Written by Michael Foote, Insurance Expert
Public liability insurance is one of the most important protections for a scrap metal dealer. It covers claims made by members of the public who suffer injury or property damage connected to your business activities. For example, a customer or delivery driver could trip in the yard, or damage might occur while you are moving a vehicle on site. Without cover, your business would be directly responsible for any compensation and legal costs.
Typical Limits
Typical limits for scrap dealers range between £2 million and £5 million, though higher levels can be required by councils, landlords, or contractors before they allow you to operate. If you employ staff, employers’ liability insurance is usually a legal requirement at £10 million. Together, these two liability covers form the backbone of most scrap dealer insurance packages.
It’s also common to combine liability with road risk insurance, especially if you collect vehicles or drive them around the site, and with premises insurance for your yard, plant and equipment. Some insurers will also look at your risk management practices before offering terms, such as whether you separate pedestrian walkways, provide banksmen during loading, or have spill control systems in place.
Because of the nature of the trade, public liability insurance is not just an optional extra but a critical layer of protection. A single incident can result in claims running into thousands of pounds, and liability cover helps safeguard your business against that financial risk.
What Next?
If you are reviewing your policy, look at comprehensive scrap metal dealer insurance that includes public liability alongside road risk and premises protection.
