Auto Dismantlers Insurance Florida Policy Information
Auto Dismantlers Insurance Florida. Auto dismantling is one of the fastest growing industries in the United States, as it generates an impressive $5 billion each year. It's estimated that the scrap metals that are produced by auto dismantling yards supply around 80% of the metals that are used in the construction of new vehicles.
Add to that all of the parts from wrecked, junk, or discarded vehicles that are sold, refurbished, and recycled and it's no wonder why the auto dismantling industry is booming.
Automobile and truck dismantlers salvage fluids, tires and other parts from unusable vehicles, such as those that have been abandoned, involved in accidents, or simply worn out ("end of life" vehicles). These recycled fluids, tires and other parts are sold directly to consumers, retailers or wholesalers.
Some dismantlers permit customers to remove the parts from vehicles. Some have metal crushing devices to compact the vehicle after usable parts have been removed to sell any remaining metal as scrap. The dismantler must obtain and record the proper titles and transfers of the vehicles being dismantled to assure that all legalities are met and no fraud or theft is involved.
Dismantlers often pick up and tow the vehicle to be dismantled. They may also offer towing services to other repair operations, auto clubs, or government entities.
If you're thinking about taking advantage of the opportunity that this industry presents, you need to make sure that you are properly prepared, and there's a component of your preparations that you don't want to overlook: auto dismantlers insurance Florida.
Auto dismantlers insurance Florida protects your salvage and dismantling business from lawsuits with rates as low as $67/mo. Get a fast quote and your certificate of insurance now.
Why Do Auto Dismantlers Need Insurance?
Just like a business in any other field, as the owner and operator of an FL auto dismantling operation, you face a number of risks. Some of those risks are similar to what other businesses face; for example, a third-party or an employee could sustain an injury at your salvage yard, the office you run your operations out of could be damaged in a storm, or your yard could be vandalized or robbed, for example.
FL auto dismantlers also face certain risks that are unique to their industry. For instance, a client could claim that you cheated them out of money, or the vehicles that you dismantle could leak fluids and impact the drinking water supply.
As the owner and operator of your business, you are liable for all risks, whatever they may be. That means that you could end up having to pay out a lot of money in repairs, medical expenses, environmental cleanup fees, and legal fees. Needless to say those types of expenses can be astronomical. Imagine if you had to pay for them out of your own pocket?
Chances are that you would end up in a serious financial crisis and you could possibly even lose your business.
That's why having the right type of auto dismantlers insurance Florida coverage is so important. If you're properly insured, if any issues do arise, instead of paying the related expenses yourself, your carrier will cover them for you. In other words, insurance can help you avoid crippling losses.
Add to that the fact that auto dismantling operations are legally required to carry certain types of insurance. If you aren't insured, you could end up in serious legal trouble and possibly even lose your business.
What Type Of Insurance Do Auto Dismantlers Need?
What specific type of coverage do FL auto dismantling companies need? That depends on several factors; the size of your operation and where it is located, for example.
That's why it's so important to speak with a reputable insurance agent so you can find out exactly what type of auto dismantlers insurance Florida coverage you'll need, as well as what your policy limits should be.
With that said, however, there are some basic coverages that all auto dismantlers should carry, regardless of the specifics of their operation. Examples of policies of some of the polices you should have include:
- Commercial General Liability - In the event that you are ever faced with a third-party liability claim, commercial general liability insurance will cover the costs. For example, if a client were to trip over a piece of equipment at your yard, break a leg, and file a lawsuit against you, this coverage would pay for your legal defense fees and any compensation that a court may find you liable for.
- Commercial Property - If your salvage yard were to go up in flames or a tree were to fall on top of your office, commercial property insurance would come to the rescue. This policy covers your commercial property and the contents it contains from the losses that are associated with acts of nature; floods, storms, fires, vandalism, and theft, for example.
- Environmental Liability - Because you deal with vehicles, and vehicles contain oils, gas, antifreeze, and other solvents that could be dangerous to the environment, you'll also need environmental liability insurance. If any of the vehicles on your property were to leak contaminants, this policy would help to cover the cost that would be associated with cleanup efforts, as well as any legal fees you may face.
These policies are just a few examples of the type of auto dismantlers insurance Florida you'll need to carry as the owner and operator of an FL dismantling and salvage business.
FL Auto Dismantlers' Risks & Exposures
Automobile exposures can be high if the dismantler transports hazardous waste to recycling or waste disposal facilities as the transporting vehicle may be bulky. All employee drivers should have appropriate driver's licenses and their MVRs regularly checked. All vehicles must be regularly maintained with records kept.
Towing of vehicles not meant for dismantling can result in damage to those vehicles. Tow truck drivers must be well trained in the proper way to secure the vehicles and must be able to use the most appropriate method of transport. Towing vehicles must be regularly checked, particularly the hoists and tow bars.
Garagekeepers exposure comes from damage that can occur to customers' vehicles being towed for purposes other than dismantling.
Premises liability exposures is high due to the number of visitors to the premises. Customers who remove parts from autos may be injured by cuts, burns, equipment, or falling objects. They may trip or fall over other vehicles or parts, particularly during inclement weather. Smoke, dust, odors, or noise present a nuisance exposure for adjacent properties.
Accumulation of water in tires stored outside can provide breeding grounds for mosquitoes. Parking lots and sidewalks need to be in good repair with snow and ice removed, and generally level and free of exposure to slips and falls. If the premises is open after dark, there must be adequate lighting and appropriate security for the area.
Salvage yards present an attractive nuisance hazard. Fences and chains should be in place to prevent entrance after hours.
Products liability exposure is generally low as the vehicles being salvaged are no longer usable. If the dismantler repairs or installs used parts for customers, the exposure increases to that of a manufacturer.
Environmental impairment exposure is very high due to the presence of gasoline, mercury, lead, fuel oil, battery acid, solvents, and other hazardous wastes. The crushed vehicles can leak fluids which must be caught and not allowed to soak into the soil or pollute water sources. Storage tanks must be leak-proof and regularly maintained.
Spillage and leaking of pollutants into the air, ground, or water can result in high cleanup costs and fines. Adequate spill procedures should be in place and must be followed to prevent any leakage or contamination. Contracts should be in place to dispose of all environmentally dangerous chemicals.
If the dismantler hauls fluids or other contaminants to recycling or waste treatment facilities, a collision or overturn can result in pollution to air, soil, or water.
Workers compensation exposures can be very high. Trips and falls over salvaged vehicles or vehicle parts are common. Lifting of a vehicle by hoists, jacks, and other mechanical means can result in injury should the equipment malfunction. Hoists must be well maintained and procedures in place to prevent vehicles from falling. Safety measures must be in place while the crusher is in operation to prevent an employee from falling or being pulled into the machine.
Lifting by nonmechanical means can result in back injuries, hernias, sprains and strains. Leakage of battery acids, burning of waste materials, and welding operations can result in burns. Cuts are common from cutting vehicles apart. Foreign objects in the eye and hearing impairment from noise can result from dismantling operations.
Handling of toxic materials can result in respiratory injuries, eye injuries, or contact dermatitis. Employees should be provided with safety equipment, trained on proper handling techniques, and have conveying devices available to assist with heavy lifting.
Property exposures are high due to flammables such as lubricants, oils, degreasers and solvents used to clean parts, fluids remaining in the vehicles to be salvaged, and from welding operations. Proper drainage of all fluids from the vehicle prior to crushing is important to prevent explosions. Each type of fluid must be stored in explosion-proof containers.
Gasoline drained from the vehicles being dismantled is often kept on premises to service and refuel owned vehicles. Flammables, including tanks and gases used for welding, must be properly labeled, stored and separated. Furnaces used to dispose of waste materials may overheat.
Electrical wiring must meet current codes and be adequate for the occupancy. Ongoing maintenance of equipment is critical as even a small fire can result in substantial damage. There should be automatic shutoffs to prevent furnaces from overheating. Smoking should be prohibited.
Tires removed from vehicles to be dismantled do not catch on fire quickly; however, when they do burn, the fire is difficult to put out and an oily smoke permeates the entire area.
Equipment breakdown exposure is high as the business is dependent on its machinery for conducting operations. Replacement parts may be difficult to obtain on a timely basis.
Inland marine exposures are from accounts receivable if the dismantler offers credit, computers to monitor inventory, contractors' equipment for machinery used to crush and dismantle the vehicles, goods in transit if parts are delivered to customers, and valuable papers and records for salvaged vehicle titles and other information. Backup copies of all records, including computer records, should be made and stored off premises.
Crime exposures come from employee dishonesty and theft of money and securities. Background checks should be conducted on all employees. All ordering, billing, and disbursements must be handled as separate duties. Regular audits should be conducted.
Receipts should be provided for any cash transaction. Money should be regularly stripped from the cash drawers and placed in a safe away from the front door. Irregular drops should be made to the bank to prevent a substantial accumulation of cash on the premises.
Auto Dismantlers Insurance - The Bottom Line
For more information on auto dismantlers insurance Florida, speak with an experienced agent who specializes in commercial insurance and understands the many unique exposures and risks that FL auto dismantlers face.
Florida Economic Data And Commercial Insurance Requirements
If you are thinking about starting up a business in the state of Florida, it's important to understand the economic standing of the state before you set up shop. Furthermore, you should understand the rules and regulations regarding FL commercial insurance.
With this information, you will be able to determine if Florida is the right place for your business, and if so, what type of insurance you will need to carry to protect yourself, your employees, and the people that you serve.
Economic Trends For Businesses In FL
Florida is known as the sunshine state, and the economic outlook for this state is just as bright as the weather. It is estimated that the economy in Florida will reach $1 trillion by the end of the 2020 calendar year. However, while financially, the economy is expected to boom, it is forecasted that job growth will decline.
The reason for the economic boom? While businesses do certainly contribute to the economy, industry isn't the reason why Florida's economy is expected to soar; the residents that move to the state are largely responsible for its economic growth. Approximately 898 people move to Florida every day, and those new residents bring a tremendous amount of income for the state.
In terms of job growth, the rate of new jobs has been its highest since 2007; however, it is forecasted to slow during 2018. Approximately 180,000 new jobs will be added in 2018, which is slightly less than the new jobs that were added in 2017.
The industries that contribute the most to Florida's economy include:
- Aviation & Aerospace
- Financial Services
- International Trade
- Life Sciences
Commercial Insurance: Regulations & Limits In Florida
The Florida Office of Insurance Regulation regulates insurance in FL. The only type of coverage that business owners must carry is workers' compensation. Organizations in any industry must carry this type of coverage if they employ a staff of hourly or salaried workers. But, organizations that employ three or less people are not legally required to carry this type of coverage.
Business owners are also required to carry commercial auto insurance if they use any vehicles for their operations, such as making deliveries or transporting goods. Commercial liability insurance is another type of coverage that Florida business owners should consider carrying, though they are not legally required to have this type of insurance.
Additional Resources For Construction Contractors Insurance
Learn about construction contractors insurance, including how much the premium costs and what is covered - and how business insurance can help protect your construction business from lawsuits.
- Building Contractors
- Demolition Contractors
- Foundation Layers
- General Contractors
- Sewer Contractors
- Steel Erection Contractors
- Surety Bonds
Construction contractors have substantial needs for many types of insurance coverage. Most would point to the importance of coverage for completed operations, premises liability coverage during construction operations at jobsites and professional or design errors and omissions insurance.
Such coverages can be provided only when the interests of the contractor and of the property owner are understood; particularly the contractual obligations assumed by the contractor. Next in significance is the workers compensation exposure followed by business automobile. Inland marine coverage for expensive mobile equipment, supplies, other tools of the trade and builders' risk can be vital.
Liability coverage is needed by a construction contractor in order to obtain most jobs. In addition, if a contractor wants to stay in business, it must be obtained to protect it from lawsuits due to its premises operations, off-site locations and products/completed operations exposures. Owners and contractors protective liability and railroad protective liability coverages may also be required in certain cases in order for a contractor to meets its obligations for particular jobs.
Many construction contractors do not have the usual location-specific buildings and business personal property exposures. Their business property is more mobile and, therefore, better covered with inland marine coverage forms. However, for those larger construction contractors that own buildings and/or maintain business inventory there are many coverage forms and choices available to them.
Construction contractors use their vehicles to get to and from their workplaces and jobsites. They also use vehicles to transport equipment and inventory to those locations. It is important to cover the liability of these vehicles for injury or damage they may cause, as well as to provide coverage for damage to the vehicles themselves.
Employers are required to provide coverage for injuries sustained by their employees while on the job. Construction contractors must comply with these requirements but some try to avoid them by hiring subcontractors. These subcontractors may actually operate and qualify as employees. The relationship between a contractor and its subcontractors must be carefully evaluated in order to determine if workers compensation coverage is still needed.
Minimum recommended small business insurance coverage: Business Personal Property, Employee Dishonesty, Surety Bonds, Accounts Receivable, Builders' Risk, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Business Automobile Liability and Physical Damage, Hired and Nonowned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Business Income with Extra Expense, Earthquake, Flood, Leasehold Interest, Real Property Legal Liability, Contractors' Equipment, Goods in Transit, Installation Floater, Cyber Liability, Employment-related Practices Liability, Environmental Impairment Liability, Stop Gap Liability, Unmanned Aerial Vehicles (UAV) (Drones).
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