Getting welding business insurance is like giving your company the appropriate protective equipment. Without insurance, your welding business faces a higher risk of future financial losses due to accidents, injuries, and other events. While there isn’t a specific policy called “welding business insurance,” your welding business can benefit from having liability insurance.
Business insurance for welding companies may cost more than other industries. However, welders can still find options for affordable and customizable insurance policies.
At Infinity Insurance Agency Inc. (IIA), we work with welders to help them understand which options best fit their business budget. Read on to learn which types of insurance coverage you may need for your welding business.
Who needs welding insurance?
The welding industry encompasses a wide array of businesses. From putting together aircraft to building metal fences, welding businesses fall into two main categories:
Mobile welding businesses
These are usually small businesses that provide on-site welding at residences, factories, construction and job sites, etc. They may be run by a single business owner or a team. They usually offer infrastructure or machinery repair. For example, they might weld a damaged railing on a staircase.
This type of business may need business auto insurance to cover their business vehicle. General liability insurance may help with injuries to third parties caused at the job site.
Permanent welding shops or sites
These include welding businesses operating from a single location. They may be a single-person operation or have multiple employees. They can perform custom fabrication, production welding, ornamental work, etc.
They often operate heavier and more expensive machinery. Whether the business owner rents or owns the site, commercial property insurance may help cover damage to the shop infrastructure or equipment when a covered accident takes place.
Why do I need welding business insurance?
An insurance policy for your welding business can help when the following issues arise:
- Your clients ask for proof of insurance: Contractors or clients often require welding subcontractors to have insurance before joining a site. Getting an insurance policy is a great way to prevent losing out on future business contracts.
- An accident occurs on-site: Welding machinery can be dangerous and often requires formal training. A single spark at a worksite can cause a fire or an explosion. An insurance policy may help you cover the costs of such accidents.
- Your welding equipment gets damaged: Weather or accidents can cause damage to expensive welding equipment, leading to costly repairs or replacement.
- Your business vehicle is involved in an accident: Personal auto insurance doesn’t cover accidents involving your business vehicle. If you run a mobile welding company and you’re involved in a traffic accident, your business may face significant financial losses.
While these welding accidents are the most common, your particular business may encounter other events that an insurance policy may cover.
How much does insurance for welders cost?
As you can see, welding businesses face several risks. But how much will your welding business need to spend on a business insurance policy?
This depends on several factors, including:
- The size of your business and the number of employees
- The business insurance policy limits required in your state
- The amount of the deductible you choose (the amount you pay before the insurance policy kicks in)
- Your business profile: age of your business, any previous events, certifications, services offered, etc.
To get a quote based on your unique business profile, speak to an IIA insurance agent.
Why choose Infinity Insurance Agency (IIA)?
Small business owners work with IIA because we understand their unique businesses require personalized insurance policies. When working with IIA, you can expect:
- Friendly agents experienced in business insurance requirements and coverage options
- Spanish-speaking agents
- Affordable coverage options
- Flexible payment plans
- Personalized coverage options
What coverage does a welding business need?
Your company’s size, location, and budget will dictate what insurance policy you buy. Consider the following options:
Commercial general liability insurance
Commercial General Liability insurance may help cover claims like property damage to a third person or bodily injury to a non-employee.
If you have a welding business, this may help cover the costs of damage to your client’s property, an accidental slip or injury by a non-employee, or even a claim of libel or copyright infringement by a competitor.
Commercial auto insurance
If you operate a vehicle to transport your mobile welding business or transport welding equipment, commercial auto insurance may help in the case of a traffic accident.
Since personal auto insurance may not cover you or your employees if the vehicle is used for business purposes, having this type of insurance may help with the costs of a covered accident.
Commercial Property Insurance
This type of insurance may help cover the costs of damaged property, such as the welding business site or equipment.
Product liability and professional liability insurance
Product liability coverage can help businesses with the financial liability arising from injury or damage caused by the products you sell. For example, a faulty handrail your company installed breaks when someone uses it and your business has to pay for damages.
Professional liability coverage, also known as errors and omissions insurance, may help you deal with claims coming from a dissatisfied customer or a claim of negligence. For example, a claim stating that you didn’t meet the necessary codes when performing welding services at a construction site.