I just purchased a forklift for my home hobby shop, and I’m wondering how to classify it: as a vehicle or a tool?
I found a used electric forklift (no propane or gas) for $3,500, which I plan to use in my workshop. What kind of insurance coverage should I consider to protect both the forklift itself from damage due to unforeseen events and myself in case someone were to break into my shop and get injured or worse while attempting to drive or steal it? Should I look into an automotive policy, or can I add it to my homeowner’s policy as I would with other tools or possessions? Any recommendations would be greatly appreciated!
Congratulations on your new forklift! It sounds like a valuable addition to your hobby shop.
In terms of insurance, a forklift is generally considered a piece of equipment rather than a vehicle, especially when used in a non-commercial setting like your home workshop. For coverage, here are a few recommendations:
Homeowner’s Insurance: You may be able to add the forklift to your homeowner’s insurance policy as a personal property item. However, make sure to discuss this with your insurer because not all policies cover machinery used for commercial purposes, even if it’s a hobby.
Equipment or Inland Marine Insurance: This type of policy often covers tools and equipment and could be a good fit for your forklift, especially concerning damage or theft.
General Liability Insurance: This can provide coverage in the event that someone is injured on your property due to the forklift. It’s essential to ensure that your liability limits are adequate to cover any potential incidents.
Commercial Auto Policy: If you plan to transport the forklift on public roads (even occasionally), you might need a commercial auto insurance policy. However, this typically applies more for business use.
Safety Precautions: Consider additional safety measures, such as signage and secure storage for your forklift, to minimize risks and liability.
It’s best to consult directly with your insurance agent to discuss your specific situation and ensure you have the appropriate coverage. They can provide tailored advice based on your needs.