Why Now’s the Time to Offer Automotive Recyclers Insurance

Grow your book with a specialized program designed for dismantlers, recyclers, and rebuilders

Ever tried selling a Business Owners Policy (BOP) to an automotive recycler? If so, you’ve probably run into this reality: a standard BOP just doesn’t cut it. Recyclers, dismantlers, and rebuilders have unique exposures, and without the right coverage, they’re left underinsured—or worse, vulnerable.

That’s where our Automotive Recyclers Insurance Program, steps in. Tailored for the specific risks these businesses face, it’s your opportunity to add real value—and new revenue—to your book.

Why standard policies fall short

Let’s say a recycler’s building burns down with their used parts inventory inside. How do you value those parts? Most carriers can’t. But with Arrowhead’s coverage, we pay 50% of the retail value on used parts and replacement cost on new. That’s just one of the many endorsements made for recyclers—not repurposed from another industry.

Who qualifies for the Automotive Recyclers Program?

The program is designed for:

• Automotive recyclers

• Dismantlers (who disassemble vehicles and shelve parts for resale)

• Rebuilders (who may also rebuild transmissions or engines)

We also write coverage for:

• “U-pull-it” yards, as long as customers sign a liability waiver

• Businesses with incidental used car sales or light towing

We steer clear of rebuilt components that involve critical systems like brakes or steering—but if it’s within the recycling realm, we’ve likely got it covered.

Coverage highlights

Property

• Building & business personal property

• Inside and outside stock

• Equipment breakdown

• Business interruption & extra expense

• Property basket plus (demolition, pollutant cleanup, etc.)

Liability

• General liability (including employee benefits and product-related injury)

• Vacant land and leased premises

• Crime (theft, forgery, employee dishonesty)

Commercial Auto

• Liability and physical damage

• Garagekeepers (direct or legal liability)

Inland Marine

• Mobile equipment & cargo

Umbrella Coverage

• Limits up to $5 million

What makes this program a win for producers?

• Longstanding reputation: Backed by AIG, this program has been a trusted name in the recycler market for years.

• Attractive commissions: Earn 12% on new business.

• Sales tools ready to go: Arrowhead offers a ready-to-use sales sheet—just add your info and share with clients.

Common questions from brokers

Can we cover a tow truck?
Yes—as long as towing isn’t the primary business. (For full-scale towing, check out our Towing Program.)

What about used auto inventory?
Yes, if resale is incidental to the primary recycling operation.

Will we insure non-auto recyclers?
Yes, but only when it’s a small part of the overall auto recycling business.

Experience requirement?
Applicants must have at least three years of industry experience.

Pro tip: Always offer the umbrella

“In today’s legal environment, an umbrella policy isn’t optional—it’s essential,” Winterowd advises. “We’re highly competitive on umbrella pricing, and over 50% of our recyclers opt in. Offering excess limits—especially when backed by AIG—shows your clients you’re thinking ahead.”

Ready to grow?

Automotive Recyclers insurance isn’t just a niche product—it’s a specialized solution for a misunderstood market. Offering it positions you as an expert and gives you an edge in winning and retaining accounts.

Already an Arrowhead producer?
Reach out to your underwriter for access to sales materials and program details.

Not yet appointed?
Start your journey with Arrowhead here.

This post originally appeared here. It has been since updated and modified to better fit the need of our IWA producers.