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Liability Insurance

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    Mick started this thread.
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    Liability Insurance

    Do you have liability insurance or have you looked into it and what was your experience? Have you considered that your regular vehicle insurance could be voided if you have an accident while in the act of commerce (collecting scrap/junk or on the way to the scrap yard)? Unless your policy specifies operating a scrap yard, the insurance will not pay if (for example) the scrap falls off you vehicle and hits another. Stuff falling off your truck or trailer can also result in HUGE fines by the DOT.



    I looked into General Liability and found that insurance companies only have one code for this activity. I'd have to pay the same as the scrap yard I sell to.

    For those who don't know, there are two types of insurance which apply and are two separate policies:

    Commercial Vehicle insurance would cover the car or truck itself while being used to generate income

    General Liability insurance would cover damage unrelated to the vehicle. This could include falling items, damage to the office and records, other people getting hurt on your premises etc.

    Bottom line - unless your a big operator and can afford GL (General Liability), be VERY careful and secure everything.
    People may laugh at me, but that's ok. I laugh all the way to the bank.

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    Re: Liability Insurance

    THANK YOU FOR THAT INFORMATION, DO YOU KNOW ANYTHING ABOUT PERSONAL LIABILITY MEANING, IS THERE SOME TYPE OF PAPER WORK THAT I CAN WRITE UP THAT RELIEVES ANY LIBILITY TO AN OWNER OF A PROPERTY OF WHICH I AM COLLECTING SCRAP. FOR INSTANCE- I KNOW AN OLDER MAN WHO WANTS SOME SCRAP OFF HIS PROPERTY BUT IS AFRAID TO LET ANYONE LOAD IT UP FOR FEAR THEY MIGHT INJURY THEMSELFS AND THEN HE WOULD BE SUED.......

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    Mick started this thread.
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    Re: Liability Insurance

    In his case, he wants to ask the buyer for a copy of his General Liability policy. Make sure it says something like "Scrap Metal Buyer". I really doubt he'll find anyone who has it, though. As a practical matter, there is no way to prevent being sued for an injury occurring on your property. The best you can do is make sure there's someone your lawyer can try to shift responsibility to. I've seen "service policies" drawn up with a "Hold Harmless" clause. This where the owner or service provider agrees to pay any claim against the other. However, in case of a claim, the first thing a lawyer will do is try to show negligence in which case a judge would disallow the Hold Harmless provision of the contract.

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    Mick started this thread.
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    Re: Liability Insurance

    [quote author=Mick link=topic=256.msg365#msg365 date=1284390569]
    In his case, he wants to ask the buyer for a copy of his General Liability policy. Make sure it says something like "Scrap Metal Buyer". I really doubt he'll find anyone who has it, though. As a practical matter, there is no way to prevent being sued for an injury occurring on your property. The best you can do is make sure there's someone your lawyer can try to shift responsibility to. I've seen "service policies" drawn up with a "Hold Harmless" clause. This where the owner or service provider agrees to pay any claim against the other. However, in case of a claim, the first thing a lawyer will do is try to show negligence in which case a judge would disallow the Hold Harmless provision of the contract.
    [/quote]

    Short answer to your question is "yes". Disclaimer is - I am not a lawyer. Please consult your own attorney.

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    In every business, and my personal needs, I always use an intermediary to secure. Will usually deal with insurers or so. Companies that deal in which may seem unfamiliar, but insurance companies in fact too large and has a better chance of finding the right coverage at the right price for you.

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    Just general liability, and soon will be upgrading to full coverage for all my vehicles.
    George Beale - Founder & President - info@viprecyclingjunkremoval.com
    VIP Recycling Junk Removal LLC - Premier Scrap Metal, Junk, & Electronic Recyclers!
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    Mick started this thread.
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    Quote Originally Posted by GeorgeB View Post
    Just general liability, and soon will be upgrading to full coverage for all my vehicles.
    ??? General Liability does not cover vehicles. GL is for damage resulting from business operations other than licensed vehicle operations. That is Commercial Vehicle insurance - completely separate policy.

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    Quote Originally Posted by Mick View Post
    ??? General Liability does not cover vehicles. GL is for damage resulting from business operations other than licensed vehicle operations. That is Commercial Vehicle insurance - completely separate policy.
    Okay, perhaps, I am mistaken. You talking about business insurance, or vehicle insurance?

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    General Liability Business Insurance. Has nothing to do with your vehicle unless you put some sort of package together with your insurer.
    Recyclable Material Merchant Wholesaler
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    "Give them enough so they can do something with it, but not too much that they won't do nothing."

  11. #10
    Mick started this thread.
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    Quote Originally Posted by GeorgeB View Post
    ... You talking about business insurance, or vehicle insurance?
    The original post was about GL - business insurance. Your vehicle insurance MAY NOT (probably wont) cover damage due to stuff falling off the vehicle or trailer; especially if the insurance company can claim you are engaging in commerce (scrap metal sales). Commercial vehicle insurance would not help in that situation, either.

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    Quote Originally Posted by Mick View Post
    The original post was about GL - business insurance. Your vehicle insurance MAY NOT (probably wont) cover damage due to stuff falling off the vehicle or trailer; especially if the insurance company can claim you are engaging in commerce (scrap metal sales). Commercial vehicle insurance would not help in that situation, either.
    Sorry Mick, miss understood.

  13. #12
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    IS THERE SOME TYPE OF PAPER WORK THAT I CAN WRITE UP THAT RELIEVES ANY LIBILITY TO AN OWNER OF A PROPERTY OF WHICH I AM COLLECTING SCRAP
    Yes, you can make up a waiver, and sign it.
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  15. #14
    gustavus is offline Metal Recycling Entrepreneur
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    Personal coverage from Worker Compensation is reasonable, this covers any issues of working on private property or place of business.

    As for transporting goods on your truck or trailer, I can only speak from my Canadian experience.

    If my personal vehicle is insured as pleasure it maybe used as transportation a set number of days per month, regular insurance would over going to and from my place of employment but not that of performing duties in commerce - ie any accident arising from this type of work would not be covered. Same coverage as impaired or driving under the influence - nil.

    Farm registered and insured trucks and trailers same as commercial with the exception they may burn tax exempt marked fuel same for fishing industry, logging on Crown Lands and Indian Reserves which are classified as private land.

    Any truck capable of transporting and registered to carry5500 kg or above is automatically commercial, subject to crossing highway scales and yearly vehicle safety inspections. The chart below may help you with figuring if you need cargo insurance which covers loss and damage to private or public property.

    All the goods listed in the chart below are covered by your commercial truck insurance policy.

    Last edited by gustavus; 10-27-2011 at 08:51 AM.

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    great thread!! Very useful stuff that everyone getting into the business really needs to understand.
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