Scrap Metal Dealer Insurance

What is scrap metal dealer insurance?

Scrap metal dealer insurance is a form of motor trade insurance built around the risks of running a scrap yard or breakers yard. Working in the scrap industry involves driving company cars and customer vehicles and operating heavy machinery, so having the correct cover in place can prove essential should an accident happen.

No single scrap business is the same, so policies are tailored. Depending on your circumstances, some elements of the cover may also be a legal requirement.

Who needs scrap dealer insurance?

Any scrap dealer, scrap yard or breakers yard that drives vehicles, employs staff or owns premises and machinery is likely to need some form of cover. Even where most of the vehicles you take in are un-drivable, there may be times when you drive a customer's vehicle back to the yard, and that requires road risk insurance.

If you have employees, employers' liability insurance is a legal requirement for most businesses. Yards with buildings and expensive equipment will also want to protect those assets.

What does scrap yard insurance cover?

A scrap dealer insurance policy is tailored to your business and may include some or all of the following:

• Road risk cover: covers you when driving a customer's vehicle back to the yard for recovery. It can also cover all or some of your employees to drive company cars, tow trucks and other vehicles, provided they are driven for business purposes.
• Employers' liability: protects employees and employers from incidents including accidents at work. It is a legal requirement for most businesses with employees.
• Business premises cover: protects your scrap yard and buildings from risks including fire and flood damage.
• Equipment cover: insures the expensive machinery and equipment a scrap yard relies on to carry out its business.

What is not covered by scrap dealer insurance?

Cover only applies to what is written into your policy, so anything you have not insured is not protected. Road risk cover, for example, applies to vehicles driven for business purposes, and employers' liability only responds if you have taken it out. Premises and equipment are not protected unless those covers are included.

Because policies are tailored, talk through each aspect with the insurance provider before you buy so you know exactly what is and is not included. Also discuss the claims process before purchasing cover to make sure you are satisfied with it.

Is employers' liability insurance a legal requirement for scrap yards?

Yes, for most businesses with employees. Employers' liability insurance protects employees and employers from incidents including accidents at work, and the minimum level of cover required is typically £5,000,000.

Road risk cover is also needed whenever you or your staff drive customer or company vehicles on the road for business purposes.

How much does scrap metal dealer insurance cost?

There is no set price. Working in a scrap yard is on the riskier end of the spectrum of businesses and policy prices reflect this. Premiums are calculated on a multitude of factors including age, experience, number of employees, location and the covers required.

The best way to get an accurate cost is to request a no-obligation quote and discuss your requirements with a specialist insurer.

How can I cut the cost of scrap dealer insurance?

You can reduce the cost of scrap yard insurance by:

• Not over-insuring: buying more cover than you need is an easy mistake. Talk through each policy aspect with the insurance provider.
• Building up a no claims bonus: this will not help immediately if it is your first trade policy, but a no claims bonus on your scrap yard insurance helps reduce costs over time.
• Using experienced drivers: experienced named drivers who are conviction and accident-free help reduce costs. Avoid adding drivers under the age of 25, as they tend to increase claim rates and cost more to insure.
• Paying annually: paying in one yearly payment avoids the interest charges that come with spreading the cost over 12 months.
• Comparing each year: auto-renewing is easier, but you are unlikely to be given the best price available if you stay put. Comparing quotes each year means you could take advantage of new customer prices.

How do I compare scrap dealer insurance quotes?

Complete one short quote form with your details. Specialist motor trade insurers on a panel will then contact you with quotes tailored to your scrap business, and you can discuss your requirements with them before deciding. If you are happy to proceed, you purchase the policy directly with the insurer.

Because scrap yard policies are tailored, most detailed questions about cover are best answered by the insurer quoting for you. Quote Goat provides access to the comparison service; it does not arrange or sell the insurance.