Some metal recyclers have reported being hit with huge price hikes in their insurance premiums and may risk going uninsured to save costs.
One metal recycler told MRW that his premium had risen to £6,000 from £2,000 during the past three years for no discernable reason. He said he might leave machinery not in use, uninsured, to save money.
He said: “Machinery cover has shot up and then you find you are not covered for fire - to tell you the truth I don’t think the policy is worth the paper it’s written on.”
Another metal recycler reported that his premium had gone up by around 12% and he too did not understand why. He had been given general reasons relating to the recession rather than the waste management industry specifically.
However, these were the exception, and most of the metal recyclers contacted by MRW did not report this as an issue. The British Metals Recycling Association has said it was not aware of a problem.
BMRA director general Ian Hetherington said: “Insurance rates for metal recycling have remained fairly stable in the past two years, with no substantial increases. Metal recycling is still regarded as low-risk activity compared with the general waste sector and insurance rates reflect this.”
He recommended that companies experiencing difficulties should get in touch with the Association. He said: “The BMRA has a number of members who specialise in insurance for metal recyclers, and we would recommend any operators who are having difficulty with their insurance cover to speak to them.”