Warehouse insurance is important for safeguarding your business, covering risks such as property damage, liability and inventory loss. However, does this extend to your material handling equipment, such as forklifts?
The answer depends on the specifics of your policy. It’s important to ensure you have the right coverage to avoid unexpected costs.
What Does Standard Warehouse Insurance Cover?
Warehouse insurance typically covers:
- Property Damage: Covers the physical warehouse structure against risks such as fire, theft and natural disasters. For example, policies often cover damage from storms or vandalism.
- Stock Protection: Safeguards your inventory against loss and damage from incidents such as water leaks or fires.
- Goods in Transit: Protects goods being transported to or from your warehouse, ensuring they are covered whilst on the move.
- Liability Insurance: Includes public, product and employers’ liability to protect against claims involving injury or damage. This is a legal requirement in the UK if you have employees.
However, material handling equipment doesn’t always fall under these standard categories.
Does Warehouse Insurance Cover Forklifts and Other Equipment?
Material handling equipment such as forklifts often require specific insurance coverage. This can include:
- Equipment as Property: Some warehouse insurance policies cover material handling equipment under contents or property damage insurance. However, this is not universal and may only cover specific risks.
- Dedicated Machinery Insurance: Forklifts and other high-value equipment may need separate machinery and equipment insurance. This policy ensures coverage for theft, accidental damage and other operational risks.
- Off-Site Coverage: If your equipment is used off-site, you should confirm whether your policy extends coverage to these scenarios.
Key Considerations When Insuring Material Handling Equipment
Understand Your Policy:
Review your insurance documents to see if your equipment is covered under your current plan. If it isn’t, speak to your insurer about adding this coverage.
Evaluate Equipment Use:
For equipment used across multiple locations or transported frequently, a tailored policy is important.
Regulatory Compliance:
In the UK, employers must have liability insurance which covers workplace incidents involving forklifts or other equipment.
Why Insuring Your Forklift is Crucial
Material handling equipment represents a significant financial investment. A single incident, such as theft or a breakdown, could disrupt your operations. This could lead to costly repairs or replacements. With appropriate insurance, you’ll have peace of mind knowing your business is protected against these risks.
Protect Your Equipment and Business
While standard warehouse insurance covers many essential aspects of your business, it may not automatically extend to forklifts and other material handling equipment. Reviewing your policy and securing additional coverage if needed is vital for avoiding gaps which could impact your operations.
For reliable advice on material handling equipment, contact Trucks Direct. We provide a wide range of high-quality forklifts to suit all warehouse needs. Get in touch to learn how a forklift can support your business.