Food Truck Insurance Costs UK: What You Need to Budget

Insurance is a non-negotiable cost for food truck operators. Most councils require proof of public liability insurance before granting a street trading licence, and operating without it leaves you personally liable for any incident.

Here's what each type of insurance costs and which ones you actually need.

Insurance Types and Costs

Insurance Type	Required?	Typical Annual Cost	Minimum Cover
Public liability	Yes — most councils require it for street trading licences	£51–£150/yr (sole trader)	£5 million (many councils require £10 million)
Employer's liability	Yes — if you employ anyone	£30–£100/yr (added to PL policy)	£5 million (legal minimum)
Commercial vehicle	Yes — legally required to drive	£500–£2,000+/yr	Third party minimum; comprehensive recommended
Stock and equipment	Optional but recommended	£100–£300/yr	Value of equipment and stock
Business interruption	Optional	£50–£150/yr	Lost income during forced closure

Public Liability Insurance

This is the most important insurance for a food truck. It covers claims from customers or members of the public who are injured or whose property is damaged because of your business.

What it costs:

Specialist mobile catering insurers offer competitive rates. Based on quotes from specialist providers advertising to mobile caterers in early 2026:

• £5 million cover: From around £51–£65/year for a sole trader
• £10 million cover: From around £78–£100/year
• One-day policies: From around £31/day (£5 million cover)

Costs increase based on turnover, number of employees, and the type of food you serve. A high-turnover operation with deep fryers will pay more than a coffee van.

Why it matters beyond cost:

Most councils require a minimum of £5 million public liability cover as a condition of your street trading licence. Some — particularly London boroughs — require £10 million. Event organisers typically check your insurance certificate before allowing you on site.

Without valid PL insurance, most councils will not grant a street trading licence, most event organisers will not allow you on site, and any incident leaves you personally liable.

Employer's Liability Insurance

A legal requirement if you have employees — even part-time or casual staff. It covers compensation claims from employees who are injured or become ill because of their work.

What it costs: Typically £30–£100/year when added to a public liability policy.

Legal requirement: The Employers' Liability (Compulsory Insurance) Act 1969 requires at least £5 million cover. Most policies offer £10 million as standard.

Penalty for non-compliance: Fines of up to £2,500 per day for not having employer's liability insurance. You must also display the certificate (or make it electronically accessible to staff).

Commercial Vehicle Insurance

Standard car insurance does not cover a food truck used for business. You need a commercial vehicle policy that covers:

• The vehicle for business use (including driving between pitches and events)
• Third-party liability (legal minimum)
• The vehicle itself against damage, theft, and fire (comprehensive cover)
• Equipment fitted to the vehicle

What it costs: £500–£2,000+ per year, depending on the vehicle value, your driving history, where the vehicle is stored, and whether you choose third-party or comprehensive cover.

Tip: Some specialist insurers (like those listed through NCASS or CMTIA) offer combined policies that bundle vehicle insurance with public liability and stock cover, which can be cheaper than buying separately.

How to Reduce Your Premiums

• Compare specialist insurers — general business insurers charge more for mobile catering than specialists
• Bundle policies — combined vehicle + public liability + stock policies are often cheaper
• Increase your excess — a higher voluntary excess reduces your premium
• Secure storage — a locked compound or garage reduces vehicle theft risk
• Good claims history — no-claims bonuses apply to commercial policies too
• NCASS or CMTIA membership — trade body members often get access to discounted group insurance rates

Annual Insurance Budget

For a typical sole trader food truck operator:

Item	Annual Cost
Public liability (£5m)	£60–£100
Commercial vehicle (comprehensive)	£800–£1,500
Stock and equipment	£100–£200
Total	£960–£1,800

Add employer's liability (£30–£100) if you have staff.

This is a necessary business cost. Factor it into your pricing from day one — it's far cheaper than the alternative of being uninsured when something goes wrong.

For a complete picture of food truck startup costs, see our complete licensing guide. To check whether your insurance and other compliance items are up to date, try our free compliance checker.

Sources

• Employers' Liability (Compulsory Insurance) Act 1969
• GOV.UK — Employer's Liability Insurance