Recycled Material Brokers acting as Manufacturer’s Representatives offer waste management services and provide recycling solutions to high-volume scrap producers and organizations in the manufacturing sector.
Handling direct sales of different types of recyclable material such as paper, cloth, corrugated/OCC, plastics, rubber and metal and operating solely on a commission basis, on behalf of one or more manufacturers, brokerage firms that fall under Recycled Material Brokers General Liability Class Code 45993:
With limited property and products liability exposure, commission merchants need comprehensive General Liability Insurance that offers protection from advertising and personal injury claims as well as third-party bodily injury and property damage claims that could arise while visiting facilities or meeting clients.
What is Recycled Material Brokers (Class Code: 45993)?
This classification describes brokers and commission merchants who arrange sales of recyclable materials on behalf of manufacturers or suppliers but do not take physical possession or provide storage. The exposure is primarily liability while on client sites, in transit for meetings, or during sales activity rather than property or product risks.
Who needs it
Typical buyers include manufacturers, recycling representatives, independent commission merchants, and firms that place large volumes of scrap into secondary markets. Organizations such as collection coordinators or specialized paper and corrugated brokers often seek this coverage; see related programs like Recycling Collection Centers (Class Code 47146) Insurance for adjacent operations that do take possession or store material.
What it typically covers
General liability for this class usually includes third-party bodily injury and property damage, advertising injury, and personal injury. Policies may be tailored to include commercial liability extensions, limited property coverage for office equipment, and commercial auto exposure for business-owned vehicles if applicable. For brokers focused on specific commodities, specialized programs such as Recycling Paper Insurance can provide useful parallels when evaluating needed endorsements.
Common exclusions or limitations
Exclusions commonly apply to product handling and storage, pollution or contamination caused by accepted material, and professional liability for pricing or placement errors unless specifically endorsed. Underwriting will likely limit coverage where the broker takes possession of material, maintains a yard, or operates large public-facing collection sites.
Factors that influence cost
Pricing depends on underwriting factors such as claims history, limits requested, number of staff, scope of operations, travel frequency to client sites, and any exposure to transportation risks. Risk management practices—written safety procedures, client vetting, and limited public access to office premises—can reduce premiums.
Proof of insurance & compliance
Brokers are often asked to supply certificates of insurance showing limits and additional insured endorsements. Some manufacturers or large clients require specific wording or minimum limits; maintain current certificates and clear documentation of your commission-only arrangement to avoid misclassification.
How to get a quote
Work with a broker or agency that understands recycled-material exposures and can compare commercial liability, equipment coverage options, and appropriate exclusions. Companies offering tailored programs — for example, the Recycler Insurance Program — can be a good starting point. If you want immediate help, talk to your agent to review your operations and limits.
Risk scenario: a broker visiting a client facility slips on an oil-stained ramp and a third party is injured; general liability would address the bodily injury claim while workers’ compensation and risk controls reduce loss potential.
Frequently Asked Questions
Do recycled material brokers need pollution coverage?
Generally not if they never take possession of material; pollution coverage is more relevant where materials are stored, processed, or transported by the insured.
Can I get a certificate naming multiple manufacturers?
Yes. Insurers can issue certificates that list clients or additional insureds, but requirements vary so confirm acceptable language and limits with the client and carrier.
What if I occasionally move small quantities of material?
Occasional handling can change your exposure and may require different classification or endorsements—disclose these activities to your insurer to ensure proper coverage.
Still have questions? Talk to a local insurance expert.