While forklift truck insurance isn’t always a legal requirement, operating a forklift truck comes with certain risks and liabilities that make having the proper insurance coverage essential.
Below, we explore the necessity of forklift insurance, different coverage options and factors to consider when securing the right policy for your business needs.
Is Forklift Insurance Mandated by Law?
Whether or not you require forklift insurance depends on where you operate your forklifts:
- You need insurance if your forklifts are used in public spaces or on public roads. This means third-party insurance at minimum to cover you if someone gets hurt or property gets damaged.
- You don’t legally need insurance if your insurance is used on private land, such as a warehouse. However, we still recommend arranging policies to cover potential risks, such as employees getting injured.
Why Do I Need Forklift Insurance?
Accidents can happen, even with the most skilled operators. Forklift insurance provides a financial safety net, protecting your business from the potentially high costs associated with accidents, property damage and injuries.
What are the Types of Forklift Insurance?
Public Liability Insurance
This liability policy protects your business financially if a third party (like a customer, visitor or member of the public) is injured due to a forklift-related incident on your premises. It also covers any legal costs associated with such a claim.
Employers’ Liability Insurance
This coverage is legally required for all businesses with employees. It protects your company financially if an employee gets injured while operating a forklift on the job, covering any compensation or legal fees that may arise.
Accidental Damage Cover
It covers repairs or replacements if your forklifts are damaged in an accident (even if it’s your fault) or due to vandalism while on-site. Additionally, it provides protection for any property damage your forklift may cause to others.
Business Interruption Insurance
If your forklift is out of commission in the event of an accident, this coverage helps mitigate the financial blow by reimbursing lost income while you can’t do business. It ensures your revenue stream keeps flowing if you face such an unexpected setback.
Comprehensive Cover
This offers the most extensive protection, encompassing all of the above-mentioned coverages.
Where applicable, you should also consider other covers like equipment breakdown, hired-in plant, road risks, and goods-in-transit policies. An insurance agent can advise on specific needs.
Factors That Affect Forklift Insurance Costs
Insurers consider many risk factors when pricing cover, including:
- Your operation – Insurers consider how many and the type of forklifts you have, how often you use them, the type of materials the forklifts handle and whether the forklifts will be operated on public roads. Higher-risk operations may require more comprehensive coverage.
Value of your forklifts – The cost of replacing your forklifts is a factor. - Employee training – A well-trained workforce can lower the risk of accidents. Some insurers may decrease premiums for businesses with forklift operator training programmes.
- Claims history – If you have a clean claims history, you may be eligible for better premiums from insurance brokers.
Like when purchasing the forklift truck itself, investing in suitable coverage tailored to your operating environment protects your business against potentially significant liabilities and unexpected costs.
Securing Forklift Insurance Quotes
Securing the right insurance for your forklift is crucial, but navigating the insurance landscape can be confusing. This guide outlines the process of obtaining quotes and finding the best coverage for your specific needs:
- Gather information – Before contacting insurance providers, gather some key details about your forklift operation, including your fleet, operators, operating locations, and risk management.
- Obtain quotes – With this information readily available, you can approach multiple insurance companies and request quotes that detail the coverage options and corresponding costs.
- Compare and choose – Once you’ve received quotes, carefully compare forklift truck insurance policy details. Consider factors like coverage, limits, deductibles and cost.
- Make an informed decision – Don’t solely focus on the cheapest option. Look for a policy that offers a balance between affordability and comprehensive coverage. Consider additional factors like the insurer’s reputation and customer service offerings.
Getting Help
While securing quotes might seem straightforward, consulting with an experienced insurance agent can be beneficial as they can help you assess your needs, understand different coverage options, and negotiate competitive rates.
Don’t Leave Your Business Exposed
Operating forklift trucks without proper insurance cover exposes businesses to major financial risks from potentially costly damages, claims and legal expenses. Partnering with a reputable insurance broker simplifies arranging well-matched policies at the best premium rates.
Depend on TAG For Reliable Forklift Sales and Hire
With over 20 years of industry experience, TAG Forklifts offers expert advice guiding clients to optimise safety and productivity from their forklift fleet and materials handling operations. As the leading supplier in the North West, TAG Forklifts is an authorised dealer for all major forklift truck brands.
