Workers' Compensation Insurance for Food Trucks Cost | 2025
Workers' compensation insurance cost for food trucks in 2025 is approximately $1.03 per $100 of payroll, translating to about $30 per month per employee. This policy provides financial support for employees who are injured on the job and safeguards the business from lawsuits.
What is Workers' Comp Premium for Food Truck Workers based on?
Industry Risk
The cost of workers' comp insurance varies widely between industries because some jobs are riskier than others. The National Council on Compensation Insurance (NCCI) assigns each job a four-digit class code, similar to a barcode, to use as a refence information on each job role. Each code also contains a risk rate on how likely it is for workers to get injured and the severity of those injuries, using industry-wide data.
Food truck workers face risks like burns, slips, and strains from working in small, high-pressure spaces. These factors place them in a moderate-risk category. For more details, check out our guide to Workers Comp Codes for Food Trucks.
Payroll
Higher payroll means higher premiums. A food truck with more employees will pay more in total workers' comp costs, although the per-employee rate stays consistent.
Claims History
Your claims history can significantly impact premiums. A clean safety record will help keep costs low, while frequent claims, like burns or slips, could increase rates.
How are Food Truck Workers' Comp Premiums calculated?
Here’s the formula to calculate your workers' comp premium:
Payroll divided by 100 x rate = Premium
Step 1: Calculate the Payroll
Add up the total annual payroll for all food truck employees.
If annual figures are unavailable, calculate each employee's hourly rate by multiplying it by weekly hours and then multiplying that by the number of weeks worked in a year.
Step 2: Find your Rate
Find the workers' comp rate for your industry and state:
- Use the national average rate for food trucks, which is $1.03 per $100 of payroll.
- Check your existing policy or ask your agent for your exact rate.
Let’s work through an example together
Let’s say you’re a food truck owner with 2 full-time employees. Your team needs to be covered by a food truck workers’ compensation insurance policy under Code 9083, which you, as the employer, pay for and provide. Let’s use the formula to figure out your annual premium.
Payroll divided by 100 x rate = Premium
Step 1: Calculate the Payroll
We need the annual payroll for each employee.
- The 2 full-time employees make $18/hour, multiplied by 40 hours and 52 weeks, for an annual payroll of $37,440 each.
Step 2: Determine your Rates
Now you have to figure out which class code applies to each employee and find the corresponding rate.
- The employees are classified as Code 9083 (Food Truck employees) with a rate of $1.04.
Step 3: Apply the Formula
You need to calculate the premium.
Class Code 9083 (Food Truck Employees):
- Total payroll: $37,440 x 2 = $74,880
- Apply the formula: $74,880 ÷ 100 x $1.04 = $779
Your monthly premium would be approximately $65.
How much is insurance for Food Trucks?
Here’s an estimate of what a full-time employee working in a food truck might cost for workers' comp coverage.
Disclaimer: All data has been derived by combining ZipRecruiter national payroll averages per industry with average rates of a national carrier partner. Figures are for illustrative purposes only and do not include taxes or additional fees.
Does it matter where I buy a Policy from?
It definitely does! A cheap policy isn’t worth much if it doesn’t offer the protection your mobile food business needs.
You want a company that understands the unique risks food truck owners face, from on-the-road hazards to kitchen injuries.
Consider these factors:
- Reputation: Choose an insurer known for managing claims quickly and fairly.
- Financial Stability: Pick a company with the resources to pay claims without delays.
- Customer Support: Responsive service is critical, especially when navigating claims.
- Industry Expertise: A provider familiar with food industry risks is your best bet.
What does Workers' Comp Insurance cover for Food Trucks?
A workers’ comp policy for food trucks covers:
- Medical Expenses: Covers treatment for illness or injury on the job
- Lost Wages: Compensates employees for lost income while recovering
- Death Benefits: Provides financial assistance to surviving family members if a fatal accident occurs
- Legal Protection: Protects your food truck business from potential lawsuits
How Can I make Workers' Comp cheaper?
Food trucks have higher injury and illness rates than the broader food service industry, according to the U.S. Bureau of Labor Statistics.
Here’s how food truck businesses can reduce risks and manage workers’ comp costs:
Create a Safety Program
- Focus on preventing common hazards like burns, cuts, slips, and back injuries.
- Establish protocols for handling hot surfaces, sharp tools, and cleaning up spills promptly.
- Train employees on safe practices, such as wearing non-flammable clothing, using proper lifting techniques, and keeping the work area organized.
- Avoid overcrowding cooking surfaces and turn pot handles inward to prevent burns.
- Store knives and sharp tools properly, and ensure they are well-maintained and sharp to reduce the risk of cuts.
- Use non-slip matting and keep walkways clear to prevent slips and falls in tight spaces.
Practice Safe Driving
- Install large back-up mirrors to reduce blind spots and prevent accidents.
- Ensure all passengers are seated and wear seat belts when the truck is in motion.
Ask About Discounts
- Some insurance companies offer lower premiums for businesses with robust safety programs and low claims history.
- Share your safety program and training initiatives with your insurance company to demonstrate your commitment to minimizing risks.
Get a customized estimate
Want a clear picture of what workers’ comp will cost for your food truck business? Try our online quoter for a personalized and accurate premium estimate.
Note: The information provided in this blog is intended for general informational purposes only and is not a substitute for professional legal or insurance advice. Laws and regulations regarding workers' compensation insurance are complex and vary by state and by specific circumstances. Therefore, readers are encouraged to consult with a qualified legal or insurance professional to obtain advice with respect to any particular issue or problem they might have.
Mordechai Kamenetsky, co-founder and lead agent of Kickstand, is recognized as an expert in workers' compensation. He is passionate about helping small businesses manage risks and lower their workers' comp costs. In his articles, he educates readers and clients on the intricacies of workers' comp insurance.
The question people ask us most often is, “Does my business need workers comp?” This often leads to the second-to-most frequently asked question: ”Do owners need workers comp?”
