The Impact of Seasonal Demand on Forklift Insurance Needs

Many businesses may utilize forklifts for various tasks within daily operations, as well as special projects. Regardless of how frequently or regularly these motorized pieces of equipment are used, responsible workplaces must account for significant risks and exposures related to their functionality. However, certain conditions, such as particularly busy parts of the year, may exacerbate these inherent concerns and make forklift insurance even more essential.

What Types of Insurance Are Needed for Forklifts?

Given their significant financial value, forklifts should be insured by all businesses that own and operate them. This can often be achieved through commercial property insurance, which typically covers equipment and machinery used on a policyholder’s premises. However, there may be times when you require additional or alternative coverage. For example, if they’re being stored at a work site, you’ll likely need inland marine insurance.

How Might Coverage Needs Change According to the Time of Year?

Your business may often experience ebbs and flows in demand throughout the year. For example, many warehousing and trucking companies may need to enlist additional assistance or obtain extra equipment during the holiday season. Consider the following ways in which your insurance portfolio may need to be adjusted during such times:

• If you’re renting additional forklifts, make sure you purchase appropriate coverage either through a commercial property insurance endorsement or through the party from whom you’re getting the equipment.
• Using forklifts more often and carrying more cargo could increase the risk of accidents and errors. Make sure you revisit liability insurance policies. For example, accidents that damage other parties’ property may put greater demand on general liability coverage.
• Be particularly mindful of workers’ compensation insurance needs. During busy times of the year, you may hire additional help. Whether working with seasonal employees or enlisting contract workers, make sure you’re aware of workers’ compensation coverage requirements. You may need to increase your coverage limits during these times of year to accommodate for increased risk levels.
• If you’re a forklift dealer, you should be mindful of the increased demand for your products during certain times of the year. Ensure you have appropriate coverage for higher traffic at your business, increased stock on site and other risks and exposures that may increase during busy seasons.

We’re Here to Help

Contact ISE Insurance Services today to learn more about insuring forklifts and adjusting coverage during seasonal changes.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.