Required Metal Recycling Business Insurance Coverage Explained
- 6 hours ago
- 2 min read
Running a scrap yard or metal recycling business comes with unique risks. From theft and property damage to environmental liabilities, having the right insurance coverage is not optional—it’s essential. Without proper protection, even a small accident can become a costly setback. Understanding the types of insurance you need will ensure your business stays protected and compliant.
1. General Liability Insurance
General liability insurance protects your scrap yard against third-party claims of bodily injury or property damage. For instance, if a client slips on your premises or a contractor damages nearby property, this coverage can help pay legal fees and settlements. This policy is often considered the backbone of any metal recycling business insurance plan.
2. Property Insurance
A scrap yard contains valuable machinery, inventory, and vehicles. Property insurance safeguards these assets against fire, theft, vandalism, or natural disasters. From forklifts to stockpiled scrap metal, property insurance ensures your operations can recover quickly after an unexpected event.
3. Workers’ Compensation
Metal recycling involves heavy equipment, sharp metals, and industrial hazards. Workers’ compensation insurance provides medical care and wage replacement to employees injured on the job. It also protects your business from lawsuits, creating a safer workplace and peace of mind for staff.
4. Environmental Liability Insurance
Scrap yards face environmental risks, including contamination from metals or chemicals. Environmental liability insurance covers cleanup costs, regulatory fines, and legal expenses. This is especially important as environmental compliance becomes more strictly enforced by local and federal agencies.
5. Commercial Auto Insurance
Scrap yards often operate trucks and trailers to transport metals. Commercial auto insurance covers damages and injuries from vehicle accidents. This protects both your business and your drivers, ensuring continuity even in transportation mishaps.
Why Insurance Matters for Your Scrap Yard
Proper insurance not only safeguards your business financially but also builds credibility with customers and suppliers. It shows that your scrap yard takes safety and legal compliance seriously, giving clients confidence in working with you.
Get a Quote from Wexford Insurance
Every scrap yard has unique needs, so it’s essential to tailor coverage to your specific operations. Wexford Insurance specializes in helping metal recycling businesses find the right insurance solutions. Request a personalized quote today to protect your business.
