The Auto Dismantling and Recycling Industry is the 16th largest industry in the United States, scrapping approximately 12 million vehicles annually!
Recycling of ‘wrecked’ automobiles or end-of-life vehicles involves salvaging car parts that can be reused, while crushed or shredded metal car bodies are sold to steel mills. These operations are essential for sustainability but introduce a number of operational hazards that can lead to financial and legal exposures if not properly insured.
Health and safety hazards of the Auto Dismantling and Recycling Industry
· Use of forklifts and cranes while loading and unloading heavy material & moving parts of conveyor belts exposes employees to physical injury.
· Chemical exposure to petroleum hydrocarbons, heavy metals and acids present in automobiles carries the risk of skin infection and respiratory disease. Storage or disposal of these hazardous chemicals increases the risk of fire or environmental contamination.
Auto Dismantling and Recycling (Class Code: 91190) Insurance provides comprehensive coverage and could include:
- Commercial General Liability
- Commercial Auto Liability/Physical Damage
- Machinery & Equipment Breakdown Insurance
- Inland Marine
- Workers’ Compensation
Operators in this industry—such as auto dismantlers, salvage yard owners, and metal recyclers—face unique job-site hazards and environmental exposure risks. The combination of heavy equipment use, flammable fluids, and sharp metal debris increases liability exposures that could result in costly claims without appropriate insurance.
For example, a dismantler using a torch to cut through a fuel tank may inadvertently ignite leftover gasoline, causing property damage or bodily injury. This illustrates why both property coverage and commercial general liability are essential components of a sound risk management strategy.
Coverage like Auto Dismantlers Insurance and Recycling Autos Insurance are tailored to address these risks, offering protection across a wide range of operational scenarios.
Additionally, businesses with employees should consider Workers' Compensation for Automobile and Truck Dismantling to meet state requirements and help protect against work-related injuries.
Frequently Asked Questions
What is Class Code 91190 in insurance?
This classification applies to businesses involved in dismantling and recycling automobiles, including salvage yards and parts resale operations.
Who typically needs auto dismantlers insurance?
Operators of vehicle salvage yards, auto recyclers, and businesses handling end-of-life vehicles for parts or scrap metal recycling.
What does this insurance usually cover?
Coverage may include general liability, auto liability, workers’ compensation, equipment breakdown, and pollution liability, depending on the policy.
Are environmental exposures covered?
Some policies may offer limited pollution liability, but many standard policies exclude gradual environmental damage unless specifically endorsed.
How can I get a quote for this type of insurance?
You can talk to your agent to discuss coverage options and get a customized quote.
Still have questions? Talk to a local insurance expert.