When the gourmet food truck boom started spreading through the Bay Area, independent agent Danny Christner realized how difficult it was for these unique clients to find good coverage—and seized the opportunity for market specialization.
How did you get started in your agency?
I was an Allstate agent at 21 years old. After a couple of challenging years with Allstate, I was referred to BayRisk Insurance Brokers by my step-dad who was a business client of theirs. Making the transition from a personal lines exclusive agent to an independent commercial lines broker was very challenging, especially since it was right in the middle of a hard market. However, it was the best move I ever made and one I can fondly look back on now.
Food truck experience?
I’ve always focused on restaurants and food-related accounts. When the gourmet food truck boom started spreading in the Bay Area, I wrote a couple accounts through referrals. After realizing how difficult it was to find coverage—and good coverage—I knew there was potential for market specialization. I branded Insure My Food Truck and created the website insuremyfoodtruck.com before I even had a book.
I dug really deep into the industry and starting blogging and networking non-stop. I had to place business though an MGA with a program until I was able to build a book of business and brand with enough momentum to gain direct access to an amazing, nearly exclusive program. We went from a handful of local gourmet food trucks to now approximately 700 gourmet food trucks and trailers across the country in three years.
Niche market passion?
I love working with the food truck people and community. This is an exciting and fun industry. Nothing beats going to food truck events, seeing my clients with long lines and personally experiencing their food. The food trucks are very passionate about their food and it’s contagious. To be able to provide them with what we feel is the best coverage available is truly rewarding, especially when they have a claim and we help them stay in business.
Biggest changes in recent years?
We’re seeing cities openly welcome food trucks now more than ever. Just a couple years ago, many cities would not allow food trucks to operate or made it very difficult. This was mostly because they did not understand the industry. Most businesses, including restaurants, flourish by the foot traffic food trucks generate. This adds revenue to local business and tax revenue to the cities. We are also seeing more collaboration with trucks forming their own associations and event organizing. They understand the power of numbers and the synergy that a group of trucks will bring vs. randomly parking and hoping for customers.
What do you say to a first-time client looking at food truck coverage?
Look beyond price. This is easier said than done for a business model that has razor-thin margins, but we have been very successful because we educate our clients and prospects on the coverage differences between our program and our competition. Most clients have no problem spending a bit more for far superior coverage, and sometimes we are still less expensive.
Advice for fellow agents interested in the market?
Be careful. There are carriers trying to break into the market but not offering quality coverage. You may be doing a disservice to your clients and putting your agency at risk by just trying to write the business. Be accessible because this industry is fast-paced. It is not uncommon that I get phone calls at night and on weekends. We get urgent certificate requests and claim calls at any moment. We have been successful because we are accessible. My cell number is on my business card, emails and website. If you’re not prepared for doing business at all times, this niche probably isn’t for you.
Favorite food truck success story?
I love to see our trucks convert to restaurants or add a restaurant. Now, it’s happening about once a week. We are able to guide them from their food truck insurance needs to their restaurant insurance needs since we focus on both. Business income is the biggest gap in coverage most food truck owners face. They don’t think about the exposure until we ask, “What would happen if you couldn’t operate for a month or more? Would you be able to keep staff, pay your bills, pay yourself, your rent?” There are other unique highlights of our program, but business income seems to hit hardest.
What do you hope to see in the future for food truck coverage?
Workers’ compensation has been extremely difficult to place. I’m hoping carriers get easier to work with on this line. Insurance carriers still have not totally come around to the gourmet food truck market. Most don’t understand that these guys only do one event a day, maybe two, and that employees will often just show up for a shift at the event to serve. They are not on the road all day. They picture the industrial caterer out all day between a dozen stops with hot grills going the whole time—that’s just not our clientele. Food trucks owners want to stay compliant and want to buy coverage, but carriers have made it very cost-prohibitive, especially when they are surcharging for exposures that are just not there.
Morgan Smith served as IA assistant editor.
