A forklift accident can cause serious injury, property damage and costly downtime and if you’re found liable, the financial consequences can be severe. That’s why forklift liability insurance is one of the most important types of cover for any business using these machines.

This blog explains what forklift liability insurance covers, who needs it, and how it protects your business from legal and financial risks.

What Is Forklift Liability Insurance?

Forklift liability insurance protects your business against claims made by third parties if your forklift causes injury or property damage. This could include:

• A pedestrian injured in your warehouse

• Damage to a client’s goods during loading

• A forklift colliding with another vehicle on-site

• Incidents when crossing a public road between workspaces

It’s often included as part of a wider forklift insurance policy, or as an extension to your public liability insurance.

Why It’s Essential

Forklifts are high-risk machines:

• Visibility is limited

• Loads can shift or fall

• Manoeuvring space is often tight

• Operators work near other staff, vehicles or structures

Even with training and safety measures, accidents can happen. Liability cover ensures that if they do, your legal costs and any compensation are covered.

Common Claim Scenarios

• A forklift drops a pallet onto a contractor’s van – damaging the vehicle and contents

• An operator reverses into a warehouse visitor – causing injury and a legal claim

• A forklift crosses a road and causes a collision – public liability and motor insurance may both be triggered

Without liability insurance, your business could face tens of thousands in legal costs or damages, especially if someone is seriously hurt.

Who Needs Forklift Liability Insurance?

You should consider this cover if:

• Your forklift is operated around people, contractors or the public

• You work on sites that require proof of liability cover

• Forklifts are used for loading/unloading third-party vehicles

• You use hired-in forklifts under CPA or similar contracts

• Your business can’t afford unexpected legal expenses

In some cases, clients or landlords may make liability insurance a contractual requirement.

Is It Included in Standard Forklift Cover?

Not always. Some forklift insurance policies only cover the machine itself (theft, damage, etc.). Make sure your cover includes:

• Third-party injury and property damage

• Legal defence costs

• Extensions for road use or specific sites

• Contractual liability if required by agreements

A broker familiar with plant and machinery risks can help ensure you’re not missing a critical part of your protection.

Final Thoughts

Forklift liability insurance isn’t just a formality, it’s a safeguard against the real-world risks of operating heavy machinery. Whether you’re moving pallets in a warehouse or loading plant onto lorries, the right cover protects your people, your reputation and your bottom line.