Why Electronic Waste Will Affect Your Insurance Premium In The Coming Years


Electronics recycling is not as simple as it sounds. E-waste disposal is complex including identification, handling and disposal. In a recent article published by Chubbi, the world’s largest publicly traded insurance company, they suggested that companies should consider work with industry experts to develop and manage an e-waste risk management program. Several reasons to develop an e-waste management plan include:

Pollution caused by e-waste will lead to federal and state fines, litigation and significant financial settlements. Liability for pollution encompasses the entire recycling chain including the Generator.

  • Implement an e-waste risk assessment plan including Standard Operating Procedures (SOP’s) for:
    • Vendor due diligence including third party R2 certification
    • Insurance policy requirements including cyber and pollution liability
    • Employee personal devices used for work (BYOD)Data destruction is always a concern especially when e-waste is repurposed. Reuse is the ultimate form of recycling, but care must be taken when wiping data. Use an independent firm that specializes in data destruction and carries the appropriate certifications and insurance. This will reduce risk, provide data compliance and ensure protection of your Company’s brand.
  • Implement electronic data destruction assessment plan including Standard Operating Procedures (SOP’s) for:
    • Appropriate data destruction method including shredding, degaussing and wiping
    • Insurance policy requirements including cyber and crime insurance
    • Managing data on personal devices

Contact us to find out more about template SOP’s and additional information to ensure e-waste compliance.