What is an Auto Recycler or Auto Dismantler?
Traditionally Automotive Recyclers and Automotive Dismantlers buy old cars and other vehicles that have been discarded. Once on their lot, the Auto Dismantler removes all functioning parts for re-sale as used parts. These parts can be sold to auto repair shops, collision shops, and other auto aftermarket operations where used auto parts are be needed. Some parts that have been removed from the discarded vehicle may be overhauled or fixed for sale to retail auto parts stores as well. Once all the useable parts have been removed from the vehicle, the remnant of the automotive vehicle is compressed and marketed to scrap metal dealers.
The Auto Recycling & Dismantling Industry is big in the United States
According to Automotive Recyclers Association, Automotive recyclers process over 12 million vehicles per year, making automobiles the most recycled item in the U.S. The automotive recycling industry is the 16th largest in the U.S., valued at an estimated $32 billion dollars annually. Automotive recycling businesses employ over 140,000 people at more than 9,000 locations around the country.
Insuring Auto Recyclers and Dismantlers can be difficult
Auto Recycler Insurance isn’t standard by any means. The typical Business Owner’s Policy does not address the unique insurance coverages needed to protect an Auto Recycling Business. Many factors contribute to the concerns insurance companies have about coverage of an Auto Recycler or Auto Dismantler. Often there is concern over inadequate maintenance of the business property. Another major concern is the extremely toxic and/or combustible solvents that are encountered during the dismantling of an Automotive or other vehicle, such as old car batteries and used rubber from tires, which are highly flammable.
Auto Dismantlers also do considerable amounts of welding while removing parts, which can trigger explosions due to the existence of gasoline & other flammable matter. And then there is always the concern of pollutants, such as gasoline, oil, battery fluid, & transmission fluids, that can make it into the ground water.
What are the Unique Insurance Coverages to an Auto Recycler?
There are many coverages that should be considered for an Auto Recycler/Auto Dismantler. Here are just a few:
- Stock Inside
- Demolition Expense Coverage
- Pollutant Clean-up
- Third Party Product Recall Liability
- Coverage for Vacant or leased properties
- Garage Keepers Liability
- Odometer, Title & Truth in lending/leasing Errors & Omissions
- Used Car Dealer Liability – for operations that sell used cars as well
- Re-built Parts Coverage
- Towing/On-Hook Coverage
How to Save Money of Insurance for Auto Recyclers?
There are several ways that an Auto Recycler can save money on their business insurance taking into consideration the items above that insurance companies have concerns with. Firstly, keeping the operation’s property well maintained, clear from obstructions will go far in giving an insurance confidence in offering coverage to your business. Many insurance companies will decline coverage completely to an Auto Recycler with poor property maintenance.
Many insurance companies will take in consideration your having stated Safety Policies with regular Safety Meetings with your employees. Investing in special safety training for your employees can also benefit you. If you employee drivers, having Driver Safety Manuals and training is also advantageous along with regularly checking Driver Motor Vehicle Reports to ensure your drivers are safety conscious.
Arrowhead Automotive Insurance Offers Insurance Coverage for Auto Recyclers
Traditional Business Owners’ Policies don’t address the unique needs of an auto recycler. Arrowhead Automotive Insurances’ endorsements will address the unique exposures that an auto recycler can face including those listed above (based on underwriting requirements). Arrowhead’s program has been a long-term player in the Auto Recycler and Rebuilder market. With a consistent and committed presence to the Automotive Aftermarket industry since the early 1990s, our program utilizes admitted A.M. Best “A” rated carriers to cover the exposures of various automotive businesses, such as Auto Recyclers, Rebuilders, & Dismantlers.
Our Insurance Program for Auto Recyclers, Rebuilders, & Dismantlers offer coverage for tow trucks, as long as towing is not the primary business (note: Arrowhead Automotive Insurance has a separate Towing Program). We will also cover used auto inventory for resale. Unlike many insurance companies, Arrowhead also covers “U-Pull It” yards, as long as the customer signs a Liability Waiver before entering the yard.
Arrowhead Automotive Insurance is a leading national insurance agency providing products and services to businesses in the Auto Recycling, Rebuilding, & Dismantling industry. Arrowhead Automotive Insurance brings national strength with local, personalized service. With a team that is as connected nationally as it is locally, we provide the personalized service of a local agency and the peace-of-mind that is expected from a top ten brokerage firm. We have become a leading insurance partner because we view insurance differently and utilize our vast experience and wide-reaching network. By leveraging our experience, carrier relationships, and customer-centric focus, we deliver superior service and solutions to our customers, both big and small.
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