Is it normal for insurers to exclude scrap metal cargo due to its classification as high-theft-risk?
Short answer: Yes, this is a genuine and reasonably common practice — scrap metal, particularly certain high-value categories like copper, is sometimes classified by insurers as higher-risk cargo due to its resale value and relative difficulty tracing, which can result in specific exclusions, higher premiums, or additional security requirements compared to standard cargo insurance for other goods.
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List Free →Why scrap metal specifically gets this classification
Certain scrap metals, especially higher-value ones like copper, are relatively easy to resell without clear traceability compared to many other cargo types, which makes them a more attractive theft target — insurers price and structure coverage around this genuine, statistically elevated risk.
What this exclusion or special treatment typically looks like
Rather than a blanket refusal to insure scrap cargo at all, this commonly shows up as higher premiums, specific security requirement conditions for coverage to apply, or lower coverage limits compared to what the same insurer might offer for lower-risk cargo types.
What to do if you encounter this
If a standard cargo policy excludes or heavily restricts scrap metal coverage, look specifically for insurers or policy riders designed for higher-value or higher-theft-risk cargo — this is a known enough category that specialized coverage options do exist, even if standard policies don’t automatically accommodate it.
How ScrapTrade Makes This Easier
Buyers on ScrapTrade experienced with higher-value scrap categories like copper should be familiar with these insurance considerations and able to explain how their own coverage addresses this classification.
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