If you own or operate a waste removal company, it’s important to have the right insurance in place. Insurance protects your business from potential financial losses in the event of an accident or incident and there are several different types of waste management insurance that are specific to the industry.
In this blog post, we will discuss why the waste management industry requires the appropriate specific insurance and what to consider when choosing cover.
Why Waste Removal Companies Need Specific Cover
It’s no secret that running a waste removal company can be a risky business. There are lots of potential hazards that come with the territory, from sharp objects and harmful chemicals to RSI from lifting heavy bins.
As a result, it’s important that waste removal companies have specific waste management insurance cover in place to protect themselves from the risks associated with their work. Here’s why this type of specialist cover is so important:
Risk of injury
As mentioned above, one of the main risks associated with running a waste removal company is the potential for injuries. From slips, trips and falls to strains and sprains, there are lots of ways that employees can hurt themselves while on the job. And if an employee is injured while working for your company, you could be liable to pay compensation. That’s why having specialist waste management insurance in place is so important – it can help to cover the cost of any compensation claims that you might have to pay out.
Risk of damages
Another big risk for waste removal companies is the potential for damage to property. For example, if an employee accidentally spills some hazardous waste on a customer’s driveway, you could be liable to pay for the cost of repair or replacement. Specialist waste disposal insurance cover can help to protect you against this type of risk by providing cover for damages caused by your employees while they are working.
Risk of financial losses
Running a waste removal company also comes with the risk of financial losses. For example, if your business has to cancel a contract due to unforeseen circumstances, you could be left out of pocket. Specialist insurance can help to protect you against this type of financial risk by providing cover for lost income and other expenses incurred as a result of cancelled contracts.
As you can see, there are lots of industry specific risks associated with running a waste removal company in the UK. That’s why it’s so important to have the right waste disposal insurance cover in place to protect yourself against potential liabilities.
Standard Waste Removal Insurance Cover
As a waste removal company in the UK, you are required by law to have certain insurances in place in order to operate. In addition there are several other types of insurance you will need in order to protect your company, its employees and its clients.
So what standard insurance do businesses need within this industry?
Employers’ liability insurance
As an employer, you are legally required to have Employers’ Liability insurance in place. This type of insurance protects you in the event that one of your employees is injured or becomes ill as a result of their work.
Public and products liability insurance
Public liability insurance protects you in the event that someone is injured or their property is damaged as a result of your business activities. If your business is found to be at fault, you could be liable for both damages and legal costs.
Product liability insurance protects you in the event that someone is injured or their property is damaged as a result of a product you have supplied. Again, if your business is found to be at fault, you could be liable for damages and legal costs.
In the industry of waste disposal liability insurance is particularly important as the nature of the work has inherent risks.
Professional indemnity insurance
Professional indemnity insurance protects you in the event that someone suffers a financial loss as a result of your professional negligence. For example, if you give advice to a client and it turns out to be incorrect, they could sue you for losses they incur as a result.
Financial loss insurance
Financial loss insurance is a type of insurance that helps protect businesses from losses caused by events beyond their control. This can include things like natural disasters, pandemics and financial crises. While it is not required by law, it can be a valuable safety net for businesses of all sizes.
In the UK, there are two main types of financial loss insurance, business interruption insurance and contingent business interruption insurance.
Business interruption insurance covers losses that occur when a business is forced to close or scale back operations due to an event beyond its control.
Contingent business interruption insurance, on the other hand, covers losses that occur when a supplier or customer is unable to fulfil their obligations due to an event beyond their control.
Financial loss insurance can help businesses stay afloat during difficult times, and it is an important part of risk management.
Optional Waste Disposal Insurance Cover Addition
Motor fleet insurance
If your business owns or operates a fleet of vehicles, you are legally required to have motor fleet insurance in place. This type of insurance covers all of the vehicles in your fleet against damage and third-party liability claims.
Key person insurance
Key person insurance protects your business against the financial losses that would occur if a key employee was suddenly unable to work due to illness or injury. For example, if your company’s sales manager was suddenly unable to work, key person insurance would cover the cost of hiring a replacement and any resulting loss of income.
Contractors ‘All Risks’ in relation to contract works
Contractors all risk insurance (CAR) is a type of insurance that provides coverage for property damage and third-party injuries that occur during the course of a construction project.
CAR insurance is typically purchased by the project owner or general contractor, and it provides protection for the entire project. Waste removal companies are often hired by construction companies to remove waste from the job site. As such, these companies are typically covered by the CAR policy.
In the event that waste removal workers are injured on the job, or if they damage property while removing waste, the CAR policy will likely cover the costs. Thus, CAR insurance provides an important level of protection for both construction companies and waste removal companies.
Plant equipment and employee tools
Waste removal companies can also take out insurance to protect their own and hired plant and employee tools in case of damage or loss.
Defective Workmanship
When a company provides a service, they are usually responsible for any damages that their work may cause. However, there are some cases where the company may not be held liable. This is where defective workmanship insurance comes in.
Defective workmanship insurance protects companies from claims arising from their workmanship, meaning that they will not have to pay out if something they have done goes wrong.
This type of insurance is particularly important for waste removal companies, as they often deal with hazardous materials. If these materials were to leak or cause damage, the company would be liable for the cost of repairs. As a result, defective workmanship insurance gives peace of mind to both the company and the customer.
Products Efficacy
Products efficacy insurance is a type of insurance that covers waste removal companies in the event that their products are not effective in preventing or cleaning up environmental contamination.
This type of insurance for waste disposal companies is important because it protects them from liability in the event that their products cause environmental damage.
Products efficacy insurance typically covers the cost of cleanup and damages that result from environmental contamination. It is important for waste removal companies who could find themselves in this position to have this cover in place to help to protect them from financial liability if their products cause environmental damage.
Cover for Specialisms in the Waste Management Industry
In addition to the above, there are also insurance services for nearly every specialism within the recycling and waste management industry. These include:
- Skip hire
- Waste collection
- Plastic, textile, wood and can recyclers
- Landfill sites
- Anaerobic digestion plants
- Materials recovery facilities
- Scrap metal dealers
- Tyre recycling
- Paper recycling
It is also possible to get cover for transporting waste to energy plants as well as transporting liquid and other hazardous waste, including asbestos.
If your company specialises in any of the above then it is recommended that you take out the relevant specific waste management insurance for this.
Getting the Right Cover
When deciding on the right insurance for waste disposal companies, it is important to consider the risks to your employees, your material assets and your financial security.
With some insurance providers, if you don’t follow Health and Safety guidelines fully, they will invalidate your policy and refuse to pay a claim.
If this sounds like a lot to think about, Construction Insure can guide you through the process. We work with you and try to understand your business so you can trust us with insurance services that meet your needs as well as fulfilling the insurer’s requirements.
If you are looking for specific insurance for waste disposal companies please get in touch. You can call us on 020 3958 6868 so we can discuss your requirements in more detail and get you the cover that’s just right for you.