Insuranks
Insuranks

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

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

For your best business protection and savings, we recommend bundling GL with some other important coverages on one Business Owners Policy!

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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.  

If you own or manage a salvage yard, you know that your business comes with a lot of risks. 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 it's important to have the right salvage yard insurance coverage to protect your business and give you 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 receivable ExcludedExcluded$5,000/10,000IncludedExcluded
Money and securitiesExcluded$2,500$1,000IncludedExcluded
Lock and keys Excluded$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.