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.
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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? | Yes | No | Included | Can be included | No |
| Hired/non-owned auto liability coverage included? | Yes | No | No | Can be included | Can be included |
| Equipment breakdown floater included? | No | Yes | Yes | Can be included | Can be included |
| Can you get a certificate of insurance online? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds? | Yes | Yes | Yes | Yes | Yes |
| 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
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
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
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.
Get all the best quotes from leading providers in a click of a button!
| CoverWallet | NEXT (Best) | Thimble | Hiscox | The 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 signs | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Accounts receivable | Excluded | Excluded | $5,000/10,000 | Included | Excluded |
| Money and securities | Excluded | $2,500 | $1,000 | Included | Excluded |
| Lock and keys | Excluded | $2,500 | Excluded | Excluded | Excluded |
| Business interruption floater | Excluded | Included | Included | Included | Excluded |
| Equipment breakdown floater | Excluded | Included | Excluded | Excluded | Excluded |
| Inland marine insurance floater | Excluded | Excluded | $10,000 | Excluded | Excluded |
| Employee dishonesty floater | Excluded | $5,000 | $2,500 | Included | Excluded |
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
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
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.
_S-1mo6Fmrq.png)
| CoverWallet | Thimble (Best) | NEXT | Hiscox | The 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? | Yes | Yes | Yes | Yes | Yes |
| Name additional insureds for free? | Yes | Yes | Yes | Yes | Yes |
| BOP discount? | Yes | Yes | Yes | Yes | Yes |
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
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
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.
| NEXT | Thimble | Hiscox | The 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/$5,000 | No | Yes |
| Miscellaneous equipment also covered? | $5,000/$10,000 | No | Yes | Yes |
| Offered as an endorsement to general liability insurance? | Yes | Yes | Yes | Yes |
| 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
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
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.
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.
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.
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
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
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.
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.
| Cost per Month | Cost per Year | Deductible | |
|---|---|---|---|
| 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 Month | Cost per Year | Best for | |
|---|---|---|---|
| NEXT | $33 | $396 | Best overall; Fastest general liability insurance for wrecking yard |
| CoverWallet | $35 | $420 | Comparing salvage yard insurance quotes online |
| The Hartford | $38 | $456 | Established salvage yard owners looking for extensive insurance coverage |
| Tivly | $40 | $480 | Comparing salvage yard insurance quotes over the phone |
| Thimble | $42 | $504 | Salvage yards looking for on-demand insurance coverage |
| Hiscox | $45 | $540 | Salvage yard insurance with automatic renewal |
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
Get all the best quotes from leading providers in a click of a button!
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.
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
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
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
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
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
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
Reasonable insurance coverage options
Quick and easy application process
Digital platform that makes it easy to manage insurance policies.
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
Flexible coverage options
On-demand coverage options
Digital platform that makes it easy to manage insurance policies
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
Expertise in providing insurance for niche industries
Offers discounts for bundling multiple policies
Offers coverage for businesses operating in numerous countries
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
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!
Not all those who wander are lost.
Disclosure: Insuranks.com is an independent educational comparison service and an advertising-supported publisher. Some of the companies/offers that appear on the website are from our partners which we may receive compensation from. This may influence which companies/offers we write about and where and how it appears on the site. However, this does not impact our assessments. We solely highlight companies, products, and offers that can help you make smarter insurance decisions.
