Insurance Guide For A Breakers Yard
What is Breakers Yard insurance?
One of the less well-known types of motor trade insurance is the type required by scrap dealers and breakers yards. Breakers Yard Insurance supports businesses operating at the end of a vehicle’s lifetime with coverage for their premises, equipment and the specific risks of working with scrap.
These sites are often hazardous due to the storage of damaged cars and the use of heavy machinery such as crushers and cranes. The high risk of employee injury, whether onsite or while retrieving vehicles from the roadside, means a particular type of insurance is required.
Why Do People Scrap Cars?
Unfortunately, vehicles lose value as they age, particularly if their mileage is high, and by the time they are over ten years old most vehicles are worth very little. This may be due to damage, such as in a category D write-off, or it may be outdated and no longer compliant with emissions standards under Euro 6.
Setting Up a Breakers’ Yard
– Licensed by Local Authority.
– Lucrative business – can generate profit quickly. An established salvage yard in the west midlands can achieve an annual turnover of more than £100,000.
Motor Trade Insurance for a Breakers Yard
Scrap dealers and breakers yards face unique challenges that ordinarily aren’t a factor in other motor trade businesses. Car breaking is often dangerous and hazardous work, both to staff and in environmental terms, so it’s important to have the right types of insurance in place. If you are looking for a motor trade combined insurance policy tailored to scrap and breakers yards, make sure it includes:
Employer’s Liability Insurance: a legal requirement in the UK for any business with employees, even if they are family members. This ensures you are able to provide compensation following an injury at work.
Public Liability Insurance: this is not legally required, but advisable to have in case of an accident that leads to a member of the public getting hurt. While breakers yards follow health and safety guidelines, if any mistakes are made this insurance will cover compensation for a third party.
Road Risk Insurance: this covers any vehicles owned by the business such as recovery vehicles as well as damaged vehicles. Road risk insurance is available in third-party only, third-party fire and theft, or comprehensive.
Business Premises Cover: insurance for your site, offices and any contents including stock and equipment. This usually covers theft, fire or flood damage.
Tools & Equipment Insurance: This covers costs of repair or replacement of equipment due to breakdown, damage or theft. Coverage for equipment and premises is invaluable in keeping businesses going when vital tools are out of action
As a type of Motor Trade Insurance, Breakers Yard insurance policies may also include:
– Product Liability
– Stock Insurance
– Money Cover
– Engineering Inspection Cover
– Management liability Insurance
– MOT loss of licence cover
– Business Interruption cover
Trust Nash Warren to find the Right Breakers Yard Insurance Policy
At Nash Warren, we broker insurance deals for motor traders as our main business stream. With access to the best deals from top insurers and decades of experience working with motor traders, we understand the complexities and risks of running a breakers yard or scrap yard.
Our team can advise on which types of insurance will benefit your business most, and find the right combination at the right price for your budget. To understand more about our motor trade insurance offer, browse our website or contact a Nash Warren insurance expert.