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Scrapping’s hard work and if you run a scrap metal business you’ll understand the risks involved – which is why it’s vital to have the right cover.

Fortunately there are a growing number of insurance providers that can provide suitable cover for motor trade businesses that specialise in scrap metal and if you use Quotezone.co.uk’s price comparison website to compare the range of available policies you’ll be more likely to find the right cover at the right price.

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Why do I need scrap insurance?

Scrap metal insurance is specifically designed to protect scrap businesses from the risk of financial loss if something goes wrong.

Policies can also compensate you for damage to machinery and tools as well as your business premises and stock.

What does scrap metal insurance cover?

Like other types of business cover, scrap insurance policies can be tailored to meet your needs.

To work out what’s right for you, think about your every day activities and the types of risk you want cover for – for example:

• Van insurance – standard commercial van insurance policies won’t always cover large or heavy goods vehicles. If you’re towing or collecting scrap in anything over 7.5 tonnes you’ll need to let your insurer know or choose a specialist policy. You should also ensure you’re covered for any unusual vehicles like caged vans or tippers.
• Employers’ liability – this covers the risk that you might be sued if an employee is injured during the course of their work, and is a legal requirement if you employ staff (including part-time or casual workers).
• Public liability – covers legal fees and compensation if members of the public have an accident on your premises or because of your business activities.
• Product liability – covers claims if a vehicle component or part you sell turns out to be faulty.
• Road risk – insures you for driving cars that don’t belong to you. While it probably goes without saying that most scrapped vehicles won’t be roadworthy, it is possible you might be asked to collect a car that is an insurance write-off but has only sustained cosmetic damage (known as a ‘category n write-off’). If you were to agree to collect the car you’d need road risk insurance.
• Business premises – protects your scrap yard and office from insured events like fire, flood or vandalism.
• Tools and equipment – covers any machinery and equipment you have.
• Goods in transit – if you’re transporting any goods as part of your business operations (engine parts or other vehicles, for instance) then this covers you for loss or damage.

How much does breaker’s yard insurance cost?

Every motor trade insurance policy is tailored to meet your specific business needs, which means it’s impossible to give an average cost for this type of cover.

In addition to taking into account the specific policy features and add-ons you require, insurance providers also take a range factors relating to your business into account when calculating your premiums, including:

• The size of your business and number of staff – the bigger your scrap metal business, and the more staff you employ, the greater the chance of a claim being made.
• Your location – areas with higher levels of crime or higher road accident rates are likely to attract higher premiums.
• Extra features – the more risks you need to cover, the higher your premium is likely to be. On the other hand, it’s important not to ignore genuine risks because if you’re inadequately insured it could cost you more in the long run.
• Your claims history – if you’ve made lots of claims in the past then this will be reflected in your premium.

How can I get cheap scrap car insurance?

To lower the cost of your scrap metal insurance, think about:

• Paying for the full year upfront in order to avoid extra fees and interest charges.
• Only insuring a few named drivers on commercial vehicle and road risk policies. Drivers that hold clean licences and are over the age of 25 are also cheaper to insure.
• Ensuring your breaker’s yard and office are as secure as possible, and consider installing an alarm or other security features.
• Keeping vehicles in a locked garage overnight, if at all possible.
• Increasing your voluntary excess.

Of course, beyond those steps one of the easiest things you can do to find a cheaper scrap insurance policy is to compare quotes from a wide range of providers – and that’s where Quotezone.co.uk’s insurance comparison website can come in very handy indeed.