What is Breakers Yard Insurance?
Breakers yard insurance is specialist cover for businesses that dismantle, store, or recycle vehicles for salvage and parts. Whether you operate a local scrap yard, a large vehicle dismantling operation, or a full-service salvage yard, standard motor trade insurance won’t give you the level of protection your trade needs. This type of traders insurance is designed to address the unique risks you face every day—like handling hazardous materials, storing salvage, and moving vehicles on and off site—so you can run your business with confidence and remain compliant.
With the right policy in place, you’re protected against accidents, theft, environmental risks, and legal claims, all tailored to the realities of the vehicle salvage and dismantling industry.
What the experts say…
"Breakers yards face a unique mix of heavy machinery, valuable stock, and strict environmental rules. Having the right breakers yard insurance isn’t just about ticking boxes for compliance—it’s about safeguarding your staff, assets, and reputation from risks that standard policies simply don’t cover. Make sure your cover matches how your yard operates and always review it as your business changes."
– Ian Beevis, Founder of Clean Green Compare
What’s Covered by Breakers Yard Insurance?
A solid breakers yard or salvage yard insurance policy protects your core business assets, from premises and equipment to the vehicles and parts you handle every day. The following list shows what’s typically included:
- Public liability insurance – Protects your yard if a customer, supplier, or member of the public is injured or their property is damaged on your premises.
- Employers’ liability insurance – Legally required if you employ staff, covering claims if an employee is injured or becomes ill through their work at your dismantling or recycling operation.
- Road risks insurance – Covers you when moving vehicles on public roads, which is essential for collections and deliveries. For more detail, see our road risk insurance guide.
- Property and equipment cover – Insures your buildings, machinery, and vital tools against fire, theft, flood, or accidental damage.
- Stock cover – Protects the value of salvage vehicles and parts stored on-site.
- Business interruption insurance – Provides financial support if your salvage yard or breakers yard can’t trade after a major incident, helping cover lost income and ongoing costs.
- Environmental liability – Covers clean-up costs and legal expenses following pollution or contamination incidents. For wider environmental guidance, visit our motor traders insurance overview.
Always check your documents to see exactly what’s included, and ask your provider about anything unique to your dismantling or salvage operation.
Add-ons for Breakers Yard Insurance
Every operation is different, so you can tailor your traders insurance with additional options. The following add-ons are popular with salvage yard businesses and vehicle dismantlers:
Offers extra protection for high-value tools, diagnostic equipment, and mobile devices used around your site.
Protects vehicles, parts, or machinery while being transported between yards or to customers. If your staff routinely collect or deliver salvage vehicles, see our collection and delivery insurance page for specialist cover.
Helps cover costs if your business faces legal action from employment, contract, or environmental disputes.
Provides financial support if you or your team are injured at work.
Essential for recovery vehicles or trucks used for moving stock or scrap. Learn more in our breakdown cover guide.
Helps protect your salvage business against data breaches or cybercrime if you store business or customer data online.
Only select the extras you really need to keep your breakers yard insurance affordable and perfectly tailored to your operation.
Exclusions – What’s Not Covered by Breakers Yard Insurance?
Even the best motor traders insurance has its limits. Here are some of the most common exclusions found in breakers yard, salvage yard, or vehicle dismantlers insurance policies (if you’re ever unsure what’s excluded, ask your provider before you buy or renew—clarity now means peace of mind later):
- Undeclared convictions – Not disclosing unspent criminal or motoring convictions can invalidate your policy and result in rejected claims.
- Non-business use – Cover only applies to business activities, not personal or unrelated use of vehicles or equipment.
- Unlisted drivers – Only named staff or drivers are insured—others are excluded.
- Poor security – Claims may be denied if your vehicles, parts, or yard are not secured according to your policy requirements.
- Excluded vehicles or activities – Some high-value or high-risk vehicles, or activities outside your stated trade, may not be covered unless you’ve agreed these with your insurer in advance.
- Fraud or dishonest acts – Deliberate, criminal, or fraudulent behaviour will void your cover.
- Pollution from illegal disposal – Environmental claims won’t be paid if you breach legal waste disposal rules.
Who Needs Breakers Yard Insurance?
If you handle vehicles or parts for salvage, dismantling, or recycling, you need specialist protection. Here’s who usually needs breakers yard or salvage yard insurance:
- Vehicle dismantling businesses – Any company taking apart vehicles for scrap, recycling, or parts sales.
- Car breakers yards – Businesses that store, strip, and process end-of-life vehicles for resale or environmental disposal.
- Salvage yards and scrap yards – Sites that process written-off or damaged vehicles and sell parts or metal for reuse.
- Auto recycling centres – Yards focused on eco-friendly disposal and recovery of vehicle materials and components.
- Parts resale operations – Businesses supplying reclaimed engines, bodywork, or used car parts direct to trade or public buyers.
- Yards offering vehicle collection and delivery – Those providing pick-up or drop-off of vehicles to be scrapped or dismantled. For more on this, see our collection and delivery insurance guide.
- Businesses with multiple locations or employees – Any operation with a team or more than one site in the vehicle salvage trade.
For a wider look at related trades and cover, check our motor traders insurance overview.
Get Breakers Yard Insurance Quotes Today
How to Get a Breakers Yard Insurance Quote
Getting the right breakers yard insurance is easier when you’re prepared. Here’s how the quote process works:
How Much Does Breakers Yard Insurance Cost?
The cost of breakers yard insurance depends on several factors, including:
- Business size and turnover – Larger yards or those handling high volumes of vehicles and parts may pay more.
- Type and value of stock – Expensive, high-performance, or hazardous vehicles/parts can increase premiums.
- Location and security – Yards in high-risk areas or with limited security may cost more to insure.
- Claims and convictions history – A clean record keeps costs lower; convictions or recent claims push them up.
- Cover levels and extras – Adding more features or higher limits will increase the price.
- Number of staff and vehicles – More employees or delivery vehicles on the policy can add to the cost.
- Payment method – Paying annually is usually cheaper than monthly instalments.
The best way to get an accurate quote is to compare policies from several specialist providers and only pay for the extras you really need.
Ways to Save Money on Breakers Yard Insurance
There are several ways to keep your breakers yard insurance costs under control:
A little time spent reviewing your cover can mean big savings without sacrificing the protection your yard needs.
FAQs – Breakers Yard Insurance
Can I get breakers yard insurance for a new or small business?
Yes. Many insurers offer specialist cover for start-up or small-scale breakers yards—just be ready to show you have the correct licences, environmental permits, and robust site security in place.
Does breakers yard insurance cover pollution or environmental damage?
Most breakers yard insurance policies include environmental liability cover, but you may need higher limits if your site handles hazardous fluids, batteries, or is located near watercourses. Always tell your insurer about your dismantling activities and waste management processes.
Is collection and delivery of vehicles covered under breakers yard insurance?
Yes, as long as you include road risks insurance and goods in transit. Always let your insurer know if you collect, transport, or deliver vehicles to or from your breakers yard, so your cover is set up correctly.
Can I add or remove vehicles or staff mid-policy at my breakers yard?
Most insurers let you update your policy as your breakers yard changes—always notify your provider when hiring new staff, adding delivery vehicles, or changing your operations to ensure you remain covered.
How do I get the lowest quote for breakers yard insurance?
Only pay for the cover your breakers yard truly needs, invest in strong security measures (like CCTV and perimeter fencing), keep your claims history clean, and compare quotes from specialist breakers yard insurance providers every year.
Can I get breakers yard insurance if I have previous convictions?
Yes, but you must declare any unspent convictions when applying. Some specialist insurers can still offer breakers yard insurance for owners or employees with a record, but non-disclosure will void your policy and can result in claims being refused. Always be upfront and seek a provider experienced in supporting breakers yards in your situation.
Get Breakers Yard Insurance Quotes Today
Useful Links for Breakers Yard Insurance
The vehicle dismantling and salvage trade is tightly regulated, with strict requirements for licensing, environmental compliance, and waste handling. These external links connect you to the most trusted, up-to-date government and industry resources, so you stay informed and compliant.
