Many of our customers frequently ask about insurance for their forklifts. As a professional organization we wanted to just give you a brief overview on the types of insurance that affect your company in regards to operation of a lift truck or electric jack. Since Hurricane Sandy and new laws in New York City, we felt it was a good time to go over this with our customers.
You should contact your insurance broker to make sure you are properly insured. Give them a complete description your equipment, and how it is used, and let them put together the proper coverage for you to ensure your company is safe from claims for damage, injury, and or death. Many times it is cheaper to add a small rider on your policy for your lift trucks rather than a whole new policy.
If you need help with your lift truck insurance questions, you can contact Mark DeLeon at PMT and we can get your more information or put you in touch with a few brokers who over the years we have come to view as having their clients best interest in mind and are very knowledgeable when it comes to insurance needs for lift truck owners.
COMMERCIAL GENERAL LIABILITY.
A must have for ALL companies, this covers you for liability of damages resulting from an accident on the job or job premises, not just involving forklifts. Regarding your lift trucks, you should contact your insurance company to make sure you are sufficiently covered or if you need other insurance coverage. Explain to them how the lift truck is used and they will guide you the rest of the way.
When you rent from PMT Forklift Corp., we ask that you supply us with a certificate of insurance naming us as “Additionally Insured” (covering liability of operation of the lift truck), and “Loss Payee: (for physical damage claims). In other words, should something happen where our equipment involved in an accident, collision, or otherwise, your insurance company will cover our equipment. This is also known as a “Certificate of Liability.”
INLAND MARINE / BUSINESS OWNERS PROPERTY
This insurance covers your equipment and property that is moveable or can be transported. Tools, Equipment, Computers, Lift Trucks, etc. If you use your equipment offsite or on jobs, this is a must have, and is one of the most overlooked coverages.
FIRE & THEFT (CAC, or Limited Comprehensive Insurance)
Covers your equipment for Non-Accident type of losses such as Fire & Theft. This is very important as depending on the loss, you can enter into a grey area of General Liability insurance only to find you are not covered. Make sure you have a listing of equipment with your broker.
If you use your equipment on delivery trucks (i.e. electric jacks or with tailgates), make sure your equipment and accident liability are covered during transit and on the jobsite and or your customer’s property. Your normal Auto and Collision insurance may not cover this.
USING LIFT TRUCKS ON PUBLIC PROPERTY
It is import to note that if your equipment is used on public property, such as loading or unloading a truck on a public street or property, New York State requires that vehicle to be registered and insured. You can download NY State DMV registration Form MV82 (we have included a downloadable link/copy here) and you may need a separate insurance policy in this case. To register you will need a Bill of Sale, Proof of insurance, & Certificate of origin (lift trucks do not have titles).
LPG TANKS FOR NEW YORK CITY
NYC FDNY requires you obtain a certificate of fitness for storage and use of LPG. Without this, should an accident or incident occur, you could expect heavy fines and possibly your insurance carrier finding you in default of insurance?
OSHA OPERATOR TRAINING
It is required by law that your operators are properly trained and certified on the proper and safe use of YOUR lift truck and aerial lift equipment. See OSHA ruling
on Powered Industrial Trucks, 1920.178. Previous Certification from another company may have helped your employee get the job as an operator for you, but that certification is invalid for using YOUR equipment. This also holds true for employees who have certifications from their “Night” or “Second” job. Operators should be re-certified every 3 years, after an accident or having been observed consistently operating a lift truck against recommended safe operation practices, or if a new type of equipment is introduced to the company such as bringing in an order picker when up till now you have only used sit down riders. You may also receive discounts benefits depending on your provider regarding your insurance and or workers comp. Fines can reach up to $10,000 per operator and failure to certify your operators can result in crippling lawsuits.
Though not an insurance policy, PM’s insure that your equipment is running properly and we can head off any potential breakdowns that can cause an accident, down time, and loss. Also, legally you should have a paper trail of records of your daily inspection and periodic maintenance on your equipment.
- Make sure your equipment is listed with current value or replacement value with your insurance provider and know your policy.
- Review your policy with your broker to make sure you are properly covered for liability from accidents, and equipment loss. Identify where your coverage overlaps or lends off, and make a decision if you are over or under insured.
- If you transport your lift trucks (delivery trucks, flat beds, trailers, etc.) make sure your equipment is covered during transport and offsite.
- Flammable fuels, & LPG Tanks should be kept in an approved storage cage outside your building. Check your local codes for requirements. Battery Charging should be done in a safe and accessible area free of traffic and well ventilated.
- PM Service. Make sure your equipment is being periodically maintained to prevent dangerous operating conditions or loss of equipment. PMT can set up an automatic maintenance schedule for your company. Also when purchasing NEW equipment from us, ask about EXTENDED WARRANTY and FULL MAINTENANCE PROGRAMS.
- Forklift OSHA Operator Training. IT IS THE LAW! Make sure your operators are properly trained and certified. Call PMT Forklift (631)661-5050 to set up certification classes.
* This article is intended for information purposes only and not as legal advice. Contact your insurance broker for more information and the final say on any insurance matters pertaining to your company. PMT Forklift Corp. recommends that when it comes to insurance you always deal with a reputable company. We would like to thank Jim VonEiff – State Farm Insurance N.Y.C. and L.I. and Glenn Jacobs – Fairview Insurance NJ, for their assistance with information for this article.