February 5th, 2020
From oil pipelines to aviation, 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.
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.
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 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.
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.
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.
The price of welding insurance varies. We see the minimum cost for general welding insurance land at around $1,200 annually, depending on your state. If you are an oil pipeline welder, the insurance premium usually begins at about $2,500 annually.
Before getting started, you should know what type of jobs you will be taking in the year ahead. This will help us get you the right policy to protect the business you have built.
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