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