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Salvage Yard Insurance: Cost & Quotes From $50/mo

Table of contents
1. General Liability Insurance for Salvage Yards1.1. Add-Ons to General Liability Insurance for Salvage Yards2. Product Liability Insurance for Salvage Yards2.1. What Are Some Common Examples of Product Liability Claims That Wrecking Yards May Face, and How Can Product Liability Insurance Help Mitigate These Risks?3. Commercial Property Insurance for Salvage Yards3.1. Add-Ons to Commercial Property Insurance for Salvage Yards3.2. Is Commercial Property Insurance Mandatory for Wrecking Yard Businesses, or Is It Optional?4. Business Owner’s Policy for Salvage Yards4.1.   Add-Ons to  Business Owner’s Policy for Salvage Yards 4.2. Can a Business Owner’s Policy Be Customized to Include Specific Coverage for a Salvage Yard’s Unique Needs?5. Tools and Equipment Insurance for Salvage Yards5.1. Add-Ons to Tools and Equipment Insurance for Salvage Yards5.2. What Happens if My Tools and Equipment Are Stolen?6. Excess Liability Insurance for Salvage Yards6.1. Is Excess Liability Insurance Required by Law?7. Workers Compensation Insurance for Salvage Yards7.1. Add-Ons to Workers Compensation Insurance for Salvage Yards7.2. How Can Workers Compensation Insurance Be Integrated With Other Insurance Policies to Provide Comprehensive Coverage for Your Auto Wrecking Yard?8. What Should Auto Wrecking Yard Owners Look for When Selecting an Insurance Provider and Policy?9. Salvage Yard Insurance Cost9.1. How Can Wrecking Yard Owners Keep Their Insurance Premiums Affordable While Still Ensuring That They Have Adequate Coverage for Their Business Operations and Liability Risks?10. Best Salvage Yard Insurance Companies10.1. NEXT Salvage Yard Insurance 10.1.1. Pros10.1.2. Cons10.2. CoverWallet Salvage Yard Insurance 10.2.1. Pros10.2.2. Cons10.3. The Hartford Salvage Yard Insurance 10.3.1. Pros10.3.2. Cons10.4. Tivly Salvage Yard Insurance 10.4.1. Pros10.4.2. Cons10.5. Thimble Salvage Yard Insurance  10.5.1. Pros10.5.2. Cons10.6. Hiscox Salvage Yard Insurance  10.6.1. Pros10.6.2. Cons

A garbage collector will not take wrecks and scraps of metals to dumping sites. Instead, they work with salvage yards which in turn make money by selling parts that can be reused.  

Many risks can happen when running an established or startup salvage yard. Some competitors might sue for slander or libel. A tow truck you own can get damaged. It’s also possible for employees to hurt themselves while sorting the materials you keep. 

That's why having the right salvage yard insurance coverage is important to protect your business and enjoy peace of mind. In this article, we'll go over the different types of salvage yard insurance policies available.



General Liability Insurance for Salvage Yards


CoverWallet NEXT (Best)ThimbleHiscoxThe Hartford
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000$2,000,000$1,000,000/$2,000,000
Aggregate limit $2,000,000$2,000,000$1,000,000/$2,000,000$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit $2,000,000

$1,000,000$2,000,000$1,000,000$1,000,000
Advertising injury coverage aggregate limit $1,000,000$1,000,000$2,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit 
$300,000/$1,000,000
$300,000$100,000$100,000$1,000,000
Waiver of subrogation included?YesNoIncludedCan be includedNo
Hired/non-owned auto liability coverage included?YesNoNoCan be includedCan be included
Equipment breakdown floater included?No YesYesCan be includedCan be included
Can you get a certificate of insurance online?YesYesYesYesYes
Name additional insureds?YesYes
YesYesYes
Deductible$0$0$0$0$0


This salvage yard insurance coverage protects against third-party bodily injury and property damage caused by your business operations. It pays medical bills, legal fees, and settlements. The insurance has coverage limits ranging from $100,000 to $1,000,000. Here are some situations where this insurance can help:

  • A customer slips and falls on your property and injures themselves

  • A car falls off a lift and damages another vehicle

  • A customer's property is damaged while on your premises

  • A fire breaks out and causes damage to neighboring properties


Add-Ons to General Liability Insurance for Salvage Yards

  • Products and completed operations coverage–This add-on to general liability Insurance for auto salvage yards provides coverage for bodily injury or property damage caused by products you sell or services you provide

  • Professional liability insurance–This coverage can help protect your business from claims of professional negligence or mistakes made during work


Product Liability Insurance for Salvage Yards

This salvage yard insurance is a must-have if you sell any products at your yard. The  policy provides coverage for damages caused by a product you sell. The insurance typically has coverage limits starting from $100,000 to $1,000,000. Product liability insurance provides protection when:

  • A customer is injured by a defective product you sold

  • A product you sold causes damage to a customer's property

  • A product you sold causes the death of a customer


What Are Some Common Examples of Product Liability Claims That Wrecking Yards May Face, and How Can Product Liability Insurance Help Mitigate These Risks?

Product liability claims for wrecking yards can arise from various issues, such as the sale of defective auto parts or unsafe handling of hazardous materials. This insurance for wrecking yard can help mitigate these risks by providing coverage for legal fees, settlement costs, and any damages awarded to the plaintiff. Additionally, the insurance provider may offer risk management services to help the wrecking yard reduce the likelihood of product liability claims in the first place.


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Commercial Property Insurance for Salvage Yards


CoverWalletNEXT (Best)ThimbleHiscoxThe Hartford
Building coverage limit (minimum)$50,000$260,000$25,000/$500,000$25,000$60,000
Contents coverage limit (minimum)$50,000$22,000$25,000/$500,000$25,000$60,000
Outdoor signsExcluded$2,500ExcludedExcludedExcluded
Accounts receivableExcludedExcluded$5,000/10,000IncludedExcluded
Money and securitiesExcluded$2,500$1,000IncludedExcluded
Lock and keysExcluded$2,500ExcludedExcludedExcluded
Business interruption floaterExcludedIncludedIncludedIncludedExcluded
Equipment breakdown floaterExcludedIncludedExcludedExcludedExcluded
Inland marine insurance floaterExcludedExcluded$10,000ExcludedExcluded
Employee dishonesty floaterExcluded$5,000$2,500IncludedExcluded


This is a type of salvage yard insurance that covers the physical assets of your business, including the buildings, equipment, and inventory. The coverage limit can range from $500,000 to $5,000,000. This insurance can help salvage yards in a variety of specific situations, including:

  • Fire damage to your buildings or inventory

  • Theft of equipment or inventory

  • Vandalism or malicious damage to your property

  • Natural disasters that cause damage to your buildings or inventory

  • Equipment breakdown that causes damage to your property or inventory


Add-Ons to Commercial Property Insurance for Salvage Yards

  • Business interruption coverage–Provides financial support to help your business recover from a disaster that causes a temporary closure

  • Spoilage coverage–Protect your inventory of perishable goods in the event of power outages or equipment failures


Is Commercial Property Insurance Mandatory for Wrecking Yard Businesses, or Is It Optional?

Commercial property insurance for wrecking yard businesses is typically optional, but it is highly recommended. Without proper insurance coverage, your business could be at risk of financial loss due to property damage or theft. It's important to consult with an experienced insurance agent to determine the appropriate level of coverage for your wrecking yard's specific needs.


A lot of cars are parked in a salvage yard.


Business Owner’s Policy for Salvage Yards


CoverWalletThimble (Best)NEXTHiscoxThe Hartford
General liability aggregate limit$2,000,000$2,000,000$2,000,000$300,000$1,000,000/$2,000,000
Commercial property coverage limit$50,000$500,000$260,000$25,000$75,000
Optional policies can be added?YesYesYesYesYes
Name additional insureds for free?YesYesYesYesYes
BOP discount?YesYesYesYesYes


A BOP combines general liability insurance and property insurance into one policy. The coverage limits for most BOPs offer limits up to $1 million for general liability insurance and up to $5,000,000 for property insurance. A BOP for salvage yards can help cover a wide range of incidents, including:

  • Third-party injuries that occur on your business property

  • Property damage caused by your business operations

  • Theft or damage of your business property

  • Business interruption due to covered losses


Add-Ons to Business Owner’s Policy for Salvage Yards

  • Cyber liability insurance, which can help cover losses from cyber-attacks or data breaches

  • Employment practices liability insurance, which can help protect your business from claims of wrongful termination, discrimination, or harassment


Can a Business Owner’s Policy Be Customized to Include Specific Coverage for a Salvage Yard’s Unique Needs?

This policy can be customized to include specific coverage for a salvage yard's unique needs. Depending on your salvage yard insurance company, the policy can be tailored to include additional coverage such as commercial auto insurance, tools and equipment insurance, and umbrella insurance. It's important to work with an experienced insurance company to help identify the specific coverage needs for your salvage yard and customize the policy accordingly.


Tools and Equipment Insurance for Salvage Yards


NEXTThimbleHiscoxThe Hartford
Aggregate limit$3,000/$10,000$2,500/$5,000$15,000/$25,000$5,000-$10,000
Covers hired and borrowed equipment?$3,000/$10,000$2,500/$5,000NoYes
Miscellaneous equipment also covered?$5,000/$10,000NoYesYes
Offered as an endorsement to general liability insurance?YesYesYesYes
Deductible$500$500$0$0


Tools and equipment are essential to the success of your business. This insurance policy covers the cost of repairing or replacing your tools and equipment. Some insurance companies may offer coverage limits as low as $5,000, while others may offer coverage up to $250,000 or more. The insurance can help you in various situations, such as:

  • Damage to tools and equipment while in transit

  • Malfunction or breakdown of equipment

  • Damage to equipment caused by natural disasters such as fire, flood, or earthquake

  • Damage to tools and equipment caused by employee negligence

  • Vandalism or intentional damage to equipment

  • Loss of income due to equipment breakdown or damage leading to business interruption


Add-Ons to Tools and Equipment Insurance for Salvage Yards

  • Replacement cost coverage–This coverage will replace your tools and equipment with new items of similar kind and quality, even if the cost to do so exceeds the actual cash value of the lost or damaged item.

  • Inland marine coverage–This coverage extends to your tools and equipment when they are away from your salvage yard, such as when you take them to job sites


What Happens if My Tools and Equipment Are Stolen?

If your tools and equipment are stolen, you should first contact the police and file a report. Then, contact your salvage yard insurance provider to file a claim. The insurance company will investigate the theft and determine the coverage amount based on your policy's coverage limits and the value of the stolen items. You will need to provide proof of ownership and any other necessary documentation to support your claim.


Excess Liability Insurance for Salvage Yards

This policy provides additional coverage beyond the limits of an existing liability policy. You can use excess liability insurance if a liability coverage can’t fully cover a claim or if the primary limits has been exhausted. Generally, the insurance provides coverage limits ranging from $1 million to $10 million or more.


Is Excess Liability Insurance Required by Law?

Excess liability insurance is not legally required for salvage yard businesses. However, depending on the specifics of your operations, it may be a wise decision to invest in this type insurance for wrecking yard. It can provide extra protection against large liability claims that could potentially harm your business financially.


Workers Compensation Insurance for Salvage Yards

There were approximately 2.8 million non-fatal workplace injuries and illnesses reported by private industry employers in 2019 alone. This highlights the importance of having workers compensation insurance in place for salvage yard employees.

The coverage limits for workers compensation insurance vary depending on the state where your salvage yard is located. Each state has its own laws and requirements. Workers compensation insurance can help in situations such as:

  • Injuries that occur on the job, such as slips, falls, or accidents involving machinery or vehicles.

  • Illnesses that result from workplace exposure to hazardous materials, such as chemicals or asbestos

  • Repetitive motion injuries, such as carpal tunnel syndrome, that develop over time from performing the same tasks repeatedly


Add-Ons to Workers Compensation Insurance for Salvage Yards

  • Occupational accident insurance–This coverage provides benefits to employees who are injured on the job but are not covered under workers compensation insurance

  • Disability insurance–This coverage fits out benefits to employees who are unable to work due to a disability


How Can Workers Compensation Insurance Be Integrated With Other Insurance Policies to Provide Comprehensive Coverage for Your Auto Wrecking Yard?

Workers compensation insurance can be integrated with other insurance policies in a BOP to provide comprehensive insurance for auto wrecking yard. By combining policies with workers compensation insurance, you can protect your business from a variety of risks and liabilities, workplace injuries and accidents, property damage, and liability claims.


What Should Auto Wrecking Yard Owners Look for When Selecting an Insurance Provider and Policy?

If you are an auto wrecking yard owner, it is important to carefully consider your insurance options. Make sure that the policy covers all the necessary areas, such as liability, property damage, and workers' compensation.

Additionally, consider the financial stability of the insurance provider and their claims process. It is also helpful to work with an insurance company that specializes in auto wrecking yard insurance and can help you identify and address any potential coverage gaps.


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Salvage Yard Insurance Cost


Cost per MonthCost per YearDeductible
General Liability Insurance$49$588$0-$500
Commercial property insurance$75$900$1,000-$2,000
Business owner’s policy$124$1,488$1,500
Tools and equipment insurance$55$660$500-$1,000
Commercial auto insurance$80$960$500-$1,000
Workers compensation insurance$90$1,080$2,000-$5,000


The average salvage yard insurance cost is $49 per month or $588 per year for a $1 million general liability insurance. Here are some factors that can influence the cost of insurance for salvage yards:

  • Size of the business–Larger salvage yards may have more assets and employees, which can increase their risk and therefore their insurance premiums

  • Location–Salvage yards in areas with higher crime rates or natural disaster risks may face higher insurance premiums

  • Type of salvage yard–Different types of salvage yards may face different risks and insurance needs

  • Safety measures–Salvage yards that have implemented safety measures such as security cameras, fencing, and employee safety training may be viewed as lower risk and therefore receive lower insurance premiums

  • Salvage yard insurance coverage needs–The amount and type of insurance coverage needed by a salvage yard can also affect the cost of insurance

  • Deductibles–The amount of deductible a salvage yard chooses can affect their insurance premiums. Higher deductibles typically result in lower premiums and vice versa


Here’s a table showing the cost of a $1 million general liability insurance from companies we recommend:


Cost per MonthCost per YearBest for
NEXT$33$396Best overall; Fastest general liability insurance for wrecking yard
CoverWallet$35$420Comparing salvage yard insurance quotes online
The Hartford$38$456Established salvage yard owners looking for extensive insurance coverage
Tivly$40$480Comparing salvage yard insurance quotes over the phone
Thimble$42$504Salvage yards looking for on-demand insurance coverage
Hiscox$45$540Salvage yard insurance with automatic renewal


How Can Wrecking Yard Owners Keep Their Insurance Premiums Affordable While Still Ensuring That They Have Adequate Coverage for Their Business Operations and Liability Risks?

You can take several steps to keep your insurance premiums affordable. Here some tips:

  • Compare quotes–Shop around and compare insurance quotes from different providers to ensure you're getting the best possible coverage at a competitive price. This can help you find the most cost-effective insurance for wrecking yard

  • Bundle policies–Consider bundling multiple insurance policies, such as general liability and property insurance, with the same provider. This can often result in lower premiums and more comprehensive coverage

  • Manage risks–Taking steps to minimize risks and prevent accidents can also help keep auto wrecking yard insurance premiums low

  • Increase deductibles–Increasing the deductible, or the amount you pay out of pocket before insurance coverage kicks in, can help lower your monthly premiums. However, it's important to ensure that you can afford to pay the deductible in the event of a claim

Compare Cheap Salvage Yard Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Salvage Yard Insurance Companies

When it comes to finding the best salvage yard insurance companies, it's essential to consider the coverage options and the insurer's financial stability. Here are some of the companies to consider. Read some of the reviews to know their pros, cons, and average rate for a $1 million general liability insurance. 


NEXT Salvage Yard Insurance

Pros

  • User-friendly online platform for easy purchasing of insurance for wrecking yard 

  • Flexible coverage options tailored to the specific needs of the business

  • Cheap premiums 

  • Exceptional customer service

  • Fastest general liability insurance

  • Best overall

  • Enjoy up to 10% discount if you buy two or more policies 

Cons

  • Couldn’t find any

NEXT is an online insurance platform established in 2016, providing comprehensive insurance options for small businesses. The company's focus on digitalization and technology has made the process of buying salvage yard insurance simple and convenient for business owners. 

Best for: Best overall; Fastest general liability insurance for wrecking yard

Average cost: $33 per month

Our rating: 10/10


CoverWallet Salvage Yard Insurance

Pros

  • Possibility of adding or changing policies as business requirements change

  • Tailored insurance plans 

  • Digital platform is simple for buying and maintaining insurance products

  • A variety of insurance companies to select from

  • Access to qualified insurance agents for professional advice

Cons

  • Employers' liability insurance is not a distinct option

CoverWallet was established in 2015 and offers a range of salvage yard insurance products. They provide bundled insurance options combining different policies, such as consultant and general liability insurance, to enhance the comprehensiveness of coverage and protect a wider array of risks for businesses.  

Best for: Comparing salvage yard insurance quotes online 

Average cost: $35 per month

Our rating: 10/10


The Hartford Salvage Yard Insurance

Pros

  • Experienced company with a long history in the insurance industry

  • Broad range of insurance derivatives and coverage options

  • Provides insurance for businesses of all sizes

  • Strong financial stability

Cons

  • Limited add-ons to general liability insurance

The Hartford has been providing insurance coverage for over 200 years and is one of the most established insurers in the industry. They offer a wide range of insurance products, including general liability, property, and workers' compensation insurance.

Best for: Established salvage yard owners looking for extensive insurance coverage

Average cost: $38 per month.

Our rating: 10/10


Tivly Salvage Yard Insurance

Pros

  • Reasonable insurance coverage options

  • Quick and easy application process

  • Digital platform that makes it easy to manage insurance policies.

Cons

  • You need to call to get a quote

Tivly specializes in providing insurance coverage for small businesses. Tivly's mission is to simplify the insurance buying process and provide affordable coverage options for small businesses. Call now to compare quotes over the phone.

Best for: Comparing salvage yard insurance quotes over the phone 

Average cost: $40 per month.

Our rating: 9/10


Thimble Salvage Yard Insurance 

Pros

  • Flexible coverage options 

  • On-demand coverage options

  • Digital platform that makes it easy to manage insurance policies

Cons

  • You can't reach customer service by calling

This is a digital insurance platform that provides on-demand insurance coverage for small businesses. Thimble offers flexible coverage options that can be purchased by the hour, day, or month, providing businesses with the flexibility they need to adapt to changing business requirements. 

Best for: Salvage yards looking for on-demand insurance coverage

Average cost: $42 per month 

Our rating: 9/10


Hiscox Salvage Yard Insurance 

Pros

  • Expertise in providing insurance for niche industries

  • Offers discounts for bundling multiple policies 

  • Offers coverage for businesses operating in numerous countries

Cons

  • Online quoting not available all the time due to periodic site maintenance

Hiscox is a global insurance provider that offers a range of insurance products, including general liability, professional liability, and cyber liability insurance. Hiscox has been providing insurance coverage for small businesses for over 100 years.

Best for: Salvage yard insurance with automatic renewal

Average cost: $45 per month 

Our rating: 9/10


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