Recycling Business Disaster Management Plan

Does your recycling business have a disaster management plan in place?

I recently read an article that got my attention (which says a lot coming from someone who works closely with waste management companies and recyclers). It stated the Australia had over $70 million dollars in fire claims at waste and recycling facilities in 2016 alone. This should shock everyone in the industry – and illustrate the need for having a disaster response plan in place should one of these incidents occur.

All businesses in the Waste & Recycling section should have a committed plan which includes keeping your employees and business safe.

An effective disaster plan includes a number of vital steps including staff training and knowledge of the plan.

As an example, here are some of the items and takeaways we’ve helped clients implement into their plans:

Pre-loss Planning
If your business doesn’t have a plan in place for a major fire or another major disaster that has the potential to end your business, then you likely won’t recover from one.

Mobilisation
In the case of a fire, your building will no longer be a place that can house your people, products and equipment. Consider how you would conduct business in a temporary place or how you could contact clients.

Building/Site Stabilisation
With most insurance policies, you have an obligation to minimise the damage or lose. Consider temporary roofing, water damage from the fire brigade, power, lighting, fencing or guards to protect your site – clearly these are items that must be dealt with very quickly.

Restoration
If everything has been lost, how will you replace/restore your data? In today’s world, electronic restoration and telecommunications is imperative. It’s amazing on what can be gleaned from a hard drive when you think it’s burnt to a crisp. Document restoration, media recovery and pieces of equipment or machinery will likely need to be restored quickly.

Environmental
There will be a period of time where the building will just sit. Unfortunately, from the excess water used there’s a probability of mold developing. And for older buildings, if part of the wall is broken, asbestos may be exposed. These should also be treated immediately.

Construction
If the business will be rebuilding in the same place handling demo, clean-up, engineering, roofing, electrical, plumbing, HVAC and a host of the other trades.

These were just some of the major items that recently came up following a major fire. My client had many lessons learned from the event and thankfully, they were prepared with a plan ahead of time.

If you are in the Waste Management and Recycling industries talk to LAI Insurance Brokers and let’s talk about your disaster management plan today.

Recycling Insurance Claims

Over the last 3 years the number of recycling insurance claims has increased together with the amount these claims have cost insurance companies.

The industry has records over $70 Million in Fire insurance claims over the last 24 months with the estimated premium pool at the time of around $8-10 Million resulting in significant losses to the insurers bottom line.

Due to the large number of fires and recycling insurance claims a number of local insurers including IAG and QBE are no longer offer cover to client in this section.

The Recycling Industry Solution

We have been working with a number of partners to develop a solution which hopes to minimise to premium increases being seen across the recycling industry by putting into place a clear and define insurance program for the industry.

Our program includes independent risk auditing which separates our clients from the rest when negotiating insurer renewal terms.

Client Partnerships

By partnering with LAI Insurance Brokers, you are gaining access to vast resources and expertise that will reduce losses and, ultimately, reduce your premium. We stand behind our client partners over the long haul and work to ensure their success through:

  • A risk auditing strategy constructed entirely on helping our partners thrive.
  • An intelligent and expedient renewal process enabling you to focus on running a successful business.
  • Proven insurer relationships that unlock access to exclusive markets and competitive pricing.

What is the most significant value in working with us? LAI is the industry’s most relationship-driven partner, offering exceptional service, price stability, and powerful resources forged by long term partnerships.

Lets Talk

Contact our recycling industry expert Cameron Lloyd directly on 0421 783 011 or via email cameron@laib.com.au to discuss your business.

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