Insurance


Protecting yourself against risky business


There are at least five different classes of insurance risks that skip hire and waste transfer operators need to consider; from the obvious vehicle and liability insurance through to property and plant cover to the less considered management liability risk. Tony Gibbs explains how to get the best cover.


business description on the policy schedule, it is unlikely to be covered in the event of a claim.


Property and plant insurance Arranging buildings or office insurance for waste transfer stations can be difficult with no more than a handful if insurers willing to quote. Providing insurers with as much information is the key to obtaining the most competitive rate. Distance from the nearest fire station and whether or not there is a ‘same day clear’ policy will have a bearing on the rates charged. Companies which operate excavators,


loading shovels, trommells, shredders and other plant associated with sorting and segregating waste, may well benefit by arranging cover for these items under a specialist engineering insurance policy. If trommells are fitted with an automatic fire detection system a more competitive premium can normally be obtained.


Tony Gibbs Sales director Macbeth Insurance


I Vehicle insurance -v- motor fleet cover


F A company operates more than one vehicle but less than five, I would normally recommend cover on a ‘multi-vehicle’ policy. Each vehicle will earn its own


no claims bonus and additional vehicles will normally qualify for an introductory discount. Having all the vehicles under one policy


with a common renewal date also helps from an administration point of view. For companieswith more than five vehicles,


fleet insurance becomes a viable option. Rather than having a no claim bonus on individual vehicles the insurers allow an overall fleet discount across all the vehicles. Insurers look at the premium they have collected in relation to claim payments and for well run risk can offer discounts of 60% plus. Fleet insurance can work well with expanding businesses as additional vehicles automatically benefit from the fleet discount. One or two minor claims during the insurance year may not have much impact on the premium; however, it is worth bearing in mind that if the overall experience is bad then the fleet discount is likely to reduce and this will impact across the board. Fleet insurance also tends to be more


flexible, especially if there are younger drivers. I recommend to our clients that a vehicles risk


4 October 27 2011


management system is put in place and that drivers are incentivised to improve the risk. It is important to be insured with an


insurance company that acts quickly in the event of a claim, as a vehicle off the road is going to impact on profits. Finding a company that will hire a skip lorry can be a challenge as well as expensive so having a contingency plan is a good idea.


Public and employers liability insurance Most skip operators and waste transfer stations will be required under the terms of their licences to carry at least £5m public liability insurance. Employers’ liability is a compulsory insurance for any company with employees; the normal indemnity limit is £10m. For skip hire risk the insurers will either


rate the premium on the number of vehicles operated, the number of skips or the wage roll and turnover. For operators with less than four vehicles, it is generally cheaper to insure on a policy that is rated on the number of vehicles. A typical premium for the public and employers risk would be around £750 per vehicle. Waste transfer stations are normally rated


on the wage roll and turnover. Insurers are now asking for a lot more detailed information on health and safety, so it is important that this is kept up to date. It is also vitally important that insurers


are fully aware of all the business activities undertaken. If an activity is not listed within the


www. r e c y c l i n gwa s t ewo r l d . c o . u k Recycling & WA S T E W O R L D


Management liability insurance Most companies are willing to pay to insure their physical assets, but protecting the directors and key employees against their liability in running a business, is often neglected. Management liability will cover the legal cost


and settlements if a director or key employee is sued personally as a result of their actions when running a business. A typical example would be a claim made by the Health & Safety Executive if there is a breach of H&S legislation. With insurance cover, it is best to find an


insurance brokerwho has experience in the sector as having the right insurer is paramount to getting the correct cover and the best deal. RWW


• For more details, visit www.macbeths.co.uk


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