Scrap Dealer Insurance

Let’s take a closer look at what scrap insurance covers:

Insurance while on the road

• Van insurance covers scrap metal dealers’ commercial vehicle transporters. It’s best to check the fine print for van insurance though as some providers may not cover cage trucks or other heavy goods vehicles (HGVs). Any vehicle transporting over 7.5 tonnes of scrap metal needs specialist insurance.
• Road risk insurance is the most basic level of cover you need when operating vans that you don’t own. For example, if you rent vans to transport scrap metal from A to B. Even though much of the metal you transport may not be roadworthy, it’s advisable to have road risk insurance in case you need to transport Category N write-off vehicles. These cars are deemed “cosmetic” write-offs (by insurance companies) but are still functional.
• Trailer insurance can be added to basic third-party and third-party, fire and theft policies if you use trailers as part of your business operations. It may be included in fully comprehensive plans but needs to be confirmed with your chosen insurance provider.

Protection for tools, goods and business premises

• Commercial properties: Just like any company, it’s important to consider taking out insurance for your business premises, including office buildings, scrap yards or storage units. Commercial property insurance covers you for unfortunate events like fires, floods, theft, burglary and vandalism.
• Tools and equipment: You can take out insurance that protects tools, specialist equipment and machinery that you and your employees use in your scrap yard or out on the road.
• Goods in transit: It’s also a good idea to organise insurance cover for the goods that you are transporting. This would ensure the scrap you pick up and transport back to your yard is covered while in transit.
• Business interruption cover: This offers protection should your business operations come to a standstill due to unforeseen reasons (flooding, fire, extensive property damage due to a burglary). You’ll receive compensation for lost income and can get help with ongoing expenses.

 

Liability cover

• Employer’s liability cover: If you employ staff – full-time, part-time or casual – you’ll legally need employer’s liability insurance. This covers your business in case an employee is injured at work and requires compensation.
• Public liability cover: Similar to employer’s liability cover, public liability cover will cover legal fees and compensation if a claim is brought against you by a member of the public (a.k.a third parties). This type of cover protects your business if someone is in an accident at your scrapyard or is injured because of your business activities.
• Product liability cover: You might also want to take out product liability cover, particularly as you will be dealing with scrap parts you cannot vouch for. Product liability insurance provides covers in cases where you replace vehicle components which turn out to be faulty.
• Environmental liability cover: This policy covers clean-up costs and damages caused by pollution or contamination of third-party properties, such as soil and water sources. Environmental damage is quite common in this line of business.
 

Note: Some of the above-mentioned policies may not be “standard” but can be included as add-ons to your scrap insurance policy. Only opt for the type of cover you need to avoid unnecessary premiums costs.

 

What’s not covered by scrap insurance

• Unnamed/uninsured drivers
• General wear and tear on your transport vehicles (e.g. tyres)
• Deliberate damage to scrap metal items or vehicle transporters
• Damage caused by driving under the influence of drugs or alcohol
• Negligence (leaving keys in the ignition and vehicles are stolen)