Metal Recycling Company Insurance
Getting insurance for your metal recycling company is essential.
Metal recycling companies need to be protected against things like violations of environmental regulations, property disputes, and breach of contract.
For example, your metal recycling company accepts metal that has been stolen, or a neighboring property owner accuses your business of emitting toxic fumes.
We’ll help you find the most personalized and affordable coverage for your unique business.
Recommended: Next Insurance is dedicated to matching small businesses with the right policy at the best price.
Best Insurance for a Metal Recycling Company
General liability insurance is — generally speaking — one of the most important insurance policies for metal recycling companies.
Some of the risks general liability insurance covers are:
- Bodily injury
- Property damage
- Medical payments
- Legal defense and judgment
- Personal and advertising injury
In order to compound the protection of general liability, some of the following policies are often used by metal recycling companies:
- Commercial property insurance: Protects the building used for business property from a number of specific events, such as vandalism, theft, and natural disasters.
- Workers’ compensation insurance: Financially assists workers who have fallen ill at work or been injured in the performance of a workplace accident.
- Product liability insurance: Protects your business from the legal costs and damages of claims made against you that your metal has caused harm to an individual.
It is important to be aware of the two following types of insurance providers when shopping for coverage for your metal recycling company:
- Traditional brick-and-mortar insurers — Including providers like The Hartford, Hiscox, and Nationwide.
- Online insurers — Including providers like Tivly and Next.
Online insurers are typically favored because their policies are extremely economical when compared to traditional insurers.
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Cost of General Liability Insurance
On average, metal recycling companies in America spend between $400 - $700 per year for $1 million in general liability coverage.
Compare the average cost of general liability insurance for a metal recycling company to other professional industries using the graph below.
Several factors will determine the price of your policy. These include your:
- Location
- Deductible
- Number of employees
- Per-occurrence limit
- General aggregate limit
You may be able to acquire general liability insurance at a discounted rate by purchasing it as part of a business owner’s policy (BOP) rather than as a standalone policy.
A BOP is a more comprehensive solution that includes multiple forms of coverage, such as business interruption and property insurance.
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Common Situations That General Liability Insurance May Cover for a Metal Recycling Company
Example 1: As you transport metals to your recycling machine, some of the material falls off your truck and damages a client’s car. General liability insurance would cover the client’s vehicle repair costs.
Example 2: While dropping off metal at your facility, a client injures herself after using a piece of defective equipment to deposit the materials. General liability insurance would cover the client’s medical bills.
Example 3: An employee damages your recycling facility when he accidentally drives a truck into the side of the building. General liability insurance would cover the cost of repairing the structural damage.
Other Types of Coverage Metal Recycling Companies Need
While general liability is the most important type of insurance to have, there are several other forms of coverage you should be aware of. Below are some of the most common types of coverage:
Commercial Property Insurance
If you own the building in which you operate, commercial property insurance helps protect your business-related property from a variety of events, such as theft, vandalism, and extreme weather. It covers the physical structure of your facility as well as repairing or replacing any equipment, scrap metal, and other materials you store there.
Workers’ Compensation Insurance
Most states require businesses to carry workers’ compensation insurance for their part-time and full-time employees. This coverage protects your employees if they become injured at work or fall ill after a work-related accident. It not only covers an employee’s medical bills and lost wages if they need time to recover, but also any disability or death benefits stemming from a work-related accident.
Product Liability Insurance
If you sell your recycled metals to other businesses, product liability insurance can protect you in the event a client claims your products caused them harm. If any of your recycling products malfunction, this coverage would pay your legal costs and any awarded damages stemming from a lawsuit.
Commercial Auto Insurance
Any vehicle you use primarily for business requires commercial auto insurance to protect the vehicle, driver, and others on the road in the event of an accident. Be sure to select a policy that covers not only accident-related vehicle repair costs and medical treatment for anyone injured, but also sufficient protection for any business equipment or supplies you carry in your vehicle. This coverage also would pay for damages caused by metal falling off your company trucks and hitting other vehicles on the road.
Commercial Umbrella Insurance
While your general liability insurance policy covers most claims, some accidents or lawsuits may be so catastrophic that they threaten to exhaust the limits of your primary coverage. Commercial umbrella insurance protects you from paying out-of-pocket for any legal fees and awarded damages that exceed your primary policy. This insurance also will cover costs associated with restoring your company’s reputation.
Additional Steps To Protect Your Business
Although it’s easy (and essential) to invest in business insurance, it shouldn’t be your only defense.
Here are several things you can do to better protect your metal recycling company:
- Use legally robust contracts and other business documents. (We offer free templates for some of the most common legal forms.)
- Set up an LLC or corporation to protect your personal assets. (Visit our step-by-step guides to learn how to form an LLC or corporation in your state.)
- Stay up to date with business licensing.
- Maintain your corporate veil.
Metal Recycling Company Insurance FAQ
Yes, absolutely. You will need to first get a quote from an online business insurance provider like Next Insurance. Next allows you to then purchase a policy immediately and your coverage will be active within 48 hours.
A typical business owner’s policy includes general liability, business interruption, and commercial property insurance. However, BOPs are often customizable, so your agent may recommend adding professional liability, commercial auto, or other types of coverage to your package depending on your company’s needs.
"Business insurance" is a generic term used to describe many different types of coverage a business may need. General liability insurance, on the other hand, is a specific type of coverage that business owners need to protect their assets.
It’s imperative to the smooth running of your metal recycling company that it possesses business insurance before its launch.
Neglecting to secure this coverage not only exposes you to greater financial risks but also a greater legal liability, as your business may be mandated by law to hold specific policies, such as workers’ compensation insurance.
Not necessarily. Certain exceptions may be written directly into your metal recycling company insurance policy, and some perils may be entirely uninsurable.
Yes, an LLC is meant to create a legal barrier between your business and your personal assets and credit. If you haven’t formed an LLC yet, use our Form an LLC guide to get started.
An LLC doesn’t protect your business assets from lawsuits and liability– that’s where business insurance comes in. Business insurance helps protect your business from liability and risk.