Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a metal recycling firm.

Business insurance is intended to safeguard the financial assets of a business owner and is a necessary investment for a metal recycling firm.

This article will discuss the primary insurance coverage for metal recycling firms, general liability insurance, as well as additional policies that are appropriate for this industry.

Metal Recycling Companies Need General Liability Insurance

Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.

General liability insurance covers the following risks:

Physical harm

Damage to property

Medical expenses

Legal defence and decision

Personal and commercial harm

While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.


Example 1: While transporting metals to your recycling facility, part of the material falls off your truck and damages a client’s vehicle. The client’s car repair expenses would be covered by general liability insurance.

Example 2: A customer injures herself while dropping off metal at your facility after depositing the items using malfunctioning equipment. The client’s medical expenditures would be covered by general liability insurance.

Example 3: An employee causes damage to your recycling plant by driving a truck into the side of the building by mistake. The expense of fixing the structural damage would be covered by general liability insurance.

Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.

General Liability Insurance Cost

Metal recycling enterprises in America pay an average of $400 – $700 per year for $1 million in general liability insurance.

The cost of your coverage will be determined by a number of variables. Among them are your:



Employees’ number

Per-occurrence restriction

The overall aggregate limit

You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more comprehensive solution that includes multiple types of coverage, such as business interruption and property insurance.

Other Types of Coverage Required by Metal Recycling Companies

While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other types of insurance that all metal recycling companies should obtain are listed below.

Insurance for Commercial Property

Commercial property insurance protects your business-related property against a number of disasters such as theft, vandalism, and harsh weather if you own the facility in which you operate. It includes the physical structure of your facility as well as the repair or replacement of any equipment, scrap metal, or other items stored there.

Insurance for Workers’ Compensation

Workers’ compensation insurance is required in most states for both part-time and full-time employees. This coverage covers your workers if they are hurt at work or get sick as a result of a workplace accident. It covers not just an employee’s medical expenditures and missed pay if they need time off to recuperate, but also any disability or death benefits resulting from a work-related accident.

Insurance for Product Liability

If you sell recycled metals to other firms, product liability insurance may cover you if a customer claims that your goods harmed them. If any of your recycling items fail, this coverage will pay your legal fees as well as any damages awarded in a lawsuit.

Insurance for Commercial Vehicles

In the case of an accident, any car you use mainly for work needs commercial auto insurance to cover the vehicle, driver, and others on the road. Choose a policy that not only covers accident-related vehicle repair expenses and medical care for anybody harmed, but also provides enough coverage for any business equipment or supplies you transport in your vehicle. This coverage would also cover any damages caused by metal falling from your company’s trucks and colliding with other cars on the road.

Coverage Options for Metal Recycling Companies

In addition to the policies listed above, your metal recycling firm may need other forms of coverage based on particular elements of your activities. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.

Umbrella Insurance for Businesses

While most claims are covered by your general liability insurance policy, certain incidents or lawsuits may be so severe that they threaten to deplete the limits of your main coverage. Commercial umbrella insurance protects you from having to pay for legal expenses and awarded damages that exceed the limits of your main policy out of pocket. This insurance will also cover the price of rebuilding your company’s reputation.

Additional Security Measures for Your Company

Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.

With this in mind, here are a few steps you can take to better secure your company:

Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)

To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)

Keep your company licences up to date.

Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.

If your company is an LLC, you should check into LLC insurance.