Shredding move poses insurance problem for Tyre Recycling Services
Every business needs to keep pace with changes in its market place to ensure its offer continues to meet demand and generate profits. So when Tyre Recycling Services in Fareham decided to switch from tyre baling and move into tyre shredding, it was made strictly on business grounds.
“What we didn’t anticipate was the huge hike in our annual buildings insurance premium this decision would cause,” explained Tyre Recycling’s Sam Bedford. “Quotes came in at around £20,000, three times what we were originally paying, plus there was a potential requirement of an additional £10,000 for fire alarm and sprinkler systems.
“The alternative would be the expense and upheaval of moving premises altogether.”
The proposed increase was due to evidence that large stockpiles of tyre shreds (more than three metres deep) can be prone to spontaneous combustion. Rather than the knee-jerk reaction of their landlord’s insurers who had previously arranged cover for the building, Tyre Recycing required a better informed and more considered approach that would protect the business from this risk – and at an affordable cost.
Macbeth Chartered Insurance Brokers already handled much of Tyre Recycling’s insurance business with liability and contents cover. “They’ve always proved very approachable with a problem-solving attitude,” added Sam, “so we naturally turned to them for help.
“They took the time to understand the issue we faced, and its potential for our company, and applied their experience in finding us a manageable alternative. They worked quickly, too, which was vital in avoiding any interruption to our business.”
The Macbeth solution
- Delivered specialist insurance advice tailored to the needs of the recycling industry
- Drew on an active network of insurers prepared to look at difficult or unusual risk to source quotes
- Throughout provided a pro-active, problem-solving approach to a business-threatening issue.
“Macbeth’s intervention was crucial to us being able to continue as a profitable business,” Sam added. “We had to swallow a premium increase but, more importantly, we avoided having to make any major alterations to the premises.
“This meant we were able to stay put without incurring any additional outlay on our building.”