Forklift Insurance: What You Need to Know About Coverage, Liability, and Costs

Posted by: admin on April 7, 2025

Forklift operations bring unique risks that regular business insurance rarely covers. Many companies rely on forklifts daily without realizing their existing policies may not fully protect their equipment, workers, or operations. Whether your forklift fleet is large or small, understanding insurance requirements can save your business from costly claims and downtime.

Why Forklift Insurance Is Essential

Operating forklifts without proper insurance exposes businesses to expensive liabilities. Workplace accidents, equipment damage, and theft incidents often result in significant out-of-pocket expenses when no coverage exists. Comprehensive forklift insurance shields companies against legal claims, property damage, and costly repairs, making it a smart and essential investment.

Does a Forklift Need Insurance?

State laws vary, but many construction contracts mandate forklift insurance even in regions where it is not legally required. Forklifts driven on public roads must carry auto liability insurance under state regulations. Even when coverage is not legally required, insurance protects against theft, damage, and third-party injury claims, ensuring financial security for your business.

What Does Forklift Insurance Cover?

• General Liability Protection: Shields against bodily injury and property damage claims.
• Physical Damage: Pays to repair or replace forklifts damaged in covered incidents.
• Theft and Vandalism: Covers stolen or vandalized forklifts, whether on-site or in transit.
• Inland Marine Insurance: Insures mobile equipment moving between job sites.
• Equipment Breakdown Coverage: Protects against mechanical failures excluded by standard policies.

Forklift Liability Insurance: What You Should Know

Forklift liability insurance handles claims resulting from forklift-related accidents, including property damage or bodily harm to third parties. General liability policies may not cover forklift operations fully, making specific forklift liability coverage critical. Public roadway use adds a requirement for auto liability insurance to meet legal compliance.

How Much Does Forklift Insurance Cost?

Forklift insurance premiums vary based on several factors:

• Equipment Value: Newer or more expensive forklifts cost more to insure.
• Usage Type: Heavy industrial use carries higher premiums than light warehouse tasks.
• Safety Record: Companies with strong safety histories often secure lower rates.
• Coverage Choices: Adding breakdown protection, excess liability, or leased equipment coverage affects pricing.

Training programs that improve safety records, such as CertifyMe courses, can help businesses secure better insurance rates.

Forklift Insurance vs Auto Insurance: Key Differences

Forklifts and automobiles require different types of insurance due to how they operate. Forklifts qualify as mobile equipment used off public roads and demand special heavy equipment policies. Cars, by contrast, serve as transport vehicles intended for public roads and fall under standard auto insurance laws. Knowing these differences prevents costly coverage gaps.

FAQs About Forklift Insurance

Does My Company Need Separate Forklift Insurance if We Already Have Auto Insurance?

Yes. Forklift operations typically fall outside standard auto insurance coverage, requiring separate policies.

How Do I Find the Right Forklift Insurance Policy?

Work with brokers specializing in heavy equipment insurance and compare multiple quotes to secure tailored protection.

Will OSHA Citations Affect Forklift Insurance Rates?

Yes. Frequent OSHA violations or poor safety records increase insurance premiums due to higher perceived risks.

Save on Forklift Insurance with CertifyMe

CertifyMe’s OSHA-compliant forklift certification programs strengthen workplace safety, helping businesses lower accident rates and insurance premiums. Our 24/7 online training prepares operators to meet regulatory standards, reduce claims, and support insurance savings with documented training compliance. Enroll with CertifyMe to safeguard your equipment, your employees, and your bottom line.