Looking for Salvage Yard Insurance?
Protect your salvage yard from environmental liability, customer injuries, property damage, and theft. Get coverage for auto salvage, scrap yards, and parts recycling operations.
What is Salvage Yard Insurance?
Salvage yard insurance protects recycling operations from environmental contamination, customer injuries, fire damage, and liability claims. Coverage includes pollution liability, property insurance, and general liability. Environmental agencies, municipalities, and lenders require proof of insurance before permits, licensing, or financing.
Environmental Liability
Coverage for contamination from fluids, batteries, and hazardous materials in salvaged vehicles.
Property and Inventory
Protects salvage inventory, equipment, and yard assets from fire or damage.
Yard Liability
Covers customer injuries and property damage at salvage yard facilities.
Certificates
Fast proof for environmental agencies, municipalities, and lenders.
Who Needs Salvage Yard Insurance?
- Auto Salvage Yards : Businesses requiring specialized insurance coverage
- Scrap Metal Recyclers : Businesses requiring specialized insurance coverage
- Vehicle Parts Operations : Businesses requiring specialized insurance coverage
- Dismantling Facilities : Businesses requiring specialized insurance coverage
Why Harper?
Salvage Yard Expertise
We understand salvage operation risks—environmental contamination, fire hazards, customer injuries, and theft. Get coverage for auto salvage, metal recycling, or parts operations.
Fast Proof for Permits
Environmental permits require pollution liability coverage. We deliver certificates quickly for regulatory compliance.
Clear Simple Guidance
We explain pollution liability, fire coverage, and salvage-specific insurance requirements clearly.
Tailored to Your Operations
Match coverage to your yard—auto salvage, scrap metal, parts sales, or vehicle dismantling.
Frequently Asked Questions
What insurance do salvage yards need?
Salvage yards need pollution/environmental liability for contamination from automotive fluids, batteries, mercury switches, and hazardous materials inherent in salvaged vehicles, property insurance for inventory (salvage vehicles and parts) and facilities with enhanced fire coverage given high fire risk, and general liability for customer injuries in yards with heavy equipment, sharp objects, and uneven terrain. Garagekeepers coverage protects customer vehicles if offering storage, while crime coverage addresses metal theft. Business interruption is crucial as fire shutdowns can last months.
Is salvage yard insurance required?
Environmental agencies require pollution liability coverage for operating permits and stormwater discharge permits at salvage yards due to contamination risks from automotive fluids and materials. Municipalities require general liability for business licensing. Lenders require property and pollution coverage for financed operations. Some states require proof of environmental insurance for auto recycler licenses. Operating without pollution coverage creates massive exposure given EPA enforcement and cleanup costs that can exceed millions.
How much does salvage yard insurance cost?
Small auto parts yards pay $15,000–$40,000 annually for basic coverage, including pollution liability. Mid-sized salvage yards pay $40,000 to $100,000+ annually. Large dismantling operations with extensive inventory and higher environmental risks pay $100,000 to $300,000+ annually. Costs depend on yard size, inventory values, environmental compliance history, fire suppression systems, number of vehicles processed annually, proximity to waterways, claims history, and pollution liability limits.
Does insurance cover salvage yard fires?
Property insurance covers fire damage to salvage inventory, buildings, and equipment, but salvage yards face significantly elevated fire risk due to combustible materials (tires, upholstery, fluids) and friction from metal processing. Insurers typically require fire breaks between vehicle rows, clear access lanes for fire departments, removal of fluids before storage, and sometimes sprinkler systems or fire suppression equipment. Yards without adequate fire prevention may face coverage limitations, high deductibles, or difficulty obtaining coverage.
Does insurance cover environmental contamination?
Pollution liability covers cleanup costs, third-party property damage, and regulatory penalties from environmental contamination, including soil contamination from leaking fluids, stormwater runoff contamination, groundwater pollution, or improper handling of batteries and mercury switches. Coverage applies when proper fluid management, containment systems, and environmental compliance procedures are followed. Knowing violations of environmental regulations, lack of required containment, or ignoring obvious contamination could void coverage.
Can environmental agencies require specific insurance?
Yes, EPA and state environmental agencies require salvage yards to maintain pollution liability coverage as a condition of operating permits, with minimum limits varying by state but typically $1 million or more. Stormwater discharge permits require proof of pollution liability. Some jurisdictions require financial assurance (insurance or bonds) demonstrating the ability to fund environmental cleanup. Permits specify insurance requirements, and coverage must specifically address salvage yard operations, as some pollution policies exclude auto recycling.