The crash was reported to police at 8.22am on the Lincoln Road in the village.
A Lincolnshire Police spokesman says: “The road is currently blocked however recovery for both vehicles is being arranged.
“A child sustained minor injuries during the incident.”
Traffic and bus services using the busy route between Grantham and Lincoln were being affected by the blockage initially.
Stagecoach East Midlands tweeted to travellers that its Lincoln Service 1 was at first unable to serve the area as the collision was blocking one entrance to the village.
An hour ago they updated: “Buses will service Caythorpe and divert using Frieston Road and Hough Road in both directions. Police are on the scene and awaiting recovery vehicles.”