I recently purchased a used electric forklift for my home hobby shop for $3,500. I’m curious to know whether this is classified as a vehicle or a tool.
In terms of insurance, I’m looking for recommendations on how to best cover the forklift. I want to ensure it’s protected against damage from unforeseen events, as well as safeguard myself in case of an accident, such as someone injuring themselves while attempting to drive or steal it. Should I consider adding it to my automotive policy, or would it be better to include it in my homeowner’s policy as a tool or additional possession? Any advice would be greatly appreciated!
Congratulations on your new forklift! It’s definitely a unique addition to a home hobby shop.
To address your questions about insurance, a forklift is generally considered industrial equipment rather than a typical vehicle, so it may not fall under standard auto insurance policies. Here are a few steps you can take:
Homeowners Insurance: Check with your homeowners insurance provider to see if they can cover the forklift as part of your policy or as a scheduled item. Some policies may have limitations on coverage for machinery or tools, so make sure to clarify that.
Business Insurance: Since your forklift is intended for hobby use but could potentially be seen as a business asset (especially if you ever hold workshops, etc.), you might want to explore a general liability policy for business. This can cover injuries or damages resulting from the use of your equipment.
Equipment Coverage: Look into specialized equipment insurance or a policy that covers tools and machinery. This will protect against damage due to theft, weather, or other disasters.
Umbrella Policy: Consider an umbrella insurance policy that provides additional liability coverage above your existing policies. This could be beneficial in case of significant incidents involving people getting injured on your property or while using your forklift.
Increased Liability Limits: If you plan on having others use the forklift, it’s wise to increase your liability limits to protect against potential accidents.
It’s crucial to discuss your specific situation with an insurance agent who understands how to categorize and insure equipment like forklifts. They will guide you on the best course of action to ensure both the forklift and your liabilities are adequately covered.