Scrap Dealer Insurance
Automotive scrap dealers work in a high-risk environment and, as such, need the very best insurance coverage to mitigate any potential claimworthy situations. From the scrap yard to the materials being traded, every aspect needs to be insured, which means taking out a broad and wide-ranging policy from a dedicated broker.
Scrap metal merchants that deal with cars, vans, and other vehicles on a daily basis will be expected to have motor trade scrap dealer insurance in place in order to be trusted by customers.
What You Need to Know About Scrap Dealer Insurance
Scrap dealer insurance is a relatively niche product, meaning you’ll need to work with specialists in order to find the best level of cover. Luckily, Go Motor Trader works with a panel of deciated brokers who understand the unique risks you face during the course of your work. There are a few things that need to be insured – the scrap yard/premises you work from, the equipment you have on-site, and the vehicles you transport.
If any single one of these elements is not properly covered, you may find yourself out of pocket in the event of a claim. Legal fees and compensation costs can run into the tens of thousands, if not more, so it is absolutely vital to have scrap dealer insurance in place. Liabilty cover is another worthwhile feature to consider as it will look after your staff and customers for the time they are present on your site, which itself could be a dangerous environment.
Features of Scrap Dealer Insurance
Scrap dealer insurance is made up of a number of key features that come together to create a broad level of coverage. The elements you should consider including as part of your policy are:
Public Liability Insurance
There is a high risk of accidents at a scrap yard. Ensuring that members of the public are covered against injury is a very important aspect, as a single claim could run into the thousands should the claimant be successful. Even the cost of defending yourself in court can covered by public liability insurance – you can usually choose to insure yourself up to around £5million.
Employers’ Liability Insurance
In the same way public liability protects your customers/members of the public, employers’ liability cover looks after your employees. It is a legal obligation even if you employ just one person, and there are significant fines if you do not have this cover in place (up to £2500 per day). It will look after the costs associated with a claim made against you by a current or previous employee.
Premises and Equipment Cover
The premises you work from and the specialist tools and equipment you use needs to be covered. If a fire, flood, or storm causes significant damage to your premises, you will have to pay to have the damage repaired. Similarly, if theives break into your property and steal valuable equipment, you cannot perform your job adequately. Insurance mitigates these costs so you can get back to work promptly after such an event
Goods in Transit Cover
The scrap you transport is valuable to your business and therefore needs to be protected for the duration of transportation. Goods in transit insurance, also known under the acronym GIT, covers the cost of the metal while it is being moved from point A to point B. It will cover loss, theft, or destruction of those materials through an accident or collision.
Breakdown Cover
If you have been tasked with transporting an old car or van to your yard for scrapping and the vehicle breaks down, the chances are it will be tough to get it back on the road again. The car itself may be on its last legs anyway, so calling out roadside assistance may not fix the issue. In the event of a breakdown, insurance will cover the cost of getting the vehicle back to the yard.
Fleet Insurance
If you operate a large scale scrap business that utilises a number of vans to transport scrap and tools from one place to the next, it might be a good idea to purchase a fleet insurance as part of your motor trade scrap dealer insurance policy. It will mean all your vehicles sit under the same policy, with all paperwork in one place and a single date of renewal for all vehicles. This can save you a great deal in terms of money and time.