Insurance Coverage for the Recycling Sector
There are many options when it comes to insurance coverage for the recycling sector so we’ve outlined a few of the key policies we always discuss with our clients.
Public and Products Liability Insurance
Most skip operators and waste transfer stations will be required under the terms of their licences to carry at least $20,000,000 public and products liability insurance.
For skip hire risk the insurers will rate the premium on the number of skips, estimated annual payroll and turnover.
Waste transfer stations are normally rated on the wage roll and turnover. Insurers are now asking for a lot more detailed information on risk management processes, so it is important that this information is kept up to date.
If members of the public have access to the transfer station, insurers are more likely to require that recorded CCTV is in operation as this can assist in identifying and defending personal injury claims.
It is also vitally important that insurers are fully aware of all the business activities undertaken. If an activity is not listed within the business description on the policy schedule it is unlikely to be covered in the event of a claim.
Property and Plant Insurance
Arranging buildings or office insurance for waste transfer stations can be difficult with no more than a handful of insurers willing to provide quotations.
Providing insurers with as much information is the key to obtaining the most competitive rate.
We always ask for key details like how far is the nearest fire station and what fire protection is installed onsite.
Companies which operate excavators, loading shovels, trommells, shredders and other plant associated with sorting and segregating waste, may well benefit by arranging cover for these items under a specialist plant insurance policy. If trommells are fitted with an automatic fire detection system a more competitive premium can normally be obtained.
Management Liability Insurance
Protecting the directors and key employees against their liability in running a business, is often neglected. Management liability will cover the legal cost and settlements if a director or key employee is sued personally as a result of their actions when running the day to day business activities.
A typical example would be a claim made by the Worksafe if there is a breach of OH & S legislation.
Environmental Impairment Liability
This relatively new cover that responds to EPA & Government legislation that exposes companies to the cost of clean-up following a pollution incident. It covers historic or gradual pollution and the costs of clean-up to soil and waterways.
Waste transfer stations have an increased risk exposure and therefore it is recommended that insurance cover is put in place in respect of sudden and accidental and gradual pollution.