In 2008, Amlin underwriters worked with Lloyd’s broker Miles Smith, a specialist in the UK waste industry, to structure the first comprehensive scheme to meet the needs of this growing industry.

Legislation such as the EC Landfill Directive 2001 has set ambitious targets for reducing the volume of waste incinerated or dumped in landfill and the UK government target is to boost recycling rates from 27% to 50% by 2020. This is driving significant investment in new recycling and reprocessing facilities and presents new issues for insurers to address.

The waste management industry is diverse, spanning everything from hi-tech reclamation facilities to basic skip shifting. Policyholders include local authority contractors, skip operators, transfer stations, landfill or incinerator owners and recycling plants.

It is also dangerous, involving hazardous materials and equipment. Recycling facilities are busy, often loosely structured environments, with third parties passing through with minimal supervision. Vehicle accidents, upper-limb and back injuries are endemic. There is always the potential for major third-party or employers’ liability claims.

Fleet and employers’ liability insurance are statutory requirements and were previously only available separately. Policyholders faced paying for overlapping cover and having claims delayed or declined while insurers argued over which policy should respond.

For example, a driver and passenger are due to switch shifts. They get down from the cab and begin unloading. One sustains a serious injury. Is this person currently the driver or the passenger? The question is material because the Third EC Motor Directive shifts responsibility between motor and liability insurers based on whether the injured party is the driver or passenger.

Our research showed that standard covers left policyholders exposed to numerous risks. For example, standard fleet policies excluded tipping exposure cover for trucks unloading on the uneven ground of building and waste sites because they were functioning as tools rather than transporters. Also at risk were employers, whose best efforts failed to detect unsuitable or previously banned drivers, in particular those from EU accession states.

The Amlin/Miles Smith scheme covers all the above, plus personal accident and rehabilitation extensions that provide an immediate payment and early treatment for injured employees. This gives them the best chance of recovery and is key in avoiding costly employers’ liability claims.

Paul Chainey, Chief Executive of the Miles Smith Group commented,

“We have worked with Amlin for over fifteen years and appreciate the flexibility and responsiveness of their underwriters. We believe the Recycling & Reuse scheme is the best quality cover available in the UK and increasing numbers of our clients are switching to this option.”

As the sector becomes increasingly professional, the Environmental Services Association (ESA) and the Chartered Institution of Waste Management have sought comprehensive specialist protection underwritten by a single securely-rated carrier. The Amlin/Miles Smith scheme meets that need.