Use Your Forklift Off-Property at Your Own Risk

Scenario A: Your neighbor knows you own a business that uses a forklift. One day, he tells you that he is having some paving bricks delivered and was wondering if he could borrow your forklift to move them to his backyard.

Scenario B: Normally, you use your business’s forklift only to load and unload trucks at your distribution center. But one day there’s an accident on the road leading into your business and a person is trapped under a vehicle. Your forklift could be used to help free the accident victim.

Scenario C: The terms of your forklift lease allow you to use the vehicle only within the confines of your dock. But unbeknownst to you, your forklift operator has been using the vehicle to make deliveries to a remote building for months. Should the practice be allowed to continue?

What do you do? The answer depends on how much risk you are willing to take. And how much reward you can expect to gain.

Forklift Liability

Unlike automobile drivers, forklift operators are not required by law to carry liability insurance. But most businesses will buy business insurance to protect themselves against claims of negligence.

If forklift operations are covered by your business insurance, how, where, and when you can use your forklift are usually clearly defined. For example, using your forklift for normal business operations on your property during business hours will usually be covered should there be a claim.

But once you go outside the terms of your insurance coverage, the risk shifts from the insurer to the company. So if something should happen while your forklift is being used to help out a neighbor, for example, your business insurance carrier may deny any claim, putting the risk entirely on the forklift owner.

Forklift Leases

Leased forklifts may put further restrictions on their use. The company that actually owns the forklift wants to protect it from damage. They want you to return the forklift to them at the end of the lease in good condition, less any normal wear and tear.

But when the vehicle is used outside of the terms of the lease, it may create more wear and tear than is normal. And if the business that owns the forklift discovers that the person leasing the vehicle has been using it for unauthorized purposes, there may be additional penalties defined within the lease.

The bottom line is that it’s your choice how much risk you are willing to take on. Generally, protecting your business depends on abiding by the terms of your business insurance policy, forklift lease agreement, and other documents that define how you can use the vehicle.