If you work as a vehicle dismantler, or you operate a breakers yard, then you may need specialist insurance to cover you for the unique risks you face in this role.
This post is an essential introduction to breakers yard insurance. We will outline what breakers yard insurance is, and what it covers. We will also discuss your specific responsibilities as a vehicle dismantler.
What is Breakers Yard Insurance?
You will face a diverse set of risks in your work as a vehicle dismantler. Rather than taking out separate policies to cover each of these risks, you can take out specialist breakers yard insurance to cover all of these risks in a single policy.
What Does Breakers Yard Insurance Cover?
We can tailor a bespoke breakers yard insurance policy to cover the unique risks you face as a vehicle dismantler. Your breakers yard insurance will likely provide cover for:
- Road Risks – The risks associated with transporting vehicles to and from your breakers yard.
- Equipment and Machinery – Vehicle dismantlers make use of specialist equipment. Your policy can cover this expensive equipment for loss, damage, or theft.
- Employer’s Liability – If you employ any staff, you have a legal requirement to get employer’s liability insurance, to cover your employees for any illness or injury they sustain at work.
- Public Liability – As well as protecting your employees, you also need cover for any accidents or injuries that might take place when members of the public visit your breakers yard.
- Buildings – Cover for your business premises for any damages sustained as a result of fire, flood, theft, and other scenarios.
- Business Interruption – If you are unable to operate for a period of time, your breakers yard insurance policy can provide compensation for your downtime.
Your Responsibilities as a Vehicle Dismantler
As we mentioned above, you have a legal obligation to get certain forms of liability insurance. Yet as a vehicle dismantler, there are certain other key responsibilities to be aware of:
- Licences – You will need an End of Life Vehicle (ELV) permit from the Environmental Agency (EA) in order for your breakers yard to be classed as an authorised treatment facility (ATF). You may also need a scrap metal dealer’s licence from your local council, and you will need to issue official certificates of destruction (CoDs) for every scrap car you process on your site.
- Depollution – As part of your duties as an ATF, you need to depollute every ELV you process. This will involve removing the vehicle’s battery, fuel, wheels, tyres, oils, catalytic converter, and more. If you do not depollute a vehicle, you must treat it as hazardous waste and follow the appropriate rules.
- Storage – You must follow certain rules for the safe storage of liquids, batteries, car shells, and any parts you intend to resell.
- Recycling – The government requires ATFs to work towards a recycling and recovery target of 95%.
- Inspections and Compliance – The EA regularly inspects ATFs. Following their inspection, you will receive a written report that will outline any breaches of your permit. The more breaches you get, the more you will pay in annual fees.
You can read a full guide to your responsibilities as a vehicle dismantler.
Specialist Breakers Yard Insurance For Vehicle Dismantlers
James Hallam is a Lloyd’s broker, and the only broker in the UK with exclusive access to a specialist ELV motor trade policy. We are the trusted advisers to both the British Vehicle Salvage Federation and the National Salvage Association, and we provide bespoke services to 50 of the top vehicle dismantlers in the UK.
We understand the unique risks you face as a vehicle dismantler, and we are uniquely placed to offer some of the most competitive vehicle dismantler insurance premiums on the market.
For more information, and a free quote, call us on 0141 212 8820, or email Scott.McLaws@JamesHallam.co.uk.