Gallagher culture, connections key to securing recycling businesses’ cover
Published 29 March 2022
Property insurance for the waste and recycling sector in Australia is subject to limitations on availability and increases in premiums. The reasons for this aren’t confined to risks inherent in business operations – although the incidence of fires in waste management and recycling is a contributing factor. Underwriters view property damage and business interruption as risky exposures and even access to insurers is constrained with Allianz exiting the sector, leaving Criterion Underwriting as the main insurer for the industry locally.
Recently Gallagher was able to assist two companies – one a multinational and the other a local enterprise – to secure the cover they needed. The larger company is part of one of the world's largest recycling, service and water companies, which has been family run for more than 80 years and adheres to a mission statement of ‘Greater sustainability for people and the environment’, echoing the Gallagher history, culture and values.
Gallagher sector knowledge underpins a strong insurance proposition
Given the opportunity to meet with the group’s Australian business heads, David Ford and Nick Wiadrowski impressed the potential client with our extensive expertise in the waste and recycling management industry, and our 15 year association as insurance partner of the Waste Contractors & Recyclers Association (WCRA). When the meeting concluded the potential client asked for Gallagher to submit a proposal.
The Gallagher team formulated an insurance program tailored to the company’s needs for their Australian operations, complete with estimated premium costs and projections. This local operation was founded in 1982 and provides waste collection services to more than 15,000 commercial customers and, through partnerships with local authorities, approximately 2 million residential premises, from 35+ locations.
The compelling factor was our ability to achieve marketing-leading terms through our longstanding relationships with WCRA and Criterion Underwriting. As a result Gallagher has been appointed broker for the Australian division of the group.
“As the waste sector continues to deteriorate, Criterion may become more selective in their risk appetite and therefore having a detailed understanding of the client’s business and their management culture was key in obtaining the best terms in the market,” says Gallagher Client Manager David Ford, who was part of the tendering team.
“Our industry knowledge and ability to compare their risks with their competitors, was vital in providing the board with the confidence to end a 20+ year relationship with their current broker.”
Previous loss caused insurers to decline recycling and waste business cover
Similarly, Gallagher business relationships enabled us to secure cover for a Melbourne recycling and waste collector burdened by a $185,000 claim history. When the business acquired new vehicles the incumbent broker was unable to obtain cover for them from insurers, who declined to offer terms.
The recycling and waste collector then approached Gallagher. Our sector brokers leveraged their internal and external connections and succeeded in overcoming the difficulties associated with the recycling and waste industry’s risk profile and the business’s loss history to secure cover for the immensely relieved client.
“It’s always satisfying to be able to meet and provide a solution to a client’s insurance challenges, and it’s our knowledge of and relationships within the market, combined with in-depth understanding of this sector that enabled us in this instance,” says Internal Account Executive Blake Newman, who worked on account.
How we can help
Our waste and recycling industry insurance experts can assist with a risk assessment of your operations and recommendations to help improve you present your case to insurers. We can also conduct a no-obligation review of your current insurance arrangements and make recommendations for improving your cover and containing your costs.
Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective.