Welding Business Insurance Coverage For Welders & Contractors

If you conduct welding at your business, then you need welder liability coverage. A lot can go wrong when welding, and welder insurance can protect your business from legal and medical costs should something go awry.

This guide will go over the different types of insurance that welding businesses and contractors need, as well as the cost of welding insurance coverage.

Do You Need Welding Contractors Insurance?

First of all, yes, welder insurance is necessary, not optional. Whether or not it is a legal requirement depends on your state; some states require general liability insurance for welders. Check the welding license requirements where you will operate to see what is legally required.

If you have any employees, you also are required by law to get workers’ compensation insurance.

Even if your state does not require you to get liability insurance for welders, you should do it anyway to protect your business, welding equipment and ensure smooth operations in case of any issues.

Here are some examples of types of businesses that may need welding insurance:

• General purpose welders
• Ironworkers
• Fabricators
• Production workers
• Robotic welders
• Underwater welders
• Structural steel welders
• Etc.

If your business carries out welding, you need welding insurance, regardless of your specific niche, or if welding is the main thing you do or not.

Types Of Insurance for Welding Businesses & Contractors

Here are the various types of insurance that welders should consider getting.

• General liability insurance: This is the most basic and essential type of insurance coverage for your business. In general, including those involved in welding. It covers the costs of damages to third parties and their property. So, say someone who doesn’t work for you walks into your shop while someone is welding, and gets hit by a spark. Your general liability insurance can provide coverage and pay for their burn treatments.

• Personal liability insurance: Also called “errors and omissions” insurance, this type of insurance comes into play if someone sues you for damage they claim resulted from your neglect or poor advice.

• Commercial property insurance: This is the type of insurance covers your need to protect your own commercial property. Remember, general liability only protects other peoples’ property.  This insurance provides tools and equipment coverage for many policies.  For other, you may need a dedicated type of coverage for tools and equipment insurance.

• Commercial auto insurance: If you drive during the course of operating your business, you should get commercial auto insurance. Your personal auto insurance will not cover you while you are driving for business purposes.

• Inland marine insurance: When transporting your equipment to and from job sites, you can cover that equipment in transit using inland marine insurance. They will be covered at job sites with this insurance too.

• Business owner’s policy: You can get this type of policy, known as a “BOP,” if you want to roll together a couple of policies. A common combination is general liability insurance and property insurance.

• Worker’s compensation insurance: If your business has any employees, they need to be covered with worker’s compensation. This type of insurance can help cover medical bills and lost wages if any of your employees get sick or injured on the job.

How Much Does Welders Insurance Cost?

At the lower end, you can get welder insurance for under $400 a year. That is specifically for general liability insurance. But welding insurance usually ranges between $500 and $1,500 a year.

Here are some factors that can affect the costs of insurance:

• Type of business: The type of business you operate as well as the specific types of welding tasks you perform will determine a lot about your level of risk. For that reason, this is a significant factor in determining pricing for your insurance policies.

• Location: Your geographical region can impact the pricing for your insurance, because some locations impose more risks than others. This may particularly pertinent if you regularly drive as part of your business activities. For example, mobile welders will normally have less coverage requirements than those that work at a fabrication factory.

• Types of insurance for welders you choose: The types of policies and the number of policies you decide to get for your welding business will affect your costs. The more policies you purchase, the higher your expenses will be for insurance.

• Amount of deductible: The higher the amount of your deductible, the less expensive your insurance will be for your welding company. Just keep in mind that if you need to use your insurance, a high deductible means paying more out of pocket before the insurance starts paying for things.

• Maximum coverage amount: The lower the maximum cap is on your coverage, the less expensive your insurance policy will be.

• Claims history: If you have a history of making claims, you will have demonstrated you are a high-risk customer, and be charged higher rates. But if you have a clean claims history, you may qualify for more competitive rates.

• Bundling and discounts: If you bundle policies together, you might qualify for discounted welder insurance. There might be other discounts available too. You should ask when you apply.

Where to Get A Welding Contractor Insurance Quote

If you are ready to get business insurance for welders, click below to request personalized quotes from our recommended welder insurance companies.