How do I know if I need my own insurance policy or if the buyer's/carrier's coverage is sufficient?
Short answer: Ask directly what coverage the buyer's or carrier's policy actually provides, including the coverage limit and what specifically is covered, and compare that against your material's actual value — for a modest transaction, relying on the buyer's or carrier's coverage may be reasonable, but for a higher-value shipment, having your own supplementary coverage, or at minimum confirming their coverage limit exceeds your material's value, is a reasonable precaution.
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List Free →Why relying entirely on someone else’s coverage carries risk
A buyer’s or carrier’s insurance is designed to protect their own interests and may have coverage limits, exclusions, or claim processes that don’t fully align with what would make you whole if something went wrong with your specific shipment.
What to actually ask about their coverage
Request specifics on the coverage limit per shipment, what perils are actually covered (theft, damage, loss), and whether there are any exclusions relevant to your material type — a vague assurance that “we’re insured” isn’t enough detail to actually assess whether you’re adequately protected.
When your own coverage becomes worth considering
For a transaction where the material value could exceed what the buyer’s or carrier’s policy would cover, or where the specific coverage terms leave meaningful gaps, arranging your own supplementary insurance for that specific shipment is a reasonable additional protection, particularly for larger or higher-value sales.
How ScrapTrade Makes This Easier
Asking a ScrapTrade buyer directly about their transport insurance coverage before a large transaction gives you the specific information needed to judge whether additional coverage on your end makes sense.
Ready to sell your scrap with clear protection for what happens if something goes wrong? ScrapTrade connects verified buyers and sellers with escrow-protected payments and transparent weighing.
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