Scrap Metal Recyclers
IWA understands the unique risks associated with scrap metal recycling operations, including material handling, equipment exposure, fire risk, and fluctuating inventory values. We partner with local agents to provide customized insurance solutions designed to meet the operational realities of scrap recyclers.
Our program is designed for straightforward, yard-based scrap metal recycling operations that maintain controlled, well-managed exposures.
Target Operations:
On-premises scrap metal recycling facilities:
• Receiving, sorting, and grading inbound materials
• Light dismantling and material separation
• Baling, crushing, and preparing scrap for shipment
• Operations focused on aggregation and resale of materials, not manufacturing
Preferred Risk Characteristics:
• Strong safety programs and employee training
• Controlled premises with fencing, lighting, and security
• Proper fluid removal and hazardous material handling procedures
• Good housekeeping and fire prevention controls
• Well-maintained equipment and organized yard operations
• Favorable loss history and experienced ownership
Incidental / Secondary Operations (Eligible):
We recognize many recycling operations include related exposures and will consider:
• Auto service and repair (mechanical or light collision)
• Customer or incidental towing
• Used auto sales
• Retail parts sales and accessories
• Limited non-auto scrap operations
Ineligible Exposures:
The following exposures fall outside the program’s appetite:
Higher-Hazard Processing Operations:
• Smelting, foundry, or metal refining operations
• Any incineration or high-temperature processing
• Chemical processing or material transformation beyond basic recycling
• Operations involving significant emissions or industrial byproducts
Industrial or Manufacturing Risks:
• Steel mills or large-scale manufacturing operations
• Fabrication or production beyond incidental activity
• Any process that materially alters the composition of metals
Expanded or Off-Premises Exposures:
• Significant off-site operations or mobile processing
• Large-scale hauling or logistics-dominant businesses
• Roll-off or dumpster-heavy operations as a primary exposure
Environmental and Handling Concerns:
• Inadequate fluid removal or hazardous material controls
• Improper storage of flammable or combustible materials
• Lack of environmental compliance or standardized procedures
Risk Management Red Flags:
• No formal safety program or limited employee training
• Poor housekeeping or unmanaged fire hazards
• Inadequate site security
• Unfavorable or severe loss history
Coverage descriptions are provided for general informational purposes only and may not include all terms, conditions, exclusions, or limitations. Availability of coverage, limits, and enhancements may vary based on underwriting and individual risk characteristics. Actual coverage is determined by the policy as issued.
IWA does not currently offer coverage in Alabama, Alaska, Georgia, Hawaii, Illinois, Kentucky, Nevada, or Louisiana.