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Understanding Skid Steer Insurance
Skid steer insurance is essential for businesses and individuals using skid loaders in construction, landscaping, or agriculture. It protects against potential liabilities, damages, and losses associated with operating this heavy equipment.
Skid steers are small yet powerful pieces of heavy equipment. They can be equipped with a large variety of labor-saving tools, whether you own a skid steer or require skid steer rental insurance for equipment rented by your business. In this guide, we will explain why you need skid steer insurance, what types of coverage you may need to consider, its costs, best providers, and more.
Why You Need Skid Steer Insurance
Operating a skid steer comes with inherent risks, including property damage, equipment theft, and potential injuries. Skid steer business insurance provides financial protection and peace of mind.
Key Reasons to Insure Your Skid Steer:
- Liability Protection: Covers damages or injuries caused to third parties during operations.
- Equipment Coverage: Protects against theft, vandalism, or accidental damage.
- Compliance: Meets contractual or legal requirements for operating heavy machinery.
- Business Continuity: Ensures operations can continue smoothly after unforeseen incidents.
ℹ️ Did You Know?
Your business could face lawsuits or insurance claims if you accidentally damage somebody’s personal property, injure a pedestrian - or even your own employees. If your skid steer business is being subcontracted, you could even face claims from the contractor if you fail to complete a job on time or don’t abide by the general contractor’s compliance requirements and regulations.
Types of Skid Steer Insurance Coverage: What Type of Insurance Do I Need For My Skid Steer Business?
Not every skid steer policy is the same. Depending on how you use your equipment – whether you own, lease, rent out, or operate it across job sites – different types of coverage will apply. Below are the most important types of skid steer insurance you should know about.
General Liability Insurance
This is the foundation of most business insurance policies. It covers:
- Property damage you cause to others
- Bodily injury to third parties (not your employees)
- Legal fees if someone sues you for damages or injuries
Example: If your skid steer accidentally crashes into a nearby structure or vehicle, general liability can help cover the repair costs and any resulting legal claims.
Quick Tip
General liability doesn’t cover damage to your own skid steer or injuries to your workers. You’ll need additional coverages for that.
Commercial Property Insurance
This protects your physical assets – including skid steers – from risks like:
- Fire
- Theft
- Vandalism
- Storm damage
Note: If your skid steer is kept at a shop or garage, this policy can help protect it while stored on the premises.
Inland Marine Insurance (aka Heavy & Earthmoving Equipment Insurance)
Despite the name, this has nothing to do with boats. Inland marine coverage protects your skid steer while it’s in transit or on different job sites.
- Covers owned and leased equipment
- Protects against theft, accidental damage, and vandalism
- Applies to tools and heavy machinery not fixed to one location
ℹ️ Did You Know?
Inland marine insurance was originally designed for transporting goods by sea and rail. Today, it’s the go-to for insuring mobile tools and equipment like skid steers.
Heavy equipment and earthmoving equipment insurance policies might be useful too if you have more than one type of heavy equipment. These policies are designed specifically to protect heavy equipment such as excavators, skid steers, tractors, and other large equipment that’s often used on commercial construction sites or farms.
Commercial Auto Insurance
If you transport your skid steer on a trailer or drive other business vehicles, you may need this coverage.
- Covers your business vehicles, trailers, and liability while on the road
- Can be bundled with general liability for better rates
- May be required by law if you operate vehicles commercially
Additionally, if you will be driving without load you will be smart to get yourself bobtail insurance as well.
Quick Tip
Make sure your commercial auto policy includes coverage for loading and unloading your skid steer from trailers.
Workers’ Compensation Insurance
If you have employees who operate your skid steer, this coverage is usually required by law. It helps cover:
- Medical bills after a work-related injury
- Lost wages
- Rehabilitation costs
- Lawsuits related to employee injuries
Example: If an operator injures their back while climbing into the skid steer, this policy helps with medical costs and wage replacement.
Business Owner’s Policy (BOP)
A BOP combines several types of essential coverage into one cost-effective bundle:
- General liability
- Commercial property
- Business interruption insurance
It’s a good fit for small contractors who want broad protection without buying separate policies.
Rental Equipment Insurance
If you rent your skid steer to others, or occasionally rent one for short-term use – this coverage helps protect against:
- Damage caused by renters
- Theft while the equipment is rented out
- Liability during operation
ℹ️ Did You Know?
Some rental yards require you to show proof of insurance before they’ll lease you a skid steer. Having rental equipment coverage on hand can speed up the process.
Equipment Breakdown Insurance
This isn’t as common but can be helpful if you rely heavily on your skid steer. It covers:
- Mechanical failure or electrical breakdown
- Cost of repair or replacement
- Business income lost during downtime
Note: Wear and tear is not covered – just sudden breakdowns.
Umbrella Insurance (Excess Liability)
If your liability claim exceeds the limits of your general liability or commercial auto policy, umbrella insurance kicks in to cover the rest. It’s optional, but useful for high-risk jobs or contracts that demand higher coverage limits.
How Much Does Skid Steer Insurance Cost?
Now, let’s talk about skid steer insurance price. The most common policy for skid steers is a general liability insurance coverage. On average, general liability insurance for skid steer costs $67 per month or $804 per year.
Insurance coverage for a bobcat that your business uses 1-3 times a month, however, may cost you as little as $7 a month – or $84 a year!
The average rate you’ll pay depends on a number of factors, including:
- The value of your skid steer.
- How deep you dig
- Your personal credit history.
- Accident history.
- Experience driving a skid steer or official certifications.
- Your annual revenue
Listed below are some average skid steer business insurance cost and quotes by top insurance providers.
| Insurance Provider | Average Monthly Rate | Average Annual Rate |
| State Farm | $65 | $780 |
| Allstate | $79 | $948 |
| Geico | $67 | $804 |
| AXA Insurance | $73 | $876 |
| USAA | $58 | $696 |
| Nationwide | $76 | $912 |
🏆 Best Skid Steer Insurance Companies
Choosing the right insurance provider for your skid steer is crucial. Below is a comprehensive review of top companies offering skid steer insurance, highlighting their strengths, potential drawbacks, and customer feedback.
NEXT Insurance: Best for Small Contractors and Rapid Online Coverage
Why We Like It: Next Insurance offers a user-friendly online platform tailored for small businesses, allowing for quick quotes and immediate coverage. Their policies are customizable, catering specifically to the needs of contractors and equipment operators.
Drawbacks:
- Limited physical branch locations.
- May not be ideal for larger enterprises with complex insurance needs.
Customer Feedback: Users appreciate the ease of obtaining coverage and the responsive customer service.
Thimble: Best for Flexible, Short-Term Coverage
Why We Like It: Thimble provides on-demand insurance, perfect for contractors needing coverage for specific projects or short durations. Their Business Equipment Protection covers tools and equipment, including skid steers, against damage or theft.
Drawbacks:
- Equipment coverage is only available with monthly policies, not short-term ones.
- Limited coverage options for larger businesses.
Customer Feedback: Customers value the flexibility and speed of obtaining insurance, especially for short-term needs.
The Hartford: Best for Comprehensive Equipment Coverage
Why We Like It: The Hartford offers extensive contractors equipment insurance, covering owned, rented, or borrowed equipment, including skid steers. Their policies also cover employee tools and clothing, and provide debris removal coverage after accidents.
Drawbacks:
- May not be the most cost-effective option for small contractors.
- Some policies may have higher premiums compared to competitors.
Customer Feedback: Clients commend The Hartford for its comprehensive coverage options and excellent claims service.
CoverWallet: Best for Comparing Multiple Insurance Options
Why We Like It: CoverWallet is an insurance aggregator that allows businesses to compare quotes from various providers, including those offering skid steer insurance. Their platform simplifies the process of finding and managing insurance policies.
Drawbacks:
- Does not underwrite policies directly; acts as a broker.
- Customer service experience may vary depending on the chosen insurer.
Customer Feedback: Users appreciate the convenience of comparing multiple insurance options in one place.
Hiscox: Best for Tailored Coverage for Small Businesses
Why We Like It: Hiscox specializes in providing customized insurance solutions for small businesses. Their policies can be tailored to cover specific risks associated with operating skid steers, offering flexibility and comprehensive protection.
Drawbacks:
- May not offer coverage in all states.
- Limited options for larger businesses with more complex needs.
Customer Feedback: Customers highlight Hiscox’s personalized service and the ability to customize policies to fit their unique business requirements.
State Farm Skid Steer Insurance: Best for Personalized Agent Support
Why We Like It: State Farm provides personalized service through its extensive network of agents. They offer various business insurance products that can be tailored to include coverage for skid steers, making it a suitable option for those who prefer in-person consultations.
Drawbacks:
- Limited online policy management features.
- May require bundling with other policies for optimal rates.
Customer Feedback: Clients value the personalized attention and support provided by State Farm agents.
Progressive Skid Steer Insurance: Best for Bundling with Commercial Auto Insurance+Liability
Why We Like It: Progressive offers comprehensive commercial auto insurance, which can be bundled with equipment coverage for skid steers. Their flexible policy options and discounts for bundling make them an attractive choice for businesses with multiple insurance needs.
Drawbacks:
- Equipment coverage may be limited compared to specialized providers.
- Premiums can be higher without bundling.
Customer Feedback: Customers appreciate the ability to bundle policies and the convenience of managing multiple coverages through one provider.
GEICO Skid Steer Insurance: Best for Bundling with Commercial Auto Insurance
Why We Like It: GEICO offers a range of business insurance products, including Business Owner’s Policies (BOP) and general liability insurance, which can be tailored to cover skid steers. Their strong financial stability and 24/7 customer support make them a reliable choice.
Drawbacks:
- Most business insurance policies are through third-party providers.
- Limited online policy management features for certain coverages.
Customer Feedback: Clients value GEICO’s comprehensive coverage options and the ability to bundle policies for potential discounts.
Quick Tip
When choosing an insurance provider, consider factors such as the scope of coverage, flexibility of policy terms, customer service reputation, and the ability to bundle with other insurance products to potentially save on premiums.
ℹ️ Did You Know?
Some insurance providers offer discounts for businesses that implement safety training programs and equipment maintenance schedules, as these practices can reduce the likelihood of claims.
Best Skid Steer Insurance Companies at a Glance
| Insurance Company | Starting Monthly Cost | Best For | Quick Highlight |
| Next Insurance | $19/month | Small contractors | Fast, affordable online coverage built for trades |
| Thimble | $17/month | Short-term coverage | On-demand insurance by the hour, day, or month |
| Hiscox | $30/month | Customized small business policies | Flexible options for sole proprietors and small crews |
| CoverWallet | $20/month | Comparing providers | Lets you compare top carriers and buy online |
| The Hartford | $40/month | Comprehensive equipment protection | Strong coverage for owned, leased, or borrowed skid steers |
| Progressive | $28/month | Commercial auto + liability | Big-name provider with solid construction industry coverage |
| State Farm | $35/month | Local agent support | Personalized service through in-person agents |
| GEICO | $25/month* | Bundling with auto policies | Strong brand, great for combining commercial auto + liability |
*GEICO’s business insurance is underwritten by third-party partners. Prices vary by partner and risk.
By evaluating these providers based on your specific business needs, you can select the most appropriate skid steer insurance to protect your equipment and operations effectively.
Tips for Choosing the Right Skid Steer Insurance
- Assess Your Needs: Determine the specific risks associated with your skid steer operations.
- Compare Quotes: Obtain quotes from multiple providers to find the best rates and coverage.
- Check Provider Reputation: Research customer reviews and ratings.
- Understand Policy Details: Read the fine print to know what’s covered and what’s not.
- Consult an Agent: If you need further clarifications, speak with an insurance professional to get personalized advice.
Frequently Asked Questions
Is skid steer insurance mandatory?
While not always legally required, many clients and job sites mandate proof of insurance before allowing operations.
Can I bundle skid steer insurance with other policies?
Yes, many providers offer bundling options, which can lead to discounts.
Does homeowner’s insurance cover skid steers?
Typically, homeowner’s insurance does not cover skid steers used for business purposes.
How quickly can I get coverage?
Some providers, like Next Insurance, offer instant quotes and immediate coverage upon payment.
Steer Clear of Risk: Cover Your Skid Steer Now
Securing the right insurance for your skid steer is crucial for protecting your investment and ensuring business continuity. By understanding your coverage needs and comparing top providers, you can find a policy that offers comprehensive protection at a reasonable cost.
