Increasing insurance premiums have hit the British recycling industry after a series of high-profile fires. Industry figures point to collective action as the best strategy to bring down costs.

“We won’t quote exact figures but our premium for next year has increased by around 2,000 percent,” said Ben Gerry, general manager of Boomerang Plastics. According to Gerry, the increases are the “most dangerous” issue currently facing British plastics recyclers.

Several fires at recycling plants this year have given the recycling industry a black eye. One plant in Merseyside had two fires within a year. Another conflagration – at a tire recycling plant – was so large it was visible from space.

As a result, several insurance companies have stopped insuring recycling operations, and others have pumped premiums up by 25%. The move shocked recyclers, some of whom are in compliance with safety standards or whose only fires were due to arson.

Chris Dow, chief executive of Closed Loop Recycling, suggests that the industry should deal collectively with the increases by assessing their risk and updating safety procedures. “Then … we need to be having the appropriate conversations with the insurance industry to instill confidence in the recycling sector to ensure appropriate levels of cover are available at a reasonable price.”

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