Do you need insurance for collecting and carrying scrap metal? You already know that to even have a vehicle on the road, it must have some type of motor vehicle insurance.
However, you may need additional insurance for collecting and carrying scrap metal.
Cities and state that require permits vary but many insurance companies have been known to deny coverage to scrappers.
This is not because they do not approve of the work that we do. It is because of the vehicle that you choose to load scrap into.
Ever wonder why you are starting to see folks using vans or cube trucks to collect scrap?
This often has to do with their vehicle insurance company.
Many motor vehicle insurance companies deny coverage to scrappers because having loose items within the bed of the truck such as poles, are considered dangerous.
Through the insurance companies’ eyes, the job that we do is considered high risk.
A lot of the scrappers that I know secure OSB or plywood on all 4 sides of their truck bed to satisfy their insurance companies demands.
You could do this as well but the boards must be secure and nothing could be sticking out of the truck.
I wanted to talk to you about this topic because I have been getting some email about it lately.
Yes, I have commercial vehicle insurance on my scrap collecting truck.
I can’t really suggest a specific company to you because I do not have permission to do so.
What I can tell you though is finding insurance for collecting and carrying scrap metal is as easy as doing a quick search online and then making a few calls.
Thankfully, I’ve never had anything fall out of the back of the truck.
I honestly have the vehicle insurance so that it helps me in the event that public or private property is damaged.
Insurance also adds a level of trust when customers call to have items picked up at their locations.
If you slam into the wall and crack it while backing up to a loading dock, the damaged has to be repaired.
Respect what you do. Even if you only collect and sell scrap part-time the words, sole proprietor and entrepreneur both mean you are attempting to do or are doing business.
Insurance for collecting and carrying scrap metal should be a part of your business plan.
Cable companies need it to be able to secure ladders on their vans.
Plumbers need vehicle insurance and construction companies need it too in order to tow a backhoe through the city streets.
What happens if that falls off the trailer? You can be certain that your insurance rate wont be anywhere near what they pay to cover that risk.
Many of the shortcuts in life are nothing more than cul-de-sacs, like you find in suburban neighborhoods.
You do not have to take the first offer that you receive for vehicle insurance. Always check with at least, 10 different companies.
It may seem like a lot but you will learn something new with each call that you can ask about during the next call to get a better deal.
In many states classifying your business and its vehicle with insurance companies as a junk removal service can get you lower rates.
However, insurance companies still have guidelines that must be followed.
Your current vehicle insurance provider may offer coverage for your scrap truck as well.
Check with them as well but do not confirm anything until you have called a few other insurance agencies.