Forklift Insurance

Forklift operators face a variety of hazards on the job each day. From equipment overturning to being crushed or falling from a great height, this line of work is not to be entered into lightly. Workplace incidents can be extremely costly for businesses, as can forklift repairs and replacements due to operating errors or third-party damage.

That's why it's critical to know about the different types of forklift insurance coverage available. An independent insurance agent can help your business get set up with the right forklift insurance policy. But first, here's a breakdown of forklift insurance, what it covers, and more.

What Is Forklift Insurance?

Forklift insurance is designed to protect forklifts and their operators from workplace accidents and your business from liability claims. In the event of forklift accidents, a forklift insurance policy can cover the costs of injuries to employees as well as damage to the machine or property. Coverage typically doesn't include damage from general wear and tear.

Is Forklift Insurance Required?

Many construction project contracts require forklift and other heavy equipment operators to carry at least some amount of liability coverage. While starting here is a safe bet, it's also helpful to look into additional coverage options to protect your business from preventable expenses like costly equipment repairs or replacements, as well as lawsuits.

Your business also likely needs protection for other company vehicles, such as delivery trucks. To properly protect your business's vehicles, you'll need a complete commercial auto insurance policy.

Why Do You Need Forklift Insurance?

There are many risks involved in forklift operation. Requiring the use of heavy machinery greatly increases the chances of workplace injuries and lawsuits from employees and third parties. While following forklift safety practices and standards set by OSHA is paramount, so is having the proper coverage. Here are some recent forklift accident statistics to help give you a better idea of the importance of this coverage.

About 35,000 to 62,000 forklift injuries occur annually.
About 1% of all forklift accidents result in fatalities.
An average of 87 deaths occur due to forklift injuries annually.
An estimated 36% of all forklift fatalities are pedestrians.
About 30% of all forklift accidents occur in warehouses.
An estimated 42% of forklift accidents result in individuals being crushed by the equipment tipping over.

The most dangerous industries for forklift injuries and fatalities are manufacturing (42.5%) and construction (23.8%). Since these incidents are fairly common and often costly and tragic, it's imperative to protect your business with a solid forklift insurance policy.

What Does Forklift Insurance Cover?

Forklift insurance policies exist to protect your business in the event of heavy equipment damage, destruction, vandalism, or theft. Coverage protects against most operating risks, as well as liability claims made by third parties. Some key components of coverage can include:

Commercial general liability insurance: This can reimburse your business for lawsuit expenses if a third party claims bodily injury or personal property damage.
Inland marine insurance: This covers equipment that cannot be permanently affixed to a specific location, including while in transit, against damage, theft, or destruction by listed perils.
Physical damage coverage: This covers damage to forklifts up to their full value caused by listed perils such as vandalism and fire.
Theft coverage: This covers the replacement cost of company equipment that is stolen.
Rented/leased equipment coverage: This covers the costs of rented or leased equipment needed while awaiting repairs on your own and protects the rented/leased equipment while it's in use by your business.

An independent insurance agent can help your business build a complete forklift insurance policy.

Additional Coverages to Consider

You may want to add several more types of coverage to your larger business insurance policy to protect your company from multiple angles. Consider adding the following types of coverage to your forklift insurance:

Business interruption insurance: This covers a loss of income and continued operating expenses while a business's operations are suspended due to equipment maintenance or other listed perils like fire damage.
Equipment breakdown insurance: This covers the cost of repairs to equipment after serious disasters typically excluded by other policies, such as explosions.
Excess liability insurance: Also known as commercial umbrella insurance, this covers lawsuit expenses that surpass a general liability or commercial vehicle liability coverage limit.
Commercial auto liability insurance: This covers your business against lawsuit costs related to accidents, etc., involving forklifts and other company vehicles while they're being operated on public roads.
Workers' compensation insurance: This can cover the costs of worker medical expenses and replace some of their wages after workplace injuries or illnesses. Coverage also exempts your business from related employee lawsuits.
Equipment floaters: These can be added to inland marine insurance to cover equipment, including rentals, from the dangers of transporting it between jobs, such as theft.

Your independent insurance agent can help your business add any further types of coverage necessary.

How Much Does Forklift Insurance Cost?

Your forklift insurance policy's cost likely depends on the amount and value of the equipment your business owns and rents or leases each year. Premiums for smaller businesses with less expensive equipment will likely be cheaper than for large businesses with lots of expensive equipment. Forklift insurance premiums can depend on the following factors:

The type and amount of forklifts insured
The total value of all company equipment insured
The specific operations the insured equipment is used for
Your business's location
Your business's claims history
The coverage options and deductible chosen

An independent insurance agent can help you find affordable forklift insurance from a local insurance company.

Here's How an Independent Insurance Agent Can Help

Independent insurance agents have access to multiple insurance companies, so they can shop and compare several quotes and policy options and provide you with more personalized help than a broker. Your agent will evaluate your business's coverage needs and get you set up with a policy that includes the right amount of protection for all heavy equipment and machinery. And down the road, your agent can help you file business insurance claims and forklift insurance claims and update your coverage as necessary.

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