Skid steers are small yet powerful pieces of heavy equipment that can be outfitted with a wide variety of labor-saving tools and connections. From loading dump trucks to carrying heavy loads of concrete, dirt, or other raw materials with bobcat, there's nothing a skid steer can’t do.
What really makes skid steers so valuable is that they can go anywhere. Their large skid tracks allow them to slosh through mud, gravel, clay, and other hard-to-maneuver terrains so that commercial construction companies can complete their projects on time, no matter where they’re building.
While there are a number of different businesses that use skid steers periodically, there are also dedicated skid steer businesses. These typically operate as subcontractors and go wherever they’re needed to help out with large construction jobs, earthmoving projects , road building, and more.
One of the first things you should do before working with clients is to purchase skid steer business insurance . In fact, large companies won’t even consider contracting your services until you’re properly insured.
On another note, if you also run a trucking business then opt to get a bobcat insurance policy.
In this article, we will explain why you need skid steer insurance and what types of skid steer insurance coverage you may need to consider. Then, we’ll break down the average skid steer insurance cost and compare quotes from some of the top insurers in the nation. Lastly, we’ll give you some helpful tips on how to reduce your skid steer insurance costs and make sure that you get the best deal. It’s time to tear up some dirt!
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Overall, skid steers are incredibly durable. By design, they can take a beating; being left out in the rain, running through thick mud, or getting banged around by sticks and stones won’t even phase them.
However, the purpose of a skid loader insurance policy isn’t just to protect the skid loader itself. It’s also to protect your business as a whole. Skid steer business insurance can protect you from being held financially liable if your business ever faces claims.
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 regulations.
In some cases, skid steers may be required to carry bobtail insurance as well. You don't want to be caught in an accident driving without it.
When it comes to an 11,500-pound skid steer, you don’t want to mess around. While they are compact, these machines can be hazardous in the wrong hands or when used around absent-minded pedestrians or employees. All it takes is one wrong move for an innocent bystander to be hospitalized or for severe property damage to occur. Below are some real life accidents caused by skid steers:
In October 2020, 2 employees were planting trees in a project site using a skid steer with the other one ending up dead. The cause of death was simple. One of the two employees asked the other, who was driving the skid steer, to hand him a knife. While handing the knife, the employee on the skid steer pushed one of the levels with his harm and send the blade to the employee underneath
On May 7, 2020, an employee was repairing a skid steer and was struck by it resulting to multiple broken bones and crushing injuries which eventually led to death
December 19, 2020, an employee attempted to replace the battery terminals of a skid steer. To do so, he had to raise the machine's arms. While on the process of doing the work, he accidentally pressed the foot control and the arm assembly came crashing down thereby leading to death.
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Skid steers can be quite expensive, with newer models costing a cool $35,000 to $50,000, depending on the brand, engine size, and hydraulic power. As such, they are often a target for theft. While most skid steers are equipped with anti theft measures, there’s still a lot of ways that a kid steer can get stolen.
In fact, most theft including skid steers don;t involve taking the whole unit as doing so will be impossible. Instead what thieves do in skid steers is just steal its valuable components (like the battery) which are easier to sell.
Thankfully, most heavy equipment insurance providers will give you the option of adding theft coverage to your skid steer. This means that you won’t have to replace your equipment out of pocket if the worst does happen.
Now that you’re informed of some of the common risks associated with owning a skid steer or running a skid steer business, let’s take a few minutes to discuss the various types of insurance coverage that your small business might need.
Many of these coverages can be bundled together under a large “umbrella policy” through the same insurance provider. However, it helps to know exactly what each type of insurance covers so you can build your skid steer business policy the right way.
If you run a skid steer business or your commercial construction company owns a skid steer, you’re going to need a large 2.5-ton truck that’s capable of towing it. Some companies even tow their skid steers around with a large dump truck!
This means that you’ll almost certainly need to purchase a commercial auto insurance policy for your commercial truck. The policy will cover many of the same things that a full coverage auto insurance plan would, but typically includes extra coverage limits due to the increased value of commercial trucks and the increased possibility of severe property damage in the event of an accident.
In addition to covering your commercial truck, though, the policy will also cover whatever you happen to be towing with that truck. This means that while your skid steer is loaded onto a trailer and is being towed by the commercially insured truck, it will be fully covered. This means that if another driver slams into you or you’re otherwise involved in an accident, your skid steer will be covered for repairs and damages.
Additionally, if you will be driving without load you will be smart to get yourself bobtail insurance as well.
A heavy equipment and earthmoving equipment insurance policy 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 .
These policies usually protect your skid steer from theft or other damage that could come to it, such as flooding, engine malfunction, hail damage, fire, and even sabotage. It may also protect you from accidental damage, such as an employee driving your skid steer into a pond or crashing it into a tree and damaging the hydraulic arms.
As we mentioned, there’s a fairly high risk of property damage claims while driving a skid steer. This risk is increased if you’re working in cities or towns. because you could easily smash into a parked car , destroy somebody’s brand-new $5,000 sod, or smash into a building and cause damage.
Property damage liability coverage ensures that after the deductible is paid, your insurer will cover the rest of the costs. With it, the amount you'll pay won't be that hurtful for your pockets.
In addition, commercial property insurance covers your own property from different sorts of damages such as floods, typhoons, storms, and accidents caused by others.
Public liability claims aren’t quite as common with skid steer businesses, but this type of coverage is still something that you should consider talking to your insurance agent about. Basically, this coverage will protect you from claims coming from third-parties such as pedestrians claiming that they sustained an injury due to your skid steer. This could be as simple as them tripping over your parked skid steer after-hours or as severe as you running straight into a pedestrian who’s walking by.
Instead of purchasing property damage and public liability insurance separately, many skid steer companies choose to purchase a comprehensive general liability insurance policy instead. They typically include a combination of public liability, property damage liability, and employee liability insurance coverage to guard against different claims.
If you’re the only person operating the skid steer, then you probably won’t need workers’ compensation insurance . However, if you have employees operating and maintaining skid steers, you should keep a workers’ comp policy. This will pay for any injuries sustained by your employees while on the job and will even compensate them for lost wages if they need time to recover from their injury. It also protects you from any potential lawsuits that your employees may bring against you regarding an accident or workplace safety.
Now, you’re probably wondering about the skid steer insurance price. The most common policy for skid steers is a general liability insurance policy. 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 (if you do excavation work)
Your personal credit history.
Accident history.
Experience driving a skid steer or official certifications.
Your annual revenue
To help give you a ballpark number to budget for, though, we’ve included a handy table outlining the average skid steer business insurance cost. Listed below are some average rates quoted by top skid steer insurance providers on the market.
| 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 |
How To Get Cheap Skid Steer Insurance
Looking to get affordable insurance for a skid steer or skid steer business that you own? You can try decreasing costs by improving your credit score or having an excellent driving/insurance claim record. However, these are factors that often can’t bring a change overnight.
The best way, by far, to get cheap skid steer insurance is to compare skid steer insurance quotes offered by different insurance companies. Insurance companies are very competitive, and by comparing rates, you control the sales process and can choose whichever insurance company suits your needs and budget.
To get your customized skid steer insurance quote right now, click the ‘Get Quotes’ button below!
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Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
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