kids killed in a related accident, the sound will never be reconciled with.

Although accidents can occur and associated insurance coverage can come with financial shielding, the dangers associated with this type of mobile frozen confection store and excited children looking forward to a favorite treat need careful consideration. There are things that parents, caregivers and ice cream truck operators can do to mitigate the risks of fatalities and serious injury. These include installing more mirrors on the vehicle and a safety bar to block children from getting in the blind spot’s way, as well as other safety mechanisms.

As far as the insurance companies are concerned, any equipment installed to prevent accidents may result in some form of discount on a commercial auto premium. It can also make rates lower on an already-discounted insurance package that combines commercial auto insurance with a business owners policy.

For reading convenience, we’ve listed the various forms of coverage related to this business below.


Types of Insurance Coverage for the Ice Cream Truck Business

Special Commercial Auto Insurance for the Ice Cream Truck Business

• Commercial Auto Liability Coverage

Every US state requires commercial auto liability coverage to protect businesses from bodily injury liability when an accident occurs. This coverage also protects from property damage liability when the other car is damaged or when buildings or other property is damaged.

• Collision Coverage

If the driver of an ice cream truck caused an accident resulting in damage to his or her own truck, this insurance will help with the costs of repair or the costs to replace the truck if repair work is not an option.

• Medical Payments Coverage

This insurance will help pay for medical costs if the truck driver or passenger is hurt in accident.

• Uninsured/Underinsured Motorist Coverage

Uninsured or Underinsured Motorist coverage can help pay for damages incurred to the truck by another driver if he or she is either uninsured or underinsured and cannot fit the repair or replacement bill entirely.

For further information on insurance – commercial auto or business – speak to a professional independent agency that has its customers’ interests at the forefront.




Ice Cream Trucks, like all businesses, have important Insurance needs that need to be addressed with the right Insurance coverages. There are several important coverages that should be considered, regardless of your operations.



First and foremost, you should carry a Commercial Auto policy for your Ice Cream Truck. Commercial Auto Insurance is not much more expensive than personal lines Insurance and you can often obtain several additional important coverages. For example, with the majority of Commercial Auto Insurance Policies, you can add your permanently attached equipment to the property coverage.

When purchasing Commercial Auto Insurance, we typically recommend going with limits of $1,000,000 Combined Single Limit. In addition to providing enough coverage, obtaining these limits may also help you get jobs, as many companies that hire Ice Cream, Catering or Food Trucks to carry the $1,000,000 Combined Single Limit coverage amount.



General Liability Insurance is another important coverage and is quite affordable. General Liability can provide coverage for bodily injury or property damage incurred to third parties that arise due to your operations. There are several General Liability programs available, and you can often obtain discounts on your Commercial Auto by carrying a General Liability policy. In some cases, you can obtain a Business Owners Policy, which will bundle your General Liability and your Business Personal Property into a single, affordable policy.



The requirements for Workers Comp differ from state to state. Regardless of state requirements, it is generally a good idea to purchase Workers Comp if you have any employees. This is because regardless of requirements, employers are often held liable for their employees, should they incur any injuries or illnesses. While Workers Comp can be expensive, there are ways to reduce the cost of this coverage.

Maintaining continuous coverage can go a long way in reducing your premium. In addition, you may be able to obtain Workers Comp with the same carrier as your General liability, which may give you a discount on one or both policies.


Commercial Auto Liability Coverage

Commercial auto liability coverage is an insurance policy designed to protect businesses against financial loss resulting from liability claims arising from the use of vehicles for business purposes. It provides coverage for bodily injury and property damage caused by the insured’s vehicles or drivers while conducting business-related activities.

Here are some key points to understand about commercial auto liability coverage:

  1. Liability Protection: Commercial auto liability coverage primarily focuses on protecting businesses from legal and financial responsibilities if their vehicles or drivers cause harm to others. It covers the costs associated with bodily injury and property damage claims, including medical expenses, property repairs, and legal fees.
  2. Required Coverage: In many jurisdictions, commercial auto liability insurance is mandatory for businesses that use vehicles for commercial purposes. The specific requirements for coverage may vary depending on the location and the nature of the business.
  3. Coverage Limits: Commercial auto liability policies have coverage limits, which define the maximum amount the insurance company will pay for a claim. The limits can be per occurrence (the maximum amount payable for each accident) and aggregate (the maximum amount payable for all claims during a policy period).
  4. Policy Components: A commercial auto liability policy typically includes several components, such as bodily injury liability coverage (for injuries to others), property damage liability coverage (for damage to others’ property), and sometimes personal injury protection or medical payment coverage (for medical expenses of the insured party and their passengers).
  5. Exclusions: Commercial auto liability coverage may have certain exclusions or limitations. For example, intentional acts, criminal activities, or driving under the influence of drugs or alcohol are typically not covered. It’s important to review the policy to understand the specific exclusions and limitations.
  6. Additional Coverage: Businesses can often enhance their commercial auto liability coverage by adding endorsements or purchasing additional policies. Examples include uninsured/underinsured motorist coverage, comprehensive coverage (for damage to the insured vehicle), or collision coverage (for collision-related damages).
  7. Premiums: The cost of commercial auto liability coverage depends on various factors, including the number of vehicles insured, the type of vehicles, the business’s location, the driving records of the drivers, and the coverage limits selected. Safer driving records and implementation of risk management practices can help reduce premiums.

As commercial auto liability coverage requirements and policy specifics can vary, it’s advisable for businesses to consult with insurance professionals or brokers who can provide guidance tailored to their specific needs.


Collision Coverage

Collision coverage is a type of auto insurance coverage that helps pay for the cost of repairing or replacing your vehicle if it is damaged in a collision, regardless of who is at fault. It is an optional coverage that you can add to your auto insurance policy.

When you have collision coverage, your insurance company will reimburse you for the expenses incurred in repairing your vehicle, up to the actual cash value of the vehicle or the cost of replacing it if it is deemed a total loss. This coverage applies not only to collisions with other vehicles but also to accidents involving objects such as trees, poles, or guardrails.

It’s important to note that collision coverage only applies to the damage to your vehicle and does not cover any injuries or damage to other people or property involved in the accident. For that, you would typically need liability coverage.

When you purchase collision coverage, you will typically choose a deductible, which is the amount you will pay out of pocket before your insurance coverage kicks in. The higher the deductible you choose, the lower your insurance premium will be, but you will have to pay more upfront in the event of a collision.

Collision coverage is especially beneficial for newer or more expensive vehicles, as the cost of repairs or replacement can be significant. However, for older or less valuable vehicles, the cost of collision coverage may outweigh the potential benefit.

It’s important to review your insurance policy and consult with your insurance provider to understand the specific terms, coverage limits, and exclusions associated with collision coverage, as these can vary depending on the insurance company and policy.


Medical Payments Coverage

Medical Payments Coverage, also known as MedPay, is an optional coverage type offered by auto insurance companies. It is designed to provide coverage for medical expenses resulting from an automobile accident, regardless of who was at fault. Here are some key points about Medical Payments Coverage:

  1. Coverage: MedPay typically covers reasonable and necessary medical expenses resulting from injuries sustained in a car accident. This may include hospital bills, doctor visits, surgery, X-rays, ambulance fees, and other medical-related costs. It may also cover funeral expenses in the event of a fatal accident.
  2. Scope: Medical Payments Coverage applies to the policyholder and their passengers, as well as pedestrians or bicyclists injured in an accident involving the insured vehicle. It may also extend to injuries sustained by the policyholder or their family members while riding in another person’s vehicle or as pedestrians.
  3. No-Fault Coverage: MedPay is considered a no-fault coverage, meaning it pays out regardless of who caused the accident. This is different from liability coverage, which covers damages to other parties when the policyholder is at fault.
  4. Limits and Deductibles: Like other types of insurance, Medical Payments Coverage has limits and deductibles. The limits determine the maximum amount the policy will pay for medical expenses per person or per accident. Deductibles are the amount the policyholder is responsible for paying out-of-pocket before MedPay coverage kicks in.
  5. Coordination with Health Insurance: If you have health insurance, your medical expenses from an auto accident may also be covered under your health insurance policy. In such cases, MedPay can act as secondary coverage and cover expenses not covered by your health insurance, such as deductibles or co-pays.
  6. State Requirements: Medical Payments Coverage is not mandatory in all states. However, some states may require auto insurance companies to offer it as part of their policy packages, and policyholders may need to actively decline the coverage if they do not wish to have it.

It’s important to note that the specifics of MedPay coverage can vary between insurance companies and states. If you are interested in obtaining Medical Payments Coverage or learning more about it, it’s best to consult with your insurance provider or agent to understand the details, costs, and limitations of the coverage.


Uninsured/Underinsured Motorist Coverage

Uninsured/underinsured motorist (UM/UIM) coverage is a type of auto insurance that protects you if you’re involved in an accident with a driver who either has no insurance or doesn’t have enough insurance to cover the damages. UM/UIM coverage is designed to provide financial protection and cover medical expenses, lost wages, and property damage resulting from an accident caused by an uninsured or underinsured driver.

Here are a few key points to understand about UM/UIM coverage:

  1. Uninsured Motorist Coverage: This aspect of the coverage applies when you’re involved in an accident with a driver who doesn’t have insurance at all. In such cases, your UM coverage can help compensate for your injuries and damages.
  2. Underinsured Motorist Coverage: Underinsured motorist coverage comes into play when you’re in an accident with a driver whose insurance policy limits are not sufficient to cover the full extent of your damages. In this situation, your UIM coverage can help bridge the gap between the other driver’s insurance coverage and your actual costs.
  3. Coverage Limits: UM/UIM coverage typically has coverage limits, which is the maximum amount your insurance company will pay for a covered claim. It’s important to review and understand your policy’s limits to ensure you have adequate protection. You may be able to select different coverage limits when purchasing your policy.
  4. Hit-and-Run Accidents: UM/UIM coverage can also provide protection in hit-and-run accidents where the at-fault driver cannot be identified or located. If you’re the victim of a hit-and-run incident, your UM coverage can help cover your damages.
  5. State Requirements: Some states mandate UM/UIM coverage, while others do not. In states where it is required, insurance companies are generally required to offer UM/UIM coverage as part of their auto insurance policies. However, the policyholder can choose to reject or select lower limits, usually in writing.
  6. Stacking: In certain cases, policyholders may be able to “stack” their UM/UIM coverage. Stacking allows you to combine the limits of multiple insurance policies or vehicles to increase the total amount of coverage available to you.

It’s essential to review your auto insurance policy carefully and consult with your insurance provider to understand the specific terms, conditions, and coverage limits of your UM/UIM policy. Having adequate UM/UIM coverage can provide valuable financial protection in the event of an accident with an uninsured or underinsured driver.



Insurance is a way to protect against financial loss. It involves paying a premium to an insurance company in exchange for the promise of payment or reimbursement for certain losses or damages. Insurance can help individuals, businesses, and organizations manage risks and protect against unexpected events.

There are many different types of insurance available, including:

  1. Health Insurance: This type of insurance helps cover the cost of medical expenses, such as doctor visits, hospital stays, and prescription drugs.
  2. Life Insurance: Life insurance provides a lump-sum payment to the insured’s beneficiaries in the event of their death. It can help provide financial security for loved ones and cover expenses such as funeral costs and outstanding debts.
  3. Auto Insurance: Auto insurance provides coverage for damage or injury caused by a car accident. It can also provide coverage for theft, vandalism, and other incidents.
  4. Homeowners Insurance: This type of insurance helps protect homeowners against damage or loss to their property, as well as liability for injuries or damage caused to others on their property.
  5. Renters Insurance: Renters insurance provides coverage for personal property and liability for renters.
  6. Business Insurance: Business insurance provides coverage for various types of risks that businesses may face, such as liability, property damage, and employee injuries.

Insurance policies can vary widely in terms of coverage, exclusions, and premiums. It’s important to carefully review any insurance policy before purchasing it and to understand what is covered and what is not.

Insurance companies use various methods to assess risk and determine premiums, including actuarial science, statistical analysis, and underwriting. Factors such as age, health status, driving history, and location can all impact insurance premiums.

In conclusion, insurance is a way to protect against financial loss and manage risks. There are many different types of insurance available, including health insurance, life insurance, auto insurance, homeowners insurance, renters insurance, and business insurance.

It’s important to carefully review any insurance policy before purchasing it and to understand what is covered and what is not. Insurance companies use various methods to assess risk and determine premiums, and factors such as age, health status, driving history, and location can all impact insurance premiums.

Prepare and write by:

Author: Mohammed A Bazzoun

If you have any more specific questions, feel free to ask in comments.


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