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Welding Insurance Coverage For Your Business

From oil pipelines to building staircases, welders have their hands in a lot of industries – and with that comes substantial risk.

As a welder, it is important to know what your insurance policy covers. But more importantly, you should know what isn’t covered. Welding insurance coverage is notorious for having limited options and policies with a lot of exclusions.

Finding quality welding insurance can be tough because most insurance companies want to group all welders into the same category. The welder working on a fence and the one working on an airplane are both viewed as high liability risks, even though they may not be.

New Mobile Welders Program

A+ rated carrier. $1,000 per welder annual premium subject to acceptable welding operations. Available in most states. Click "Talk To A Risk Advisor" to get a same-day quote. Not available via online quote at this time.

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Additionally, welders have not been considered a favorable type of business to insure for many insurance companies due to the amount of claims they are expected to pay out every year.

The more you know about your welders insurance policy and the quoting process, the better off you will be in the long term. Ultimately, finding an agent with experience insuring welders is the best way to get through the process.

Essential Welding Insurance Coverage

Even though you probably have more exposure to risk than the three policies below will cover, here are the basics that all welders need to start with.

General Liability (With Products & Completed Operations)

General liability covers bodily injury and property damage you cause to others. It can also cover property damage and bodily injury caused by your work.

This is important coverage for welders because people rely on their products to perform as intended. Say you’ve built a fence on the roof of an apartment building. A tenant leans against it, and your weld breaks, resulting in that person falling off the building. You could be responsible for the damages arising from that event. This would also be covered by your general welding liability insurance and completed operations insurance.

Inland Marine/Equipment

Welders frequently have generators or large welders
mounted on their truck or trailer. These welders are expensive and are a theft
risk. Additionally, we often see irreparable damage to them after even a minor
car accident.

If you want to protect the financial investment that is your equipment, this policy is how you would do it. Just give your insurance broker a list of all the equipment you want to be covered, along with how much each piece is worth.

You can also include coverage for smaller hand tools if they are worth under $500 per item. In the event of a theft, this ensures you can get back up and running with little cost out of your pocket.

Commercial Auto (And Trailers)

If you use your truck on the job site or to transport material, you need some form of commercial auto insurance on it (and your trailer, if you have one).

We recommend that you purchase a commercial auto policy with at least a $1 million liability limit. We also generally recommend purchasing higher limits depending on the size of the truck and how much you use it.

How much does welding insurance cost?

The price of welding insurance varies. We see the minimum cost for general welding insurance start at around $1,250 annually for a one-welder business doing mobile welding. Additional welders are generally and extra $1,000 per welder (e.g. a three welder operation will be $3,250). If you are working in a shop doing fabrication or building a product, this number can be more dependent on the types of products you are working on.

While that cost covers the commercial general liability policy, if you have a welding machine that is attached to a truck, you can expect that inland marine policy to cover that welder to start at roughly $500 per year. This will cover theft, weather damage, or even damage caused by an auto accident.

Expert Tips & Tricks for Welding Insurance Policies

Obtain Blanket Additional Insured and Waiver of Subrogation Endorsements

When obtaining an insurance quote, be sure to include an endorsement that automatically adds your clients as additional insured if required by a contract.

Throughout the year, you may encounter jobs that necessitate adding your client as an additional insured on your policy. With a standard policy, this process could take up to a week and require additional fees each time you take on a new client with this requirement.

Instead, opt for a blanket endorsement that allows for unlimited additional insureds. This way, you can issue a certificate on the same day, avoiding delays and often saving on premiums.

Beware of Subcontractor Exclusions or Limitations

While sometimes unavoidable, welding policies may include endorsements that exclude liability arising from subcontracted work. Additionally, some endorsements may only provide coverage for subcontractors if they have their own insurance policies in place.

This is a common consideration when hiring subcontractors. If applicable, ensure that your subcontractor has insurance coverage and obtain a certificate of insurance each year for your records.

Understand Product Limitations or Exclusions in Your Policy

Many welding general liability policies contain limitation endorsements that restrict the type of work covered under the policy. Such limitations often pertain to work done on vehicles, trailers, structural welding, grain silos, and more.

If you suspect that your policy includes such an exclusion, we recommend reading and understanding the extent of your coverage under the policy.

Welding Insurance Application

There are two ways you can get started on a welding insurance quote. You can go through our online portal to get started or schedule a call with one of our risk advisors to review your business operations.

If you do decide to get a quote online instead of booking a call with our team, please know that our mobile welder insurance program is new and currently unavailable on our online quote platform. We will send you an email shortly after entering your information to help you finish up the welding quote.

If you schedule a call, we can usually have your quote ready while you are on the phone in 15 minutes!

Austin Landes, CIC

About The Author: Austin Landes, CIC

Austin is an experienced Commercial Risk Advisor specializing in property & casualty risk management for religious institutions, real estate, construction, and manufacturing.

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