Waste Management Risks

Waste Management Insurance & Risk Management

Waste Management Insurance & Risk Management plays a crucial role in the management of a waste facility.Waste Management Insurance

The way the plant is run is highly regulated by local authorities, but the insurer may also have relevant advice on how the plant needs to be set up and managed with a particular focus on insurable hazards.

There are many ways to organise a waste management facility to help minimise the insurance premium costs.

The actions recommended by insurers can affect the safety of the plant, its employees, the environment, and the surrounding local area – usually in a very positive way!

When negotiating your insurance renewal minimising the risks associated with running the waste management facility is always the best way to keep insurance premiums as low as possible.

Have you considered these key risks associated with your waste management facilities?


Insurance premiums are affected by the likelihood of having a fire, and the speed and effectiveness of fire protection systems, like fire alarms, automatic sprinkler systems, and other special extinguishing systems. This cover is usually the most significant cost to your business.

Dust, Ignition, & Explosions

Waste management facilities have a risk of explosion, ignition, and dust collection. It’s vitally important to minimise these risks when it comes to reducing insurance premiums. Dust clouds can cause explosions which result in insurable losses as always prevention is key.


Depending on the materials are being handled, it’s important to use monitoring instrumentation to measure levels of various organic and inorganic waste and materials in the facility. A balance between decomposition and safety is necessary for the protection of those involved, and the functions of the waste management facility.

Plant & Machinery

As with any business involving heavy duty machinery, there is always a risk of failure, dirt build up, improper maintenance, or an unforeseen accident leading to a malfunction or breakdown. Any of these can result in an insurance claim depending on your policy coverage.


There are a great many risks associated with the use of conveyors in a waste management facility, including belt slip and misalignment, which can lead to materials being stuck, belts breaking, backed up materials, and more. It’s a critical factor when it comes to negotiating your insurance premiums.

Managing Hot Loads

Smoldering materials, glass bottles, batteries, and more that may be hazardous need to be sorted out quickly. The management plan of hot loads is key to your insurance premium costs.

Let’s Talk

Call our Waste & Recycling Industry expert Cameron Lloyd directly on 0421 783 011 to discuss your business insurance requirements or via email on cameron@laib.com.au

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