What are the insurance requirements for Crave food trucks?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
written by a carrier or carriers, satisfactory to us.
You must obtain and provide us with evidence of insurance in at least the minimum amounts and with the coverages as follows:
- (a) "all risk" or "special" property insurance covering all real and personal property and equipment on a replacement costs basis, including business interruption and extra expense insurance on an actual loss sustained basis;
- (b) comprehensive general liability insurance, including products and completed operations in an amount no less than the following combined single limits: $2,000,000 per occurrence, $2,000,000 personal and advertising injury, $2,000,000 completed operations/products aggregate, and $2,000,000 aggregate per location;
- (c) employment practices liability coverage with a limit of $100,000 per occurrence and in the aggregate;
- (d) commercial automobile liability coverage, including coverage of owned, non-owned, rented or hired vehicles with coverage in amounts no less than $1,000,000 combined single limit;
- (e) workers' compensation insurance for statutory limits and employer's liability insurance in amounts no less than $1,000,000 per accident, $1,000,000 each employee per disease and $1,000,000 policy limit per disease;
- (f) liquor liability insurance with limits no less than $1,000,000 per occurrence; and
- (g) umbrella or excess liability insurance with limits of $2,000,000 per occurrence and $2,000,000 general aggregate.
We estimate that your purchases from us or approved suppliers, or that must conform to our specifications, will represent approximately 68% to 78% of your total purchases in establishing the Franchised Business, and approximately 50% of your total purchases i
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–30)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, franchisees operating food trucks must meet specific insurance coverage requirements. Before taking delivery of the food truck, franchisees must secure the required insurance policies from insurers licensed and permitted to write coverage in the state where the food truck will operate, maintaining a rating of "A-" or better with A.M. Best Company. These insurance policies must be maintained throughout the term of the Franchise Agreement.
The required insurance coverages include several types of policies with specific minimum amounts. Franchisees must obtain "all risk" or "special" property insurance, comprehensive general liability insurance ($2,000,000 per occurrence, $2,000,000 personal and advertising injury, $2,000,000 completed operations/products aggregate, and $2,000,000 aggregate per location), employment practices liability coverage ($100,000 per occurrence and in the aggregate), commercial automobile liability coverage ($1,000,000 combined single limit), workers' compensation insurance ($1,000,000 per accident, $1,000,000 each employee per disease and $1,000,000 policy limit per disease), liquor liability insurance ($1,000,000 per occurrence), and umbrella or excess liability insurance ($2,000,000 per occurrence and $2,000,000 general aggregate).
Crave franchisees must provide certificates of insurance to Crave at least ten days before taking delivery of the Food Truck, and then 30 days before the expiration of each policy. Crave retains the right to modify these insurance requirements during the term of the Franchise Agreement, with any changes communicated in the Manual or in writing. Additionally, Crave expects that all Food Trucks will be kept clean, in good working order and be properly insured according to their System requirements. Each person who will drive the Food Truck must comply with all laws, regulations and rules of the road and must use due care and caution in operating the Food Truck. Food Trucks must be professionally washed at least once each week.