The recycling industry in Canada plays a crucial role in environmental sustainability and economic growth. However, insuring these businesses can be challenging due to their unique risks. This article explores the difficulties brokers face in placing specialty insurance for recycling businesses and how SWG Specialty provides tailored solutions.
The Importance of Recycling Businesses in Canada
Recycling businesses are vital to Canada’s waste management strategy. They help reduce landfill use, conserve resources, and support a more sustainable economy.
Canada’s recycling facilities industry has remained stable in recent years, generating approximately $1.1 billion in annual revenue as of 2025, supported by ongoing investment in infrastructure and recycling programs. [1]
The sector continues to evolve across key segments including plastics, metals, paper, and electronics, driven by increasing regulatory requirements and demand for sustainable waste solutions.
Challenges in Insuring Recycling Businesses
Recycling businesses face several unique risks that make them hard to insure. These include:
- Fire Hazards: The accumulation of flammable materials increases the risk of fires.
- Operational Risks: The handling and processing of waste materials can lead to accidents and injuries.
These risks often result in higher premiums and fewer insurers willing to provide coverage, making it challenging for brokers to find suitable policies for their clients.
The Role of Canadian Brokers
Canadian brokers play a critical role in navigating the hard-to-place insurance market. They must understand the specific needs of recycling businesses and leverage their relationships with specialty insurers to secure the best coverage. Brokers can also educate their clients on risk management practices to reduce the likelihood of claims.
SWG Specialty’s Solutions
SWG Specialty is a leading provider of niche insurance products, offering comprehensive coverage tailored to the needs of recycling businesses. Their offerings include:
- Property Insurance: Protects against damage to buildings and contents due to fire, theft, and other perils.
- Commercial General Liability (CGL): Covers legal liabilities arising from bodily injury, property damage, and personal injury claims.
- Inland Marine Insurance: Covers goods in transit and mobile equipment.
By offering these specialized products, SWG Specialty helps brokers provide their clients with the protection they need to operate confidently.
Canadian Data and Trends
Recent data highlights both the scale of Canada’s waste challenge and the opportunity for recycling businesses:
- Canadians generated 36.5 million tonnes of solid waste in 2022, reflecting continued pressure on waste systems. [2]
- On a per capita basis, Canadians produce approximately 684 kg of waste per person annually, among the highest globally. [2]
- Only about 27% of Canada’s waste is recycled or diverted, while the majority continues to be sent to landfill or other disposal methods. [3]
Despite these challenges, the recycling industry is experiencing steady growth, supported by:
- Government-led sustainability initiatives
- Extended Producer Responsibility (EPR) programs
- Increased investment in advanced recycling technologies
- Growing public and corporate demand for circular economy solutions [4]
Commodity price volatility remains a key factor influencing profitability. Fluctuations in material values—particularly plastics and metals—can create pricing advantages in some segments while putting pressure on margins in others. [1]
Insuring recycling businesses in Canada presents unique challenges due to their specific risks. However, with the right approach and the support of specialty insurers like SWG Specialty, brokers can find suitable coverage for their clients. By understanding the market and leveraging tailored insurance products, brokers can help recycling businesses thrive in a competitive and essential industry.
For more information on how SWG Specialty can assist with your specialty insurance needs, contact us today.
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