Mobile Equipment Endorsement

A mobile equipment endorsement offers specialized protection for machinery not typically used on public roads. It protects businesses from risks associated with accidents, damage or liability involving mobile equipment, such as bulldozers, cranes and forklifts. These equipment aren’t often included in standard insurance policies, so a mobile equipment endorsement is required.

Mobile equipment endorsement is a specialized add-on to general liability insurance that extends coverage to machinery not intended for road use. Unlike vehicles covered by commercial auto policies, mobile equipment typically includes items such as bulldozers, cranes and forklifts, which perform specific functions off public roads. 

The need for this endorsement arises from the risks unique to mobile machinery, which can vary widely depending on the type of equipment and its usage. Damage to third parties, operational hazards or accidental harm are just a few examples. 

It’s important to understand that not all mobile equipment qualifies under this endorsement. Factors such as permanent attachments, operational context and intended use play a role in what is classified and covered under mobile equipment insurance.

The specific coverage of mobile equipment endorsement varies, but here are the most common inclusions:

A mobile equipment endorsement does not cover every situation or incident involving machinery. Here are some of the major exclusions: 

• Road usage: Equipment used on public roads, which is classified as a vehicle, falls outside the scope of this endorsement. Coverage for road use incidents should be obtained through a commercial auto policy.
• Maintenance-related damage: Routine wear and tear or issues resulting from improper maintenance are not covered. 
• Intentional damage: If damage to the equipment or harm caused is determined to be intentional, coverage does not apply. 
• Damage from unauthorized use: If the equipment is operated without the business’s consent, any resulting damage may not be covered. 
• Certain environmental risks: Environmental pollution or contamination caused by mobile equipment operations may not fall within the scope of a mobile equipment endorsement.

Mobile equipment refers to machinery designed for off-road use, performing tasks that differ from transportation purposes. Generally, mobile equipment is not registered for road use but plays critical roles in construction, manufacturing, warehousing and other sectors. It can include tools used for excavation, lifting or material movement in industrial settings.

Regulations often outline how mobile equipment is classified, and insurance endorsements rely on these definitions to determine coverage eligibility. However, here are some of the machines that are commonly considered mobile equipment:

• Cranes
• Bulldozers
• Excavators
• Forklifts
• Concrete Mixers
• Backhoes
• Loaders
• Skid-steer loaders
• Road graders
• Trenchers

Forklifts are considered mobile equipment because they perform specialized tasks not related to public road transport. Their primary function is lifting, moving and stacking heavy materials within warehouses, job sites or similar environments. 

However, there are instances where forklifts may cross into different classifications based on their usage. For example, forklifts used on public roads or those that meet specific vehicle standards may require additional coverage, such as forklift insurance or a commercial auto policy.

A mobile equipment endorsement provides many benefits to businesses, including:

• Operational risk coverage: Business operations that involve heavy machinery face unique hazards, such as accidental damage to structures or equipment failures. Having a mobile equipment endorsement minimizes financial risks. 
• Compliance with regulatory requirements: Many industries have specific insurance mandates for mobile machinery. Meeting compliance helps avoid fines and legal issues while providing essential coverage.
• Coverage for expensive machinery: Equipment like cranes or forklifts can be highly valuable. Protecting these assets ensures businesses are not exposed to substantial financial losses if theft or damage occurs.
• Enhanced business reputation: Clients and partners appreciate businesses that take proactive steps in risk management, often reflected in having proper insurance.

Mobile equipment endorsement and commercial auto coverage serve different purposes. While mobile equipment addresses machinery not intended for road use, commercial auto insurance covers vehicles that transport people or goods on public roads. 

A mobile equipment endorsement caters to specialized machinery with unique risks, such as bulldozers or backhoes, focusing on off-road operations and the environments they work in. In contrast, commercial auto coverage targets vehicles and their road-based operations, providing liability coverage for traffic incidents, collisions and related risks.

General liability insurance typically provides broad coverage for bodily injury, property damage and other risks but may not sufficiently cover all mobile equipment operations. Adding a mobile equipment endorsement expands coverage to include the unique operational risks associated with mobile machines.

Here are key steps to get a mobile equipment endorsement: