No matter the industry, forklifts are common equipment on manufacturing and warehousing floors that pose a significant safety risk.

The National Safety Council reports that in the U.S. forklifts were the source of 70 work-related deaths in 2021 and 7,290 nonfatal injuries involving days away from work in 2020.1

Businesses in forestry and wood production are no stranger to accidents involving forklifts and log loaders, which have enormous human and business costs.

However, with the right precautions and risk management strategies, businesses in forestry and wood production can improve their forklift safety record, making their workplaces safer and improving their insurance coverage.

The cost of poor forklift safety

Accidents with forklifts — and, specifically in the forestry industry, accidents with log loaders — can have an enormous business cost in terms of lost inventory, damaged infrastructure and equipment loss.

A forklift can cost as much as $50,000 and a log loader 10 times as much. Insurance may cover the equipment loss, but a company with a poor safety record will have difficulty procuring affordable coverage at renewal.

In addition to the costs incurred in an accident, there’s the risk of fines. OSHA will undertake a thorough investigation following a reportable incident or employee complaint, and serious violations of safety standards can incur penalties of $15,625 per violation; fines of $156,259 may be assessed for each willful or repeated violation.2

Different conditions, different safety standards

There are a variety of OSHA classifications for forklifts and other powered industrial trucks. Operators are required to know the specifications of each, and OSHA requires training and evaluation for anyone operating these pieces of equipment. Operators also must have their skills reevaluated every three years.

Forklift drivers are not required to be licensed, nor are operators of other mobile equipment used off roads, including log loaders. However, training is especially important, as only highly skilled employees properly operate powered industrial trucks. Financially, there can be a lot at stake. Log loaders, for example, can cost hundreds of thousands of dollars.

General liability insurance covers vehicles like forklifts. Before issuing coverage underwriters examine a company’s loss runs, as well as its safety program as a whole and compliance with the safety program. In addition, companies are expected to meet current safety standards and address risks specific to their work environment.

Mitigate the risk and improve forklift safety

To mitigate the risk of forklift accidents and understand how to react to one, take the following into consideration:

  • Develop a Powered Industrial Truck Safety Program that serves as a guide and resource.
  • Audit the program against current OSHA standards, determine what needs improvement and adjust accordingly (such as updated worker training).
  • Remember that in the event of a serious injury, OSHA inspectors are likely to be onsite quickly, often within 24 hours. OSHA will examine the company’s safety program, along with individual safe operating procedures for hazards like forklifts and current records of operator safety training.

Contact a HUB forestry and wood products expert to learn more about mitigating the risks of forklifts and log loaders.

1 National Safety Council, “Safety Topics: Forklifts,” accessed March 28, 2023.

2 United States Department of Labor, “OSHA Penalties,” January 13, 2023.