Tenants Specialising in Recycling

The issue

Property managers will, from time to time, either add a property to their portfolio with a tenant that provides recycling services or need to consider a tenant whose business is recycling for an existing vacant property. 
Recycling can throw up some insurance issues that property managers need to consider because a large section of the insurance market will either refuse to offer cover or apply some stringent terms and conditions.

There are three main reasons for this: 
• The items being recycled can often be hazardous or represent increased risk in their non-recycled form (increased fire risks from paper for example) 
• The processes applied to breaking down the original material to its constituent parts can be hazardous (refraction of white goods, for example) 
• The storage of recycled goods can increase risks (theft of non-ferrous metals for example) 
• The insurance market has suffered some very large losses from this sector of the market and as a result is reluctant to offer insurance cover. Finding decent cover at a reasonable price is becoming increasingly difficult.

We can help

We have tackled this issue by developing a selected panel of insurers who agree to carry out pre-inception risk surveys.

The major benefits of this approach are: 
• It allows potential insurers to better understand the potential risks so they can price the insurance premiums more accurately 
• It can positively influence the insurers’ willingness to insure properties used for recycling without applying unnecessary policy terms and conditions 
• It provides free risk management advice to the property owner and tenant 
• It identifies any additional costs of insuring the property up front so that property managers can make informed decisions about their insurance options for the property

What to do next

If you have a property with tenants that recycle or are thinking of letting a property to a recycling company we can help. Call us now and speak to one of our specialists.

Call 01789 761665

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