Liability Insurance

Do you have liability insurance or have you looked into it and what was your experience? Have you considered that your regular vehicle insurance could be voided if you have an accident while in the act of commerce (collecting scrap/junk or on the way to the scrap yard)? Unless your policy specifies operating a scrap yard, the insurance will not pay if (for example) the scrap falls off you vehicle and hits another. Stuff falling off your truck or trailer can also result in HUGE fines by the DOT.

I looked into General Liability and found that insurance companies only have one code for this activity. I'd have to pay the same as the scrap yard I sell to.

For those who don't know, there are two types of insurance which apply and are two separate policies:

Commercial Vehicle insurance would cover the car or truck itself while being used to generate income

General Liability insurance would cover damage unrelated to the vehicle. This could include falling items, damage to the office and records, other people getting hurt on your premises etc.

Bottom line - unless your a big operator and can afford GL (General Liability), be VERY careful and secure everything.

In his case, he wants to ask the buyer for a copy of his General Liability policy. Make sure it says something like "Scrap Metal Buyer". I really doubt he'll find anyone who has it, though. As a practical matter, there is no way to prevent being sued for an injury occurring on your property. The best you can do is make sure there's someone your lawyer can try to shift responsibility to. I've seen "service policies" drawn up with a "Hold Harmless" clause. This where the owner or service provider agrees to pay any claim against the other. However, in case of a claim, the first thing a lawyer will do is try to show negligence in which case a judge would disallow the Hold Harmless provision of the contract.

[quote author=Mick link=topic=256.msg365#msg365 date=1284390569]
In his case, he wants to ask the buyer for a copy of his General Liability policy. Make sure it says something like "Scrap Metal Buyer". I really doubt he'll find anyone who has it, though. As a practical matter, there is no way to prevent being sued for an injury occurring on your property. The best you can do is make sure there's someone your lawyer can try to shift responsibility to. I've seen "service policies" drawn up with a "Hold Harmless" clause. This where the owner or service provider agrees to pay any claim against the other. However, in case of a claim, the first thing a lawyer will do is try to show negligence in which case a judge would disallow the Hold Harmless provision of the contract.
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Short answer to your question is "yes". Disclaimer is - I am not a lawyer. Please consult your own attorney.

Just general liability, and soon will be upgrading to full coverage for all my vehicles.

Originally Posted by GeorgeB

Just general liability, and soon will be upgrading to full coverage for all my vehicles.

??? General Liability does not cover vehicles. GL is for damage resulting from business operations other than licensed vehicle operations. That is Commercial Vehicle insurance - completely separate policy.

Originally Posted by Mick

??? General Liability does not cover vehicles. GL is for damage resulting from business operations other than licensed vehicle operations. That is Commercial Vehicle insurance - completely separate policy.

Okay, perhaps, I am mistaken. You talking about business insurance, or vehicle insurance?

General Liability Business Insurance. Has nothing to do with your vehicle unless you put some sort of package together with your insurer.

Originally Posted by GeorgeB

... You talking about business insurance, or vehicle insurance?

The original post was about GL - business insurance. Your vehicle insurance MAY NOT (probably wont) cover damage due to stuff falling off the vehicle or trailer; especially if the insurance company can claim you are engaging in commerce (scrap metal sales). Commercial vehicle insurance would not help in that situation, either.

Originally Posted by Mick

The original post was about GL - business insurance. Your vehicle insurance MAY NOT (probably wont) cover damage due to stuff falling off the vehicle or trailer; especially if the insurance company can claim you are engaging in commerce (scrap metal sales). Commercial vehicle insurance would not help in that situation, either.

Sorry Mick, miss understood.

IS THERE SOME TYPE OF PAPER WORK THAT I CAN WRITE UP THAT RELIEVES ANY LIBILITY TO AN OWNER OF A PROPERTY OF WHICH I AM COLLECTING SCRAP

Yes, you can make up a waiver, and sign it.

Personal coverage from Worker Compensation is reasonable, this covers any issues of working on private property or place of business.

As for transporting goods on your truck or trailer, I can only speak from my Canadian experience.

If my personal vehicle is insured as pleasure it maybe used as transportation a set number of days per month, regular insurance would over going to and from my place of employment but not that of performing duties in commerce - ie any accident arising from this type of work would not be covered. Same coverage as impaired or driving under the influence - nil.

Farm registered and insured trucks and trailers same as commercial with the exception they may burn tax exempt marked fuel same for fishing industry, logging on Crown Lands and Indian Reserves which are classified as private land.

Any truck capable of transporting and registered to carry5500 kg or above is automatically commercial, subject to crossing highway scales and yearly vehicle safety inspections. The chart below may help you with figuring if you need cargo insurance which covers loss and damage to private or public property.

All the goods listed in the chart below are covered by your commercial truck insurance policy.